Tech Rally Stalls as Chip Sector Remains Weakened Amid Apple Warnings

Amazon's cloud revenue growth propelled the company to a 15% gain, its strongest quarterly performance in over four years. Microsoft followed suit with an additional 3% increase on Friday, adding to Thursday's 15% surge, its largest single-day move since 2008.

The PHLX Semiconductor Index only managed a 0.07% rise on Friday and remains more than 20% below its June 22 record close. Amazon and Microsoft's gains have temporarily halted the decline in the chip sector.

However, Apple's warning of supply constraints led to a 7.4% drop, pulling down the entire technology sector with it. Meanwhile, consumer discretionary stocks surged 6.07% on Amazon's performance, while communication services gained 4.60%.