Amazon's Cloud Soars. Apple Stumbles.

Rundown · 2026-08-03

AMZN +15% on an AWS blowout (+37%, fastest in 18 quarters) capped Mag 7 week and sent Asia chips soaring (SK Hynix +25%, KOSPI's historic surge) — Nasdaq +1%, S&P +0.7%. But AAPL -7% on a soft guide and the 30Y hit 5.25% (highest since 2007).

Market Performance

• S&P 500: 7,489.72 (+0.7%) — veered between gains and losses; closed out a strong July
• Nasdaq: 25,373.85 (+1.0%) — Amazon-led; a Mag 7 gauge jumped +3.2%
• Dow: 52,485.03 (+0.53%) — +276.97 pts; a 4th straight winning month
• Sector leaders: Energy +4.5% (CVX +8.9%, XOM +4.6% on record revenues) · Laggard: Apple
• 10Y yield: topped 4.7% — highest since Jan 2025; 2Y ~4.27%; 30Y spiked to 5.25% (since 2007)
• WTI crude: higher — Iran hostilities kept the bid; energy the month's late winner
• Chips closed ~flat — capping the SOX's worst month since 2008, even amid the Asia surge

Amazon's AWS Blowout Caps Mag 7 Week

• AMZN +15% — beat handily; AWS grew 37% YoY, its fastest in 18 quarters
• Record operating margin of 13.7%; Amazon raised its 2026 capex outlook to ~$220B
• Coming after MSFT's Azure print, it confirmed the AI-spend-converts thesis — cloud demand is real
• Asia chips went vertical: SK Hynix +25% (best day on record), Samsung +20%, KOSPI's historic surge
• Advantest +18%, SoftBank +9% — the AI-hardware relief rally circled the globe

Apple Stumbles + The Bond Market Revolts

• AAPL -7% — issued weak current-quarter guidance of 9-11% revenue growth vs a 12% consensus
• Flagged supply constraints + rising component costs — a rare guide-down from the megacap anchor
• The 30Y hit 5.25% — its highest since 2007; the 10Y topped 4.7%, highest since Jan 2025
• Investors "lost faith" in the Fed's inflation resolve after Wednesday's hawkish-hold-with-dissents
• Rising oil + a restless long end are the two clouds over an otherwise-strong earnings close

Notable Movers

• (AMZN) +15% — Beat Q2; cloud revenue grew 37% YoY, its fastest in 18 quarters, on record margins
• (AAPL) -7% — Issued weak current-quarter guidance (9-11% rev growth), missing the 12% consensus
• (RDDT) -21% — CEO Steve Huffman flagged that search-referral traffic was "choppy" during the quarter

Private Dealmaking

• Zabka (convenience stores · Couche-Tard) — $8.7B
• Underdog (sports betting · IG Group) — up to $1.3B
• Function (longevity/lab testing) — $450M
• Xsight Labs (fabless semis · Israel) — $300M+
• Simile (AI simulation) — $200M
• Groundcover (observability · Israel) — $100M

TLDR

• S&P +0.7% to 7,489.72; Nasdaq +1%; Dow +277 pts (4th straight winning month); Mag 7 +3.2%
• AMZN +15% on AWS +37% (fastest in 18 quarters), record 13.7% margin, capex raised to ~$220B
• SK Hynix +25% (record day), Samsung +20%, KOSPI's historic surge on the AI-spend revival
• AAPL -7% on a soft guide (9-11% rev vs 12% est) + supply constraints; RDDT -21% on "choppy" referrals
• 30Y hit 5.25% (highest since 2007), 10Y >4.7%; energy led (+4.5%, CVX +8.9%) on record revenues
• Chips closed ~flat, capping the SOX's worst month since 2008; oil higher on Iran

The Bottom Line

Mag 7 week ended with the AI-spend thesis vindicated — Amazon's AWS grew 37% and MSFT's Azure crossed $100B, hard proof the capex is converting, and the relief rally went global with SK Hynix's best day ever. But two clouds hang over the close: Apple guided down, and the 30Y hit 5.25%, its highest since 2007, as the bond market keeps rejecting the Fed's hold. Equities won the earnings argument; the long end is still losing patience. A wild July closes with September's live hike decision now the whole ballgame.

_For informational purposes only. Not investment advice._