Nasdaq Composite Index Rises 1% as Amazon Surges 15% After Results; Apple and Micron Fall as Memory Stocks Retreat

Amazon (AMZN) rose 15.32% post-earnings to $271.58.

In the second quarter, AWS revenue surged 37% year-on-year to $42.232 billion, beating market expectations of $40.54 billion, marking its fastest growth rate in 18 quarters; AWS operating profit reached $16.621 billion, compared with $10.16 billion in the same period last year, contributing approximately 60% of the company's total operating profit, with the segment's operating margin rising from about 33% to around 39%.

Apple (AAPL) fell 7.35% post-earnings to $308.91.

During the earnings call, Apple's fourth-quarter revenue guidance growth range of 9%-11% was generally below analysts' expectations of 12.1%. CFO Parekh stated that component supply constraints will affect the fourth-quarter iPhone, Mac, and iPad businesses, and foreign exchange fluctuations are also constraining growth.

Among mega-cap tech stocks, Amazon (AMZN) rose 15.32%, Google (GOOGL) rose 6.73%, Meta Platforms (META) rose 3.28%, Microsoft (MSFT) rose 3.02%, Nvidia (NVDA) rose 2.93%, Tesla (TSLA) rose 0.76%, and Broadcom (AVGO) rose 0.37%; on the downside, Apple (AAPL) fell 7.35% and SpaceX (SPCX) dropped 3.41%.

[Source: FutuBull]

The Philadelphia Semiconductor Index narrowed its gains to 0.07%, closing at 11,311.08 points. Of its 30 constituents, 16 rose and 14 fell.

Among memory chip stocks, Micron Technology (MU) fell 5.90%, SanDisk (SNDK) fell 5.09%, and SK Hynix (SKHY) fell 3.54%.

Novo Nordisk's New Heart Drug Ziltivekimab Fails Clinical Trial

Novo Nordisk announced that its investigational heart drug ziltivekimab failed to meet the primary endpoint in a large late-stage clinical trial. The trial, named "Zeus," aimed to evaluate whether once-monthly injections of the IL-6 inhibitor ziltivekimab could further reduce the risk of major adverse cardiovascular events (MACE) compared with placebo in a specific patient population, on top of standard care. MACE is defined as cardiovascular death, non-fatal myocardial infarction, or non-fatal stroke, with Jefferies estimating this market size to exceed $10 billion annually.

Chevron and ExxonMobil Profits Surge on Rising Oil Prices

ExxonMobil and Chevron reported second-quarter results, with the two companies posting a combined profit of $26.5 billion, capitalizing on a surge in crude oil and gasoline prices triggered by the Trump-led conflict with Iran. For the three months ended June 30, Chevron's net profit reached $12.2 billion, a fourfold surge year-on-year. ExxonMobil's second-quarter net profit was $14.5 billion, doubling from the same period last year.

Linde Bets $1 Billion on US Semiconductor Capacity Expansion

Linde, one of the world's largest industrial gas companies, announced Friday that it will invest approximately $1 billion to expand its industrial gas facilities in Phoenix, Arizona, to support a new round of capacity expansion by a leading global semiconductor manufacturer. According to Linde's disclosure, the company has secured a long-term supply agreement with the customer to provide ultra-high-purity industrial gases for its Phoenix semiconductor manufacturing site. The investment will be used to build two new air separation units and associated infrastructure; upon completion, the project will represent one of Linde's largest global investments for electronics customers.

Goldman Sachs: Fed's Opaque Framework May Backfire; Long-End Yields Could Force Another Rate Hike

Goldman Sachs warns that Warsh's elimination of forward guidance, while obscuring the policy framework, is not only failing to rebuild credibility but is instead accelerating its collapse. If data fails to clearly soften before September, the market may "force" the Fed to hike rates again. Meanwhile, global fiscal expansion continues to push up term premiums, and the pace of deleveraging in momentum strategies is so severe that it is comparable to the COVID-19 shock.

EU Announces Expanded Implementation of the AI Act

The European Commission announced on the 31st that the EU will expand the scope of the AI Act starting August 2, beginning the enforcement of transparency rules and relevant rules for general-purpose AI model providers. The European Commission said in a press release on the 31st that, under the new transparency rules, interactive AI systems such as chatbots must inform users that they are interacting with AI rather than humans. "Deepfake" content, such as images, videos, and audio generated or modified by AI, must be labeled. AI-generated or modified content must also carry machine-readable markings to ensure easy identification. The European Commission said these regulations aim to reduce deception and manipulation.

Persian Gulf Straits Authority Announces Suspension of Transit Through Strait of Hormuz, but US Central Command Denies It

According to Iran's Tasnim News Agency, the Persian Gulf Straits Authority issued an announcement stating that due to aggressive US actions, transit through the Strait of Hormuz is no longer possible. The announcement said that once stability and calm are restored, all applications will be reviewed in order and scheduled, and permits will be issued gradually.

However, US Central Command stated that "the Iranian government's claim that it has closed the Strait of Hormuz is untrue." US Central Command added that "the Strait of Hormuz remains open to commercial transit. Iran does not control the strait," and that over the past four months, "thousands of vessels have transited this international waterway."

Fed's Barkin: Whether Rates Are High Enough Is an "Open Question"

Fed's Barkin said that whether the interest rate level set by the Fed is sufficient to curb inflation is an "open question." He also expressed uncertainty over whether he would have voted in favor, as three other regional Fed presidents did this week in voting for a rate hike. In an interview on Friday, Barkin said: "I think there is certainly a case to be made for tightening policy and pulling back some of last year's rate cuts." He noted that given the slowing inflation data in June, "I think you can also make the case... that there is time before the next meeting to judge whether the current policy stance is appropriate." Barkin will not vote on rate decisions until next year. In addition, Barkin was skeptical about whether the labor market has strengthened significantly, saying: "It doesn't feel like a tight labor market." He also noted that price increases are transmitting unevenly through the economy, making it difficult to judge how much inflation remains.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.