Bottom line: The Nasdaq has juice thanks to real earnings strength, but the broader market is still feeling cautious. The market isn’t broken — but it’s not on cruise control either.
More Information in our Economic Calendar.
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Nasdaq Index Today: Amazon Fuels Tech Rally While Dow Slips on Weak Sectors
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Key Points:
- Amazon surges 10% on a massive earnings beat, fueling Nasdaq gains and lifting the consumer discretionary sector nearly 4%.
- Despite strong tech earnings, the Dow slips 0.24%, dragged down by weak performances in healthcare and industrials.
- Cloudflare, Reddit, and Coinbase join Amazon with double-digit jumps, pushing selective buying in the tech space.
Nasdaq Gains on Big Tech Beats While Dow Lags on Weak Healthcare and Industrials
Stocks are mixed heading into the final stretch of Friday’s session, with traders sifting through a heavy slate of earnings and sector moves. At 16:13 GMT, the Dow is off 116 points, or 0.24%, dragged by weakness in healthcare and industrials. The S&P 500 is down just 2 points, holding flat near 6,820. But the Nasdaq is pushing higher, up 0.29%, thanks to a surge in mega-cap tech names.
Is Big Tech Doing the Heavy Lifting Again?
Yes — and it’s showing up in the Nasdaq’s outperformance. Amazon is up 10% after blowing past earnings estimates, with $1.95 EPS on $180.2 billion in revenue. Cloudflare rallied 11% after strong guidance, and Reddit soared 16% on a surprise beat. Even Coinbase joined the party, up 9% as crypto tailwinds helped Q3 numbers.
These moves are helping offset broader weakness in the tech sector, which is still down 0.6% on the day. It’s a split tape, but the buyers are showing up where growth looks real.
What’s Holding the Dow and Broader Market Back?
Sector drag is coming from healthcare, down 0.5%, and utilities, which are off over 1%. AbbVie is down 4% despite topping estimates — investors didn’t like the breakdown outside its core drugs. Dexcom cratered 16% after dialing back 2026 revenue expectations. Industrials and financials are also under pressure, with modest declines weighing on the Dow.
Materials are off 0.8% and consumer staples are weaker too, keeping the S&P from gaining traction even as discretionary names rally.
Why Is Consumer Discretionary So Hot Today?
Simple: Amazon. The stock’s earnings blowout lit up the entire sector, which is up nearly 4% — the day’s biggest gainer by a mile. It’s the one area where traders are chasing strength.
Also helping? Solid results from companies like Bright Horizons (+14%) and Church & Dwight (+7%), both posting beats that added fuel to the discretionary fire.
Are There Broader Signals Traders Should Be Watching?
Not much on the macro side today, but the bond market and Fed path are still lurking in the background. Yields remain a key sentiment driver — but for now, earnings are steering the ship. With tech continuing to deliver, dip buyers are staying active in selective pockets.
But the message is clear: the market isn’t buying just anything. Misses are getting punished hard — see Newell Brands down 28% and Carlyle off 6%. This remains a stock-picker’s tape.
What’s Next on the Radar for Traders?
All eyes shift to next week’s Fed commentary and key labor data. The soft landing narrative is still intact, but the bar for earnings beats is high. Traders will want to see if strength in tech and discretionary can hold — or if the rally stalls out without broader participation.
About the Author
James Hyerczykauthor
James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.
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