Amazon surges as US stocks shrug off bond yield worries

U.S. stocks charged higher on Friday, with Amazon's stellar earnings report providing a significant boost that overshadowed worries about increasing U.S. Treasury yields. The tech giant's shares soared 15.3% after it announced quarterly profits exceeding $62 billion, driven by a 20% revenue jump that significantly surpassed analyst forecasts.

Amazon's impressive performance added to the growing confidence in artificial intelligence investments, coming just a day after Microsoft also delivered strong results. "The earnings picture continues to surprise very much to the upside, especially with Amazon's results, and so I think investors are ignoring the prospect of higher interest rates down the road," said Sam Stovall of CFRA Research.

The tech-rich Nasdaq index led the market's gains, closing up 1.0%. This positive momentum occurred even as Apple's stock fell 7.4% due to investor disappointment with the company's future outlook. Investors remained watchful of U.S. Treasury yields, which stayed elevated amid persistent inflation concerns that could prompt the Federal Reserve to raise interest rates.

Meanwhile, Asian markets also saw gains earlier in the day, with Seoul's Kospi index surging nearly 18%. This recovery was fueled by technology firms bouncing back strongly after a recent sell-off. The rebound in the tech sector, bolstered by positive results from companies like Microsoft and Amazon, helped lift the overall market mood, allowing investors to temporarily set aside concerns about geopolitical issues like the Iran conflict.

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The earnings picture continues to surprise very much to the upside, especially with Amazon's results, and so I think investors are ignoring the prospect of higher interest rates down the road.