Amazon rally lifts Nasdaq futures despite Apple sell-off on supply concerns

Friday 31 July 2026 - 12:30

By: Sahili Aya

Amazon rally lifts Nasdaq futures despite Apple sell-off on supply concerns

U.S. stock index futures moved higher on Friday, with the Nasdaq 100 leading gains as a strong rally in Amazon helped offset a sharp decline in Apple following contrasting earnings updates from the two technology giants.

The divergent market reaction illustrates how investors continue to differentiate between companies benefiting from accelerating artificial intelligence investment and those facing supply-chain constraints that could weigh on future growth.

Amazon surges on strong cloud performance

Amazon shares jumped approximately 12% in premarket trading after the company reported robust cloud computing revenue, easing investor concerns that the massive investments made by technology companies in artificial intelligence might not generate sufficient returns.

The results reinforced confidence in demand for cloud infrastructure, which remains a cornerstone of AI development as businesses continue expanding their use of advanced computing services.

Amazon's performance also helped improve sentiment across the broader technology sector after weeks of heightened volatility linked to questions over AI-related spending.

Apple weighs on market sentiment

While Amazon boosted investor confidence, Apple moved sharply lower after warning that ongoing supply constraints are expected to limit future growth.

The iPhone maker's shares fell about 7.3% before the opening bell, as investors assessed the potential impact of component shortages and the possibility of higher iPhone prices on consumer demand.

The contrasting performances of Amazon and Apple underscore the different challenges facing major technology companies despite continued strength in the broader AI ecosystem.

Nasdaq outperforms broader market

Technology stocks helped push Nasdaq futures well ahead of other major U.S. indices.

Before the opening of regular trading:

Nasdaq futures rose 1.12%
S&P 500 futures gained 0.46%
Dow Jones Industrial Average futures advanced 0.49%

The stronger performance of Nasdaq futures reflected renewed optimism toward growth-oriented technology companies following a series of closely watched corporate earnings reports.

AI remains the market's dominant investment theme

Friday's market moves demonstrate that artificial intelligence continues to shape investor sentiment across Wall Street.

Companies delivering solid growth in cloud computing and AI-related services are being rewarded by investors, while businesses facing operational challenges such as supply shortages remain under greater scrutiny.

As earnings season continues, markets are expected to remain focused on whether major technology companies can sustain revenue growth while managing rising infrastructure costs, expanding AI investments and evolving consumer demand.