Tech Titans Fuel Market Gains Despite Inflation Worries

The US stock market saw gains on Friday due to strong earnings from tech giants Microsoft and Amazon. The two companies' financial results exceeded investor expectations, providing an optimistic outlook for cash generation through 2027. This news boosted confidence among investors, driving the global equity markets upwards.

However, not all tech sector companies performed well. Apple Inc.'s shares declined by over 7% after the company provided a weaker-than-expected forecast. This downturn was attributed to potential difficulties in securing components due to a global scramble for hardware driven by the current AI-focused data center boom.

Rising Treasury yields and higher oil prices have sparked concerns about future inflation and potential Federal Reserve interest rate hikes. The benchmark 10-year U.S. Treasury note yield reached its highest point since January 2025, while the 30-year bond yield climbed to levels not seen since mid-2007.