Amazon Rally Drives AI Stocks Higher Despite Apple's Supply Woes

Wall Street closed higher on July 31 as Amazon's strong quarterly results and cloud outlook from Microsoft boosted confidence in artificial intelligence-related stocks.

The tech sector, however, took a hit after Apple warned of supply constraints and potential weakening consumer demand following recent iPhone price increases.

Amazon's share price surged over 15% after reporting its strongest quarterly revenue growth in over four years.

Microsoft also benefited from the news, adding 3% to extend gains from July 30. Monolithic Power Systems climbed over 8% after forecasting third-quarter revenue above market expectations.