Amazon Surge Lifts Stocks Amid Oil Price Worries

U.S. stocks ended July on a high note after a tumultuous month of ups and downs. The S&P 500 rose 0.7% as Amazon's stock surged 15.3%, more than tripling its profit from a year ago, thanks in part to growth in its cloud computing business. Apple, however, took a hit with a 7.4% drop despite reporting stronger profits.

The Dow Jones Industrial Average added 276 points, or 0.5%, and the Nasdaq composite rallied 1%. The gains came despite another rise in oil prices, which have pushed the cost of regular gasoline to nearly $4.11 per gallon across the United States. Higher oil prices also put upward pressure on inflation, sending yields in the bond market even higher.

The yield on the 10-year Treasury rose to 4.71% from 3.97% before the war with Iran sent oil prices shooting higher. The move has already sent long-term mortgage rates to their highest level in a year. Economists at Bank of America warned that the Federal Reserve is facing a growing credibility problem, citing the need for rate hikes and a clear narrative on inflation.

Chip companies saw sharp swings on Friday, with Micron Technology going from an early jump of 6.4% to a loss of 6.5% before finishing with a fall of 5.9%. The Seoul Kospi index soared 17.9% for its best day in history, but still lost 22% in July despite the historic move.