Story
US Stock Futures Climb on Strong Amazon Earnings; Apple's Weak Forecast Caps Gains
U.S. stock index futures rose in Thursday evening trading, lifted by a blockbuster quarterly report from Amazon, though a disappointing forecast from Apple Inc. weighed on overall market sentiment. The split results from the two tech titans created a mixed picture for investors following a strong rally during the regular session.
A Tale of Two Tech Giants
Amazon.com Inc. (NASDAQ:AMZN) shares surged 9.4% in aftermarket trading after the e-commerce and cloud giant reported stronger-than-expected earnings for its June quarter. A standout performer was its Amazon Web Services (AWS) unit, which marked its fastest growth in 18 quarters, renewing investor confidence in the company's artificial intelligence ambitions.
In contrast, Apple Inc. (NASDAQ:AAPL) shares slid over 6% in after-hours activity. The decline came after the iPhone maker forecast weaker sales growth than analysts expected for the current quarter, citing rising supply chain issues. Disappointing sales in China and sluggish revenue from its services division also overshadowed strong iPhone sales.
- Apple's revenue growth forecast: 9% to 11% year-over-year
- Wall Street consensus forecast: 12%
The company noted that outsized demand for components from the AI industry was tightening global supplies and increasing costs.
AdMarket Reaction and Context
Following the earnings releases, futures tied to the major U.S. indexes posted gains. S&P 500 futures rose 0.26%, Nasdaq 100 futures climbed 0.7%, and Dow Jones futures added 0.2%.
The move in futures extended a positive day on Wall Street. During Thursday's regular session, the S&P 500 gained 1.7%, the Dow Jones Industrial Average rose 1.2%, and the tech-heavy NASDAQ Composite jumped 2.8%, buoyed by strong earnings from Microsoft earlier in the week.
Despite the recent rally, Wall Street is still on track to close the month with losses. A significant sell-off in technology and chipmaking stocks earlier in July has left the major indexes in negative territory for the month. The S&P 500 was set to lose 0.8% in July, while the Nasdaq was facing a 4.2% decline.
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