Wall Street ends higher as Amazon soothes AI jitters
Fri July 31, 2026
Yesterday’s highly positive Microsoft report was the first big sign in a while that AI was paying off and investors were hoping that success would bleed through to other tech companies. Today Amazon came through with flying colors providing still another shining case that AI was indeed paying off. In fact, the company the market had been viewing as being “irresponsible” with its AI spending put everyone much more at ease about them and more at ease about AI in general. So for the second straight day, the indexes shot straight up with tech more than making up for the big selloff on Wednesday.
The Dow has now recouped about 90% of its losses that day. Microsoft had a second day of gains after its great report yesterday when it became the world’s most valuable company again. Apple dropped on supply problems which kept the chip index down despite gains in other tech stocks. It was such a good day that Q2 earnings growth projections soared to a whopping 48% vs Thursday’s 40 and April’s 19. A strong Q2 has shot the S&P to now four straight months of gains and the index trading at 20x earnings vs a 10 year average of 19. (I had a typo in yesterday’s report citing the 10 year average as 10.) Volume came in heavy at 20.6 billion vs a 17.1 average.
DJ: 52,208.06 +613.92 NAS: 25,122.18
+679.24 S&P: 7,437.63
121.48 7/30
DJ: 52,485.03 +276.97 NAS: 25,373.85
+251.68 S&P: 7,489.72
+52.09 7/31
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