(Updates to afternoon U.S. trading)

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Global stocks up after Meta, Tesla earnings

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Microsoft ( MSFT ) tumbles after downbeat cloud outlook

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Dollar dips, gold hits record as traders rush to borrow

metal

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Fed keeps U.S. rates steady, ECB cuts rates

By Amanda Cooper and Lawrence Delevingne

LONDON/BOSTON, Jan 30 (Reuters) - Wall Street shares

advanced on Thursday as investors cheered updates from Meta

and Tesla , while the dollar dipped, further

boosting gold prices.

The Federal Reserve held rates steady on Wednesday, in line with

expectations, with Fed Chair Jerome Powell saying there would be

no rush to cut them again, leaving the dollar to drift on

Thursday.

Gold often benefits from a weaker dollar and neared

record highs in U.S. market trading hours.

The first earnings from the group of so-called "Magnificent

Seven" megacap tech stocks met with a mixed reaction from

investors, many of whom are now scrutinising these companies' AI

spending plans in light of the emergence of low-cost Chinese

startup DeepSeek that upended equity markets this week.

Microsoft ( MSFT ) beat quarterly revenue estimates, but a

downbeat outlook for its cloud computing business pushed its

shares down 6%, while Meta forecast first-quarter revenue below

market estimates, but pledged to cut costs, lifting its shares

by 1.5%.

Tesla's profit margins

in the fourth quarter missed expectations, yet its shares

rose by about 3.4%.

Apple ( AAPL ) reports results later on Thursday.

"The new approach to AI likely does not jeopardize the bull

market, as broader market participation and Fed rate cuts are

likely to act as tailwinds," Jeff Buchbinder, chief equity

strategist for LPL Financial, said in a note on Thursday.

The Dow Jones Industrial Average and S&P 500 both

rose about 0.5%, and the Nasdaq Composite added about

0.15%.

Data earlier on Thursday showed U.S. economic growth slowed in

the fourth quarter, but remained robust enough for investors to

expect the Fed to lower rates only gradually this year. Gross

domestic product increased at a 2.3% annualised rate last

quarter, below estimates in a Reuters poll for a rise of 2.6%,

after accelerating at a 3.1% pace in the July-September quarter,

the Commerce Department's Bureau of Economic Analysis said in

its advance GDP estimate on Thursday.

"The U.S. consumer has been unstoppable, supported by wealth

creation, a strong labor market, and lending," Ellen Zentner,

chief economic strategist for Morgan Stanley Wealth Management,

said in an email. "Still, inflation is still a bit too high for

the Fed's liking and the bar to a March rate cut is rising."

U.S. Treasury yields fell on Thursday in line with declining

European government bond yields. The yield on benchmark U.S.

10-year notes dropped 4.3 basis points to 4.555%.

President Donald Trump's policies remain a risk for the Fed's

policy outlook, and Saturday is likely to see new tariffs

slapped on Canada, Mexico and possibly China.

The European Central Bank cut interest rates as expected on

Thursday and reiterated that euro zone inflation is increasingly

under control despite concerns about global trade.

On European markets, the STOXX 600 index hit a new

record high, rising 0.86%, in a heavy earnings day that included

results from Deutsche Bank, energy producer Shell

and retailer H&M.

The euro and sterling were flat on the day at

$1.04 and $1.24, respectively.

The yen, however, strengthened about 0.65% to 154.25 per dollar

with Bank of Japan Deputy Governor Ryozo Himino saying

in a speech that the central bank will continue to raise

interest rates if the economy and prices move in line with its

forecasts.

In commodities, gold rose 1.25% to $2,792 an ounce to

hit record levels, taking advantage of the drop in the dollar.

Gold prices have risen sharply this week, partly driven by

nervousness over Trump's tariff plans and the possibility -

albeit distant - of him imposing duties on precious metals

imports.

Even though Trump has not mentioned bullion shipments in his

tariff plans, traders are racing to borrow gold from central

banks, which store the metal in London, following a surge in

deliveries to the United States, two sources familiar with the

matter said.

"Despite the fact that tariffs on gold in the States are

extremely unlikely given that it is a reserve asset, risk

managers are taking no chances and moving metal into the

States," said StoneX analyst Rhona O'Connell.

Oil prices reversed earlier losses, rising around 0.2% on the

day, leaving U.S. crude futures at $72.75 a barrel and

Brent crude at $76.91.