Amazon's record revenue lifts Wall Street, Apple's loss limits gains

Amazon's AI investments pay off with record revenue, lifting Wall Street

A record revenue surge from Amazon's AI investments lifted US stocks on Friday, while Apple's supply chain warning capped gains in the tech sector.

Scraper SystemAugust 01, 2026, 12:06 PM

Amazon's AI investments pay off with record revenue, lifting Wall Street

US stocks closed higher on Friday. Amazon's strong quarterly results boosted investor confidence that its AI investments are beginning to translate into company revenue, lending momentum to the market. Apple's warning about supply chain issues, however, curbed the rally in technology shares.

According to Reuters, Amazon shares surged more than 15% after the company reported its fastest quarterly revenue growth in over four years. The performance eased concerns about whether massive spending on AI infrastructure would turn into profits. Amazon's success, coming just two days after Microsoft also posted strong results, reinforced the perception that tech giants' AI investments are starting to deliver concrete results.

Apple's warning weighed on tech indices

Meanwhile, Apple shares fell 7.4%. The company's warning that supply chain constraints could affect growth in the coming period worried investors. The decline limited gains on the tech-heavy Nasdaq index and sent the S&P 500 technology index down 0.54%.

Optimism prevailed across the broader market. Microsoft shares rose 3%, while Monolithic Power Systems jumped more than 8% after its revenue forecast topped analyst expectations. At the close, the S&P 500 gained 0.7% to 7,489.72, the Nasdaq added 1%, and the Dow Jones Industrial Average climbed 0.53%.

For the week, the S&P 500 rose 1.05% and the Nasdaq gained 1.59%. Analysts expect S&P 500 companies' profits to increase by about 48% in the second quarter compared to the same period last year, with companies in the AI space seen as the driving force behind the growth.

Fed officials signal rate hikes

In the bond market, the yield on the 2-year US Treasury note rose to 4.28%. Calls for rate hikes from three Fed officials to combat inflation added to uncertainty over monetary policy. According to CME Group data, markets are pricing in a 65% probability of a rate hike at the September meeting, down from 82% a week earlier.

Amazon's AI investments pay off with record revenue, lifting Wall Street

A record revenue surge from Amazon's AI investments lifted US stocks on Friday, while Apple's supply chain warning capped gains in the tech sector.