Amazon's Strong Quarterly Results Boost Tech Stocks and Wall Street Rebound
Amazon's strong second-quarter revenue, bolstered by its cloud-computing business, fueled a sharp rebound in Wall Street markets on Friday. The tech-heavy Nasdaq Composite rose 0.4%, while the Dow Jones Industrial Average and S&P 500 both gained 0.1%. These gains followed a period of volatility where the 10-year Treasury yield reached its highest level since January 2025, as investors recalibrated expectations for Federal Reserve rate cuts. The results from the "Magnificent Seven" companies reinforced investor confidence in continued artificial intelligence spending, with the four hyperscalers forecasting cumulative capital projects between $720 billion and $745 billion for 2026. While Amazon's stock surged, Apple's stock declined 9% after its Services and China revenue fell short of expectations. Additionally, oil prices rose as traffic through the Strait of Hormuz began to falter following a recent reescalation in hostilities between the U.S. and Iran. Despite the market recovery, individual investors remained uncharacteristically gloomy, with the AAII reporting that bearish sentiment among mom-and-pop investors remained high for a25th straight week.