WS #13088

The dominant signal in this window is the after-hours earnings from Apple and Amazon, 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% due to Services shortfall and China weakness. Amazon (AMZN) delivered a massive beat with revenue of $200.6B and EPS of $5.75, driven by AWS growth of 37% and AI strength, sending shares up ~7% after hours. This reinforces the MAG7 carve-out: Amazon's results validate AI spending, countering the bearish AI thesis, while Apple's dip highlights specific headwinds. Meanwhile, geopolitical tensions escalate: a drone strike in Egypt raises Suez Canal security concerns, and reports of Japan/BOJ intervention to buy yen with US rate checks signal coordinated FX action. The Situational Awareness hedge fund's liquidation of its $16B equity portfolio to Citadel after AI losses adds to the AI narrative but is a single-fund event. Overall, the tech sector is stabilizing after a six-day losing streak, led by Microsoft's 15% surge earlier in the day.