Wall Street closed higher on Friday, buoyed by Amazon's robust quarterly earnings report that alleviated investor concerns surrounding artificial intelligence infrastructure spending.

Amazon's results provided a measure of reassurance to a market that has been grappling with anxieties over whether heavy capital expenditures on AI infrastructure are taking too long to generate returns. These concerns have rattled global markets throughout July, casting doubt on the companies that have been at the center of the Wall Street rally in recent years. The earnings arrive at a pivotal moment for the tech sector, as investors scrutinize quarterly results from mega-cap companies for evidence that tens of billions in AI-related spending is translating into revenue growth, particularly through cloud computing segments like Amazon Web Services.

Apple shares moved in the opposite direction, declining after the company's earnings report fell short of expectations. The broader technology sector posted mixed results, contributing to uneven trading across major indices. The divergence between Amazon and Apple underscores the uneven pace at which major tech companies are positioning themselves in the AI landscape and monetizing related investments.

On the macroeconomic front, Treasury yields moved higher as Federal Reserve officials continued to discuss inflation concerns. The combination of corporate earnings and central bank commentary shaped the day's market direction, with investors weighing corporate profitability against the monetary policy outlook.

The S&P 500, which tracks 500 large-cap U.S. companies, is widely regarded as one of the best representations of the U.S. stock market. Amazon and Apple are both constituents of the index and rank among the world's largest companies by market capitalization.

Source: Economic Times Markets