Live: ASX set to tumble despite Wall St rallying on Amazon earnings

Wall Street closed the month on a high note, with AI stocks regaining favor and driving key indices higher. Amazon's shares surged over 15% following a stronger-than-expected earnings report, particularly its cloud computing revenue growth, which reassured investors about AI spending.

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Amazon shares jumped more than 15%.

However, this positive momentum is unlikely to carry over to the Australian market. ASX 200 futures indicate a substantial 1% decline. Apple's performance cast a shadow, with its shares plummeting 7% after issuing a cautious forecast. The company cited difficulties in securing components amid the AI-driven data center boom straining global supply chains.

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The iPhone maker said it was struggling to secure enough components as the AI-driven data-centre boom strains global supply chains.

European markets saw minor dips, but the global MSCI index posted a gain. US Treasury yields rose as Federal Reserve officials reiterated their case for potential interest rate hikes, increasing the market's pricing for a September rate increase to 69%. The Australian dollar remained steady above 70 US cents.

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Traders are now pricing in a 69% chance that the Fed will raise rates at its September meeting.

Oil prices experienced a notable increase, with Brent crude futures rising to $US90.12 a barrel and WTI futures to $US84.67. This surge was attributed to reports of Iran compelling several tankers to alter course, raising concerns about passage through the Strait of Hormuz. For July, both benchmarks saw significant monthly gains.

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Iran had forced to several tankers to turn around rather than risk a passage through the Strait of Hormuz.