Amazon Leads Tech Giants in US Stock Market Rebound on Inflation Worries

The US stock market finished July with a rebound on Friday as tech giants led the charge. The S&P 500 rose 0.7%, the Dow Jones Industrial Average added 276 points, or 0.5%, and the Nasdaq composite rallied 1%. Amazon's shares surged 15.3% after reporting stronger-than-expected profits for the latest quarter, which more than tripled from a year earlier.

The tech giant also increased its forecast for investments this year. This follows Microsoft's stock soaring to its best day in nearly 18 years on similar signals of AI-related growth. Chip companies Micron Technology and Intel saw sharp swings due to their role in the AI boom, with Micron dropping 5.9% by the end of the day.

Apple's shares fell 7.4% despite reporting stronger profits for the latest quarter than expected, citing a supply crunch in components as the reason for its forecasted revenue growth shortfall.