US Stocks-Wall Street climbs as Amazon soothes AI jitters

Three Federal Reserve officials who dissented at the Fed's policy meeting this week in favor of an interest rate hike called on Friday for immediate action to bring inflation down to the U.S. central bank's 2% target. The 2-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations for the Fed, rose 5.4 basis points to 4.28% but is down slightly for the week. Markets are pricing in a 65% chance of a rate hike at the Fed's September meeting, according to CME FedWatch, down from 82% a week ago but up slightly from 63% on Thursday. Domain registrar GoDaddy GDDY.N lost 19% after narrowing its annual revenue forecast. The S&P 500 posted four new highs and three new lows; the Nasdaq recorded 37 new highs and 101 new lows. The S&P 500 was up 0.60% at 7,482.42 points. Even as the S&P 500 climbed, declining stocks outnumbered rising ones .AD.SPX by a 1.1-to-one ratio. The Nasdaq gained 0.83% to 25,331.65 points, while the Dow Jones Industrial Average was up 0.54% at 52,492.51 points. SpaceX SPCX.O dipped 3% to $107.82 and was on track for the lowest close since its blockbuster initial public offering in June, when it was priced at $135 a share. Analysts on average expect S&P 500 aggregate second-quarter earnings to soar 48% from a year ago, with AI-related stocks accounting for much of that growth, according to LSEG I/B/E/S. Strong earnings forecasts and a recent decline in share prices have left the S&P 500 trading at about 20 times expected earnings, just above its 10-year average of 19 times, according to LSEG data. The S&P 500 is near flat in July while the Nasdaq has fallen about 3%. Both indexes are up about 9% in 2026. The S&P 500 equal-weighted index .EWGSPC was on track for its fourth straight month of gains, thanks to its limited exposure to heavyweight AI-related stocks that have underperformed for much of that time. Wall Street climbed on Friday, lifted by Amazon as the tech heavyweight's strong quarterly report bolstered investor confidence in AI-related stocks, while Apple dropped after its results disappointed investors. Amazon.com AMZN.O surged 15% after posting its biggest quarterly revenue growth in over four years. Its results, along with a similar report from Microsoft MSFT.O on Wednesday, alleviated investor concerns about potential overspending on AI data centers. Worries that heavy investments in AI infrastructure may be taking too long to pay off rattled global markets this month and led to doubts about companies at the center of Wall Street's rally in recent years. "There were worries that Amazon's spending was just moonshot spending, that it's irresponsible spending, and (CEO) Andy Jassy just put those fears to bed," said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma. The PHLX chip index .SOX added 1.3%, but it remains down over 20% from its June 22 record high close. Apple AAPL.O dropped 9.6% after warning that supply constraints would hurt growth, adding to worries that recent iPhone price hikes would weaken consumer demand. Apple's slump kept the S&P 500 technology index .SPLRCT down 0.9%, despite gains in other tech stocks. Microsoft climbed 2.1%. The company on Thursday surged over 15% in its biggest one-day percentage gain since 2008 after it forecast stronger-than-expected cloud growth. Monolithic Power Systems MPWR.O gained 8.5% after forecasting third-quarter revenue above estimates.

US Stocks-Wall Street climbs as Amazon soothes AI jitters

Fed outlook and other movers

Indexes advance but breadth remains mixed

Wall Street climbs on Amazon's strong report

Apple falls as supply constraints weigh on tech

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