Mocha Markets Weekly

US stocks recovered the previous week’s losses as strong results from Microsoft and Amazon eased concern that Big Tech’s spending on artificial intelligence was not paying off. The S&P 500, the main index of 500 large US companies, rose about 1% on the week.

The rebound reversed the mood of a week earlier, when Alphabet and Tesla fell sharply on worries that their AI budgets were outrunning returns.

Cloud Winners

Microsoft and Amazon delivered the week’s most important results, both powered by their cloud businesses. Cloud computing means renting computing power over the internet rather than owning the machines, and it is where most AI runs.

• Microsoft: Its Azure cloud unit grew 43% from a year earlier. The stock rose 16% and added roughly $450 billion in market value in a single day, about ₹43 lakh crore, among the largest single-session gains on record. That lifted Microsoft close to a $4 trillion valuation.

• Amazon: Its AWS cloud unit grew 37%, its fastest pace since 2021, and quarterly revenue passed $200 billion, about ₹19 lakh crore, for the first time. The shares rose about 10%.

The results answered the market’s main question from the week before. “The market may be shifting from rewarding AI exposure broadly to rewarding companies that can execute and monetize,” said Jake Behan of Direxion. In short, a large AI budget is no longer enough on its own. Investors now want evidence it is generating revenue.

Apple Stumbles

The exception was the company that has spent the least on AI. Apple briefly became the first company to reach a $5 trillion market value, having served for months as an alternative to the heavier AI spenders.

It then fell about 7% on Friday, after its results flagged a shortage of memory chips, the components that store data in phones and computers. The shortage is raising Apple’s costs and limiting how many devices it can build. Meta also eased, after again raising its planned AI spending for next year.

The Chip Squeeze

Apple’s problem reflects a wider shift in the chip market. AI demand has created a shortage of memory chips, and supply is struggling to keep up. That pressures buyers such as Apple but benefits the manufacturers.

South Korea’s KOSPI index, home to Samsung and SK Hynix, rose almost 18% on Friday, its largest single-day gain on record, and Korean chip exports were up nearly 200% in June from a year earlier. Japan’s market also rallied. For traders, the split is the point: higher memory costs for one company are higher revenue for another.

The Fed Holds

The Federal Reserve, the US central bank, left interest rates unchanged for a fifth straight meeting, at 3.50% to 3.75%.

• Three of the twelve policymakers dissented, preferring a rate increase, citing inflation still above target.

• Markets had expected the Fed’s next move to be a cut. Some now see a possible increase instead.

For Indian investors, higher US rates tend to support the dollar and can draw money toward US bonds and away from emerging markets such as India. That matters even for those trading only US stocks.

What Moved Oil

Oil eased to about $85 a barrel, after approaching $100 the week before, as tension around the Iran conflict cooled. The pullback helped the rupee recover to about 95.4 per dollar, from near 96.5.

The Wider Economy

The rest of the data was mixed. US output grew at a 1.5% annual rate in the second quarter, below expectations, though consumer spending held up. Core inflation, the Fed’s preferred measure, which strips out food and energy, eased to 3.3%, still above the 2% target. Gold rose above $4,100 an ounce, a level often reached when investors turn cautious.

The Week Ahead

• Friday’s US jobs report is the main event. Strong hiring would support the case for rates staying high.

• Factory and services activity data are due through the week.

• Earnings from AMD and Palantir, plus SpaceX’s first report since going public.

Oil and the Iran headlines remain in focus.

Crypto Corner

Bitcoin was little changed, ending near $64,000, about ₹61 lakh, after firming around the Fed meeting and slipping on Friday. Ethereum, the second largest cryptocurrency, held near $1,880, about ₹1.8 lakh.

In a sign of crypto and traditional finance converging, Tether, which issues the largest stablecoin (a token designed to hold a steady value near one dollar), said it now holds more than 146 tonnes of gold in reserve.

Learn with MochaTrade

Market value, also called market capitalization. A company’s market value is its share price multiplied by its number of shares. A firm with 100 shares at $10 each has a market value of $1,000. It is the standard way to measure a company’s size. This week offered two milestones: Apple briefly passed $5 trillion, and Microsoft neared $4 trillion.

Follow Mochatrade for clear, simple breakdowns of the global markets, companies, and events shaping where money moves next.

For educational purposes only, not investment advice. Trading carries risk, including loss of capital. Figures approximate. Do your own research.

Sources: Reuters, Bloomberg, CNBC, Yahoo Finance, Investing.com, Trading Economics, US Bureau of Economic Analysis, US Federal Reserve. Numbers current as of the close on Friday, July 31, 2026. USD to INR about 95.4.