Dow futures soar 340 points: 5 things to know before Wall Street opens

• Amazon's AWS revenue jumped 37% to $42.2 billion, the fastest growth in 18 quarters, providing evidence that AI infrastructure spending is converting to real demand and lifting semiconductor stocks like Nvidia (up 1.5%) and Micron (up 3.5%)
• Apple dropped 7.3% despite 16% revenue growth to $109.42 billion, as management warned component shortages would limit September quarter growth to 9-11%, below the expected 12% pace
• The Philadelphia Semiconductor Index remains over 20% below its June record despite the rebound, and the Fed's 9-3 vote to hold rates at 3.5-3.75% (with three members favoring a hike) reduced rate-cut certainty from 80% to 60% for September

Market Summary: Dow Futures Soar on Amazon Cloud Growth

Market Overview:

US stock futures rallied Friday morning, with Dow futures up 340 points (+0.64%), S&P 500 futures gaining 0.48%, and Nasdaq 100 futures jumping 1.22%. The advance was driven primarily by strong Amazon cloud results that reinvigorated the AI trade.

Key Movers:

*Amazon:* Delivered the strongest validation for AI spending with AWS revenue surging 37% to $42.2 billion—the fastest growth in 18 quarters. Total company sales rose 20% to $200.6 billion, providing critical evidence that hyperscaler AI investments are generating actual demand and revenue.

*Apple:* Dropped 7.3% despite reporting strong results including 16% revenue growth to $109.42 billion and record iPhone sales. The decline stemmed from management warnings about component shortages constraining September quarter growth to 9-11%, below the expected 12% pace.

*Semiconductors:* Nvidia gained 1.5% and Micron rose 3.5% in premarket trading, extending Thursday's rebound. However, the Philadelphia Semiconductor Index remains over 20% below its June peak after July's sell-off.

Monetary Policy:

The Federal Reserve cut rates to 3.5-3.75% in a 9-3 vote Wednesday, with three policymakers favoring a quarter-point increase. Markets now assign 60% probability to a September rate hike, down from 80% a week earlier.

Market Context:

Despite Friday's gains, July inflicted significant damage on tech stocks as investors questioned AI infrastructure valuations and return on investment. The recovery remains selective rather than broad-based across the technology sector.

Upcoming Catalyst:

University of Michigan consumer sentiment data due at 10 AM ET, with preliminary July reading at 54.4 (up from 49.5 in June).