Global equity markets staged a powerful rebound on July 31, 2026, as blockbuster earnings from Amazon and Microsoft revived investor confidence in artificial intelligence spending and pulled risk appetite back toward growth assets after a volatile week.
U.S. stock futures moved higher in early Friday trading. Nasdaq 100 futures gained more than 1%, Dow Jones Industrial Average futures rose about 0.56%, and S&P 500 futures added roughly 0.41%, according to CNBC market data. The moves built on Thursday's regular session, when the Nasdaq Composite surged 2.78%, the S&P 500 climbed 1.66%, and the Dow added 1.19%.
Amazon and Microsoft Reset the AI Narrative
The catalyst was clear. Amazon jumped more than 9% in extended trading after reporting second-quarter revenue that exceeded Wall Street forecasts, with Amazon Web Services cloud sales rising 37% for a fifth consecutive quarter of acceleration. Microsoft had already set the tone on Thursday, surging roughly 16% after Azure cloud growth beat expectations and reinforced the view that hyperscaler AI capex is delivering returns.
The iShares Semiconductor ETF (SOXX) climbed more than 8% during Thursday's session, and chipmakers extended gains in after-hours trading. Micron, AMD, Intel, and Nvidia all advanced, signalling that the AI trade had regained momentum after weeks of scepticism.
Asia and Europe Follow Wall Street
European futures moved higher ahead of Friday's open, with Stoxx 50 futures up 0.63%. In Asia, South Korea's SK Hynix and Samsung Electronics surged in Seoul, tracking the U.S. semiconductor rally. Australia's S&P/ASX 200 futures pointed to a higher open, while Japan's Nikkei benefited from the global tech rebound.
Sentiment improved as the U.S. 10-year Treasury yield dropped below 4.65%, according to FXStreet, while cooling oil prices helped ease inflation concerns. Diplomatic progress on Middle East tensions further reduced geopolitical risk premia in energy markets.
Three Takeaways for Investors
First, AI earnings are lifting equities. When Microsoft and Amazon both deliver cloud growth that validates heavy AI investment, the market reprices the entire technology complex higher. Semiconductor stocks, data-centre operators, and AI infrastructure names benefit disproportionately.
Second, central-bank decisions remain the key macro catalyst. The Federal Reserve held rates at 3.50% to 3.75% on July 29 with three dissenting votes for a hike. Markets are pricing more than a 65% chance of a September rate increase, which keeps bond yields and the dollar as important swing factors for equities.
Third, crypto is likely tracking risk sentiment for now. Bitcoin traded near $64,000 on Thursday, largely flat despite the equity rally. The divergence reflects ETF outflows, month-end rebalancing, and Bitcoin's sensitivity to real yields rather than a structural decoupling from stocks.
For regional perspectives, see our coverage of Canada's TSX and banking sector, the UK FTSE and gilt market reaction, and Australia's ASX response to the global tech rebound.