Wall Street has been tempering their expectations for rate cuts at the Fed’s next meeting in September. Traders now see a 39.2% chance of a rate cut, according to data from CME Group. That’s down from 58.4% a week ago and a 75.4% chance a month ago.

And both Meta and Microsoft were already on track to spend more than 30% of this year’s revenue on capital expenditures, compared with about 15% to 20% historically. Those outlays were already beginning to look like mere table stakes after Google parent Alphabet used its report last week to bump up its own capex spending plans for this year to $85 billion.

Meta’s shares jumped more than 11 per cent off the back of better than expected earnings and forecasts, adding more than $150bn to its market value in a sign of Wall Street confidence as Mark Zuckerberg doubles down on his big bet on artificial intelligence.

Meta Platforms forecast third-quarter revenue well above analysts' estimates on Wednesday (July 30), as artificial intelligence once more powered its core advertising business, sending its shares soaring 11% in extended trading.