Amazon stock surged 15.3% on August 1, 2026, following a Q2 earnings beat. Net sales exceeded $200 billion for the first time in company history. Amazon Web Services revenue growth accelerated by 37%. The advertising business increased by 26%.
The rally pushed the Consumer Discretionary Select Sector SPDR Fund (XLY) up 3.29%. Amazon’s heavy index weighting made consumer discretionary one of the day's top-performing sectors.
Market performance contrasted with declines in the technology sector. The shift indicates an investor rotation toward companies showing clear returns on AI and cloud infrastructure.