Amazon Ignites Another Tech Rally as Mega-Caps Drive Markets Higher

Friday’s session delivered another powerful technology-led rally, as Amazon picked up where Microsoft left off a day earlier. Strong earnings from the e-commerce and cloud giant, combined with solid gains across several other mega-cap technology stocks, helped offset a sharp decline in Apple and pushed the broader market higher.

Following Thursday’s AI-driven surge led by Microsoft and semiconductor stocks, investors shifted their focus to Amazon, which jumped 15.3% after delivering an impressive earnings report. The rally was reinforced by strong performances from Alphabet, which climbed 6.9%, NVIDIA, up 2.9%, and Microsoft, which added another 3.0%.

Apple was the notable exception among the mega-cap leaders. Shares fell 7.4% after the company issued disappointing fiscal fourth-quarter revenue guidance, citing supply constraints and unfavorable foreign exchange effects. Despite the sharp decline, investors largely viewed the weakness as a supply issue rather than a deterioration in consumer demand, allowing the broader market to absorb the setback without significant damage.

Trading was anything but smooth. The S&P 500 initially surged to the 7,490 level before quickly reversing toward 7,400 as Treasury yields climbed, oil prices advanced, and semiconductor stocks surrendered much of their early gains. Chipmakers had opened sharply higher following a remarkable 17.9% rally in South Korea’s Kospi Index, led by SK Hynix and Samsung Electronics, but enthusiasm faded as the session progressed.

Even with higher bond yields, rising energy prices, and a pause in semiconductor momentum, buyers steadily returned throughout the afternoon. The S&P 500 briefly climbed above the 7,500 mark late in the session before slipping back below that milestone during the final minute of trading.

Treasury yields continued their recent ascent, with the 10-year Treasury yield rising eight basis points to 4.75%. The benchmark yield has now climbed 33 basis points during July, reflecting persistent inflation concerns and higher energy prices.

Crude oil also extended its advance. WTI futures settled 1.2% higher at $84.57 per barrel, capping a monthly gain of approximately 21%. The rally made the energy sector the S&P 500’s best-performing sector in July, with a monthly advance of 12.6%.

Despite the strong finish for the major indexes, market participation remained relatively narrow. Decliners slightly outnumbered advancers on both the NYSE and Nasdaq. The Russell 2000 fell 0.5%, while the equal-weighted S&P 500 slipped 0.2%, highlighting that gains remained concentrated in the market’s largest companies.

Only four of the eleven S&P 500 sectors finished higher. Consumer discretionary led the market with a 6.1% gain, powered by Amazon’s post-earnings surge. Communication services followed with a 4.6% advance as Alphabet extended its strong post-earnings rally.

Friday’s action reinforced the market’s renewed dependence on mega-cap technology leadership. While rising Treasury yields, higher oil prices, and fading semiconductor momentum created headwinds, exceptional earnings from Amazon and continued strength among several AI-related leaders were more than enough to offset Apple’s weakness and keep investors focused on the technology sector’s long-term growth story.

Our FTinvest 11 model portfolio declined 0.37% to close at 1,061.58, ending July with a modest pullback after several sessions of consolidation. Despite the recent weakness, the portfolio remains comfortably above the 1,000 level and is approximately 3.2% below its all-time closing high of 1,096.33, continuing to trade near record territory.

FTinvest 11 is now up approximately +14.40% year-to-date, maintaining a strong double-digit return through the first seven months of 2026. July was another highly successful month for the portfolio, highlighted by a rapid recovery from the June correction and the establishment of multiple new all-time highs, culminating in a record close of 1,096.33. Although the portfolio experienced some profit-taking during the second half of the month, it retained the vast majority of its gains and continues to demonstrate the resilience of its disciplined, value-driven investment strategy.