Major U.S. Stock Indices Rise as Big Tech Boosts AI Investments
On Friday, major U.S. stock indices closed higher for the week and month of July amid continued investments in artificial intelligence by big tech companies. The Nasdaq Composite rose about 1%, while the Dow Jones Industrial Average gained 0.5% and the S&P 500 added 0.7%. Earlier volatility was driven by a surge in the yield on 10-year Treasury notes to its highest level since January 2025, as investors assessed Federal Reserve policy without forward guidance. Amazon's stock jumped 15% following strong earnings and expansion of its chip business, while Apple saw an 7% drop due to weaker-than-expected revenue in Services and China. Microsoft had a historic 15% rally the previous day. The four major hyperscalers—Amazon, Microsoft, Meta, and Alphabet—are collectively forecasting $720 billion to $745 billion in capital spending for 2026. Meanwhile, oil prices rose due to tensions near the Strait of Hormuz, with WTI crude at around $85 per barrel. Despite higher energy costs affecting consumer budgets, sentiment improved according to a recent University of Michigan survey.
Topics: AI investment Big Tech Dow Jones Nasdaq Composite S&P 500 Treasury yields