Amazon Slumps Below Key Technical Level Amid Inflation Fears

Amazon's share price has fallen below a key technical level due to ongoing selling pressure in the market. The e-commerce giant has declined by 11% from its record high, with investors concerned about rising inflation and potential interest rate hikes by the Federal Reserve.

The latest Bureau of Labor Statistics report showed robust US employment numbers, which has strengthened expectations that the Fed could adopt a more restrictive stance to combat inflation. This has intensified market pressure on Amazon's shares, with geopolitical tensions between Israel and Iran adding to the uncertainty.

From a technical perspective, Amazon's share price is exhibiting a reversal pattern, specifically a double-top formation. The company's long-term bullish trajectory remains intact, but short-term momentum is weakening. The next significant technical level for Amazon's shares is $275, which marks its record high.