(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

*

Futures up: Dow 0.26%, S&P 500 0.96%, Nasdaq 1.39%

*

Microsoft ( MSFT ), Meta surge after blowout quarterly results

*

Applied Digital ( APLD ) soars as Q4 revenue beat on AI-driven

demand

(Updates with prices, analyst comment before the opening bell)

By Nikhil Sharma and Pranav Kashyap

July 31 (Reuters) - Wall Street futures pointed to a

strong start on Thursday, as blockbuster earnings from Meta and

Microsoft ( MSFT ) signaled Big Tech's hefty artificial intelligence bets

were paying off.

Meta Platforms ( META ) soared 11.4% in premarket trading

after the social media giant forecast third-quarter revenue well

above estimates, thanks to AI boosting its core advertising

business.

Microsoft ( MSFT ) issued a record capital spending outlook

of $30 billion for the current quarter and reported

higher-than-expected sales in its Azure cloud computing

business. The stock surged 8.8% before the bell.

Other tech heavyweights Amazon ( AMZN ) and Nvidia ( NVDA )

also climbed 3.1% and 2.3%, respectively, while Microsoft ( MSFT ) was on

track to hit a $4 trillion market capitalization for the first

time.

At 08:40 a.m. ET, S&P 500 E-minis were up 61.25

points, or 0.96%, Nasdaq 100 E-minis were up 326.75

points, or 1.39%, and Dow E-minis were up 117 points, or

0.26%.

A Commerce Department report showed the Personal Consumption

Expenditure price index rose 0.3% in June, in line with

estimates by economists polled by Reuters. Annually, it stood at

2.6% against estimates of 2.5%.

"We haven't seen tariffs show up in the data yet. You're

seeing companies able to mitigate tariffs, whether it's by

altering their supply chain, raising prices, or cutting

expenses," said Stephanie Lang, chief investment officer at

Homrich Berg.

"In conjunction with good demand in the market from the

consumers, it's becoming a nice offset."

Separately, the number of Americans filing new

applications for unemployment benefits was at 218,000 for the

week of July 26, compared with estimates of 224,000, according

to economists polled by Reuters.

Attention now turns to Friday's non-farm payrolls report

and a looming tariff deadline, with President Donald Trump

refusing to extend trade talks for lagging partners.

Easing global trade war fears, signs of U.S. economic

resilience, and renewed AI optimism are behind Wall Street's

monthly climb.

The S&P 500 and blue-chip Dow are set for

a third straight monthly gain - their longest winning streak in

nearly a year - while the Nasdaq was on track for its best month

in over a year.

On Wednesday, however, the two indexes ended lower as

Federal Reserve Chair Jerome Powell diluted investor

expectations for an interest rate cut in September after the

central bank kept rates unchanged.

Traders now see a 58.8% chance the Fed will stay pat in

September as well, according to CME's FedWatch tool.

Powell said it was too early to predict a September rate

cut, and that current policy was not restricting the economy.

The statement came after stronger-than-expected GDP data for the

second quarter.

The "hold" verdict prompted another attack on Powell by

Trump, while Treasury Secretary Scott Bessent said he expected

an announcement on Powell's successor by year-end.

EU officials said European liquor could face 15% tariffs

from August 1 until a different agreement is reached, with talks

set to continue in the fall.

Trump's deal with South Korea on Wednesday cut the country's

import tariff to 15% from the previously threatened 25%.

Among other stocks, Applied Digital ( APLD ) soared 23.4%

after the data center operator surpassed estimates for quarterly

revenue.

Mastercard ( MA ) added 1% after reporting a higher

second-quarter profit.

(Reporting by Nikhil Sharma and Pranav Kashyap in Bengaluru;

Editing by Devika Syamnath)