Finance

The technology sector experienced massive valuation swings driven by second-quarter corporate updates. Amazon experienced its largest ever single-day market value gain, surging roughly 15% on the back of accelerating cloud-computing revenue. Conversely, Apple shares plummeted more than 7%, shedding over $350 billion in market value after cautioning that supply constraints could impact upcoming revenue growth.

U.S. Treasury yields pushed significantly higher, with the 10-year note hitting its highest mark since January 2025 and the 30-year yield reaching a 19-year high. This movement resulted in a pronounced 'twist steepener' of the yield curve. Market participants interpreted the surging long-dated yields as a reflection of eroding confidence in the central bank's capacity to rein in inflation, especially as three Fed officials formally dissented in favor of a rate hike.

U.S. crude oil closed above $85 a barrel, capping a substantial 21% rally through the month of July. This sharp appreciation comes as escalating war tensions between the United States and Iran threaten shipping corridors like the Strait of Hormuz. The resulting spike in energy costs is further exacerbating broader macroeconomic worries regarding sustained inflationary pressures.