This content was published on
July 31, 2026 - 12:17
5 minutes
(Bloomberg) — Technology stocks rallied as a rebound in chipmakers carried into Friday, ending a month marked by a steep derating in this year’s most popular trade on an upbeat note. Amazon.com Inc. jumped 13%.An unprecedented 18% surge in South Korea’s Kospi Index led the global charge after memory giant SK Hynix Inc. hit the 30% daily limit. Nasdaq 100 futures climbed 1.1%, while those for the S&P 500 rose 0.5%. An exchange-traded fund tracking chip stocks gained 3.6% in early US trading. Europe’s Stoxx 600 headed for a record high.The recovery is offering investors a reprieve after worries over lofty valuations and whether vast spending on artificial intelligence will pay off pummeled a key gauge of chipmakers in July. Following robust earnings from Microsoft Corp. earlier this week, those concerns eased further after Amazon’s cloud unit recorded the fastest pace of quarterly revenue growth since 2021.The performance not only reassured investors that Amazon.com’s projected $20 billion increase in 2026 capital spending, to $220 billion, will generate sufficient returns, but also help sustain the global AI buildout.“The worst of the positioning washout is probably behind us,” said Florian Ielpo at Lombard Odier Investment Managers. “On valuations, I would say they are more reasonable than a month ago, not cheap. So this is not the end of the AI trade, it is probably the end of its easy phase.”Treasuries were mixed, with the 30-year yield falling one basis point to 5.20%. After long-dated bond yields touched multiyear highs following the Federal Reserve’s decision to hold rates steady despite still-elevated inflation, scrutiny of the central bank will remain high in the months ahead.“While the messaging on inflation has been firm, investors are still trying to assess how that commitment will translate into policy decisions,” said Francisco Simon at Santander Asset Management. “The combination of a credible inflation objective, but less visibility on the path of policy decisions, could translate into higher volatility in rates markets.”Brent fluctuated near $89.50 a barrel as traders assessed the latest developments in the war between the US and Iran. The situation remained tense after state-run IRIB News reported that six tankers were blocked in the Strait of Hormuz, citing a statement by the Islamic Revolutionary Guard Corps.The yen swung between gains and losses after its intervention-driven rally stalled on Friday as the Bank of Japan kept interest rates steady and Governor Kazuo Ueda offered little fresh support for the currency. The dollar rose 0.2% to snap a five-day losing streak.Japan likely spent around $52.8 billion intervening in the currency market on Thursday to prop up the yen, according to a Bloomberg analysis of central bank accounts.Corporate Highlights:Universal Music Group NV’s shares plummeted the most since July 2024, after the company’s subscription revenue growth fell short of expectations in the second quarter. Apple Inc. tumbled in late trading after component shortages weighed on the company’s sales forecast, signaling that industrywide supply constraints are taking a bigger toll than anticipated. BP Plc said it’s starting a process to market its North Sea business for a potential sale, as part of a wider review of the oil major’s portfolio. NatWest Group Plc raised its guidance for the year and said it will consider buybacks sooner than planned after beating earnings estimates in the second quarter. Credit Agricole SA reported better-than-expected results for the second quarter, as income rose at its French retail business and its asset management arm reported a record profit. Tesla Inc. is weighing a potential separation of its China business to pave the way for a possible merger with SpaceX, the Wall Street Journal reported. Some of the main moves in markets:StocksThe Stoxx Europe 600 rose 0.6% as of 11:14 a.m. London time S&P 500 futures rose 0.5% Nasdaq 100 futures rose 1.1% Futures on the Dow Jones Industrial Average rose 0.5% The MSCI Asia Pacific Index rose 4.8% The MSCI Emerging Markets Index rose 6.4% CurrenciesThe Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.2% to $1.1507 The Japanese yen fell 0.3% to 159.96 per dollar The offshore yuan was little changed at 6.7502 per dollar The British pound fell 0.1% to $1.3448 CryptocurrenciesBitcoin fell 1.6% to $63,671.65 Ether fell 2% to $1,882.24 BondsThe yield on 10-year Treasuries was little changed at 4.67% Germany’s 10-year yield advanced two basis points to 3.17% Britain’s 10-year yield advanced one basis point to 5.00% CommoditiesBrent crude rose 0.7% to $89.64 a barrel Spot gold fell 1.2% to $4,055.80 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Neil Campling.©2026 Bloomberg L.P.
