Daily News 31st July 26
Daily News
South Korea's Kospi Soars 15% and Nasdaq Snaps Six-Day Losing Streak as Blockbuster Big Tech Earnings Ignite an AI Chip Rally; Gold Slips Below $4,100 and Crude Nears $82 as U.S.-Iran Strikes Escalate
31 July 2026
Today in Brief
South Korea's Kospi soared more than 15% on Friday as chip giants SK Hynix and Samsung Electronics surged over 25% and 20% respectively, while Japan's Nikkei 225 jumped over 3% and the S&P/ASX 200 added 0.27%; the Hang Seng slipped 0.11% and the CSI 300 rose 1.24%. On Wall Street, U.S. stocks rebounded Thursday from the prior session's Fed-driven sell-off, with the Nasdaq Composite climbing 2.8% to 25,122.18 to snap a six-day losing streak, the Dow surging 613.92 points, or 1.2%, to 52,208.06, and the S&P 500 gaining 1.7% to 7,437.63, powered by a blowout Microsoft Azure report and a semiconductor rally. Amazon shares jumped more than 9% in extended trading on strong cloud revenue and lifted its 2026 capex forecast to $220 billion, while Apple beat on earnings but slid over 6% after-hours on weak guidance tied to supply constraints, and Meta tumbled nearly 8% even as Microsoft popped. Gold slipped below $4,100 an ounce on Friday, snapping a two-session winning streak but still on track for its first monthly gain in five months, while crude fell toward $82 a barrel yet remained set to gain roughly 20% for the month.
In other news: the Bank of Japan held its policy rate at 1% in an 8-1 decision while warning core inflation could climb clearly above its 2% target; Iran's Revolutionary Guard vowed to "punish the aggressor" after a heavy wave of retaliatory U.S. strikes, further dimming near-term diplomatic prospects; President Trump pushed Congress to add tariffs on Iran to a Russia-Iran sanctions bill despite America's negligible trade with Tehran; and U.S. Treasury yields extended their climb after the Fed held rates, with three of twelve FOMC members dissenting in favor of a hike.
South Korea's Kospi soars over 15% as chip behemoths SK Hynix and Samsung surge
In Asia, South Korea's Kospi soared over 15% Friday after chip behemoths SK Hynix and Samsung Electronics surged. Japan's benchmark Nikkei 225 jumped over 3%. The S&P/ASX 200 rose 0.27%. The Hang Seng Index was down 0.11%, while CSI 300 was up 1.24%. In extended trading, Amazon surged more than 9% after reporting better-than-expected second-quarter revenue. The results, which were aided by the strength of its cloud-computing business, reinforced investor confidence in artificial intelligence spending.
Stocks bounce back from Fed selloff as Nasdaq snaps six-day losing streak
U.S. stocks rallied Thursday, rebounding from the prior day's sell-off when the Federal Reserve decided to hold rates steady. Microsoft and semiconductors helped drive the gains. The Nasdaq Composite finished 2.8% higher at 25,122.18, ending a six-day losing streak. The Dow Jones Industrial Average surged 613.92 points, or 1.2%, to end the day at 52,208.06, while the S&P 500 climbed 1.7% to settle at 7,437.63. Microsoft shares jumped 16%, after reporting growth from its Azure business. Semiconductors rallied, with the iShares Semiconductor ETF (SOXX) higher by more than 8%. Micron Technology surged 18%, while Advanced Micro Devices were up more than 13%.
Gold slips below $4,100 an ounce, snapping a two-session winning streak
Gold slipped below $4,100 an ounce on Friday, snapping a two-session winning streak, but remained on track for its first monthly gain in five months. The precious metal found support this week after the US Federal Reserve left interest rates unchanged despite mounting inflationary pressures stemming from renewed hostilities in the Middle East. However, expectations for tighter monetary policy continued to cap gains, with markets currently pricing in about a 63% chance of a Fed rate hike in September. Meanwhile, the US military launched fresh strikes on Iranian targets in retaliation for Tehran's attacks on US assets across the Middle East, reducing the likelihood of any near-term diplomatic agreement.
Crude oil falls toward $82 a barrel, still on track for a 20% monthly gain
Crude oil fell toward $82 per barrel on Friday, but was still on track to gain about 20% for the month as renewed fighting between the US and Iran threatened further disruptions to Middle Eastern energy supplies. The US military launched fresh strikes on Iranian targets in response to Tehran's attacks on US assets across the region, dimming hopes for any near-term diplomatic breakthrough. Still, tanker traffic through the Strait of Hormuz increased after a recent slowdown, allowing millions of barrels of crude to pass. Meanwhile, in the Red Sea, Saudi Arabia held talks with representatives from 43 countries about forming a maritime coalition to safeguard shipping routes following the blockade imposed by Iran-backed Houthi militants last week. Elsewhere, traders also remained wary of supply disruptions in the Black Sea after loadings at the export terminal critical to Kazakhstan's crude shipments were suspended once again this week following fresh attacks on oil tankers.
BOJ holds rates at 1%, warns core inflation could exceed 2% target
The Bank of Japan kept its policy rate steady on Friday, as it warned that core inflation in the country could exceed its 2% target. Japan's central bank's move to hold rates at 1% was an 8-1 decision, with board member Hajime Takata proposing a hike to 1.25%. In its outlook, the BOJ said that core inflation was likely to accelerate to a level "clearly above" 2% from the second half of its 2026 fiscal year, which runs from September to March. It cited wage increases being passed along into selling prices, the rise in crude oil prices and the recent depreciation of the yen. Inflation should then come down toward 2% as crude oil prices decline, it said. Japan's core inflation for July came in at 1.6%, and has been below 2% for most of 2026. The decision comes as Tokyo reportedly conducted an intervention on Thursday night, in conjunction with U.S. authorities executing a "rate check," a move usually seen as a precursor to intervention.
