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Apple, Amazon Lift Futures as Fed Caution and AI Spending Jitters Keep Volatility Elevated

Treasury yields plus the dollar stay firm after Powell downplayed the odds of a December rate cut.

A woman with an umbrella passes the New York Stock Exchange, Monday, Oct. 13, 2025. (AP Photo/Richard Drew)
A man looks at a stock quotation board displaying the Nikkei share average outside a brokerage in Tokyo, Japan, October 21, 2025. REUTERS/Manami Yamada
German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 24, 2025.    REUTERS/staff
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 20, 2025.  REUTERS/Brendan McDermid

Overview

  • S&P 500 and Nasdaq futures rose roughly 0.6% and 1.1% after Apple guided to stronger holiday iPhone sales and Amazon projected revenue above estimates on faster cloud growth.
  • Thursday’s selloff followed steep drops in Meta, down about 11% after flagging much higher 2026 capital spending, and Microsoft, down roughly 3% on elevated outlay plans, even as Alphabet advanced on stronger results.
  • The Federal Reserve cut rates by 25 basis points, then signaled another move in December was not a foregone conclusion, trimming market odds for a third 2025 cut and lifting yields.
  • The dollar hovered near multi‑month highs as two‑year and 10‑year Treasury yields held around 3.60% and 4.09%, reinforcing the shift in rate expectations.
  • Trump’s meeting with Xi produced partial U.S. tariff rollbacks, resumed U.S. soybean purchases and rare earth export assurances, though markets treated it as a limited truce with muted price reaction; Asian trading was mixed with Japan higher and China weaker on soft PMI data.