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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
Higher oil prices driven by the war with Iran have lifted the average U.S. gasoline price to nearly $4.11 per gallon.
The yield on the 10-year Treasury increased to 4.71%, reflecting rising expectations of inflation and economic growth.
The Fed chose to keep rates steady, a decision supported by the Trump administration, which prefers lower rates despite inflation remaining above target.
New tariffs and continued military actions in Iran have added to higher costs for food, gas, and other essentials, limiting short‑term relief options.
Consumer prices fell in June for the first time in six years, largely due to lower gas prices, but inflation pressures have resumed as oil prices rose.