The Amazon stock rally is giving Wall Street another powerful boost as the e-commerce and cloud-computing giant (NASDAQ:AMZN) reported blockbuster quarterly results. On Friday, shares of Amazon jumped 11.6%, driving major U.S. stock indexes higher and setting the S&P 500 on pace for its sixth consecutive monthly gain — the longest winning streak since 2021.
Amazon Fuels Wall Street’s Momentum
The S&P 500 rose 0.6% in early trading, recovering from Thursday’s slump and inching closer to its all-time high set earlier in the week. The Dow Jones Industrial Average added 37 points, or 0.1%, while the tech-heavy Nasdaq Composite surged 1.3% — largely thanks to the Amazon stock rally.
Amazon’s strong earnings report was the clear catalyst. The company posted profits that far exceeded analysts’ estimates, with CEO Andy Jassy highlighting rapid reacceleration in its Amazon Web Services (AWS) division. AWS — which powers much of the internet’s cloud infrastructure — is now growing at its fastest pace since 2022, a key factor behind Amazon’s $2.4 trillion market valuation.
Big Tech Powerhouses Push the Market Higher
Apple Inc. (NASDAQ:AAPL) also added momentum, rising 0.3% after beating Wall Street’s profit expectations. CEO Tim Cook credited robust iPhone sales and continued strength in services such as the App Store and Apple Music.
Together, Amazon and Apple — worth over $6 trillion combined — account for 10.6% of the S&P 500’s total market capitalization, even though they represent less than half a percent of its total members. That means even small movements in their share prices can have an outsized effect on the broader market.
The Amazon stock rally was particularly impactful, helping the S&P 500 recover nearly all of Thursday’s losses and reinforcing investor confidence in Big Tech’s earnings strength.
Other Market Movers: Reddit, Coinbase, and Netflix
Several other notable names joined the rally. Reddit Inc. (NYSE:RDDT) soared 14.7% after reporting stronger-than-expected revenue and profits, wiping out earlier weekly losses. Coinbase Global (NASDAQ:COIN) gained 3.2% after also topping analysts’ expectations, underscoring renewed optimism in the crypto sector.
Netflix Inc. (NASDAQ:NFLX) rose 1.9% following the announcement of a 10-for-1 stock split designed to make its shares more affordable. Each investor will receive nine additional shares for every one they currently hold — a move expected to improve liquidity and broaden ownership.
However, not every stock joined the celebration. Pharmaceutical heavyweight AbbVie Inc. (NYSE:ABBV) fell 3.7% despite reporting better-than-expected profits. Analysts cited concerns that its rate of earnings growth is slowing after a strong 28% gain in share price earlier this year.
Market Context: A Test of Valuations
The Amazon stock rally underscores the growing pressure on major corporations to deliver strong results to justify lofty valuations. Since April, the S&P 500 has climbed sharply, driven by optimism around artificial intelligence, consumer spending resilience, and steady corporate profits.
Yet, critics warn that the market may be overheating. Thursday’s 1% drop came after Meta Platforms (NASDAQ:META) and Microsoft Corp. (NASDAQ:MSFT) announced hefty spending plans related to AI infrastructure. That, combined with skepticism over President Donald Trump’s recently announced trade truce with China, briefly rattled investor confidence.
Still, Friday’s rebound shows the power of Big Tech earnings to sway sentiment. The Amazon stock rally alone accounted for much of the S&P 500’s advance, reinforcing how dependent the index remains on a handful of mega-cap stocks.
Global Markets and Bond Yields
Overseas, Asian and European markets were mixed. China’s factory activity contracted for the seventh consecutive month, dragging Hong Kong’s Hang Seng down 1.4% and Shanghai’s Composite Index 0.8% lower. In contrast, Japan’s Nikkei 225 jumped 2.1% after a stronger-than-expected 2.2% rise in industrial production.
Meanwhile, in the bond market, the yield on the 10-year U.S. Treasury slipped slightly to 4.08% from 4.11% after Federal Reserve Chair Jerome Powell signaled that another rate cut in December “is not a foregone conclusion.”
Bottom Line: Amazon Keeps Wall Street on Track
The Amazon stock rally is powering Wall Street toward one of its strongest streaks in years. With six straight months of gains and Big Tech profits surprising to the upside, investor optimism is running high.
While concerns about valuations and future rate policy remain, Amazon’s stellar quarter shows that innovation and execution still drive the U.S. market’s momentum — one earnings report at a time.
Featured Image – Freepik
