Tech stocks rebounded after a period of anxiety over the scale of AI investments. Alphabet raised its 2026 capital expenditure guidance to between $195 billion and $205 billion, while Amazon projected $220 billion, bringing combined hyperscaler spending to between $550 billion and $700 billion. This surge in investment had caused AI-related chip stocks to lose more than $1 trillion in combined value during July 2026, but the strong Q2 earnings season reassured investors. Microsoft, Alphabet, and Amazon all exceeded expectations thanks to robust enterprise demand for AI compute across Azure, Google Cloud, and AWS. US stock markets rebounded in late June and late July, with technology leading the recovery.
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