On Friday, the US stocks extended recently, with the S&P 500 and Nasdaq posting their biggest monthly percentage gains since 2020, following upbeat forecasts from Apple and Amazon.

Most S&P 500 sectors ended higher, with the energy sector up 4.5%, the biggest gainer among the S&P sectors. Chevron rose 8.9%, and Exxon Mobil shares gained 4.6% after the company reported quarterly revenue.

Apple shares rose 3.3% after the company said parts shortages were easing and demand for iPhones continued. Shares rose 10.4% after the company forecast that its Prime membership subscription fee would boost third-quarter revenue.

Stocks also rose this week on speculation the Fed may not need to raise interest rates as aggressively as some feared.

The Dow Jones Industrial Average gained 315.5 points, or 0.97%, to 32,845.13, the S&P 500 gained 57.86 points, or 1.42%, to 4,130.29, and the Nasdaq Composite added 228.10 points, or 1.88%, to 12,390.69.

The major indexes rose for the month and Wednesday. The S&P 500 gained about 9.1% in July, its biggest monthly percentage gain since November 2020, while the Nasdaq gained about 12.3% in July, its biggest monthly gain since April 2020.

In other earnings, Intel Corp shares fell 8.6% after the company cut its annual sales and profit forecasts and missed forecasts for the second quarter.

The US second-quarter corporate results were mostly stronger than expected.

Of the 279 S&P 500 companies that have reported earnings so far, 77.8% have beaten expectations. Earnings for S&P 500 companies are expected to rise 7.1% in the quarter, compared with a forecast of 5.6% in early July, according to IBES data from Refinitiv.

But on Thursday, a government report showed the US economy unexpectedly contracted in the second quarter, suggesting to some investors that the economy is on the cusp of a recession. They said that could prevent the Fed from continuing to hike rates aggressively as it battles high inflation.

Volume on the US exchanges was 11.35 billion shares, compared with the full-day average of 10.79 billion shares over the past 20 sessions.

Advancing issues outnumbered advancing ones on the NYSE by a 2.92-to-1 ratio; on Nasdaq, a 1.44-to-1 ratio favoured advancers.

The S&P 500 posted three new 52-week highs and 33 new lows; the Nasdaq Composite posted 63 new highs and 82 new lows.