Overview
- U.S. stocks staged a sharp relief rally on July 30 driven by Microsoft’s quarterly beat for cloud and AI revenue, lifting the Nasdaq about 2% and the S&P roughly 1%.
- Semiconductor names snapped back hard with big gains at Micron, Lam Research and Intel as investors read the chip strength as confirmation that AI-related demand can monetize heavy industry spending.
- Meta’s shares plunged after the company reported roughly a 91% year‑over‑year drop in free cash flow, highlighting that heavy AI infrastructure costs can hit cash generation even when revenue looks solid.
- Long-dated U.S. Treasury yields sit near multi‑year highs, keeping pressure on interest‑sensitive, capital‑intensive sectors and limiting how broad the stock market rally can become.
- Geopolitical tensions in the Middle East have kept Brent crude elevated near $90 a barrel, and market watchers say Apple and Amazon earnings plus any fresh Fed commentary will be the near‑term catalysts for sustaining or reversing today’s moves.