Wall Street Reprices AI Spending as Amazon Surges, Apple Slumps
Amazon's stock price surged by 15% after the company delivered broad earnings beats and faster growth in its cloud computing business, Amazon Web Services (AWS). This marked one of the biggest one-day gains for Amazon since 2012.
In contrast, Apple's shares fell by 7% as investors were disappointed with the company's Q4 guidance, supply chain constraints, and margin pressure.
The AI spending sector saw significant changes on Wall Street, with every dollar being repriced in response to Amazon's strong earnings report. Optical-networking stocks also saw a boost, led by AXTI's 28.74% jump, while memory names like Micron Tech (MU.US) and Sandisk (SNDK.US) continued to struggle.
The US manufacturing PMIs and Palantir earnings will be key events to watch out for tonight, followed by AMD, WDC, SNDK, and nonfarm payrolls later in the week.