Amazon Drives Market Gain Despite Inflation Worries

The US stock market closed out July on a high note, despite concerns about inflation and rising oil prices. The S&P 500 rose 0.7%, with Amazon leading the charge after reporting a significant increase in profits. The tech giant's cloud computing business saw an acceleration of growth, more than tripling its profit from last year.

The strong earnings report sent Amazon's stock soaring 15.3%. This comes on the heels of Microsoft's similar success, which saw its stock surge to its best day in nearly 18 years after reporting AI investments were paying off. Chip companies also saw significant gains, with Micron Technology jumping by as much as 6.4% before falling back.

However, not all stocks fared well. Apple dropped 7.4% despite beating profit expectations, due to a revenue growth forecast that fell short of analyst estimates. The company cited supply chain issues related to the AI boom for the disappointing outlook.

The overall market's gains came despite rising oil prices, which have pushed gasoline costs to nearly $4.11 per gallon in the US. Higher oil prices also put upward pressure on virtually every product that relies on shipping or transportation, further fueling inflation worries.