Amazon and Chips Stocks Support the Tech Rebound – Europe Market Wrap
Technology stocks rallied as a rebound in chipmakers carried into Friday, ending a volatile month on a stronger note. South Korea’s Kospi surged a record 18%, while SK Hynix hit its 30% daily limit. Nasdaq 100 futures rose 1.1%, S&P 500 futures gained 0.4% and a semiconductor ETF climbed 4.3%. Europe’s Stoxx 600 headed toward a record high, while Amazon jumped 11%.
The late-week recovery offered relief after elevated valuations triggered a sharp selloff across chip stocks in July. Forced liquidations of AI investments by Situational Awareness were also cited as a factor behind the relentless selling pressure.
Markets steadied following strong earnings from Microsoft earlier this week, with Amazon adding to the optimism after reporting its fastest quarterly cloud growth since 2021. The results reassured investors that its projected $220 billion in 2026 capital spending can generate sufficient returns to sustain the global AI buildout.
Apple fell 7.8% after issuing a disappointing sales forecast, highlighting the divergence within the technology sector. Meanwhile, Brent crude rose 1.1% to around $90 a barrel as traders assessed the latest developments in the US-Iran conflict.
The Yen swung between gains and losses after the BoJ left rates unchanged and Governor Ueda offered little fresh support for the currency. Japan likely spent around $52.8 billion intervening in the foreign exchange market on Thursday, while the Dollar rose 0.3% to snap a five-day losing streak.
