Wall Street closed higher on Friday (Saturday AEST) as a strong quarterly earnings report from Amazon boosted confidence in artificial intelligence-related stocks, helping offset losses in Apple after the iPhone maker disappointed investors with its outlook.
The Dow Jones Industrial Average rose 277.0 points, or 0.5%, to 52,485.0. The S&P 500 gained 52.1 points, or 0.7%, to finish at 7,489.7, while the Nasdaq advanced 251.7 points, or 1.0%, to close at 25,373.9.
For the week, the Dow added 1%, the S&P 500 rose 1.1%, and the Nasdaq climbed 1.6%.
Amazon jumped 15.3% after delivering its strongest quarterly revenue growth in more than four years. The results, together with Microsoft's upbeat earnings earlier in the week, helped ease investor concerns that massive spending on AI data centres was taking too long to generate returns.
Those concerns had weighed on global markets throughout the month, raising questions over the lofty valuations of the technology companies that have driven Wall Street's rally in recent years.
Apple fell 7.4% after warning supply constraints would weigh on growth, adding to concerns that recent iPhone price increases could dampen consumer demand.
Microsoft gained a further 3% after soaring more than 15% on Thursday, its biggest one-day percentage gain since 2008, following stronger-than-expected cloud growth guidance.
Attention also remained on the Federal Reserve after three policymakers who dissented at this week's policy meeting in favour of an interest rate increase called for immediate action to return inflation to the central bank's 2% target.
Cleveland Fed President Beth Hammack said it was time for the Federal Open Market Committee to accelerate the return of PCE inflation to its target, warning that prolonged inflation would become increasingly difficult and costly to contain.
Minneapolis Fed President Neel Kashkari said in a separate statement that a series of smaller policy moves would be preferable to waiting until more aggressive action became necessary.
According to CME Group FedWatch Tool, markets are now pricing in a 73.6% chance of a rate hike at the Federal Reserve's September meeting, up from 55.3% a week earlier.
On the bond markets, 10-year and two-year Treasury yields rose 1% and 0.3% to 4.718% and 4.262%, respectively.
