Driven by a 15% surge in Amazon.com shares following strong earnings, artificial intelligence-related stocks broadly advanced, leading the S&P 500 to a higher close on Friday. The S&P 500 rose 0.7%, while the tech-heavy Nasdaq 100 gained 0.6%. The Philadelphia Semiconductor Index edged up 0.1%, and the VIX volatility index hovered near 16.11. Four of the S&P 500's 11 sectors posted gains, with consumer discretionary and communication services leading the way.

"After a volatile month, equity valuations and positioning remain fairly optimistic," said Katie Klingensmith, chief investment strategist at Edelman Financial Engines. Amazon's results boosted market sentiment, offsetting negative news from Apple. Apple shares plunged 7.4%, marking their biggest single-day drop since April 2025, after the company issued disappointing earnings guidance. With earnings season half over, 86% of the 291 S&P 500 companies that have reported results exceeded market expectations.

As markets refocused on inflation concerns, the yield on the 10-year U.S. Treasury note rose about 3 basis points to 4.71%. Dallas Fed President Lorie Logan warned that inflation might not return to the central bank's 2% target without policy action. SpaceX, set to report its first quarterly earnings since going public next week, fell 3.4% on Friday, hitting its lowest closing level since listing. President Donald Trump on Friday said he was losing confidence in Iranian negotiators. West Texas Intermediate crude rose to near $85 a barrel. At the close, the S&P 500 was up 0.7% at 7,489.72; the Dow Jones Industrial Average added 0.5% to 52,485.03; the Nasdaq Composite rose 1% to 25,373.85; the Nasdaq 100 gained 0.6% to 28,274.2; and the Russell 2000 slipped 0.5% to 2,931.339.