Amazon Boosts US Stocks Amid Inflation Worries
US stocks ended July on a high note despite concerns about inflation and a volatile oil market. The S&P 500 index rose 0.7% after fluctuating between gains and losses throughout the day, while the Dow Jones Industrial Average added 276 points or 0.5%. The Nasdaq composite rallied 1% after briefly losing its early 1.3% jump.
Amazon led the market with a significant gain of 15.3%, following a stronger-than-expected profit report for the latest quarter. The company's cloud computing business accelerated growth, more than tripling its profits from last year. Analysts believe this could be a sign that Amazon's AI investments are paying off.
Other tech companies like Microsoft experienced similar gains after reporting strong AI-related profits. However, chipmakers, including Micron Technology, saw their stocks swing wildly due to supply chain issues related to the AI boom. Apple dropped 7.4% despite reporting stronger profit, with its revenue growth forecast falling short of expectations.
The oil market remained volatile, with prices rising again due to ongoing tensions in the Middle East. This contributed to higher inflation concerns, pushing yields on US bonds even higher. The yield on the 10-year Treasury rose to 4.71%, a significant move that could impact long-term mortgage rates and economic growth.