Amazon surges 15% on earnings cheer... 30-year Treasury yield breaks high again

Summary

The Wall Street Newsletter covers a US session where Amazon surged 15% and other hyperscalers rallied, while Apple and semiconductors fell. Rising Treasury yields and oil uncertainty remain headwinds. The core investment implication is a H2 rotation from pure AI hardware into cloud-giant hyperscalers, which are now demonstrating returns on their massive capex.

• Amazon jumped 15% after earnings, its best day in 14 years, while Alphabet and Microsoft also rallied.
• Apple fell 7% on weak China sales and chip concerns, attracting analyst downgrades.
• Hyperscaler capex remains high but is increasingly justified by cloud demand and clear return timelines.
• US 30-year Treasury yield hit new cycle highs, adding valuation pressure across markets.
• Oil prices are a key short-term swing factor; a potential Iran deal could ease inflation fears.
• The market is rotating from AI hardware to hyperscaler cloud/software plays in the second half.
• Micron and other memory names dropped sharply, while Bitcoin briefly spiked on Trump’s Iran threat cancellation.