Data cutoff: July 31, 2026, 2:02 p.m. Beijing time / 2:02 a.m. US Eastern Time.
The July 31 US cash session has not yet opened. This report therefore uses the official July 30 closing data, supplemented by early after-hours reactions to Apple and Amazon earnings.
Market Overview
US equities staged a powerful rebound on Thursday as Microsoft's results revived confidence in AI and cloud-computing investment.
| Index | July 30 Close | Daily Change | 2026 YTD |
|---|---|---|---|
| S&P 500 | 7,437.63 | +1.7% | +8.6% |
| Dow Jones Industrial Average | 52,208.06 | +1.2% | +8.6% |
| Nasdaq Composite | 25,122.18 | +2.8% | +8.1% |
| Russell 2000 | 2,946.10 | +1.4% | +18.7% |
The Nasdaq led the advance, while the S&P 500 fully recovered its previous-session decline.
Macro Background
The Federal Reserve kept the federal funds target range unchanged at 3.50%-3.75% by a 9-3 vote. Three officials preferred a 25-basis-point increase, signalling that inflation and energy-related supply shocks remain important policy risks.
The 10-year Treasury yield held near 4.67%, while the 30-year yield edged up to 5.22%. Elevated long-term yields remain a constraint on expensive growth stocks.
Sector Highlights
Microsoft and Cloud Computing
Microsoft surged approximately 15.6% to $451.10 after reporting quarterly revenue of $90.0 billion, up 18%. Microsoft Cloud revenue increased 27%, while Azure and other cloud-services revenue rose 43%.
Meta
Meta fell approximately 8.0% to $539.03. Revenue grew 28% to $60.8 billion, but expenses increased 55% and net income declined 14%. The company expects 2026 capital expenditures of $130-145 billion.
Semiconductors
Semiconductor shares rebounded strongly, with Micron gaining 18.4%, AMD 12.9%, the SOXX semiconductor ETF 8.5%, and Nvidia 2.7%.
Apple
Apple reported revenue of $109.4 billion, up 16%, and diluted EPS of $2.02, up 29%. Despite the earnings beat, its shares weakened after hours as investors assessed tariff-refund benefits, valuation and supply constraints.
Amazon
Amazon reported net sales of $200.6 billion, up 20%. AWS sales rose 37% to $42.2 billion, the fastest growth in 18 quarters. Shares gained more than 9% in early after-hours trading, although trailing 12-month free cash flow turned negative because of higher AI infrastructure investment.
Market Drivers
- Microsoft and Amazon provided clearer evidence of AI spending translating into cloud revenue.
- The divided Federal Reserve vote kept the possibility of tighter policy alive.
- High Treasury yields continued to pressure equity valuations.
- Apple and Meta demonstrated that strong revenue alone may not satisfy investors.
- The July 31 Employment Cost Index and earnings from Exxon Mobil and Chevron are the next major catalysts.
Outlook
The near-term environment is likely to remain characterised by an index-level rebound but substantial stock-level dispersion.
The S&P 500 may test the 7,480-7,520 area if Amazon's after-hours strength holds and Treasury yields remain stable. A renewed increase in yields, weaker Apple trading or additional inflation concerns could bring the index back toward the 7,315-7,350 support zone.
For observation only; not investment advice.