This content was published on
July 30, 2026 - 19:00
4 minutes
(Bloomberg) — A rebound in giant chipmakers lifted stocks as dip buyers emerged on speculation that the artificial-intelligence trade that has powered the bull market has more room to run.Following a selloff in one of Wall Street’s most-crowded bets, a gauge of semiconductor giants rallied 8%. The Nasdaq 100 added 3% a day after entering a technical correction. Microsoft Corp. surged 17% on strong cloud growth. Oracle Corp. jumped after expanding its Google Gemini AI partnership. Those gains outweighed a disappointing forecast from Meta Platforms Inc.Attention will soon shift to results from Apple Inc. and Amazon.com Inc., with traders hoping to get more clues on the path for the Magnificent Seven megacaps. The group has lagged behind the broader market this year on worries over whether the vast sums being poured into AI will pay off.“Despite near-term volatility, the outlook for US equities remains constructive, supported by strong corporate earnings, ongoing AI adoption, a resilient economy, and favorable financial conditions,” said Sameer Samana at Wells Fargo Investment Institute.Data showed a pickup in consumer spending and solid business investment even as the economy grew at a weaker-than-expected pace. In the aftermath of the Federal Reserve decision, longer-dated Treasuries underperformed. The dollar fell. The yen climbed 2.3%, stoking speculation of intervention.The recent equity weakness appeared more consistent with a reset in a market that had become overheated than a breakdown in the primary trend, according to Keith Lerner at Truist Advisory Services Inc.“The bull market remains intact,” he said.Thursday’s rally in chipmakers trimmed their July plunge to 21% — which is still set to be the biggest monthly slide since 2008. Despite the insatiable demand for all things related to AI, the group has been under intense volatility after a massive stock-market run, with lofty expectations leaving little room for disappointment.“We remain constructive on the AI growth story, but believe investors should manage concentration risk by broadening their exposure to defensive tech stocks,” said Ulrike Hoffmann-Burchardi at UBS Chief Investment Office.Elsewhere, oil fluctuated on signs shipping across the Strait of Hormuz has picked up despite hostilities in the Middle East. Short-dated UK government bonds climbed after the Bank of England left rates unchanged and pointed to easing domestic inflationary pressures.Corporate Highlights:Qualcomm Inc., the largest maker of smartphone processors, gave a weak profit forecast for the current quarter — a sign that component shortages and rising costs are taking a toll on its main market. Arm Holdings Plc showed signs of fast growth in its data-center business, signaling its push into the hot segment is bearing fruit. Mastercard Inc. reported a 21% profit surge as the company benefited from its expansion beyond traditional payment-network services. Yum! Brands Inc. said its Taco Bell business is starting to recover from the cyclospora parasite outbreak linked to tainted lettuce that crimped its sales. Starbucks Corp. and Chipotle Mexican Grill Inc. raised their guidance after stronger-than-expected quarters. Carvana Co. said full-year earnings may fall short of expectations as the used-car retailer’s growth slowed and per-car profit slipped in the most recent quarter. Some of the main moves in markets:StocksThe S&P 500 rose 1.4% as of 1 p.m. New York time The Nasdaq 100 rose 3% The Dow Jones Industrial Average rose 1% The MSCI World Index rose 1.4% CurrenciesThe Bloomberg Dollar Spot Index fell 0.9% The euro rose 0.5% to $1.1524 The British pound rose 0.7% to $1.3460 The Japanese yen rose 2.3% to 159.66 per dollar CryptocurrenciesBitcoin rose 2.1% to $64,777.21 Ether rose 1.9% to $1,917.69 BondsThe yield on 10-year Treasuries declined two basis points to 4.66% Germany’s 10-year yield was little changed at 3.15% Britain’s 10-year yield declined five basis points to 4.98% The yield on 2-year Treasuries declined five basis points to 4.22% The yield on 30-year Treasuries was little changed at 5.20% CommoditiesWest Texas Intermediate crude fell 0.6% to $83.94 a barrel Spot gold rose 1% to $4,110.06 an ounce ©2026 Bloomberg L.P.
