Stocks closed broadly higher on Friday, ending a turbulent month on a strong note as a blowout earnings report from Amazon reignited enthusiasm for the artificial intelligence trade. Investors looked past a fresh climb in Treasury yields and a steep drop in Apple shares, focusing instead on signs that spending on AI infrastructure continues to accelerate. All three major indexes finished in positive territory, with technology and consumer names leading the way.
What Moved Markets
The Nasdaq Composite led the advance, rising 251.68 points, or 1.0%, to close at 25,373.85. The S&P 500 added 52.09 points, or 0.7%, to finish at 7,489.72, while the Dow Jones Industrial Average gained 277.03 points, or 0.53%, to end at 52,485.09.
The gains came even as bond yields pushed higher. The 30-year Treasury yield touched its highest level since 2007, and the benchmark 10-year note yield topped 4.7%, its highest since January 2025. Rising yields can pressure stock valuations, but strong corporate results outweighed those concerns on Friday. On the economic front, the Federal Reserve’s preferred inflation gauge offered some relief: the core PCE price index rose 0.1% for the month, leaving the annual rate at 3.3%, in line with forecasts. Separately, second-quarter GDP grew a softer-than-expected 1.5%, and weekly jobless claims edged up to 197,000.
Notable Movers
Amazon (AMZN) was the standout, jumping about 15% after its cloud unit, Amazon Web Services, posted revenue growth of 37% from a year earlier, its fastest pace in 18 quarters. The results underscored surging demand for AI computing power and helped lift sentiment across the sector.
Apple (AAPL) went the other direction, sliding roughly 9% to become the day’s biggest drag on the Dow. While the company topped earnings and revenue estimates, it issued cautious guidance for the current quarter, projecting revenue growth of 9% to 11% and citing supply constraints that raised costs and limited production of key devices.
Microsoft (MSFT) rose nearly 3%, extending gains alongside other software makers and cloud providers as investors reconsidered the durability of the AI buildout. In earnings news elsewhere, Yum Brands (YUM) advanced more than 1% after adjusted profit of $1.62 per share beat Wall Street estimates. On the deal front, Intercontinental Exchange (ICE), the parent of the New York Stock Exchange, agreed to acquire bond-trading platform MarketAxess (MKTX), highlighting continued consolidation in fixed-income markets.
Looking Ahead
With July in the books, investors will turn their attention to the path of interest rates and whether the recent surge in long-term Treasury yields continues. The heavy stretch of Big Tech earnings has reinforced the market’s reliance on AI-driven growth, so any shift in that narrative could sway sentiment quickly. In the week ahead, traders will watch for additional corporate results, fresh readings on the labor market, and any commentary from Federal Reserve officials for clues on the timing of future rate moves. For now, resilient earnings appear to be keeping the bulls in control.