Amazon Soothes AI Jitters as Wall Street Rallies
Wall Street ended higher on Friday, July 31, thanks to Amazon's strong quarterly report. The tech giant's results alleviated investor concerns about potential overspending on AI data centers.
Amazon.com surged over 15 per cent after posting its biggest quarterly revenue growth in over four years. This bolstered investor confidence in artificial intelligence-related stocks, which had been rattled by worries that heavy investments in AI infrastructure may be taking too long to pay off.
Apple dropped 7.4 per cent after warning that supply constraints would hurt growth, adding to concerns about recent iPhone price hikes weakening consumer demand.
The S&P 500 climbed 0.7 per cent to end the session at 7,489.72 points, while the Dow Jones Industrial Average rose 0.5 per cent to 52,485.03 points.