Amazon's Profit Surge Lifts US Stocks Amid Inflation Worries

US stocks ended July on a high note as Amazon's strong profit report led the market up by 0.7%, according to the S&P 500 index. The Dow Jones Industrial Average rose 276 points, or 0.5%, and the Nasdaq composite gained 1% after a volatile day.

Amazon's impressive quarterly results more than tripled its profit from last year, thanks in part to its cloud computing business. This has led analysts to believe that Amazon's massive investments in artificial intelligence technology are paying off, causing its stock to soar by 15.3%.

However, not all tech giants fared well, as Apple dropped 7.4% despite reporting stronger profit than expected. Its forecast for revenue growth fell short of analysts' expectations due to a supply crunch in components caused by the AI boom.

The rising oil prices have worsened inflation worries, with the price for a barrel of Brent crude increasing by 1.2%. This has pushed up the cost of gasoline and other products that rely on shipping, and sent yields in the bond market even higher.