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Amazon up 15.3% on strong quarterly profit, Apple down 7.4% on revenue forecast miss; S&P 500 +0.7%, 10‑yr Treasury yield 4.71% as oil hits $87.93.
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U.S. stocks closed Friday higher as the S&P 500 rose 0.7% to 7,489.72, driven by a 15.3% surge in Amazon after it posted profit more than triple year‑over‑year, while Apple slid 7.4% on a revenue‑growth forecast that fell short of expectations.
At a glance
| At a glance | |
|---|---|
| S&P 500 | +0.7% to 7,489.72 |
| Amazon stock | +15.3% |
| Apple stock | –7.4% |
| 10‑yr Treasury yield | 4.71% (up from 4.68%) |
Amazon’s earnings beat analysts’ forecasts, with quarterly profit more than three times the prior‑year level, helped by accelerated growth in its cloud‑computing division. The beat prompted analysts to view the result as evidence that the company’s heavy AI spending is beginning to pay off, and Amazon lifted its investment‑spending outlook for the year. The same AI‑related optimism had lifted Microsoft’s shares the day before, marking a back‑to‑back rally for big‑tech names tied to artificial‑intelligence demand.
In contrast, Apple reported profit that exceeded expectations but delivered a revenue‑growth outlook for the current quarter that missed consensus. Executives blamed the shortfall on a component supply crunch intensified by the AI boom, sending the stock down 7.4% despite the earnings beat. Chip makers that supply “hyperscalers” such as Amazon and Microsoft saw volatile moves, with Micron swinging from a 6.4% gain early in the session to a 5.9% loss by close.
Oil prices rose again as the war in Iran kept crude supplies uncertain, with Brent settling at $87.93 per barrel, up 1.2% on the day. Higher oil costs pushed the national average gasoline price to nearly $4.11 a gallon, up from $3.85 a month earlier, and added pressure on broader consumer prices. The inflation backdrop lifted the 10‑year Treasury yield to 4.71%, a rise from 4.68% the previous day and well above the 3.97% level recorded before the Iran conflict escalated. The yield increase has already nudged the average long‑term mortgage rate to its highest point in a year.
Federal Reserve Chairman Kevin Warsh reiterated the commitment to bring inflation back to 2% but offered no concrete plan, and the Fed kept its policy rate unchanged. Market participants noted that without a clear path, the Fed could face credibility challenges, especially as inflation remains above target.
The market’s split performance underscores how earnings surprises and macro‑level inflation pressures can coexist, leaving investors to balance corporate‑specific news against broader economic headwinds.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Aug 2, 2026 · How we report
The annual rate of inflation, as measured by the Consumer Price Index, was 3.4% in August 2026. This figure remained unchanged from the annual rate reported for July 2026.
Inflation is a primary factor for the Federal Reserve because the central bank maintains a 2% annual target for price increases. When inflation remains above this target, as it did in August 2026 at 3.4%, policymakers consider raising interest rates to help moderate economic price pressures.
Energy prices impact inflation by directly increasing the cost of goods and services, with gasoline price hikes accounting for over one-third of the total monthly index increase in August 2026. Rising costs for oil and diesel, influenced by geopolitical tensions in the Middle East, can also create broader inflationary pressure across other sectors of the economy.
Core inflation is different from overall inflation because it excludes volatile food and energy prices to provide a clearer view of long-term price trends. In August 2026, core inflation rose 2.4% annually, which was lower than the 3.4% headline inflation rate.