31st July 2026 – (New York) Nasdaq 100 futures nudged 0.5% higher in overnight dealing, with the Dow Jones Industrial Average up 0.2% and S&P 500 futures a touch firmer, as Wall Street steadied following a bruising midweek sell-off. Sentiment brightened after Amazon vaulted more than 9% in late trade on blockbuster second‑quarter revenue, underpinned by a resurgent cloud division that reinforced the investment case for artificial intelligence spending.
Apple also topped expectations on fiscal third‑quarter revenue thanks to a 22% jump in iPhone sales, though a disappointment in services left the shares down around 6% after hours. The moves followed a powerful rally during Thursday’s session led by Microsoft, which leapt 16% as stronger‑than‑expected Azure growth reignited enthusiasm for AI infrastructure. That momentum rippled through chipmakers, pushing the iShares Semiconductor ETF more than 8% higher.
The recovery came after Wednesday’s rout, when the Dow sank over 1,100 points in its worst day since April 2025 amid worries the Federal Reserve’s decision to hold rates steady signalled a policy stance too relaxed for persistent inflation. Yields jumped as investors repriced the outlook, with the 30‑year Treasury above 5.2%, near the highest levels since 2007. Strategists said leadership is broadening beyond the “Magnificent Seven” as markets pivot from momentum to fundamentals, with expectations for near‑term Fed cuts being dialled back.
Asia took the baton decisively. South Korea’s Kospi surged more than 13% on Friday, led by heavyweight gains in SK Hynix and Samsung Electronics, with the spike triggering a temporary trading halt. Japan’s Nikkei 225 jumped over 3% in early moves, while Australia’s S&P/ASX 200 advanced close to 1%. Indications for Hong Kong pointed to a firmer open, with futures last above the previous close for the Hang Seng.
Earnings headlines outside the mega‑caps added to the cross‑currents. First Solar rose more than 3% after posting better‑than‑expected quarterly profits despite revenue near consensus. Rivian gained nearly 2% as it trimmed 2026 spending plans and narrowed its projected losses for this year. Reddit slipped over 7% amid concerns about search referral traffic from Google. Coinbase fell more than 5% after recording a third straight quarterly loss, underscoring lingering fragility in crypto‑exposed names even as risk appetite returned elsewhere.
Despite the week’s swings, the major U.S. averages remained on course to finish higher heading into Friday’s session, with the Dow up about 0.5%, the S&P 500 ahead roughly 0.4% and the Nasdaq Composite up around 0.6%. Survey data from the American Association of Individual Investors pointed to persistent caution on Main Street, marking a 25th consecutive week of above‑average bearishness even as bulls ticked up modestly. Energy stocks continued to benefit from robust refining margins, with several US refiners hitting records as strong crack spreads buoyed profits.
