Amazon Soars as US Stocks End Wild July Amid Inflation Worries
US stocks ended July on an upswing as Amazon's stock surged and Apple's sank amidst rising oil prices that worsened worries about inflation. The S&P 500 rose 0.7% after veering between gains and losses throughout the day, while the Dow Jones Industrial Average added 0.5%, and the Nasdaq composite jumped 1%. Amazon led the market with a 15.3% leap after reporting stronger-than-expected profits for the latest quarter, more than tripling from last year due in part to growth in its cloud computing business.
The company increased its forecast for investments this year, and analysts see it as a signal that its huge AI investments are paying off. This is similar to what Microsoft experienced a day earlier when it soared to its best day in nearly 18 years on signals that its AI investments may also be yielding higher profits.
Rising oil prices due to the ongoing war with Iran and concerns about inflation sent yields in the bond market even higher, with the yield on the 10-year Treasury jumping to 4.74% from 4.68% late Thursday and from just 3.97% before the war. This has already pushed the average long-term US mortgage rate to its highest level in a year.