Chips Stocks and Amazon Bolster Rebound in Tech: Markets Wrap

(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 11%.

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 0.4%. An exchange-traded fund tracking chip stocks gained 4.3% in early US trading. Europe’s Stoxx 600 headed for a record high. Apple Inc. tumbled 7.8% on a disappointing sales forecast.

The late-week recovery is offering traders a reprieve after worries over lofty valuations pummeled a key gauge of chipmakers in July. For some participants, forced liquidations of AI investments by Situational Awareness helped explain the relentless pressure on shares.

Markets steadied after robust earnings from Microsoft Corp. earlier this week. Amazon followed by reporting its fastest quarterly cloud-unit growth since 2021, reassuring investors that a projected $220 billion in 2026 capital spending will generate returns and 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 little changed at 5.21%. 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 rose 1.1% to $90 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. Meanwhile, the Caspian Pipeline Consortium is set to take a decision later Friday on whether to “indefinitely” halt oil operations.

The yen swung between gains and losses as the Bank of Japan kept interest rates steady and Governor Kazuo Ueda offered little fresh support for the currency. 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. The dollar rose 0.3% to snap a five-day losing streak.

As markets head for August, key drivers of recent months, including inflation, interest-rate expectations and the durability of the AI-led growth story, will continue to shape direction, said Santander’s Simon.

Investors will closely watch the long end of the Treasury curve, with the 30-year near 5.2% “doing the tightening the Fed is not doing,” said Lombard Odier’s Ielpo. In this regard, the July inflation print on August 12 will be key.

“August books are thin, and thin books turn ordinary data into outsized moves,” he said. “Expect more nervousness than the macro alone would justify.”

Corporate Highlights:

ExxonMobil Holdings Corp. narrowly missed profit forecasts despite soaring crude prices and widening fuel-making margins. Chevron Corp. posted record second-quarter results that outperformed expectations as prices for crude, gasoline and diesel surged amid war-driven supply disruptions. 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. 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:

Stocks

S&P 500 futures rose 0.4% as of 7:20 a.m. New York time Nasdaq 100 futures rose 1.1% Futures on the Dow Jones Industrial Average rose 0.6% The Stoxx Europe 600 rose 0.6% The MSCI World Index rose 0.2% Currencies

The Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.3% to $1.1495 The British pound fell 0.2% to $1.3438 The Japanese yen fell 0.3% to 160.08 per dollar Cryptocurrencies

Bitcoin fell 1.3% to $63,852.63 Ether fell 1.9% to $1,884.18 Bonds

The yield on 10-year Treasuries was little changed at 4.68% Germany’s 10-year yield advanced two basis points to 3.18% Britain’s 10-year yield advanced three basis points to 5.01% Commodities

West Texas Intermediate crude rose 1.3% to $84.68 a barrel Spot gold fell 1.1% to $4,056.93 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Neil Campling and Subrat Patnaik.

©2026 Bloomberg L.P.