Microsoft Pumps Up AI Hopes; Chip Stocks Soar

Microsoft's 15.5% surge reignited the AI trade overnight, adding ~$450 billion in market cap — the largest single-day gain for any company on record. Chip stocks posted their biggest advance since April 2025, with SOX +8.2%, Micron +17%, and the Nasdaq 100 up 3.4%. After hours, Amazon rallied 9% on a monster AWS beat while Apple fell 5% on China and services misses. We cover US GDP (slowed to 1.5% but domestic demand surging), the yen intervention, 30-year yields at 19-year highs, and the Iran war heating up again with both straits effectively closed. ASX futures point to a strong open. Day ahead: BoJ, China PMIs, Exxon & Chevron earnings. Next week: RBA, SpaceX, and payrolls.After the bell: Amazon +9% on an AWS beat ($42.2B revenue, +37% YoY), but Apple fell 5% on weak China and services numbers — Tim Cook's final earnings call as CEO. Meta dropped 8% on concerns about spending across too many competitive fronts.Also covered:US GDP slowed to 1.5% in Q2 but domestic demand surged 3.9%Yen jumped ~2.5% on suspected Japanese intervention30-year Treasury yield hit 5.24% — highest since the mid-2000sIran war: fresh IRGC strikes, both straits effectively closed, diesel creeping back toward $3.50/L in SydneyASX 200 futures +99 points (+1.1%) to 9,010Day ahead: Bank of Japan, China PMIs, Euro zone inflation flash, Exxon & Chevron earnings. Next week: RBA rate decision, SpaceX earnings + largest IPO escrow release in history, Non-Farm Payrolls Friday.Subscribe for daily pre-market updates.