Wall Street's anxiety levels are rising again as markets search for equilibrium following a tech-led selloff. Amazon's disappointing earnings report has further shaken already fragile market sentiment, with investors growing impatient with big tech's AI infrastructure promises and demanding tangible results.
After significant declines in tech stocks yesterday, Asian market futures initially extended losses before showing tentative signs of recovery. Microsoft and Palantir shares gained approximately 1.6% and over 5% respectively in premarket trading, though both had suffered declines through most of the week. The rebound remains fragile, with the S&P 500 dipping only slightly yesterday as it tests the critical 100-day moving average support level—a technical threshold that attracted substantial bargain-hunting when last approached in November.
The Nasdaq Composite faces greater near-term downside risk. A confirmed break below its 100-day moving average could intensify concerns about tech stocks, potentially dragging down the broader S&P 500 and negatively impacting Wall Street's overall risk appetite. Whether technology shares can regain momentum will be pivotal for US equity markets in coming weeks.
Market participants appear to be shifting focus from future growth narratives to current profitability, with recent earnings disappointments amplifying volatility. The coming sessions will test whether support levels hold or whether correction pressures intensify across the tech sector that has driven much of the market's recent gains.