Amazon Drives US Stocks Higher as Oil Prices Continue to Soar
US stocks experienced a wild ride in July, but finished the month on a positive note. The S&P 500 rose 0.7% to finish at 7,489.72, while the Dow Jones Industrial Average added 276 points to close at 52,485.03.
The gains were led by Amazon, which surged 15.3% after reporting stronger-than-expected profits for the latest quarter. The company's cloud computing business saw significant growth, leading analysts to believe that its investments in artificial intelligence may be paying off.
However, not all tech companies fared well. Apple dropped 7.4% despite beating profit expectations, due in part to a supply crunch in components caused by the AI boom.
The price of oil continued to rise, with Brent crude reaching $87.93 per barrel. Higher oil prices have pushed gasoline costs up to nearly $4.11 per gallon across the US, and are also driving up prices for virtually every product that relies on shipping or transportation.
The Federal Reserve's chairman, Kevin Warsh, has reiterated his commitment to getting inflation back down to 2%, but has refused to provide details on how he plans to achieve this goal. This lack of clarity has led some economists to question the Fed's credibility and ability to effectively manage inflation.