Wall Street gains on tech earnings; bond yields hit multi-year highs

By Karen Brettell

July 31 (Reuters) - U.S. stocks roseate connected Friday arsenic beardown net from Amazon and Microsoft drew investors backmost into the AI trade, portion longer-dated Treasury yields deed caller multi-year highs connected fears that rising lipid prices could substance inflation.

Currency markets besides stayed connected alert for further intervention, a time aft Japanese authorities stepped successful ‌to enactment the yen, according to a marketplace source.

Microsoft connected Wednesday forecast beardown currency procreation done fiscal 2027. Amazon followed a time aboriginal with its strongest unreality maturation successful ‌more than 4 years, reassuring investors anxious for impervious that monolithic AI spending is paying off.

"There's important drawdowns implicit the people of the period and everything related to artificial intelligence," said Art Hogan, main marketplace strategist astatine B. Riley Wealth.

"Now with the ​hyperscalers, successful peculiar Amazon, coming retired and talking astir the magnitude of gross and request for their unreality services, which successful wide is simply a batch of the tiny and mean businesses, that's enactment a important involvement backmost into the neo-cloud companies and their offerings arsenic it pertains to rollout of AI strategies."

The Dow Jones Industrial Average roseate 0.47% to 52,452.14, the S&P 500 gained 0.43% to 7,469.60 and the Nasdaq Composite was up 0.55% astatine 25,261.38.

Gains were constricted by a astir 10% driblet successful Apple shares aft a disappointing forecast showed that the iPhone shaper was struggling to unafraid capable components arsenic the AI-driven data-center roar strains ‌global proviso chains.

South Korea's battered KOSPI leapt 17.91%, mounting a grounds ⁠comeback aft dense losses earlier this week. The tech-heavy bourse, inactive astir 30% disconnected its all-time high, has go emblematic of the crisp swings successful capitalist sentiment towards AI-related stocks.

MSCI's gauge of stocks crossed the globe roseate 11.73 points, oregon 1.06%, to 1,118.77.

The pan-European STOXX 600 scale fell 0.12%, portion Europe's wide FTSEurofirst ⁠300 scale fell 0.09%.

HAWKISH FED SPEAK SENDS BOND YIELDS HIGHER

Longer-dated Treasury yields jumped aft 3 Fed policymakers who had dissented successful favour of a complaint hike astatine this week's gathering made their lawsuit publically connected Friday for higher rates.

The Fed kept rates unchanged — a wide expected result that aligned with marketplace pricing, which showed a astir one-in-three accidental of a hike.

Dallas Federal Reserve President Lorie Logan said connected Friday that without "modest enactment successful the ​near ​term," the U.S. cardinal slope volition not beryllium capable to get ostentation backmost connected way to its 2% target, ​given a coagulated labour marketplace that is strengthening and upside risks to terms ‌pressures.