NEW YORK, July 31, 2026, 09:10 EDT
- Nasdaq 100 futures rose 1.15%, while S&P 500 futures were up 0.40%.
- Amazon jumped 11% ahead of the opening bell, as Apple Inc. NASDAQ:AAPL dropped 7.8%.
- U.S. labor costs increased by 0.9% in the second quarter, surpassing expectations.
U.S. stock futures rose on Friday, driven by gains in Amazon’s cloud segment that offset Apple’s softer outlook. The Nasdaq 100 outperformed. The main session was set to open at 9:30 a.m. EDT.
Investors are starting to distinguish between companies that are effectively monetizing artificial intelligence investments and those that are struggling financially, rather than dismissing hefty AI budgets across the board. On Thursday, Microsoft Corp. NASDAQ:MSFT met this investor standard. Meta Platforms Inc. NASDAQ:META fell short.
| Gauge | Pre-open move | Thursday cash close |
|---|---|---|
| Dow futures / Dow | up 0.54% | rose 1.19% to 52,208.06 |
| S&P 500 futures / S&P 500 | up 0.40% | climbed 1.66% to 7,437.63 |
| Nasdaq 100 futures / Nasdaq Composite | up 1.15% | advanced 2.78% to 25,122.18 |
Futures levels were recorded at 7:23 a.m. EDT, with cash closings taken from Thursday.
Technology shares led Thursday’s recovery, climbing 5.2%, and the market saw more advancers than decliners by a ratio of 2.2 to one. Trading volume exceeded the average from the last 20 sessions, with overall breadth also positive.
Each of the three major indexes was set to close the week higher, despite posting declines for the month. July proved difficult overall. The Philadelphia Semiconductor Index dropped over 20% during the month. Meanwhile, the equal-weight S&P 500 was on track for a fourth consecutive monthly gain.
Amazon’s quarterly results shed light on Friday’s buying interest. AWS accounted for 21% of total sales, yet contributed 60% of operating income. Its margin, at a calculated 39.3%, was almost three times the group’s overall margin.
| Amazon Q2 metric | AWS | Excluding AWS | Group |
|---|---|---|---|
| Revenue | $42.2 billion | $158.4 billion | $200.6 billion |
| Operating income | $16.6 billion | $10.9 billion | $27.5 billion |
| Operating margin | 39.3% | 6.9% | 13.7% |
Calculated through subtraction. Totals may vary due to rounding. Figures are based on Amazon’s disclosed data.
Chief Executive Andy Jassy said, “AWS is booming.” Shares rose despite a $7.6 billion outflow in trailing free cash flow. Investors backed a $220 billion plan for capital spending. The AWS backlog reached $496 billion. Reuters
Microsoft reported a similar deal. Azure increased by 43%, while executives projected 45% growth excluding currency fluctuations. Meta’s revenue climbed 28%, but free cash flow dropped by 91%.
| Company | Growth evidence | Main concern | Share response |
|---|---|---|---|
| Amazon | AWS revenue increased by 37% | Trailing twelve months FCF: -$7.6 billion; capital expenditure: $220 billion | Shares up 11.0% in premarket trading |
| Microsoft | Azure revenue rose by 43% | Capital spending for 2026 reported at $175 billion | Shares gained 15.6% on Thursday |
| Meta | Revenue grew by 28% | Second-quarter FCF at $784 million, a 91% decline | Shares dropped 8.0% on Thursday |
| Apple | Revenue rose 16.4% | September outlook: +9%-11% compared to +12% | Shares declined 7.8% in premarket |
The figures reflect a mix of company disclosures, analyst projections, and initial market valuations.
Apple delivered a performance that stood apart from the cloud sector. Revenue increased by 16.4%, with iPhone sales climbing 21.7%. However, services revenue fell short of expectations, and guidance for September lagged behind analyst forecasts. Chief Executive Tim Cook pointed to “very significant supply constraints.” Reuters
Apple’s bigger valuation shifted the math. Its estimated premarket drop was greater than Amazon’s advance by straightforward calculation.
| Company | Prior-close market value | Early move | Preliminary implied change |
|---|---|---|---|
| Amazon | $2.56 trillion | up 11.0% | increase of $282 billion |
| Apple | $4.91 trillion | down 7.8% | decrease of $383 billion |
| Combined | — | — | net loss of $101 billion |
These initial estimates rely on previous session capitalisations and early premarket moves. They do not serve as predictions of closing values.
Nasdaq futures advanced regardless. This indicates that buying was not limited to a single positive earnings result. It further highlights that evidence of cloud strength held greater significance than overall spending on Friday.
Labor costs put a brake on the rally as rate-sensitive sectors reacted. The Employment Cost Index climbed 0.9%, topping the projected 0.8%. Wages were up 3.2% year-on-year. June’s core PCE inflation was at 3.3%, with second-quarter growth cooling to 1.5%.
Cash trading remains halted, setting the stage for the week-ahead test. July payrolls, anticipated on August 7, are forecast by economists at 91,000 jobs. Over a quarter of S&P 500 firms are scheduled to release results as well.
John Plassard at Cité Gestion summed up the requirement concisely. “Companies must also reassure investors about the drivers of future growth,” he said. Friday’s pricing reflected that principle. Reuters
Risks: Premarket gains may not hold once trading begins. Accelerating wage growth or robust payroll figures could renew expectations of rate hikes. Amazon continues to post significant cash burn, and Apple could still face ongoing supply issues.
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