$AMZN

InformationWeek’s weekly tech roundup says IBM shares fell 25% after Q2 results, with software revenue up 5% and infrastructure revenue down 7%, and customers shifting spending toward servers, storage and memory. It also notes TSMC plans $100B US investment and cites US AI cybersecurity and UK cloud regulation initiatives affecting major cloud providers. Earnings are due from Alphabet, IBM, ServiceNow and Apple.

A survey of options positioning for S&P 500 “Magnificent Seven” stocks using Nations Indexes’ RiskDex call/put skew metric found Meta and Microsoft highest, followed by Amazon, Tesla and AMD. RiskDex ratios: Meta 0.75 (25% call premium), Microsoft 0.79; Amazon 0.98; Tesla and AMD around 0.9. The article links this to potential earnings-season upside.

Jefferies said Amazon is its top Magnificent 7 pick ahead of Q2 earnings, citing AWS growth forecasts and a backlog near $500 billion. It compared valuation, with Amazon forward P/E 29 versus Apple 33 and Tesla 179. Amazon Q1 earnings rose 74.8% YoY, while Tesla GAAP EPS grew 8.3%. Apple was noted for dividends and a $100 billion buyback.

S&P 500 futures are down 0.8% and Nasdaq futures down 1.5% as tech stocks remain under pressure after heavy selling. Asian markets fell, with Japan’s Nikkei down 4% and South Korea’s KOSPI down over 6%. In pre-market, several AI and chip names including Arm, Intel, Nvidia, and AMD are lower, alongside Microsoft, Meta, Alphabet, Amazon, and Tesla.

Asian stocks extended losses for a second day as tech and chip shares sold off amid concerns over high AI-related valuations. Netflix forecast slower sales growth for a second straight quarter, and SpaceX reportedly aborted Starship Flight 13. Investors looked ahead to U.S. tech earnings from Alphabet, Amazon, Microsoft and Meta, while oil, gold and rates data influenced sentiment.

Asian markets fell as a tech rout hit AI-linked stocks. Japan’s Nikkei closed down 4%, with Advantest, Tokyo Electron and SoftBank each down more than 7%. Taiwan’s Taiex fell 6.5% after TSMC dropped 7.3% following record Q2 profit and a $100 billion Arizona investment. Bloomberg cited a 19% drop in the Philadelphia Semiconductor Index from June peak.

Asian shares fell as US tech and chip stocks extended losses. Japan’s Kioxia dropped 16% and the Nikkei 225 fell 5%. SanDisk, Western Digital and Seagate fell over 9%, while Intel and Micron slid about 6%. TSMC reported a 77% profit jump and plans $100B US investment, but its shares fell over 7%.

The article says consumers are prioritizing value and promotions ahead of the back-to-school season, citing EY-Parthenon. Walmart plans more rollback items and price cuts, plus lunchbox deals and a “College Grocery Haul” under $35. Amazon is using discounts and Prime Day focused on essentials, with markdowns up to 60%. Deloitte forecasts $30.4B K-12 spending in 2026.

Reuters reports investors are adjusting AI-related positions as concerns grow that hyperscalers’ capex growth may slow. UBS estimates hyperscaler capex rises 76% to $673B this year, then 25% next year and 6% in 2028. Some managers cut semiconductors and add hyperscalers like Amazon, plus software and healthcare. The Philadelphia Semiconductor Index has fallen ~18% from June peak.

U.S. stocks closed lower Thursday as investors reassessed AI valuations amid reports of technology delays and weaker retail activity. The Dow fell 0.20% to 52,552.97, the S&P 500 lost 0.51% to 7,533.77, and the Nasdaq dropped 1.47% to 25,881.946. Chip stocks slid, with Alphabet down about 4.5% after Gemini 3.5 Pro deployment was delayed. Retail sales rose 0.2% in June; initial jobless claims fell to 208,000.