Big Tech's AI Spending Rebound Boosts Market Leaders

The world's largest technology companies have taken the lead in the stock market after a reversal of fortunes.

Microsoft and Amazon, two of the group's worst performers due to their heavy spending on artificial intelligence, saw their stocks surge after posting earnings reports that showed AI-related revenue growth is accelerating.

Microsoft's shares jumped 16% after its results were released on July 29, while Amazon's stock leaped 15% in the next session. In the seven sessions since then, Microsoft's shares have soared 28% and Amazon's have risen 21%, adding $1.3 trillion to their combined market value.

The improvement in sentiment was also due to an improving macroeconomic backdrop, with optimism about the reopening of the Strait of Hormuz sending oil prices lower.