US stock futures pointed to a higher open on Friday, buoyed by Amazon's robust cloud performance that rekindled enthusiasm for artificial intelligence, even as Apple's cautious outlook weighed on sentiment. At 7:00 AM ET, Nasdaq 100 futures climbed 1.22%, S&P 500 futures added 0.48%, and Dow Jones Industrial Average futures rose 340 points, or 0.64%.
The rebound suggests Wall Street may end a turbulent week on a positive note, but the broader picture remains fragile. July has been brutal for chip stocks, interest-rate expectations are in flux, and investors are still seeking proof that massive AI spending will translate into sustainable revenue and profits.
Amazon's cloud surge lifts AI trade
Amazon shares jumped about 12% in premarket trading after the company reported its fastest cloud growth in 18 quarters. AWS revenue surged 37% to $42.2 billion, while total sales rose 20% to $200.6 billion. These figures provided the clearest evidence this week that hyperscaler investments are generating real demand, not just consuming cash.
"Amazon has strengthened the case that AI momentum remains intact among the largest cloud operators," said John Plassard, strategist at Cité Gestion. The positive read-through lifted other chip names, with Nvidia gaining 1.5% and Micron rising 3.5%, extending Thursday's semiconductor rebound.
Apple's supply warning spooks investors
Apple slid 7.3% despite reporting a 16% increase in quarterly revenue to $109.42 billion, driven by record iPhone sales and a sharp rise in Mac revenue. Investors focused instead on management's warning that component shortages would constrain growth in the September quarter. The company expects revenue growth of 9% to 11%, below the roughly 12% pace analysts had anticipated.
Analysts are also weighing whether higher memory costs could force Apple to raise iPhone prices, potentially testing consumer demand in an already price-sensitive market.
July's chip rout still casts a shadow
The late-week recovery has not erased the month's damage. The Philadelphia Semiconductor Index remains more than 20% below its June record, as investors question valuations, leverage, and the return on unprecedented infrastructure spending. Microsoft eased 0.8% after surging more than 15% on Thursday, adding about $450 billion in market value—the largest one-day gain ever recorded for a US company. Alphabet, Meta, and Tesla rose in premarket trading, suggesting investors are returning selectively rather than buying the entire tech complex.
Fed uncertainty persists
The Federal Reserve held its target range at 3.5% to 3.75% in a 9-3 vote on Wednesday. Three policymakers preferred a quarter-point increase, underscoring the committee's inflation concerns even as officials declined to tighten immediately. Futures markets now assign roughly a 60% chance of a September hike, down from more than 80% a week earlier. That repricing supports growth shares, but long-dated Treasury yields near multi-year highs remain a threat to technology valuations.
Consumer sentiment and stock-specific shocks ahead
The final University of Michigan consumer-sentiment reading for July is due at 10:00 AM ET. The preliminary index rose to 54.4 from 49.5 in June, while one-year inflation expectations eased to 4.2%. Investors will also watch for any stock-specific surprises as earnings season continues. For context, Microsoft's earnings earlier this week had already revived AI optimism, and Meta's AI spending concerns had weighed on sentiment. The market's ability to sustain Friday's gains will depend on whether the AI trade can hold up amid lingering macro and supply-chain worries.
This article is for informational purposes only and does not constitute financial advice.
