Wall Street stocks surged on Friday, powered by Amazon's strong earnings report, which offset concerns over rising US Treasury yields. Amazon's shares jumped 15.3 percent after the tech giant reported quarterly profits exceeding $62 billion, marking a 20 percent revenue increase that surpassed analyst expectations.
Market Reaction
The positive earnings report from Amazon contributed to broader market confidence, particularly in artificial intelligence investments. This comes a day after Microsoft also impressed investors with its robust results. CFRA Research's Sam Stovall noted that the strong earnings from both tech giants have led investors to overlook potential future interest rate hikes.
Global Market Trends
All three major US indices closed higher, with the tech-heavy Nasdaq leading the way with a 1.0 percent gain. This growth occurred despite a 7.4 percent drop in Apple shares due to a disappointing company outlook. Meanwhile, Asian markets saw significant gains, particularly in Seoul, where the Kospi index surged nearly 18 percent, driven by a recovery in technology stocks.
The rebound in tech stocks was further supported by South Korea's announcement of a $14 billion investment in its sovereign wealth fund for AI and data centers. This move helped to restore investor confidence, which had been shaken by heavy selling in recent weeks driven by concerns over the returns on large investments in artificial intelligence.
