It was a tale of two tech giants on Friday, and the stock market felt every bit of the whiplash. Amazon.com Inc. (AMZN) delivered its best earnings-day pop in years, while Apple Inc. (AAPL) suffered a historic wipeout that erased nearly $475 billion from its market value. The result? A market that couldn't decide which way to go, with the S&P 500 clinging to a modest gain while the AI trade split down the middle.
The S&P 500 held a 0.5% gain near 7,472, while small caps turned lower, a day after tech's bounce off correction territory. The Dow Jones Industrial Average advanced 253 points, or 0.5%, to 52,461, absorbing the steepest drop among its components from Apple. The Nasdaq 100 added 0.4% to 28,208, while the small-cap Russell 2000 slipped 0.5% to 2,930.
Within the Magnificent Seven, the divergence was stark. Amazon surged 15% to $270.90, and Meta Platforms Inc. (META) added 2.5%, while Apple plunged 9.7% to $301.12, on pace for its worst percentage drop since March 2020.
The bond market did the session's heavy lifting. The 10-year Treasury yield rose six basis points to 4.74%, back at its highest level since January 2025, while the 30-year held at 5.27%, territory last visited in 2007. The 2-year yield edged up three basis points to 4.29%.
Hawkish Fed rhetoric did the pushing. Minneapolis Fed President Neel Kashkari said he would prefer to begin with smaller rate hikes now rather than wait, while Cleveland Fed President Beth Hammack warned that the longer inflation stays elevated, the costlier it becomes to fix — both were among the three dissenters who voted for a quarter-point hike at this week's meeting.
Markets still price roughly a two-thirds probability of a 25-basis-point increase in September, down from nearly 80% before Chair Kevin Warsh's press conference.
Gold pulled back as the dollar firmed and rate-hike bets stayed alive, with spot bullion down 1.4% to $4,044 an ounce and silver off 2.6%. The SPDR Gold Shares (GLD) fell 1.4%.
Friday's Performance In Major U.S. Indices
According to market data:
- The Vanguard S&P 500 ETF (VOO) gained 0.5%.
- The SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 0.5%.
- The Invesco QQQ Trust (QQQ) added 0.4%.
- The iShares Russell 2000 ETF (IWM) slipped 0.5%.
AMZN and AAPL Shape Friday's Sector Movers
Consumer discretionary ran away with the session, the Consumer Discretionary Select Sector SPDR Fund (XLY) jumping 3.2% as Amazon — nearly a quarter of the fund — did the lifting.
At the bottom of the stack, the Materials Select Sector SPDR Fund (XLB) dropped 2.2%, hit by a wave of ugly chemical-sector earnings, while the Technology Select Sector SPDR Fund (XLK) slipped 0.4% under Apple's weight and the Health Care Select Sector SPDR Fund (XLV) eased 0.6% after AbbVie Inc. (ABBV) reported earnings of $3.65 per share, below consensus.
Amazon delivered what analysts called the cleanest beat of the hyperscaler season: earnings of $5.75 per share versus the $1.82 consensus on revenue of $200.6 billion, with AWS growing 37% — its fastest clip in 18 quarters — and capital spending guided up to $220 billion this year.
Despite a record June quarter for Apple, with revenue up 16% to $109.4 billion and iPhone sales up 21.7%, the company guided September-quarter revenue growth of 9% to 11%, below the 12% consensus, citing the same memory and advanced-chip shortage that is enriching its suppliers, while Services revenue of $30.74 billion and Greater China both missed.
Elsewhere among earnings winners, Dolby Laboratories Inc. (DLB) jumped 12% to $58 after its fiscal third-quarter report, while MSA Safety Inc. (MSA) rose 12% after beating earnings estimates by 26 cents on better-than-expected revenue.
DexCom Inc. (DXCM) rallied 10.9% on a beat-and-raise quarter that lifted 2026 revenue guidance to 11%-13% growth, and Monolithic Power Systems Inc. (MPWR) gained 8.9% after second-quarter sales of $980.6 million came in 9% above consensus.
On the losing side, Roblox Corp. (RBLX) cratered 29.5% after issuing a weak current-quarter outlook, withdrawing full-year guidance and missing user-growth estimates.
Reddit Inc. (RDDT) sank 22.5% in a brutal sell-the-news reaction even though second-quarter results beat on both lines, with earnings of $1.25 per share against a 97-cent consensus on revenue of $804.9 million.
GoDaddy Inc. (GDDY) tumbled 20.6% on underwhelming forward revenue guidance and lingering fears that generative AI is eating its web-services franchise, while MasTec Inc. (MTZ) fell 17.7% on disappointing second-quarter results.
Olin Corp. (OLN) slumped 17.9% after swinging to a $13.3 million quarterly net loss on revenue of $1.74 billion that missed the $1.81 billion consensus, and Corteva Inc. (CTVA) dropped 11.7% following its quarterly report as investors weighed risks around the company's planned split into two businesses later this year.
The Western Union Co. (WU) lost 15% on mixed results and lowered guidance.
Coinbase Global Inc. (COIN) dropped 12% to $144.02 after second-quarter revenue fell 14% to $1.22 billion and the exchange swung to a $359.5 million loss on a 21% slide in transaction revenue — a salt in the wound as Bitcoin sank 3.0% to around $62,800.
