Stock market today: Dow, S&P 500, Nasdaq gain as Big Tech's AI spending shows no sign of letting up
Stock market today: Dow, S&P 500, Nasdaq gain as Big Tech's AI spending shows no sign of letting up
Grace O'DonnellFri, July 31, 2026 at 8:12 AM UTC
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Techs jumped as US stocks extended gains on Friday morning, after South Korean stocks roared back and Big Tech earnings revived optimism in the artificial intelligence trade.
The tech-heavy Nasdaq Composite (^IXIC) climbed 0.9%, leading the major indexes higher after South Korea's KOSPI (^KS11) index jumped nearly 18% overnight, triggering trading halts. The Dow Jones Industrial Average (^DJI) rose 0.4%, while the S&P 500 (^GSPC) advanced by 0.5%.
Following Microsoft's (MSFT) historic 15% stock rally, shares of Amazon (AMZN) and Apple (AAPL) also swung after delivering earnings on Thursday. Amazon stock jumped 13% after its earnings beat expectations and its chip business expanded, while Apple stock fell 9%, as its Services and China revenue came up short.
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The latest quarterly results from the "Magnificent Seven" companies showed that Big Tech continues to invest in AI, reassuring tech investors who had grown fearful of a slowdown in AI and higher interest rates. The four hyperscalers (Amazon, Microsoft, Meta (META), and Alphabet) forecast spending $720 billion to $745 billion cumulatively on capital projects in 2026.
Also on the earnings front, a slew of oil companies, including ExxonMobil (XOM) and Chevron (CVX), reported windfalls in Q2, as the US-Iran war and the subsequent energy shock have kept oil prices elevated. However, scheduled maintenance costs ate into Exxon's bottom line, leading earnings to miss expectations.
Oil prices turned higher as traffic in the Strait of Hormuz began to falter following a recent reescalation in hostilities. US benchmark WTI crude futures (CL=F) last traded at around $84 per barrel, and global benchmark Brent (BZ=F) futures rose to nearly $88 per barrel.
Higher energy and gas prices have weighed on consumers' budgets, contributing to depressed sentiment. The next check on how Americans are feeling from the University of Michigan comes out at 10:00 a.m. ET.
Source: “AOL Money”
