Amazon Raises Forecast, Boosts US Stocks Amid Strong AWS Growth

Amazon's strong quarterly performance, led by a 13% revenue increase to $180 billion and a 20% growth in its AWS cloud unit, fueled a significant rally in U.S. stocks, with Amazon shares surging nearly 12%. The company's improved forecasts, driven by advancements in AWS demand, new chip technologies, and retail efficiencies, have raised investor confidence, contributing to gains in consumer discretionary and technology sectors. Despite this optimism, concerns remain about Amazon's AI strategy amid competition from Microsoft and Google, as well as broader market uncertainties related to Federal Reserve rate cut prospects and supply chain challenges. Other tech giants like Apple also reported upbeat earnings, boosting market sentiment, though issues such as potential SNAP benefits cuts and geopolitical headwinds, including the U.S. government shutdown and weak Chinese manufacturing data, temper enthusiasm. Overall, Amazon's blend of cloud innovation and smarter retail logistics is setting a new industry standard that investors view as pivotal for future growth and market leadership. This mixed environment highlights both the strength of corporate earnings in the absence of fresh economic data and ongoing caution due to macroeconomic and geopolitical factors.