Finance

E-commerce and cloud giant Amazon saw its shares jump 15% after reporting second-quarter profits and cloud infrastructure growth that surpassed Wall Street projections, validating its substantial artificial intelligence investments. Conversely, Apple shares plummeted 7% and marked a historic one-day loss in market value due to a weak revenue forecast for the upcoming quarter and underwhelming growth in China and Services.

The benchmark 10-year Treasury yield surged past 4.7% to its highest point since early 2025, while the 30-year bond yield reached levels not seen since 2007. Bond market pressures were compounded by international oil prices climbing toward $97 a barrel over the course of the week. These movements reflect heightened investor concerns that sticky energy costs and a hawkish-leaning Federal Reserve could keep inflation elevated.

The Federal Open Market Committee voted 9-3 to maintain the benchmark federal funds rate at 3.5% to 3.75%, opting for stability under Chairman Kevin Warsh. However, three regional Fed bank presidents dissented, actively pushing for a quarter-percentage-point interest rate increase. The rare display of internal friction, alongside a lack of clear forward guidance, has increased pressure on the central bank to address inflation targets cleanly by the autumn session.