Financial Daily News — 2026-07-31
Markets focused on whether AI investment is translating into profits, while weaker-than-expected U.S. growth and still-elevated inflation kept pressure on rates and long-duration assets.
News
Microsoft’s AI-driven cloud growth sparks its strongest stock gain in nearly 18 years
Microsoft shares jumped 15.5% on July 30 after the company reported stronger-than-expected profit and continued growth in Azure, signaling that its heavy AI spending is beginning to translate into customer demand and earnings. **Why it matters:** Microsoft’s results provided a positive read-through for enterprise AI adoption and helped revive sentiment toward large-cap technology stocks.
DOE backs $100 billion AI data-center complex at former Kentucky uranium site
The Department of Energy selected Brookfield Asset Management to develop a data-center complex at Kentucky’s Paducah Gaseous Diffusion Plant. The project is planned to include 2 gigawatts of natural-gas generation, 2.6 gigawatts of battery storage and a 1.8-gigawatt AI data-center campus. **Why it matters:** The project illustrates how AI infrastructure is creating demand for dedicated gas generation, storage and transmission capacity alongside data-center construction.
U.S. second-quarter GDP grows 1.5% while inflation remains above the Fed’s target
The U.S. economy expanded at a 1.5% annualized pace in the second quarter, down from 2.1% in the first quarter and below economists’ expectations. Consumer spending increased at a 3.2% annual rate, while business investment excluding housing rose 8.4%. **Why it matters:** The combination of slower headline growth and resilient consumption complicates the rate outlook, particularly with core PCE inflation still at 3.3% year over year.
PCE inflation falls 0.1% month over month but remains well above the Fed’s 2% goal
The personal consumption expenditures price index rose 3.7% from a year earlier in June, while core PCE increased 3.3%. Prices declined 0.1% from May to June, helped by a 9.2% drop in gasoline and other energy prices. **Why it matters:** The data provide some monthly relief but leave inflation materially above target, limiting the scope for near-term monetary easing.
Earnings
Apple — AAPL — fiscal third-quarter revenue and EPS beat expectations
Apple reported fiscal third-quarter net income of $29.79 billion, or $2.02 per diluted share, on revenue of $109.42 billion. FactSet analysts had expected $1.89 in EPS and $109 billion in revenue; iPhone and Mac sales drove the stronger-than-expected quarter. **Why it matters:** Apple’s beat reinforces the strength of its hardware cycle, although rising memory costs and the upcoming iPhone launch remain important margin and demand tests.
Sources
- apnews.com (as of 2026-07-30)
- apnews.com (as of 2026-07-30)
- apnews.com (as of 2026-07-30)
- apnews.com (as of 2026-07-30)