US football fans erupted in celebration across the country on Thursday as their team reached the next round of the 2014 FIFA World Cup™, fuelling a surge of popularity for a sport struggling to gain a foothold.

Crowds gathered in bars, pubs and in front of open-air big screens nationwide to watch Team USA battle Germany - a losing effort for the Americans, but enough to move on in the tournament in Brazil.

Football mania even appeared to hit Wall Street, where trading volumes were down about 10 per cent during the game, which started at noon on the US East Coast - the perfect excuse for long lunch breaks.

And President Obama hailed the US team's progress to the next round, saying: "We could not be prouder of them. ... They are defying the odds and earned a lot of believers in the process."

In Los Angeles, it was beer for breakfast at the German-themed Red Lion pub, where fans from the two countries gathered for the match, which sent both nations through to the final 16.

"It's pretty impressive, given that we're not a soccer country at all," Zach Fuhr, 23, said, in the packed garden of the pub, in LA's hipster Silver Lake neighbourhood. "We've already exceeded expectations... considering that we were in the group of death," he added, referring to the group which also contained Portugal and Ghana.

Germany's Thomas Muller scored to give the European heavyweights a 1-0 win over USA. But Team USA went through to the knockout round anyway, after Portugal's 2-1 victory over Ghana was not enough for them to overtake the Americans in second place in Group G.

USA's match against Portugal on Sunday evening drew nearly 25 million viewers - more than the NBA finals or baseball's World Series, mainstays of the US sporting landscape.

It is the fourth time USA has got past the group stage at the World Cup. Their best ever performance was getting into the quarter-finals in 2002. The Americans will play Belgium next, on 1 July, in the first knock-out stage of the tournament.

Parties across the nation
Fans celebrated at a variety of venues. Outdoor parties were staged in Washington, on Hermosa Beach outside Los Angeles and in Chicago's Grant Park. In New York, fans poured into pubs and delis to watch the lunchtime match, with standing room only and a queue down the block to get into one German beer house in midtown Manhattan.

Delis had TV screens in operation so that hungry New Yorkers wouldn't miss the action as they lined up for salads and sandwiches. On nearby Wall Street, trading in all equity markets for the two hours the match was on were down about 10 per cent compared to recent June trading, an official with a leading exchange said.

In Washington, several thousand people crammed into Dupont Circle, using steps of the white marble fountain in the middle of the park as bleachers to get a better view of the action on two big screens. "My boss said it's fine to take a long lunch," said Sam Black, who works a few blocks away, sitting with friends on the grass and sporting a US jersey. "I watch at least a game a day," he added.

New York state governor Andrew Cuomo even gave state employees an extra hour off for lunch to watch the match.

President Obama was photographed watching the end of the game on Air Force one, groaning when the US narrowly missed a goal.

Opinion is divided over whether the surge of World Cup excitement will lead to a longer-term boost in popularity of football in America. Blogger Matt Verderame of the SB Nation website is sceptical - but said lower expectations for the US team could be helpful.

"Americans are used to being the big bully on the block athletically, and the World Cup offers a different feel. It's nice to be the underdog, pulling for a tough team with nothing to lose," he said.

Back in Los Angeles, German-born Tony Tomik, 24, raised an ornate German ale mug at the TV screen set up in the Red Lion beer garden. "We're the best right now," he said.

"The only reason I like America is because of (German US coach) Jurgen Klinsmann. He's one of my idols. The reason they're playing good is because he taught the German team before."