Amazon’s shares surged between 11% and 15% on July 31, 2026, fueled by its biggest quarterly revenue growth in more than four years, driven primarily by a 37% rise in Amazon Web Services (AWS) revenue to $42.2 billion [1, 2, 3]. The jump in Amazon shares led gains in US tech stocks and helped lift Nasdaq 100 futures by as much as 1.15% on the day [1, 2].
Amazon CEO Andy Jassy said, "We’re unusually well-positioned for this AI inflection," highlighting the company’s focus on artificial intelligence expansion [3]. Amazon also raised its capital expenditure forecast for 2026 to $220 billion from $200 billion, with most spending directed toward AI-related data centers and equipment [3]. Despite a negative free cash flow of $7.6 billion over the trailing 12 months, analysts noted investors remained optimistic given accelerating AWS growth and strict cost controls elsewhere in the business. Sky Canaves of Emarketer stated investors “may be unlikely to blink” at Amazon’s higher spending and cash flow, given AWS’s expansion [3].
Adam Sarhan, CEO of 50 Park Investments, said, "Amazon showed us, without a shadow of a doubt, that the web-services or AI side of the business is driving growth for the company. Investors are able to look past the free-cash-flow decline because it is one component. If growth continues, it will make up for that shortfall" [2]. John Plassard, head of investment strategy at Cité Gestion, noted, "Ultimately, Amazon confirms that the momentum in artificial intelligence continues to support the hyperscalers" [1].
While Amazon surged, Apple shares slid sharply between 7.8% and 9.8% on July 31 amid supply constraints and worries about the growth impact of an expected iPhone price increase [1, 2]. Apple’s drop weighed on broader US tech results despite modest gains in other large companies including Microsoft, which gained up to 1.8%, and Alphabet, Meta, and Tesla, which rose slightly [1, 2, 4, 5].
The Nasdaq 100 led market gains on July 31, climbing 0.34% to 1.15%, while the Dow and S&P 500 posted smaller advances, though all major indexes were on pace for monthly losses in July due to AI-related stock selloffs [1, 2]. The Philadelphia Semiconductor index fell more than 20% in July, marking its largest monthly drop since 2008 [1].
Chinese tech stocks listed in the US, including NetEase, Alibaba, JD.com, and Pinduoduo, saw pre-market gains of 1% to 4% toward the end of July with some day-to-day swings [6, 7, 8, 9]. US large tech stocks showed mixed trading in late July, with Nvidia, Intel, Tesla, and Meta fluctuating amid uneven investor sentiment [4, 10, 11, 5, 12, 9].
The Malaysian Gas Association also marked its 40th anniversary in late July by promoting natural gas as part of Malaysia’s low-carbon transition [1, 2, 3].
On the next trading day, investors will closely watch whether Amazon continues its momentum and how Apple addresses supply chain challenges and pricing strategies.
