Tech lifts stocks as Microsoft, Amazon fan the AI bid

The big picture. U.S. stocks finish higher, with the S&P 500 up 1.7%, the Nasdaq up 2.8%, the Dow up 1.2%, and the Russell 2000 up 1.4%. Tech leads the day by a wide margin, rising 5.5%, while communication services falls 2.7% and staples drop 2.2%.

The move lines up with a wave of AI and cloud headlines. CNBC reports Amazon hikes its 2026 capex to $220 billion due to higher memory costs, while Microsoft jumps 15.5% and Intel gains 11.3% among the day’s most active names. QQQ rises 3.3% and SPY adds 1.7% as traders pile into the megacap tech tape.

Treasury yields move higher, with the 5-year at 4.375%, the 10-year at 4.663%, and the 30-year at 5.208%. The VIX tumbles 17.3% to 17.09, while the 9-day VIX drops 11.9% to 14.85, pointing to a calmer close after a volatile stretch.

Overseas, the picture is mixed. The Hang Seng rises 2.0%, the ASX 200 gains 1.0%, and the Bovespa adds 1.9%, while the Nikkei falls 1.5%, the Kospi sinks 6.0%, and the Stoxx 600 slips 0.3%. In currencies, the dollar index falls 0.8%, EUR/USD rises 1.3%, and USD/JPY drops 2.5%. Crypto edges higher, with Bitcoin up 1.6%, Ethereum up 1.1%, and the total crypto market cap up 1.3% to $2.3T.