WS #13087

The dominant signal in this window is the after-hours earnings releases from Apple and Amazon, both beating estimates but with diverging market reactions. Apple (AAPL) reported a double beat with revenue of $109.4B and EPS of $2.02, yet shares fell ~2.5% in after-hours trading due to weakness in Services and China, and concerns over rising R&D costs. Amazon (AMZN) delivered a massive beat with revenue of $200.6B and EPS of $5.75, driven by AWS growth of 37% and AI-related strength, sending shares up ~7% after hours. The contrasting reactions highlight a MAG7 carve-out: while the macro narrative has been 'tech selloff' and 'AI investment bubble unease', Amazon's results validate AI spending, countering the bearish thesis. Meanwhile, geopolitical tensions persist with a drone strike in Egypt raising Suez Canal security concerns, and reports of Japan/BOJ intervention to buy yen, with US authorities conducting rate checks. The Situational Awareness hedge fund's liquidation of its $16B equity portfolio to Citadel after steep AI-related losses adds to the AI narrative but is largely a single-fund event. Overall, the tech sector is showing signs of stabilization after a six-day losing streak, led by Microsoft's 15% surge earlier in the day.