Wall Street Posts Weekly Gains

Wall Street closed higher on Friday, buoyed by a rise in Amazon shares, as the tech giant’s strong quarterly report bolstered investor confidence in artificial intelligence-linked stocks, while Apple shares fell after its results disappointed investors.

Amazon’s stock surged after the company recorded its largest quarterly revenue growth in more than four years. Its results, along with a similar report released by Microsoft on Wednesday, helped ease investors’ concerns about the possibility of overspending on AI data centers.

Apple’s share price declined after the company warned that supply constraints would negatively impact growth, heightening fears that recent iPhone price hikes would dampen consumer demand, according to Reuters.

Concerns emerged that massive investments in AI infrastructure might take longer than expected to yield returns, sparking volatility in global markets this month and casting doubt on the companies at the heart of Wall Street’s rally over the past few years.

Jake Dollarhide, chief executive of Tulsa, Oklahoma-based asset manager Longbow, said, “There were concerns that Amazon’s spending was merely irresponsible, but its CEO, Andy Jassy, completely dispelled those worries.”

The S&P 500 rose by 51.89 points, or 0.70%, to close at 7,489.52 points, while posting weekly gains of 1%.