Shares of Microsoft spiked Thursday following blowout quarterly results, lifting the tech giant into the previously unprecedented $4 trillion club along with Nvidia, another artificial intelligence standout.

The S&P 500 and Nasdaq surged to fresh record highs on Thursday, powered by outsized gains in heavyweight tech stocks riding a new wave of investor confidence in artificial intelligence. Microsoft, which reported better-than-expected quarterly results,

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.

Shares in artificial intelligence heavyweights Microsoft and Meta Platforms both surged in European trading on Thursday, after blowout quarterly results after-market on Wednesday. Meta shares surged 12.

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.