Finance

Amazon, Apple Earnings Surge: How Tech Giants Ignite Market Rally

Amazon and Apple‘s strong earnings drove tech stocks higher, boosting the Dow, S&P 500, and Nasdaq futures.

byAndres Castro

October 31, 2025, 10:28 AM

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Executive Summary

Technology futures advanced in premarket trading Friday, driven by robust earnings reports from Amazon and Apple.

Amazon stock surged over 12% premarket after reporting third-quarter results that surpassed Wall Street expectations, with strong growth in its cloud business.

Apple shares rallied more than 2% premarket following fiscal fourth-quarter results that beat analyst estimates, featuring record iPhone and services revenue and an optimistic outlook.

The Story So Far

Major technology futures are advancing in premarket trading primarily due to robust earnings reports from key companies like Amazon and Apple, both of which significantly surpassed Wall Street’s expectations with increased revenue and optimistic outlooks, thereby fueling a wave of optimism in the technology sector and the broader market.

Why This Matters

Robust earnings reports from tech giants Amazon and Apple are fueling significant premarket optimism across the technology sector, leading to gains in major indexes such as the Dow, S&P 500, and Nasdaq 100. This positive sentiment is also driving up individual tech stocks, suggesting a potential broader upturn and setting a strong positive tone for the overall market’s trading session.

Who Thinks What?

Amazon’s robust third-quarter earnings and accelerated cloud business growth have driven significant market optimism, causing its stock to surge.

Apple’s record iPhone and services revenue, coupled with an optimistic outlook, has led to a rally in its shares and contributed to positive market sentiment.

The broader technology sector and major market indexes are experiencing gains, reflecting overall market optimism fueled by strong earnings reports from key tech giants.

Technology futures advanced in premarket trading Friday, driven by robust earnings reports from Amazon and Apple. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all posted gains, while individual stocks like Palantir Technologies and Nvidia also saw increases.

Key Earnings Drive Market Optimism

Amazon stock surged over 12% in premarket trading after the e-commerce and cloud computing giant reported third-quarter results that surpassed Wall Street expectations. The company announced adjusted earnings of $1.95 per share, a 33% increase year-over-year, alongside sales of $180.2 billion, up 13%, with its cloud business demonstrating accelerated sales growth.

Apple shares rallied more than 2% premarket following its fiscal fourth-quarter results, which also beat analyst estimates. The company reported record iPhone and services revenue, earning $1.85 per share on sales of $102.5 billion. Apple’s adjusted earnings grew 13% year-over-year, with sales up 8%, and it provided an optimistic outlook for the current period.

Broader Market and Other Movers

In the wider market, Dow futures rose 0.3%, S&P 500 futures gained 0.9%, and Nasdaq 100 futures advanced 1.5% ahead of Friday’s opening bell. The 10-year Treasury yield ticked higher to 4.1%, while oil prices saw modest declines, with West Texas Intermediate futures around $60.45 a barrel.

Among exchange-traded funds, the Invesco QQQ Trust increased 1.6%, and the SPDR S&P 500 ETF moved 0.9% higher. Nvidia stock climbed more than 2% premarket, rebounding from a previous day’s drop and extending beyond a 184.48 buy point after reaching record highs earlier in the week. Palantir shares also rebounded by nearly 3%, poised to hit new highs after closing Thursday at the top of a buy zone.

Additional Company Performances

Several other companies experienced significant movements based on their earnings reports. Cloudflare stock jumped nearly 9% in premarket trading, while Reddit and Twilio shares both surged over 11%. Edwards Lifesciences saw a modest rise, though Gilead shares declined by nearly 2%.

Market Outlook

The positive reactions to Amazon and Apple’s strong quarterly performances signal a wave of optimism in the technology sector, influencing broader market indexes and setting a positive tone for Friday’s trading session.