Finance

Disparate corporate earnings reports from major tech giants caused a sharp divide across equity sectors at the end of the week. Amazon shares surged 15% after reporting strong quarterly cloud-computing sales, showcasing positive returns from artificial intelligence investments. Conversely, Apple saw its stock drop over 7% due to a weak outlook for revenue growth, erasing billions from its market valuation.

Elevated tensions between the United States and Iran significantly impacted the energy commodity markets, sending crude oil prices soaring by more than 20% over the course of July. West Texas Intermediate and Brent crude benchmarks surged amid fears of potential supply disruptions. However, late-week indications from Washington regarding a potential pause in military action provided some relief and helped ease market anxiety.

The bond market faced considerable selling pressure as rising oil prices and robust corporate demand for funding artificial intelligence infrastructure intensified inflation concerns. The yield on the 10-year U.S. Treasury note added more than 30 basis points in July to reach its highest level since January 2025. Concurrently, the 30-year Treasury yield surged to a 19-year high as market participants adjusted to hawkish expectations from the Federal Reserve.