Finance

Can Amazon and Apple Earnings Reverse Market Slide After Meta’s AI Concerns?

Tech giants Apple and Amazon‘s strong earnings offset Meta’s decline, boosting futures after a day of market drops.

October 30, 2025, 7:44 PM

A dynamic stock market ticker board displaying glowing green text and financial data, set against the facade of a glass skyscraper

This long-exposure photograph captures the motion blur of a digital stock market reader board displaying glowing green text and prices in a busy financial district of New York City. By Robert Harding Video / Shutterstock.com.

Executive Summary

U.S. stock market futures advanced after strong post-market earnings from Amazon and Apple helped offset a significant slide driven by Meta Platforms’ AI investment costs.

Apple reported record revenue from iPhone sales and services, while Amazon’s AWS delivered anticipated AI cloud growth, boosting their stocks in extended hours trading.

Broader market sentiment was also influenced by an unresolved trade truce between President Trump and Chinese President Xi Jinping, which led to a decline in rare earth stocks.

The Story So Far

The market’s mixed performance on Thursday was primarily influenced by the sharp decline in Meta Platforms’ stock, attributed to rising costs from its artificial intelligence investments, which was then counteracted by robust after-hours earnings from Apple, driven by record iPhone and services revenue, and Amazon, whose AWS segment delivered anticipated AI cloud growth. This volatility occurred amidst broader market sentiment also being shaped by an unresolved trade truce between President Trump and Chinese President Xi Jinping.

Why This Matters

The market’s swift recovery from a significant slide driven by Meta Platforms’ AI investment costs, thanks to robust after-hours earnings from Amazon and Apple—particularly in AI cloud services and record iPhone sales—underscores a resilient and selectively confident tech sector. This demonstrates that while investment-driven volatility can impact individual companies, strong performance from diversified tech giants can quickly stabilize and even push market futures higher, even as broader geopolitical factors, like the trade truce between President Trump and Chinese President Xi Jinping, continue to influence specific market segments.

Who Thinks What?

Investors reacted negatively to Meta Platforms’ shares, which plunged due to rising costs associated with its artificial intelligence investments.

Conversely, investors responded positively to Amazon and Apple’s strong earnings, with their stocks jumping after Apple reported record iPhone sales and Amazon Web Services delivered anticipated AI cloud growth.

Broader market sentiment showed uncertainty regarding a trade truce between President Trump and Chinese President Xi Jinping, leading to a decline in rare earth stocks due to unanswered questions.

U.S. stock market futures advanced following strong earnings reports from Amazon and Apple late Thursday, helping to offset a significant market slide earlier in the day driven by Meta Platforms. While the S&P 500 index and the Nasdaq composite experienced declines during regular trading, the post-market gains from the e-commerce and tech giants pushed Nasdaq-100 index futures higher.

Market Dynamics and Tech Performance

On Thursday, the S&P 500 and Nasdaq composite both fell sharply, primarily due to a significant plunge in Meta Platforms’ shares. The social media company’s stock decline was attributed to rising costs associated with its investments in artificial intelligence.

Conversely, Amazon and Apple released their earnings after the market closed. Both companies saw their stocks jump in extended hours trading. Apple reported record revenue from its iPhone sales and services for the September quarter, while Amazon’s Amazon Web Services (AWS) segment delivered the AI cloud growth that investors had anticipated.

Despite the tech sector’s volatility, blue-chip stocks on the Dow Jones Industrial Average finished the day down 0.2%, or 109 points.

Broader Economic and Geopolitical Factors

Beyond the immediate earnings news, broader market sentiment also reflected other significant developments. A trade truce between President Trump and Chinese President Xi Jinping left some questions unanswered, leading to a decline in rare earth stocks.

Market Summary

The market experienced a mixed day, characterized by a sharp decline in major indices driven by Meta’s AI investment concerns, which was then counteracted by robust after-hours earnings from Amazon and Apple, signaling resilience in key tech sectors.