US Stocks Close Strong in July Despite Rising Bond Yields

The US stock market closed July on a strong note after Amazon's shares surged. The Nasdaq Composite rose by 1% to finish at 25,373.85. The S&P 500 increased by 0.7% to 7,489.72, while the Dow Jones Industrial Average added 276.97 points or 0.53%, closing at 52,485.03.

Bond yields kept climbing, with the 30-year Treasury yield reaching its highest level since 2007 and last up about 4 basis points at 5.25%. The 10-year Treasury yield pushed above 4.7%, a level not seen since January 2025.

This reflects growing investor doubt over Federal Reserve Chairman Kevin Warsh's ability to tame inflation. Bank of America economists said that 'markets are questioning the Fed's credibility.' They added, 'ironically, we think the need to re-establish credibility increases the likelihood that the Fed will hike in September, all else being equal.'

This week, investors focus on the jobs report and a heavy slate of corporate earnings for direction. The July employment report is due out Thursday.