Amazon Surges, Wall Street Soars
US stock markets closed higher on Friday (July 31) as a surge in Amazon shares reignited optimism regarding the artificial intelligence sector. The S&P 500 index rose 0.7%, while the Nasdaq 100 gained 0.6%.
Amazon shares jumped approximately 15% after the company reported stronger-than-expected performance. Amazon Web Services revenue grew by 37%—the fastest pace since 2021—reinforcing the belief that demand for cloud computing services and AI infrastructure remains robust.
Amazon's gains offset pressure from Apple shares, which plummeted 7.4%—the steepest drop since April 2025. Apple's sales outlook disappointed as component shortages began to hinder production, highlighting that technology supply disruptions remain a significant risk for the industry.
AI optimism was further bolstered by reports from Microsoft and Samsung Electronics. Microsoft had previously recorded its largest stock surge since 2008, while Samsung saw a sharp rise in profits from its chip business. These conditions indicate that the development of global data centers and AI infrastructure continues at an aggressive pace.
Despite the stock market gains, the yield on the 10-year US Treasury note rose to around 4.71% after data showed labor costs grew by 0.9%, exceeding forecasts. Dallas Fed President Lorie Logan also warned that inflation could remain above target levels if the central bank does not take additional measures.
Newsmaker Analysis: The Wall Street rally continues to be underpinned by tech company earnings and AI euphoria; however, rising yields, inflationary pressures, and the US-Iran conflict remain threats. As long as major corporate earnings remain strong, tech stocks have the potential to hold their ground, although high valuations leave the market vulnerable to profit-taking. (arl)
Source: Newsmaker.id
