Wall Street Rallies Despite Rising Bond Yields

US sharemarkets closed higher on Friday as solid corporate earnings offset rising bond yields. The Nasdaq Composite rose 1% to 25,373.85, while the S&P 500 gained 0.7% to 7,489.72 and the Dow Jones Industrial Average added 276.97 points, or 0.53%, to 52,485.03.

Amazon led gains after reporting better-than-expected second-quarter revenue, driven by its cloud computing business. The tech giant's shares jumped 15% following the announcement. Apple, on the other hand, fell more than 7% despite stronger iPhone sales due to weaker-than-expected services revenue.

The Treasury yields continued to climb as investors questioned whether the Federal Reserve could contain inflation. The 30-year Treasury yield reached its highest level since 2007, while the benchmark 10-year yield climbed above 4.7%. Oil prices also edged higher, with Brent crude rising 1.2% to US$90.12 a barrel and West Texas Intermediate adding 1.3% to US$84.67.