NEW YORK, July 31, 2026, 12:05 p.m. EDT — U.S. cash markets have opened.
- The S&P 500 edged down 0.02% while the Dow declined 0.06%. The Nasdaq advanced 0.19%.
- Shares of Amazon.com Inc. NASDAQ:AMZN advanced 13.4%, while Apple Inc. NASDAQ:AAPL declined 9.4%.
- The yield on the 10-year Treasury rose to 4.727%. The probability of a rate hike in September increased to 69%.
U.S. equities gave up the bulk of their initial gains by midday on Friday as rising Treasury yields offset positive momentum from strong cloud earnings. The S&P 500 was unchanged, while the Nasdaq held a modest lead.
The market session showed selectivity rather than widespread gains. AI investments received positive investor reaction only when they led to immediate revenue gains. Small-cap stocks and long-term bonds continued to see declines.
| Market gauge | Level or price | Day move | Market signal |
|---|---|---|---|
| Dow Jones Industrial Average | 52,179.23 | -0.06% | Blue chips little changed |
| S&P 500 | 7,435.72 | -0.02% | Gains reversed |
| Nasdaq Composite | 25,170.38 | +0.19% | Mega-caps lift index |
| iShares Russell 2000 ETF NYSEARCA:IWM | $289.84 | -0.94% | Small caps underperform |
Index figures were released at midday. IWM was trading at 11:49 a.m. EDT.
Initial estimates indicate the reason behind the headline indexes’ steady appearance. Amazon gained an estimated $342 billion in market capitalization. In contrast, Apple wiped out nearly $462 billion. Microsoft Corp. NASDAQ:MSFT and Alphabet Inc. NASDAQ:GOOGL together increased by another $259 billion.
| Company | Price | Day move | Preliminary market-value change |
|---|---|---|---|
| Amazon | $266.93 | up 13.35% | market cap higher by $341.8 billion |
| Apple | $302.04 | down 9.41% | market cap lower by $462.2 billion |
| Microsoft | $460.15 | rises 2.01% | $67.4 billion added |
| Alphabet Class A | $349.32 | gains 4.69% | market value up by $191.5 billion |
| Four-company net | — | — | total up $138.4 billion |
The calculations are based on real-time market capitalization and price fluctuations recorded at approximately 11:49 a.m. EDT. Share counts are estimated, meaning figures are provisional.
The figures indicate that increased discount rates offset most of the benefit. “The market is no longer questioning whether AI demand is real,” said Bill Birmingham of REX Financial. The focus is now on observable revenue. reuters.com
Amazon Web Services reported a 37% increase in revenue, marking its quickest pace of growth in four years. Amazon increased its projected 2026 capital expenditures by 10% to reach $220 billion. The majority of cloud capacity for 2027 has already been booked.
Free cash flow painted a bleaker picture, shifting to negative $7.6 billion on a trailing basis. In contrast, it had stood at positive $18.2 billion a year before. Investors appeared to overlook this downturn.
Microsoft reported a 43% increase in Azure revenue, surpassing the projected 39.98%. Shares climbed 2.0% on Friday following a 15.5% jump on Thursday. The company forecast 45% constant-currency growth for Azure.
Apple reported a 16% gain in fiscal third-quarter revenue to $109.4 billion, while diluted earnings per share climbed 29% to $2.02, marking record levels for a June quarter.
The outlook was key. Apple projected revenue growth of 9%-11% for the current quarter, less than the consensus estimate of about 12%. Tim Cook described component shortages as “very significant.” Shares declined by 9.4%. reuters.com
Rates prevented a broader move higher. The yield on the 10-year note hit its peak since January 2025. On Wednesday, the Federal Reserve maintained its target range. Three voting members supported a quarter-point hike.
Friday’s labor cost data provided further support for hawkish positions. Civilian compensation climbed by 0.9% in the second quarter, marking a 3.4% increase compared to the previous year.
| Rate or inflation signal | Latest reading | Comparison |
|---|---|---|
| 10-year Treasury yield | 4.727% | Higher by 6.35 basis points |
| 30-year Treasury yield | 5.2584% | Peaked at highest since mid-2007 |
| Federal funds target | 3.50%-3.75% | Maintained after 9-3 vote |
| September hike probability | 69% | Implied by market |
| Employment Cost Index | +0.9% for the quarter | Annual gain of 3.4% |
Rates, labor cost data, and policy details were up to date as of Friday morning.
Market breadth showed a negative tilt earlier. On the NYSE, decliners led advancers by a ratio of 1.18-to-1. The Nasdaq saw a similar ratio at 1.16-to-1. The semiconductor index stayed more than 16.7% lower for July.
This divergence shapes the month’s close. Both the cap-weighted S&P 500 and the Nasdaq were on track for declines in July. In contrast, the equal-weight S&P 500 was set for a fourth straight monthly advance. While AI continues to attract investment, tangible evidence is increasingly important.
Risks: Another oil shock or an additional yield increase could pressure equity valuations. Poor cash conversion from AI could challenge the recovery. Apple’s supply issues risk affecting broader hardware supply chains.
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