US stocks rise, Amazon surges over 15% on strong AI-fueled earnings

Wall Street stocks finished higher on Friday, buoyed by strong earnings from tech giant Amazon, which saw its shares soar over 15%. This surge in Amazon's stock, following a robust quarterly report, bolstered investor confidence in artificial intelligence-related equities.

The Dow Jones Industrial Average climbed 276.97 points, or 0.53%, to close at 52,485.03. The Nasdaq Composite rose 1.00%, adding 251.68 points to reach 25,373.86, while the S&P 500 gained 0.70%, closing at 7,489.72. The Philadelphia Semiconductor Index saw a modest increase of 0.07%.

Amazon's performance echoed Microsoft's positive results from the previous day, easing concerns about potential overspending on AI initiatives. Microsoft's stock also continued its upward trend, rising 3% after a significant gain on Thursday. Taiwan Semiconductor Manufacturing Company's ADR also edged up 0.23% to $404.25.

However, the market saw a notable decline in Apple's stock, which dropped 7.4%. The iPhone manufacturer issued a warning that supply constraints would hinder its growth, exacerbating investor worries about the impact of recent iPhone price increases on demand. Meanwhile, ongoing Middle East conflicts continue to push oil prices higher, potentially fueling inflation despite stable Federal Reserve interest rates and strong corporate earnings.