Stocks Rise as Amazon Drives Megacap Gains
On July 31, major U.S. stock indices closed higher with the S&P 500 up 0.7%, the Dow Jones Industrial Average rising 0.53%, and the Nasdaq Composite gaining 0.6%. Amazon led the charge by surging over 15% after its cloud unit reported strong Q2 revenue growth, reinforcing investor confidence in AI-driven expansion. Despite stronger-than-expected U.S. economic data and hawkish comments from Federal Reserve officials that pushed bond yields to a multi-year high, stocks remained resilient. However, Apple's stock fell nearly 9%, dragging down the tech sector due to weaker service revenue and an underwhelming earnings forecast. Meanwhile, China’s weak manufacturing PMI readings raised concerns about global growth. The market is also looking ahead to strong Q2 corporate earnings forecasts, with AI infrastructure expected to drive a significant portion of S&P 500 EPS growth.
Topics: Amazon stock performance Dow Jones megacap stocks Nasdaq Composite S&P 500