Wall Street Caps a Volatile July as Big Tech Earnings Revive the AI Trade

Editorial Desk·August 1, 2026·4 min read

Verified Story

US stocks ended a turbulent July on a strong note as blockbuster Big Tech results reassured investors about artificial intelligence spending, even as Treasury yields climbed to multi-year highs.

US equities closed out a choppy July on an upbeat note as a wave of strong Big Tech earnings revived optimism about the artificial intelligence trade. Amazon shares jumped about 15% after its cloud business beat expectations, following a roughly 15% surge in Microsoft the prior day on strength in its Azure unit, while Apple slid around 7% as weaker China and services revenue and higher chip-related costs disappointed investors. The four largest cloud providers signalled they would spend a combined $720 billion to $745 billion on capital projects in 2026, reassuring markets that AI infrastructure demand remains robust. The gains came against a tense backdrop: long-term Treasury yields climbed to multi-year highs, with the 10-year note touching its loftiest level since early 2025, as higher oil prices and sticky inflation pressured bonds. For the month, the S&P 500 slipped about 0.1% and the Nasdaq fell roughly 3.2%, its worst month for chip stocks since 2008, while the Dow edged up around 0.3% for a fourth straight monthly gain.

Key Points

1Amazon rose about 15% on strong cloud results, following a similar jump in Microsoft.
2Apple fell around 7% on weaker China and services revenue and higher chip costs.
3The four largest cloud providers plan $720-745 billion of capital spending in 2026.
4For July, the S&P 500 slipped about 0.1% and the Nasdaq fell roughly 3.2%.

Why This Matters

Big Tech's spending plans and share moves shape retirement accounts and market sentiment, while rising Treasury yields signal higher borrowing costs that could eventually weigh on stocks.

#stock market#big tech#artificial intelligence#treasury yields#earnings

Original Source

Yahoo Finance ↗

Verified · Aug 1, 2026Read Original

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