Amazon surged 15% on earnings while Apple fell 7%. The Fed held rates steady with three hawkish dissents. Bond yields hit multi-year highs. S&P 500 ended the week up 1.05%.
The Federal Reserve held its benchmark rate at 3.50%-3.75% for the fifth straight meeting on Wednesday. Three FOMC members broke ranks, each voting for a 25-basis-point increase. That dissent – the first multiple-objection since 2019 – showed a hawkish undercurrent within the committee even as the majority chose patience.
Earnings delivered the week's sharpest divergence. Amazon.com (AMZN) jumped more than 15% on Friday after a strong second-quarter report that beat estimates on revenue and cloud growth. Apple (AAPL) took the opposite path, dropping 7.4% after its own earnings, hurt by a cautious outlook and a slowdown in iPhone sales. The two results drove a 8.3% gain in the Consumer Discretionary sector, which was the week's biggest winner. Technology stocks were flat.
The bond market sell-off that has consumed the past month accelerated. The 30-year Treasury yield climbed to its highest level in nearly two decades, breaching levels last seen in 2007. The move came after the Fed decision reinforced the view that cuts are not coming soon. The benchmark 10-year yield ended the week at 4.745%, down slightly by 0.2 basis points but still near cycle highs.
For the week, the S&P 500 advanced 1.05%, the Nasdaq Composite rose 1.59%, and the Dow added 1.04%. The CBOE Volatility Index fell 13.9% to 15.99, a level that suggests investors expect calmer conditions ahead.
Top S&P 500 performers included Cognizant Technology Solutions (CTSH) up 22%, Microsoft (MSFT) up 22%, and Workday (WDAY) up 18%. On the losing side, Lennox International (LII) dropped 23%, C.H. Robinson Worldwide (CHRW) fell 21%, and Sandisk (SNDK) lost 15%.
Commodities moved higher. Crude oil rose 1.9% to $86.80 a barrel, extending gains on tightening supply expectations. Gold added 0.7% to $4,098.60 an ounce, while natural gas fell 2% to 2.831. In currencies, the euro gained 1.41% against the dollar, the yen strengthened 3.83%, and sterling rose 1.19%. The dollar weakness helped push the euro to its best week in months.
Cryptocurrencies traded lower. Bitcoin fell 2.1%, Ethereum slipped 0.3%, and Litecoin dropped 4.3%. XRP lost 3%.
Europe faced extreme heat this summer. Last month was the hottest June on record for Western Europe, following an intense heatwave in May. Wildfires in France and Spain have caused billions of euros in economic losses, and forecasters expect more extreme temperatures in the years ahead.
Among individual stock calls that moved shares: Intel (INTC) beat its own guidance for the seventh time. Applied Optoelectronics (AAOI) was called a 60% reset opportunity. PayPal (PYPL) takeover chatter was described as a selling opportunity by some analysts. CoreCivic (CXW) was flagged as a time to take profits. Capricor (CAPR) was downgraded on FDA concerns.
AlphaScala's proprietary metrics reflect the week's split. Amazon's Alpha Score stands at 66/100, a Moderate reading that captures its post-earnings momentum. Apple's score slipped to 51/100, a Mixed label that reflects its valuation pressure and uncertain demand outlook. Microsoft, a top weekly gainer, holds a 69/100 Moderate score.
Next week brings the July consumer price index and retail sales data. Those prints will shape expectations for the Fed's September meeting and could determine whether the bond market sell-off resumes or stabilizes.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.