Amazon to boost spending on AI and other technology by $20 billion after strong Q2 results
NEW YORK (AP) — Amazon said it will be increasing this year’s capital spending on technology, mostly artificial intelligence, by an additional 10% after the tech and e-commerce giant delivered strong profits and net sales during for fiscal second quarter, helped by surging growth in its prominent cloud computing unit. The e-commerce and technology company said Thursday that sales in its cloud computing unit called AWS were up 37% during the April-June period, faster than the 28% clip in the previous quarter and marking the fastest growth rate in 18 quarters. Amazon reported net income of $62.65 billion or $5.75 per share, in the three-month period ended June 30.
Strong iPhone sales propel Apple's fiscal Q3 results past Wall Street's expectations
Apple posted a solid fiscal third quarter on Thursday, climbing past Wall Street’s expectations thanks to strong sales of the iPhone and MacBook computers. Apple raised the prices of its Macs and iPads last month, citing a memory-chip shortage brought on by the artificial intelligence boom. The company had called the demand spike an “unprecedented challenge” for the consumer electronics industry. While it hasn’t yet raised iPhone prices, analysts and consumers expect that to happen later this year.
US economy grows at a sluggish 1.5% in second-quarter with inflation remaining stubbornly high
WASHINGTON (AP) — The U.S. economy expanded at a sluggish 1.5% pace from April through June as rising imports weighed on growth. But consumer spending rose. And the Federal Reserve’s favored measure of inflation grew more slowly last month, but remained above the central bank’s 2% target. The Commerce Department reported Thursday that growth in U.S. gross domestic product — the nation’s output of goods and services — decelerated from 2.1% in the first three months of 2026 and came in below economists’ expectations. But consumer spending — which accounts for about 70% of U.S. economic activity — increased at a 3.2% annual clip
South Korea’s Kospi index jumps more than 16% on a surge of chipmaking stocks
BANGKOK (AP) — South Korea’s Kospi index has jumped more than 16% as artificial intelligence-related stocks bounced back after losses earlier this week. U.S. futures edged higher and oil prices rose Friday. Shares of South Korean technology giant Samsung Electronics surged 24.8%, while memory chipmaker SK Hynix soared 27.8%. The Kospi index had plummeted more than 16% on Tuesday and Wednesday on a sell-off of technology stocks in part over worries about an AI bubble and rising intensive competition from chipmaking rivals in China. Tokyo’s Nikkei 225 also climbed 5.5% in early Friday trading. In the U.S. on Thursday, Wall Street’s benchmark S&P 500 rose 1.7%. The Dow Jones Industrial Average added 1.2%. The technology-heavy Nasdaq composite gained 2.8%.
Microsoft beats Wall Street expectations with $90B in revenue
Microsoft has posted strong quarterly earnings, surpassing expectations with significant growth in its cloud computing platform and a boost in paid AI users. The company earned $90 billion, or $4.81 per share, in the April-June quarter, up 18% from a year earlier. Analysts had expected $4.24 per share on $87.62 billion in revenue. Microsoft Cloud revenue rose 27% year-over-year, driven by demand for Azure and AI services. Azure and other cloud services revenue increased 43%. CEO Satya Nadella highlighted Azure's $100 billion revenue milestone and 30 million paid seats for Microsoft 365 Copilot. Microsoft's shares rose about 3% in after-hours trading.
Average 30-year US mortgage rate rises to highest level in a year at 6.66%
The average long-term U.S. mortgage rate rose for the fourth consecutive week to its highest level in a year, another setback for prospective homebuyers hoping for a break from elevated home loan borrowing costs. Mortgage buyer Freddie Mac said Thursday that the benchmark 30-year fixed rate mortgage rate rose to 6.66% from 6.58% last week. One year ago, the average rate was 6.72%. Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers’ purchasing power. Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, also rose this week.
EU lays out $11.4 billion for 7 AI gigafactories as it aims to catch up with US and China
BRUSSELS (AP) — The European Union plans to invest 10 billion euros to build seven AI gigafactories, aiming to catch up with the U.S. and China. The European Commission hopes this public funding will attract private investment, totaling up to 20 billion euros. These gigafactories should house at least 100,000 advanced AI chips, significantly boosting Europe's computing power. Currently, Europe lags in AI development, with high electricity costs and reliance on U.S. AI providers. The EU initiative includes adherence to data protection and ethical standards, aligning with its Digital Services and Market Acts.
Between prices and a diarrhea-causing parasite, lettuce is causing hard times at some restaurants
It’s been a choppy year for restaurants that lean into lettuce. Lettuce prices rose sharply in the first half of 2026 due to hot weather in Arizona, where about one-third of America’s lettuce is grown. Now, some restaurants are dealing with the fallout from a cyclospora outbreak linked to shredded lettuce that has sickened thousands of Americans. Yum Brands, the parent company of Taco Bell, said Thursday that Taco Bell’s U.S. same-store sales are down 2% so far in the July-September period due to customers’ concerns over the outbreak. Chipotle also said Wednesday it expects lower sales this quarter because of the outbreak.
WestJet flight attendants threaten to strike during long August weekend in Canada
VANCOUVER, British Columbia (AP) — Flight attendants at WestJet, Canada's second-largest airline, have threatened to strike over unpaid work. The union representing 4,400 cabin crew issued a 72-hour strike notice, meaning the strike could start Sunday. This comes just before a three-day weekend in Canada. Both the airline and the union are negotiating to reach an agreement. A key issue is how flight attendants are paid for duties performed on the ground. WestJet says these duties are compensated through a “credit hour” system. Travelers on WestJet Encore or code-share flights with partners like Delta would not be affected by a strike.
Some robotaxis approved to operate without steering wheels and losing the brake pedal could be next
LAS VEGAS (AP) — Federal regulators are clearing the way for robotaxis to operate without steering wheels or eventually even brake pedals. Amazon's fully autonomous Zoox vehicles got approval Thursday to begin charging customers for rides in the specially designed cars that feature four inward-facing seats once they secure state and local approval. Zoox has already been offering free rides in Las Vegas and San Francisco since last fall. The National Highway Traffic Safety Administration proposed a rule last month to allow robotaxis to operate without brake pedals, but that proposal is still pending. Zoox and Tesla are working to catch up to the industry-leading Waymo that already operates in multiple cities.
