NEW YORK — Major U.S. stock indexes rose on Friday, July 31, 2026, as Amazon shares surged 15.3% following strong earnings from its cloud computing division. The S&P 500 index rose 0.7%, the Dow Jones Industrial Average rose 0.5%, and the Nasdaq Composite index rose 1% despite a 7.4% decline in Apple stock due to weak revenue guidance.

The S&P 500 index closed at 7,489.72 on Friday, July 31, 2026. The Dow Jones Industrial Average added 276.97 points to close at 52,485.03 on Friday, July 31, 2026. The Nasdaq Composite index closed at 25,373.85 on Friday, July 31, 2026.

Amazon reported quarterly profit that more than tripled from a year earlier. Amazon Web Services recorded 37% revenue growth in the second quarter of 2026. Amazon increased its forecast for capital spending for the year.

Apple reported fiscal third-quarter revenue of $109.42 billion. Apple reported fiscal third-quarter earnings of $2.02 per share. Apple's forecast for revenue growth in the current quarter fell short of analyst expectations.

Micron Technology stock fell 5.9% on Friday, July 31, 2026. The price of Brent crude oil rose 1.2% to settle at $87.93 per barrel on Friday, July 31, 2026. The average price for a gallon of regular gasoline in the United States was $4.11 in late July 2026.

The yield on the 10-year U.S. Treasury note rose to 4.71% on Friday, July 31, 2026. The Federal Reserve kept its main interest rate steady on Wednesday, July 29, 2026. Dallas Fed President Lorie Logan said, "Without any policy restraint, inflation will likely continue to trend above target until there's an unanticipated shock. Modest action in the near term would reduce the likelihood of needing to take sharper action later."

Brian Jacobsen, chief economic strategist at Annex Wealth Management, said, "Without clarifying why action was or wasn't taken already, it's hard to see how statements about being committed to hitting its inflation target aren't just a bluff." Economists at Bank of America said, "The Fed is facing a growing credibility problem." They added, "It is imperative for the Fed to pass the September test by hiking rates and delivering an internally consistent narrative."

Microsoft stock rose 15% on Thursday, July 30, 2026. Meta Platforms stock fell more than 7% on Thursday, July 30, 2026. Sandisk stock rose about 26% on Thursday, July 30, 2026. Lam Research stock rose nearly 18% on Thursday, July 30, 2026.

The U.S. Q2 employment cost index rose 0.9%. The July MNI Chicago PMI rose to 57.6. The University of Michigan U.S. July consumer sentiment index was revised upward to 55.2.

China's July manufacturing PMI fell to 49.2. China's July non-manufacturing PMI fell to 49.0.

The divergence between Amazon's surge and Apple's decline shows the market's sensitivity to cloud computing growth versus hardware sales forecasts. Rising Treasury yields to 4.71% alongside steady Federal Reserve rates create tension between inflation concerns and equity valuations. Historical research titled A Brief History of the 1987 Stock Market Crash With a Discussion of the Federal Reserve Response was published in 2007 in SSRN Electronic Journal, providing context for policy responses during market volatility.

Research titled Stock index reaction to large price changes: Evidence from major Asian stock indexes was published in 2009 in Pacific-Basin Finance Journal. PureSource News previously reported: Alphabet Reports Earnings From SpaceX and Anthropic Stakes in Mountain View.

Why It Matters

Rising Treasury yields alongside steady Federal Reserve rates create tension between inflation concerns and equity valuations. The divergence between Amazon's surge and Apple's decline shows the market's sensitivity to cloud computing growth versus hardware sales forecasts. Economists state the Fed faces a growing credibility problem, noting it is imperative to pass the September test by hiking rates and delivering an internally consistent narrative.