Amazon Lifts US Stocks to New Highs Amid Hawkish Comments
US stocks closed higher on Friday, led by Amazon's significant gain. The S&P 500 Index rose +0.70%, while the Dow Jones Industrial Average and Nasdaq 100 Index followed suit with gains of +0.53% and +0.60% respectively.
Amazon's cloud unit reported its fastest quarterly revenue growth in five years, exceeding investor expectations and boosting market sentiment. This sent Amazon shares surging more than 15%, making it the top performer among megacap technology stocks.
Despite strong US economic news, including a +0.9% rise in the Q2 employment cost index and a 5-month high of 55.2 for the University of Michigan's consumer sentiment index, hawkish comments from Dallas Fed President Lorie Logan pushed bond yields higher. She stated that 'without any policy restraint, inflation will likely continue to trend above target until there's an unanticipated shock.'
Tensions in the Middle East remain high, with Houthi leader Abdulmalik al-Houthi warning of a potential escalation by Saudi Arabia. This has led to increased anxiety over oil prices and global growth prospects.