Iran vows to 'punish the aggressor' after heavy wave of U.S. strikes
Iran's Revolutionary Guard threatened further escalation on Thursday after a wave of retaliatory U.S. strikes on the country overnight. The Guard said on Thursday that it "will punish the aggressor today," adding that countries aiding the U.S. in the conflict would also "receive a harsh response," according to Iranian state media. It also said that it maintains "full control" of the Strait of Hormuz, and that "a stranger who has come from thousands of kilometres away will not be allowed to interfere." It comes after U.S. forces completed a "heavy wave" of strikes against Iran on Wednesday stateside, in retaliation against its missile attacks on American forces in the region. U.S. Central Command described the operation as a "powerful response" to Tuesday's attempted Iranian attacks on U.S. forces in the Middle East.
Trump says sanctions bill should include tariffs on Iran despite 'trivial' trade with U.S.
President Donald Trump wants Congress to add tariffs on Iran to a sanctions bill against Russia and Tehran that has bipartisan support. Those duties would have little effect because the U.S. imports nearly nothing from Iran. But tacking them on to the bill may torpedo its chances of becoming law. While sanctions against the two countries have widespread support in Congress, Trump's well-established belief in tariffs as a one-size-fits-all tool for economic coercion is polarizing. The U.S. imported just $1.4 million in goods from Iran in 2025, according to the Office of the U.S. Trade Representative. Works of art, collectors' pieces and antiques were the largest category of those imports, making up 55% of the value, according to the firm Trading Economics.
Treasury yields rise on inflation concerns after Fed holds rates
Treasury yields extended their climb on Thursday following the Federal Reserve's decision to keep interest rates unchanged, raising concerns that inflation could continue to rise above the central bank's target. The Federal Open Market Committee's choice to maintain current policy drew dissents from three of its 12 members, who supported a quarter-percentage-point rate increase. Fed Chairman Kevin Warsh's approach of providing less forward guidance has left market participants uncertain about the central bank's future actions. Warsh observed that bond yields have increased substantially since the Fed's previous policy meeting, as investors price in potential future rate hikes. He said he welcomed this market movement but emphasized it did not require the central bank to take immediate action.
SK Hynix surges 25% and Samsung soars over 20% as the AI rally roars back
South Korea's chip heavyweights SK Hynix and Samsung Electronics skyrocketed in Seoul on Friday, tracking a sharp rally in U.S. technology stocks after blockbuster earnings from Amazon and Microsoft revived optimism around artificial intelligence spending. SK Hynix was last trading over 25% higher, putting it on course for its best day on record if gains hold. Samsung rose more than 20%. LG Innotek advanced 11.2% and Seoul Semiconductor rose 7.8%. Japanese chip stocks also rallied sharply. Advantest climbed nearly 18%, while Tokyo Electron gained almost 9%, Disco rose over 13%, Lasertec advanced more than 12% and Renesas Electronics added over 10%. SoftBank Group, a key artificial intelligence proxy as it owns Arm, also jumped more than 9%.
Amazon hikes 2026 capex to $220 billion on higher memory costs
Amazon reported surging cloud growth during the second quarter, pointing to strong artificial intelligence demand, and the company boosted its capital spending forecast for the year. The stock shot up more than 10% in extended trading. Amazon said it expects to spend even more on AI, with capital expenditures projected to hit $220 billion this year, CEO Andy Jassy said on a conference call with investors. In February, the company said capex would hit $200 billion this year, and it held steady on that forecast in April. Jassy said rising memory prices pushed its capex estimate higher. He suggested Amazon's spending spree isn't likely to abate anytime soon. "But even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027 too," Jassy said.
Meta sinks 8% in a continuing losing streak while Microsoft jumps as AI trade splits
Microsoft shares jumped 15% on Thursday while Meta tanked nearly 8% as investors gave differing verdicts on the two tech giants' earnings. On Wednesday, Microsoft posted fiscal fourth-quarter revenue that beat analyst estimates and reported 43% growth at its key Azure cloud business, which was also ahead of market expectations. The company said that it now has over 30 million paid seats for Microsoft 365 Copilot, its AI work assistant, up from more than 20 million as of April, in further signs that parts of its AI investments are paying off. Microsoft's stock popped even as the company reiterated its 2026 capital expenditure forecast and signaled a potential spending expansion in its 2027 fiscal year at a time when the market is jittery over the cost of AI. It was a different story for Meta.
Apple beats on fiscal third-quarter earnings but slides on weak guidance
Apple reported stronger-than-expected earnings and revenue for the fiscal third quarter, driven by a 22% increase in iPhone sales. But the company issued weak guidance for the current period, citing "supply constraints." The stock slid more than 6% in extended trading. Net income climbed to $29.79 billion, or $2.02 per share, from $23.43 billion, or $1.57 per share, a year ago. Apple said earnings included 11 cents per share from tariff rebates. Apple is reckoning with a global memory crunch, or what Cook recently called a "hundred-year flood," and a rush for chip manufacturing capacity that's already forced the company to lift prices on Macs and iPads. Apple hasn't said it will raise prices on iPhones, but many analysts are expecting hikes as soon as this year.
