200819 Wall STreet
A sign for a Wall Street building is shown in New York. Image Credit: AP

New York: US stocks added to their recent rally on Friday after upbeat forecasts from Apple and Amazon.com, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020.

Most S&P 500 sectors ended higher. Energy was up the most, with Chevron Corp and Exxon Mobil shares jumping after the companies reported record quarterly revenues.

Apple Inc shares rose after the company said parts shortages were easing and that demand for iPhones was continuing.

Amazon.com Inc shot up after it forecast a jump in third-quarter revenue from bigger fees from its Prime loyalty subscriptions.

“In today’s market, the Amazon and Apple numbers are giving the market support (on) the idea that two large companies that are a large part of the S&P seem so far to be able to navigate through these tougher times,” said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

Stocks have also rallied this week on investor speculation that the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared.

According to preliminary data, the S&P 500 gained 58.05 points, or 1.43 per cent, to end at 4,130.48 points, while the Nasdaq Composite gained 225.81 points, or 1.86 per cent, to 12,388.40. The Dow Jones Industrial Average rose 323.51 points, or 0.99 per cent, to 32,853.14.

In other earnings, Intel Corp shares fell after the company cut annual sales and profit forecasts and missed second-quarter estimates.

Second-quarter US corporate results have mostly been stronger than expected.

Of the 279 S&P 500 companies that have reported earnings so far, 77.8 per cent have exceeded expectations. Earnings for S&P 500 companies now are expected to have increased 7.1 per cent in the quarter versus an estimated 5.6 per cent at the start of July, according to IBES data from Refinitiv.

Data showed US consumer spending increased more than expected in June as Americans paid more for goods and services, with monthly inflation surging by the most since 2005.