Wall Street indices extended gains on the continuation of tech boost for hyperscalers like Amazon Inc., along with stocks of semiconductor and chip manufacturers like Micron Technology Inc.
Tech-heavy Nasdaq Composite opened 1% higher at 25,383.70, S&P 500 was up 0.62% to 7,483.87, and the Dow Jones Industrial Average rose 0.42% to 52,429.21 at open.
Shares of Amazon.com Inc. soared 14% to $269.46 few minutes after the opening bell, after the tech giant posted its fastest quarterly cloud-unit growth since 2021, reinforcing the belief that sky-high capex on AI will generate returns. The surge comes as JP Morgan has given a 'buy' rating to the stock, and hiked its target price to $365, from an earlier $330.
Amazon Web Services (AWS) generated $42.23 billion in revenue during the June quarter ahead of analysts expectations of $40.54 billion. In the first quarter growth rate stood at 28%.
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The company revealed that AWS's AI business and chips attracted over $25 billion in annualised revenue, surging over 2X compared to last year.
Amazon was second in the list to be clocked by the AI bulls after Microsoft. Microsoft Corp. also said that its cloud business Azure passed the AI valuation test as it grew 43% which was also ahead of market expectations. Net income of $35.77 billion, or $4.81 per share, increased from $27.23 billion, or $3.65 per share, in the same quarter a year ago.
Nine out of the 11 sectoral indices traded in the red, with the declined led by the Materials sector. The only two indices trading higher included Consumer Discretionary and Communication Services sectors.
Crude oil prices continued to rise after renewed fighting between Iran and the United States. As of 10:15 a.m. EST, brent crude traded 1.33% higher at $90.16 per barrel and West Texas Intermediate was up 2% to $85.25 per barrel.
Wall Street indices erased gains and began trading lower, with S&P 500 down 0.4%, Nasdaq down 0.27%, and Dow Jones Industrial Average down 0.34%. The decline came after yield on 10-year Treasuries advanced six basis points to 4.73%
The Bloomberg Dollar Spot Index rose 0.4%, while euro fell 0.5% to $1.1467, British pound fell 0.4% to $1.3408, and the Japanese yen was little changed at 159.54 per dollar.
Bitcoin, the largest traded cryptocurrency, fell 2.2% to $63,314.31.
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