U.S. stocks opened sharply higher Friday as Amazon’s strong cloud results revived the artificial-intelligence trade and pushed the Nasdaq up more than 1% in early trading. The S&P 500 also advanced and the Dow moved higher, but the rally could not hold as Apple’s steep decline, rising Treasury yields and higher oil prices pulled all three major indexes into negative territory by late morning.

At the opening bell, the Nasdaq gained more than 200 points, the S&P 500 rose roughly 25 points and the Dow added about 27 points. Amazon’s post-earnings jump provided most of the early momentum, while gains in semiconductor and cloud stocks helped broaden the initial advance.

By approximately 11:00 a.m. ET, those gains had disappeared:

• Dow Jones Industrial Average: 52,135.81, down 72.25 points, or 0.14%
• S&P 500: 7,418.46, down 19.17 points, or 0.26%
• Nasdaq Composite: 25,084.00, down 38.18 points, or 0.15%

The reversal showed that even one of Amazon’s strongest trading days was not enough to offset pressure from Apple, interest rates and renewed inflation concerns.

Amazon’s 15% Gain Cannot Carry the Market

Amazon traded near $271, up roughly 15%, after Amazon Web Services posted its fastest growth in more than four years.

AWS revenue increased 37% to $42.2 billion, while Amazon’s overall quarterly revenue reached approximately $200.6 billion. Investors accepted the company’s decision to raise expected 2026 capital spending to about $220 billion because its cloud business is showing that infrastructure investment can generate faster sales and stronger operating income.

Amazon’s gain added hundreds of billions of dollars to its market value, but its index contribution was offset by Apple and a broader retreat in technology shares from their opening highs.

Microsoft was nearly unchanged after initially climbing, following Thursday’s historic rally. Several semiconductor stocks also surrendered early gains as Treasury yields moved higher and investors took profits after the previous session’s AI-driven rebound.

Apple Loses More Than $400 Billion in Value

Apple fell about 9.1% to $303, wiping out more than $400 billion in market value despite reporting stronger quarterly revenue and earnings.

Revenue rose to $109.4 billion, led by record June-quarter iPhone sales and strong Mac demand. Yet management warned that shortages of advanced processors and other components would significantly restrict production.

September-quarter revenue growth was projected at 9% to 11%, below the pace investors had expected. Services, iPad and Greater China revenue also fell short of forecasts.

The reaction shows how quickly the market’s priorities have shifted. Apple’s current sales were strong, but investors focused on whether supply constraints and a slower AI rollout will limit future growth while Amazon, Microsoft and other competitors continue expanding data-center capacity.

Morning Economic Reports Keep Rate Pressure Alive

Friday’s economic releases showed that labor expenses remain firm while regional business activity continues expanding.

The Employment Cost Index rose 0.9% during the second quarter, slightly above the 0.8% economists expected and matching the first quarter’s increase. Compensation costs were 3.4% higher than a year earlier.

Private-sector wage growth accelerated, particularly in construction and manufacturing. Inflation-adjusted wages, however, declined 0.3% from a year earlier, illustrating why household purchasing power can remain strained even when paycheck growth appears solid.

Separately, the Chicago Business Barometer increased to 57.6 in July from 56.7, exceeding the 56.0 consensus forecast. Readings above 50 indicate expanding activity.

Neither report signals an economy requiring immediate interest-rate relief. Labor costs remain elevated, regional activity is growing and inflation is still above the Federal Reserve’s 2% target even after June’s moderation.

That combination reinforced the central bank’s cautious position following Wednesday’s decision to leave its benchmark rate at 3.5% to 3.75%. Three policymakers dissented in favor of raising rates by a quarter percentage point.

Treasury Yields Accelerate the Reversal

The 10-year Treasury yield climbed to approximately 4.73%, its highest intraday level since January 2025, as investors absorbed the labor-cost report and more hawkish signals from Federal Reserve officials.

Higher yields reduce the relative appeal of expensive growth stocks and raise borrowing costs for mortgages, commercial real estate, corporate debt and business investment.

Friday’s bond selling was broader than Wednesday’s move. Short- and long-term yields rose together, indicating that investors were increasing expectations that rates could remain elevated or move higher rather than merely demanding additional compensation for long-term uncertainty.

Roblox and Coinbase Extend Their Declines

Roblox plunged approximately 28%, trading near $35 after disappointing investors with its outlook and continued spending requirements.

Coinbase fell about 13% to $142 following weaker revenue and a larger-than-expected loss. The decline also reflected pressure across cryptocurrency markets, with bitcoin trading near $64,000.

Chevron gained about 1%, while Exxon Mobil fell nearly 2% following their quarterly reports. Investors differentiated between the two oil producers even as higher crude prices improved the industry’s broader earnings outlook.

Oil Adds Another Inflation Risk

Crude prices resumed their advance as military and shipping risks kept global supplies under pressure.

Brent crude traded near $88.50 a barrel, while West Texas Intermediate rose roughly 2%. The latest increase followed a volatile week in which energy prices surged on renewed conflict involving Iran and threats to regional shipping routes.

Oil’s rise matters far beyond energy shares. Sustained increases feed into gasoline, aviation fuel, freight, plastics, manufacturing and food-distribution costs, threatening to reverse part of June’s improvement in headline inflation.

Gold remained near $4,100 an ounce as investors balanced geopolitical uncertainty against rising bond yields and a stronger dollar.

What to Watch This Afternoon

Amazon’s ability to retain its double-digit gain will show whether investors remain willing to finance extraordinary AI spending when cloud revenue is accelerating.

Apple remains the larger drag. Any further decline would deepen one of the biggest single-day market-value losses in U.S. corporate history and pressure indexes weighted heavily toward megacap technology.

Treasury yields are now the most immediate threat to the session. A sustained move above 4.73% on the 10-year note could accelerate selling in technology, housing, banks and other rate-sensitive industries.

Month-end portfolio adjustments may also create sharper afternoon swings. Friday closes both July and a week shaped by the Federal Reserve, surging oil prices and earnings from four of America’s largest technology companies.

JBizNews Desk | Wall Street

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