During the Friday session, US stocks continued their bullish rally after bullish forecasts from AAPL (Apple Inc.) and AMZN (Amazon company). Overall, the monthly gains of Nasdaq and the S&P 500 were the highest since the year 2020.
Most of the sectors of the S&P 500 closer higher, but the energy sector was the biggest gainer among others. In total, it rose by almost 4.5%, which is higher than any other S&P 500 sector. In the energy sector, Exxon Mobil recorded a 4.6% gain, while Chevron Corp recorded an 8.9% increase. The shares of both these companies inched higher after a recorded increase in the quarterly revenues.
Apple shares saw an increase after the announcement that the part shortages problem is clearing up. But the biggest catalyst was a solid demand for iPhones despite a drop in global smartphone shipments.
If we look at Amazon, it also posted an increase of 10.4% after a jump in the revenue from its 3rd quarter results.
It seems that the companies such as Apple and Amazon play a big role in supporting the market and especially the S&P 500 index. In fact, positive results from these two companies can boost all the other stocks in the S&P 500 index as well.
The market is currently going through tougher times which further highlights the importance of good performance from these tech companies.
Another factor which contributed to the stock rally is the speculation that Fed may not be highly aggressive with its interest rate policy. Earlier, many feared that the Fed might be too hawkish when it comes to raising the interest rates in the USA.
If we look at the top 3 indexes from the USA, all of them were positive for the week and the month. In total, the S&P 500 gained almost 9.1% during the month of July. As for the Nasdaq, the monthly gain was also its highest since the year 2020!