Market Briefing — July 31, 2026

Tech earnings are rewriting the narrative. Microsoft surged 15% and Amazon jumped more than 8% after hours following results that validated their massive AI infrastructure bets — together, they dragged the Nasdaq up roughly 2.6% and lifted the S&P 500 more than 1%, a decisive rebuttal to GDP growth that has slowed to +2.1%. The move came even as consumer sentiment sits at 44.8 and corporate insiders are reportedly at their most bearish in over two decades.

The earnings signal spread broadly. Reddit more than doubled its profit while revenue surged 61% on advertising strength. AXT posted record indium phosphide revenue, up 164%, on AI data center demand — a useful read-through for semiconductor materials. Across the Atlantic, European equities advanced, with the FTSE 100 hitting a fresh record. Magna International beat estimates and raised its outlook, while China's factory activity unexpectedly contracted in July, a softening demand signal worth tracking as Q3 progresses.