Big Tech Companies on the Rise: Apple and Amazon

Technology Giants Growing with Market Expectations

On Thursday night, U.S. stock futures saw the S&P 500 futures rise by 0.6%, while Nasdaq 100 futures increased by 1.1%. The Dow Jones Industrial Average futures, which contains fewer tech stocks, rose by approximately 0.1%.

Amazon (AMZN) gained more than 13% after its third-quarter results surpassed Wall Street expectations. This increase was driven by the company’s cloud segment, Amazon Web Services, which reported a 20% revenue increase, indicating renewed strength in corporate demand. However, it was noted that Amazon has faced challenges internationally in recent weeks.

Apple (AAPL) also impressed investors, rising 3% following stronger-than-expected fourth-quarter financial results and positive guidance for the December quarter.

Additionally, Netflix (NFLX) drew attention after hours; its shares rose by more than 3% following the announcement of a 10-for-1 stock split. This situation reinforced the positive sentiment in the sector.

These gains came after a tough session on Wall Street, where the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) experienced declines of 1% and 1.6%, respectively, as investors became more cautious about inflated spending on artificial intelligence infrastructure due to drops in shares of Meta (META), Microsoft (MSFT), and Nvidia (NVDA). Particularly, Meta witnessed its sharpest daily drop in three years.

Following the easing of international trade tensions, President Trump and Chinese President Xi Jinping have agreed on a year-long trade truce following talks in South Korea. The agreement includes a 10% tariff reduction on Chinese goods related to fentanyl and a pause on China's export restrictions of rare earths.

Meanwhile, investors continue to evaluate the implications of the Federal Reserve’s interest rate cuts and the deepening divisions in the upcoming roadmap. Investors will start receiving messages from Fed officials on Friday.