U.S. stocks rose on Friday to conclude a volatile July for Wall Street, as Amazon surged, Apple stumbled, and rising oil prices intensified fears of persistent inflation.
The Big Tech Divide
Amazon led the market with a 15.3% leap after reporting quarterly profits that more than tripled from a year earlier. This growth was largely driven by an acceleration in its cloud computing business. Analysts suggested that Amazon’s massive investments in artificial intelligence (AI) are beginning to yield significant returns, prompting the company to increase its investment forecast for the year.
Conversely, Apple shares dropped 7.4% despite beating profit expectations. Executives blamed a lower-than-expected revenue forecast on a supply crunch for components, which are being heavily consumed by the ongoing AI boom. This reaction mirrored the volatility seen in chipmakers like Micron Technology, which swung from a 6.4% gain to a 5.9% loss in a single session.
Energy Crisis and Inflation
The conflict with Iran continues to disrupt crude oil flows from the Middle East, keeping investors on edge. Brent crude settled at $87.93 per barrel on Friday, following a month of wild swings between $72 and $102. Higher energy costs have pushed U.S. gasoline prices to an average of $4.11 per gallon, adding upward pressure on shipping and consumer goods.
The Fed’s Credibility Challenge
Federal Reserve Chairman Kevin Warsh has maintained steady interest rates while committing to return inflation to 2%. However, his refusal to provide a clear roadmap has led some analysts to cite a "growing credibility problem." While President Donald Trump has lobbied for lower rates, the bond market responded to inflation fears by pushing the 10-year Treasury yield to 4.71%.
Global Market Extremes
In South Korea, the Kospi index experienced its best day in history, soaring 17.9% on Friday behind surges from Samsung Electronics and SK Hynix. Despite this record-breaking daily performance, the index finished July with a 22% loss, highlighting the extreme volatility in the global semiconductor sector.
