U.S. stock markets closed higher on Friday, capping a volatile month marked by sharp swings in investor sentiment. The S&P 500 rose 0.7%, the Dow Jones Industrial Average gained 276 points, or 0.5%, and the Nasdaq composite increased 1%, recovering from an earlier dip that erased a 1.3% advance.

The market’s movements throughout July reflected ongoing concerns about rising oil prices, driven in part by tensions related to the conflict involving Iran, and uncertainty surrounding the profitability of significant investments in artificial intelligence by major technology companies. Investors have also grappled with questions regarding the valuation of semiconductor stocks amid heightened enthusiasm for AI developments.

Despite Friday’s rally, the S&P 500 ended the month with a slight loss, although it managed to post its first positive week in three weeks. Within the tech sector, Amazon’s shares surged notably, while Apple’s stock declined, highlighting the uneven performance among large-cap stocks.

The rise in oil prices has intensified inflation concerns, contributing to market volatility as investors assess the potential impact on the broader economy. The month’s fluctuations underscored the market’s sensitivity to geopolitical risks and evolving technology sector dynamics, factors likely to remain in focus in the coming weeks.