Amazon and Microsoft Earnings Ease Market Anxiety Over AI Investment
The New York Stock Exchange (NYSE) closed higher across the board on July 31st as Amazon's 'earnings surprise' greatly eased market anxiety over artificial intelligence (AI) investment.
The controversy over 'excessive facility investment', which led to recent rapid adjustments in AI-related stocks, seems to be slowing down. The Dow Jones Industrial Average rose 276.97 points (0.53%) to close at 52,485.03, while the S&P 500 Index increased by 52.09 points (0.70%) to reach 7489.72.
Amazon's stock price jumped 15.32% as it announced exceeding $200 billion in quarterly sales for the first time, thanks to growth in its cloud business. Microsoft (MS), which released earnings a day prior, also saw its quarterly sales in its cloud business increase 43% year-on-year, marking the highest growth rate since early 2022.
The market viewed Amazon and Microsoft's performances as resolving investors' concerns about AI investment. Analysts noted that expectations for the expansion of AI infrastructure leading to actual performance improvement have been revived.