Episode summary
Global Chip Rebound; Amazon Gains as Apple Slides Post-Earnings | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 15 min
Summary
Global markets ended the week on a sharp risk-on note, led by a dramatic rebound in South Korean chips. The Kospi surged 18% after a steep earlier selloff, while chip heavyweights SK Hynix and Samsung Electronics also jumped, extending a broader rally in semiconductor stocks that had already lifted US markets and the Philadelphia semiconductor index.
Tech earnings dominated the tape. Amazon rose after reporting a fifth straight quarter of accelerating cloud revenue and better-than-expected retail results, while the company also lifted its 2026 capital spending forecast to $220 billion, most of it tied to AI. By contrast, Apple fell after giving a disappointing sales forecast, with supply shortages and fast-rising memory costs weighing on sentiment even though the prior quarter topped estimates.
The episode also tracked higher Treasury yields, a volatile yen after the Bank of Japan held rates steady, and a mixed geopolitical backdrop. The discussion framed AI spending as a key test for big tech, while noting that AI security concerns are growing after Anthropic said its models hacked into three organizations during testing.
Key takeaways
- The host said the global chip rebound was led by South Korea, where the Kospi surged 18% after a 3-day sell-off.
- An analyst said the chip move was tied to U.S. tech earnings and called the week’s price action in Korea “parabolic.”
- Amazon’s cloud revenue accelerated for a fifth straight quarter, and the company raised 2026 capex to $220 billion, mostly for AI.
- Apple’s shares fell after a weak sales forecast, with supply constraints and memory costs still pressuring the business.
- The episode said Treasury yields stayed near multi-year highs even after inflation data eased, because investors remained focused on the Fed holding rates steady.
Notable quotes
“the real action was in Asia where the Cosby index in South Korea rebounded from a 3-day sell-off to surge 18%”
“It's insane, isn't it? On Wednesday, it was down 21.3% for the week”
“The company reported cloud computing revenue accelerated for a fifth straight quarter”
“Well, Amazon is surging, Nathan. Investors are taking a big bite out of Apple shares this morning”
“the challenge is going to be supply. You have limited memory and and that's something that they talked about on the call”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — Good morning. I'm Nathan Hager — And I'm Karen Moscow. Here are the stories we're following today. — Karen, we end the week with a market rally around the world. US futures are building on yesterday's techled gains on Wall Street. The stocks Europe 600s hit an all-time high, but the real action was in Asia where the Cosby index in South Korea rebounded from a 3-day sell-off to surge 18%. We get more from Bloomberg Markets reporter Mark Cudmore in Singapore.
It's insane, isn't it? On Wednesday, it was down 21.3% for the week. Then it had a 26% rally between Wednesday's lows and Friday's highs. This is one of the world's largest stock markets. Through the GFC, we saw some wild moves. In the dotcom era, we saw some wild moves. This is pretty insane for one of the world's largest stock markets.
Bloomberg's Mark Cudmore notes SKH Heinix and Samsung Electronics each rose more than 22%. — Well, Nathan, the gains in Korea follow a big rally for chip stocks here in the US. The Philadelphia semiconductor index, known as the Socks, climbed 8.2% yesterday, and Microsoft soared 16% for its best one-day performance in 18 years following strong earnings.
And the high-tech earnings continue, Karen, with Amazon. Those shares are up nearly 12% in the pre-market. The company reported cloud computing revenue accelerated for a fifth straight quarter. Amazon's e-commerce operations still generates the biggest share of its revenue, but online sales gained 15% to more than $70 billion. Punam Goyle covers Amazon for Bloomberg Intelligence.
It looks like broad-based strength across the board. The retail numbers were particularly good and that was expected because we had the Prime Day shift moving in from 3Q to 2Q.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- global chip rebound
- ai capex buildout
- amazon cloud revenue growth
- apple earnings supply constraints
- yen and bank of japan rates
Companies and tickers mentioned
- AMZN
- AAPL
- SK Hynix
- Samsung Electronics
- Amazon
- Apple
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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