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Tech Stocks Jump, But Apple and Amazon Tumble After Market Close

The stock market delivered a mixed message on Tuesday as major tech giants Apple Inc. (AAPL) and Amazon.com Inc. (AMZN) saw their shares slip in after-hours trading, despite the broader technology sector experiencing a strong rally earlier in the day.

This movement comes at a time of intense scrutiny over tech earnings, rising interest rates, and shifting investor sentiment. While tech stocks surged during regular trading hours, the earnings reports from Apple and Amazon appear to have dampened the optimism in extended trading.

Strong Market Gains During Regular Hours

During Tuesday’s trading session, the NASDAQ Composite rose by over 1.6%, marking one of its strongest days this month. Investors were optimistic about signs that inflation could be easing and were encouraged by better-than-expected earnings from companies like Microsoft (MSFT) and Meta Platforms (META) earlier this week.

The S&P 500 also climbed nearly 1.1%, while the Dow Jones Industrial Average advanced around 0.9%.

The rally was largely driven by gains in technology, communication services, and consumer discretionary sectors — areas that have historically benefitted from lower interest rate expectations.

Explore today’s top market gainers

Apple and Amazon: After-Hours Declines

Despite the upbeat tone during regular hours, both Apple and Amazon faced declines in after-hours trading, falling around 2.5% and 3.1% respectively after reporting quarterly earnings.

Apple’s Concerns:

Apple’s stock initially rose during the day but reversed direction after the bell. The company reported a decline in iPhone sales, particularly in China, which weighed heavily on investor sentiment. Although Apple posted better-than-expected earnings per share and strong services revenue, concerns about its hardware business led to the dip.

“The China slowdown is real, and it’s starting to hit Apple harder than expected,” said analyst Dan Ives from Wedbush Securities.

Apple’s year-over-year revenue slipped by 4%, and the company issued cautious guidance for the next quarter, citing macroeconomic challenges.

Read Apple’s full earnings report

Amazon’s Performance:

Amazon also posted earnings that beat expectations but warned of a slowdown in its cloud computing division, Amazon Web Services (AWS). Despite growing revenue in its advertising and e-commerce businesses, AWS growth dipped to its slowest pace since 2015.

Investors reacted swiftly, pushing the stock lower in post-market hours.

“AWS is Amazon’s crown jewel, and any softness there makes investors nervous,” commented Jill Carey Hall, equity strategist at Bank of America.

Explore AWS market share trends

What’s Fueling the Tech Sector?

Even as Apple and Amazon faltered after hours, the broader tech landscape looked bright during regular trading. Companies such as Nvidia (NVDA), Alphabet (GOOGL), and AMD (AMD) posted significant gains, buoyed by optimism over AI development, strong cloud adoption, and improved ad revenue trends.

Nvidia rose more than 4.2%, while Alphabet gained 3.6%, driven by a robust performance in its advertising division and cloud services.

See how AI is shaping tech stocks

Investor Sentiment Remains Volatile

The contrasting performances underscore the volatile nature of tech investing in 2025. With interest rates remaining elevated and global economic uncertainty lingering, investors are being selective. Many are seeking value in companies with proven earnings resilience and strong balance sheets.

“It’s a tale of two markets — optimism in growth potential versus anxiety about execution,” said Lindsey Bell, Chief Markets Strategist at Ally Invest.

Key Takeaways for Investors

Tech is still hot: Despite some after-hours drops, the sector remains attractive.
Earnings matter more than ever: Markets are reacting swiftly to earnings misses or weak outlooks.
Cloud and AI are key themes: Companies leading in these areas are being rewarded.
Short-term volatility is here to stay: Investors must brace for rapid market shifts based on earnings and macro data.

What to Watch Next

Investors will keep a close eye on upcoming earnings from Tesla, Intel, and Spotify, as well as macroeconomic indicators like the Federal Reserve’s interest rate decision and non-farm payroll data due later this week.

These factors could either support the bullish momentum or add further pressure on the market, particularly tech-focused indices.

Track upcoming earnings releases

Conclusion

While the overall tech sector showed signs of strength during the trading day, the post-market slip in Apple and Amazon shares reminded investors of the risks lurking beneath the surface. It’s a mixed bag for tech this quarter — some stars are shining, while others are falling short of expectations.

Still, with innovation around AI, cloud, and digital services accelerating, long-term investors continue to find reasons to remain hopeful — even as short-term turbulence persists.