U.S. stocks finished higher on Friday, July 31, 2026, even as Treasury yields spiked and Apple suffered a historic selloff. The Dow gained 276.97 points to close at 52,485.03, while a 15% surge in Amazon shares helped offset a $373 billion drop in Apple’s market capitalization.
Major U.S. stock averages closed markedly higher on the final trading session of July, brushing off climbing bond yields and a massive tech-sector drag. The Nasdaq Composite rose 1% to end at 25,373.85, and the S&P 500 added 0.7% to close at 7,489.72, according to market data published by CNBC. Meanwhile, the Dow Jones Industrial Average gained 276.97 points, or 0.53%, to finish at 52,485.03.
Apple Suffers Record Selloff While Amazon Surges
Trading floors on Friday saw a severe divergence among mega-cap technology stocks. The decline put Apple on pace for its largest one-day market cap decline on record and its biggest single-session drop since 2020.
The tech giant’s fiscal third-quarter revenue had topped expectations, aided by a 22% jump in iPhone sales, but a shortfall in service revenue weighed heavily on investor sentiment as detailed by CNBC. The resulting drag pulled the S&P 500’s tech sector down 1.5% for the day.
Apple's losses were countered by a massive rally in Amazon. The strength in cloud computing reinforced broader investor confidence in artificial intelligence spending, following Microsoft's 16% jump earlier in the week according to CNBC coverage.
Treasury Yields Extend Gains as Federal Reserve Dissents Weigh
Fixed-income markets experienced continued pressure as Treasury yields extended recent gains. The benchmark 10-year U.S. Treasury note yield topped 4.7%, reaching 4.737% in recent trading according to Tradeweb data cited by the WSJ, marking its highest intraday level since January 2025. Meanwhile, the 30-year Treasury bond yield spiked to its highest level since 2007, trading up about 4 basis points on the day at 5.25% according to CNBC.
Alphabet and Apple shares jump, bond market sell-off sends yields higher
The bond selloff intensified after two Federal Reserve officials explained why they cast dissenting votes in favor of raising interest rates this week WSJ. Additional pressure came as investors lost faith in Federal Reserve Chairman Kevin Warsh’s commitment to curb inflation CNBC noted.
“We’ve got no magic wand.”
Kevin Warsh, Federal Reserve Chairman, via CNBC
While Warsh indicated he remains committed to fighting inflation, the market response reflected growing tension between steady economic indicators and rising borrowing costs. Terry Sandven, chief equity strategist at US Bancorp Asset Management, pointed out the psychological milestone approaching for fixed-income investors in an interview with CNBC.
“As [the yield for 10-year Treasury bonds] moves toward five percent, five percent is perhaps a level that will cause angst for sentiment and pressure valuations.”
Terry Sandven, chief equity strategist at US Bancorp Asset Management, via CNBC
Commodities and Global Markets React to Middle East Conflict
Geopolitical pressures continued to influence commodity trading alongside domestic monetary policy. West Texas Intermediate crude futures rose about 1.3% to settle at $84.67 a barrel, while international Brent futures advanced 1.2% to $90.12 a barrel according to CNBC market data.
Sandven described the broader financial landscape as a roller coaster market filled with angst and opportunitynoted CNBC, highlighting the dual forces shaping investor decisions at the close of July.
“On one hand, there’s much to like about the market environment. Inflation is relatively steady, interest rates are range bound, and earnings are robust. Conversely, you’ve got Middle East conflict, the Middle East conflict that continues, and that’s pushing oil prices higher, which of course is inflationary.”
Photo: WSJ
Terry Sandven, chief equity strategist at US Bancorp Asset Management, via CNBC
International equities also experienced notable shifts. In South Korea, the Kospi index jumped 18% following a volatile period marked by steep declines after earlier rapid gains driven by artificial intelligence stock rallies WSJ. Domestically, despite a bruising session on Wednesday that saw the Dow plunge more than 1,100 points—its worst one-day decline since April 2025—major averages finished the week higher, with the Dow up about 1% and the S&P 500 and Nasdaq also posting weekly gains according to CNBC.
