Tech Bulls Charge: Amazon Jumps 13%

Fresh news and strategies for traders. SPY Trader episode #1412. Big Tech earnings, led by Amazon's explosive AWS growth and strong iPhone sales from Apple, drove a powerful rally, ensuring a positive monthly close despite persistent macroeconomic gloom. We analyze the market's split between companyspecific success and structural issues like the rising 10year yield, providing tactical recommendations for maintaining overweight exposure to leading technology ETFs (QQQ) and navigating fixed income volatility.

Episode Transcript

(00:00):
Welcome back to Spy Trader , the only podcast that gives you the market moves before your morning coffee is even brewed .
I'm your host , Barry Bullish , and it's 6 am on Friday , October 31st , 2025 , Pacific Time .
The ghosts and goblins might be out tonight , but the bulls are firmly in charge this morning , wiping away yesterday's dip .

(00:23):
Futures are strongly up , led by the Nasdaq100 , which is indicating a jump of over one percent in early trading .
We are set to close both the week and the month in positive territory , driven almost entirely by blockbuster earnings from Big Tech that are overshadowing persistent macroeconomic gloom .

(00:43):
The main story today is the incredible bifurcation within the ' Magnificent Seven' tech giants .
While Meta Platforms and Microsoft recently spooked the market with warnings about steep capital expenditures for AI data centers , Apple and Amazon came roaring back to save the day .
Apple reported strong quarterly earnings , fueled by robust iPhone sales , while Amazon delivered a true barnburner , jumping over thirteen percent in premarket trading thanks to a massive twenty percent increase in its cloud revenue segment , AWS .

(01:19):
This immediate positive momentum confirms that , right now , companyspecific results are winning out against broader fears .
Elsewhere , we saw a split decision in the Energy sector , where Chevron was up on strongerthanforecast results , but Exxon Mobil was slightly down in premarket trading .
And keep an eye on Netflix , whose stock is spiking on the announcement of a 10forone stock split , potentially paving the way for its inclusion in the Dow Jones .

(01:49):
On the macroeconomic front , we have a confusing picture .
The Federal Reserve delivered its second consecutive 25basis point rate cut , moving the target range down to 3.75 to 4.00 percent .
While this is the lowest level in three years and reflects the Fed’s focus on employment risks , the bond market is having none of it .

(02:12):
The 10year Treasury yield is stubbornly sitting near 4.11 percent .
This high longterm yield acts as a restrictive force on the economy , pushing up the cost of capital for virtually all businesses and challenging the market’s relief over the shortterm rate cut .

Our core analysis is this (02:29):
we are in a period of TechDriven Optimism at a Macroeconomic Crossroads .
The strength of companies like Amazon and Apple , with verifiable cash flow and growth , is currently too strong for the market to ignore .
The Nasdaq100 , represented by the Invesco QQQ Trust , is up approximately 4.1 percent just this month .

(02:55):
However , the high capital expenditure worries and the structural issue of the rising 10year yield mean volatility remains high .
For recommendations , let's keep it simple and grounded .
First , for core portfolio accumulation , continue to dollarcost average into diversified ETFs like the Vanguard S&P 500 ETF , VOO , or the iShares CORE S&P 500 ETF , IVV .

(03:24):
These capture the overall positive trend driven by the fifty largest US companies that are currently benefitting from these strong earnings .
Second , for tactical exposure , you must be overweight technology right now .
The momentum is undeniable .
We recommend maintaining exposure to the Invesco QQQ Trust , which is leading the rally , or the Technology Select Sector SPDR Fund , XLK .

(03:50):
Specifically , Amazon , ticker AMZN , is a prime example of execution being rewarded , making it a key stock to watch given its massive jump .
Third , for risk management , don't forget fixed income .
While the Fed cut rates , the high longterm yields mean longduration bonds remain risky .
Stick to diversified total bond funds like the Vanguard Total Bond Market ETF , BND , or the iShares Core U.S.

(04:18):
Aggregate Bond ETF , AGG , as a stability hedge against potential equity volatility .
Steer clear of being overly aggressive on longduration instruments like TLT while the 10year yield holds this high 4.11 percent level .
That’s the playbook for today .
Have a fantastic Friday , and we'll catch you on the next episode of Spy Trader .