On August 1, 2026, US stocks kicked off their first trading day of August. After a bumpy end to July, the market had hoped for a positive start to the new month. However, the latest US ISM manufacturing data poured cold water on early bullish enthusiasm. The Dow Jones Industrial Average and S&P 500 were under pressure during the trading session, while the Nasdaq barely held flat, supported by tech stocks. The real turning point came after hours—e-commerce and cloud giant Amazon delivered results that far exceeded expectations, instantly igniting bullish sentiment in the after-hours market, with Nasdaq 100 futures surging in response.
Real-Time Market Recap: Macro Data Weighs on Broad Market, Three Major Indices Diverge
According to US stock real-time quotes, market sentiment during Friday's regular trading session was largely driven by macroeconomic data. The Dow closed down about 0.45%, breaking below a key support level; the S&P 500 slipped 0.12%, struggling to find a bottom under the drag of energy and financial sectors; the Nasdaq Composite edged up 0.08%, thanks to resilience shown by some tech giants during the session.
The direct trigger for the intraday sell-off was the July Manufacturing Purchasing Managers' Index (PMI) released by the Institute for Supply Management (ISM). The data showed the index fell further to 47.8 from 48.5 in June, not only below the 50 threshold separating expansion from contraction but also missing the median economist forecast of 49.0. This signals deepening contraction in US manufacturing, with both new orders and employment sub-indices showing weakness.
Manufacturing Weakness Fuels Recession Fears
Persistent weakness in manufacturing is prompting investors to reassess the outlook for the US economy. While the market had broadly expected a "soft landing," the consecutive weakening of ISM data suggests the lagged impact of high interest rates on the real economy is emerging. Insufficient demand on the production side could gradually spill over into the job market, subsequently affecting consumer spending. This macro-level concern led to capital outflows from traditional cyclical sectors on Friday, with risk-off sentiment rising somewhat.
After-Hours Reversal: Amazon's Earnings Save the Day
Just as market sentiment was turning slightly subdued, the after-hours trading session brought a major turnaround. Amazon released its Q2 fiscal 2026 earnings. The data showed the company's second-quarter revenue reached $134.5 billion, up 11% year-over-year, significantly beating Wall Street's estimate of $131.5 billion; earnings per share (EPS) came in at $1.05, also crushing the $0.82 forecast.
Even more encouraging for the market was its guidance. Amazon expects third-quarter revenue to be between $140 billion and $145 billion, with the midpoint exceeding the general market consensus. In after-hours trading following the release, Amazon's stock price surged over 6%, driving Nasdaq 100 index futures up nearly 0.8%, with S&P 500 futures also turning positive.
Cloud Business and Advertising Become New Growth Engines
A deeper dive into Amazon's earnings reveals that the strong performance is backed by a successful business transformation. AWS cloud services, after experiencing slowing growth in previous quarters, re-accelerated this quarter, with revenue up 14% year-over-year to $25.5 billion. This indicates that as global enterprises advance their AI adoption, demand for computing power and cloud storage is entering a new wave of growth. Additionally, Amazon's advertising business also performed impressively, with revenue up 22% year-over-year, becoming a significant contributor to profit growth.
ASEAN Investor Perspective: How to Navigate Current US Stock Volatility?
For ASEAN investors tracking US stock real-time quotes, the current market environment presents both opportunities and hidden risks. On one hand, macroeconomic weakness could force the Federal Reserve to accelerate rate cuts in the autumn, which typically provides liquidity support for equities; on the other hand, increasing divergence across sectors makes stock selection more challenging.
- Focus on Tech Giants' Moats: Amazon's after-hours surge proves that tech giants with strong cash flow and AI infrastructure still possess the ability to weather cycles. ASEAN investors can diversify risk by allocating to relevant tech ETFs or directly investing in leading stocks.
- Beware of Traditional Manufacturing Risks: The weak ISM data warns investors to avoid cyclical stocks highly dependent on a traditional manufacturing recovery, such as some industrial and materials companies.
- Utilize After-Hours Trading to Capture Opportunities: US after-hours trading is increasingly active, with major earnings often triggering sharp volatility during this period. ASEAN investors need to closely monitor pre-market and after-hours dynamics and set limit orders wisely to guard against opening gap risks.
Overall, while the start of August for US stocks faced headwinds from macro data, resilient corporate earnings still provide support for the market. As earnings season progresses, stock-level performance will dominate market movements. When referencing US stock real-time quotes, investors should focus more on combining fundamental analysis with macro cycles, avoiding blindly chasing rallies or selling into panics.
