Apple and Amazon Make Investors Happy – Stocks Jump After Hours
In a dramatic turnaround for Wall Street, US stock futures soared in after-hours trading on Thursday as Apple and Amazon unleashed blockbuster quarterly earnings that smashed analyst forecasts. The tech titans’ strong results injected fresh optimism into a market battered by fears over ballooning AI spending, propelling S&P 500 futures up 0.6%, Nasdaq 100 futures leaping 1.1%, and Dow Jones futures edging higher by 0.1%.
In Simple Words
Good news for the stock market! Apple and Amazon just shared their money reports, and they did better than expected. This made people who own stocks feel happy again.
Because of this, stock prices started going up fast after the market closed:
- Apple stock: up about 3%
- Amazon stock: up more than 13%
- Future prices for big stock groups:
- S&P 500 (many big companies): up 0.6%
- Nasdaq (mostly tech): up 1.1%
- Dow Jones (old big companies): up 0.1%
This surge comes on the heels of a brutal session where the S&P 500 shed 1% and the Nasdaq Composite plunged 1.6%, driven by punishing selloffs in Big Tech. Meta Platforms cratered 11%—its worst day in nearly three years—after warning of skyrocketing AI infrastructure costs in 2026. Microsoft also stumbled almost 3% amid similar capex concerns.
Table of Contents
Amazon’s AWS Powers 13% After-Hours Explosion
Amazon (AMZN) stole the show, with shares rocketing more than 13% in extended trading after reporting third-quarter earnings that obliterated Wall Street targets. The e-commerce behemoth’s crown jewel, Amazon Web Services (AWS), posted $33 billion in revenue—up 20% year-over-year and marking its fastest growth since 2022. This topped estimates of $32.4 billion and underscored AWS’s dominance in the red-hot AI cloud computing race.
CEO Andy Jassy beamed about the “momentum building across our operations,” crediting AI-driven efficiencies for fueling growth. While rivals like Microsoft and Alphabet loom large in AI, Amazon’s cloud prowess eased investor jitters, proving the company is no also-ran in the generative AI boom.
Why Did This Happen?
Amazon Did Great with Cloud Computers
Amazon has a part called AWS – it rents cloud computers to other companies.
This part made $33 billion, growing 20% from last year.
That’s the fastest growth in 3 years!
The boss said: “AI is helping us grow fast.”
Apple Sold a Lot of iPhones
Apple made $102.5 billion in 3 months – a new record!
That’s 8% more than last year.
The boss, Tim Cook, said:
“Next holiday season will be the best ever for Apple and iPhone!”
Apple’s Record Revenue and Holiday Cheer
Not to be outdone, Apple (AAPL) shares climbed around 3% after unveiling record fourth-quarter revenue of $102.5 billion, a robust 8% increase from last year. Looking ahead, CEO Tim Cook forecasted the “best quarter revenue ever for Apple—and the best ever for iPhone“—setting the stage for a blockbuster holiday season.
This upbeat guidance couldn’t come at a better time, as investors fretted over iPhone demand amid global economic headwinds. Apple’s resilience highlights its premium brand power and ecosystem lock-in, even as AI integration (think Apple Intelligence) promises fresh catalysts.
What Happened Earlier That Day?
The stock market was down during the day:
- S&P 500: down 1%
- Nasdaq: down 1.6%
Why?
Some big tech companies like Meta (Facebook) and Microsoft said:
“We will spend a LOT of money on AI next year.”
Investors got scared – they thought profits might go down.
Also, the Federal Reserve (the money bosses) cut interest rates a little, but said:
“We may not cut again soon.”
Relief Rally Amid Fed Caution and AI Spending Fears
The earnings bonanza offered a lifeline after a day dominated by Federal Reserve drama. The Fed delivered a 25 basis point rate cut but Chair Jerome Powell poured cold water on aggressive easing, calling a December cut “not a foregone conclusion.” This hawkish tilt amplified worries about Big Tech’s massive AI investments, which could squeeze margins without immediate returns.
Yet, Apple and Amazon’s beats signal that AI isn’t just a cost center—it’s a growth engine. AWS’s acceleration and Apple’s holiday hype suggest the tech selloff may have been overdone, potentially marking a bottom for this correction.
| Key Metrics | Apple Q4 | Amazon Q3 |
|---|---|---|
| Revenue | $102.5B (+8% YoY) | AWS: $33B (+20% YoY) |
| Stock Move (After-Hours) | +3% | +13% |
| CEO Outlook | “Best-ever holiday” | “Fastest AWS growth since 2022” |
| Futures Impact | Nasdaq +1.1% | S&P +0.6% |
What Does This Mean?
Apple and Amazon showed that AI can make money, not just cost money.
Their good news made everyone feel better.
The market might keep going up tomorrow!
| Simple Summary | Apple | Amazon |
|---|---|---|
| Money Made | $102.5 billion | Cloud: $33 billion |
| Growth | +8% | +20% |
| Stock Jump | +3% | +13% |
| Boss Said | “Best holiday ever!” | “Fastest growth in years!” |
What’s Next for Investors?
Friday’s open could extend the rebound if premarket momentum holds, but watch for Reddit and Coinbase—both rising in sympathy—as broader tech earnings roll in. AI optimism is far from dead; it’s evolving. For now, Apple and Amazon have reminded the market: When giants roar, futures follow.
Bottom Line:
Apple and Amazon proved they are still strong.
Investors are smiling again.
Watch the market tomorrow – it might be a good day!