Amazon and Apple Deliver the Drama to Close a Turbulent Month

The major stock averages finished higher on Friday, July 28, as Amazon shares surged. The Nasdaq Composite index rose 1% to close at 25,373.85, while the S&P 500 index added 0.7% to end at 7,489.72. The Dow Jones Industrial Average gained 276.97 points, or 0.53%, to reach 52,485.03. Meanwhile, the 30-year Treasury bond yield hit its highest level since 2007, climbing to 5.25% on the day.

Investors grew wary of Federal Reserve Chair Kevin Warsh's commitment to fighting inflation, as he admitted there was "no magic wand" to curb inflationary pressures. Terry Sandven, chief equity strategist at US Bancorp Asset Management, noted that the 10-year Treasury yield nearing 5% could cause concern and pressure valuations.

In the midst of this volatility, Amazon shares jumped 15% following an earnings report that beat expectations, driven by its cloud computing business and strong investor confidence in artificial intelligence spending. In contrast, Apple shares were down more than 7%, despite reporting stronger-than-expected iPhone sales. Other tech giants, like Microsoft, also experienced fluctuations, with the company's stock seeing a 16% gain after reporting stronger-than-expected Azure cloud growth. Despite a tumultuous week, the major averages were still on track to end the month with gains.