S&P500: Traders Rotate Out of Tech—Apple and Amazon Earnings Loom

S&P 500 Dips as Tech Buckles; Dow Rises on Rotation into Value

Stocks are diverging heading into the final stretch Thursday, with the S&P 500 down 0.5% and the Nasdaq off 1% as tech cracks under the weight of Meta and Microsoft earnings.

The Dow is bucking the trend, up 119 points, or 0.3%, as money rotates into banks and health care names.

Are Tech Giants Losing Their Grip?

Alphabet, Meta, and Microsoft are setting the tone after last night’s earnings. Alphabet is climbing about 4% on solid results, but Meta is sliding 10% and Microsoft is down 2% after both flagged heavy spending plans. Nvidia is also under pressure. Together, they’re dragging down the broader tech complex.

What’s moving the needle isn’t just results—it’s the guidance. Traders aren’t loving the capex acceleration, even with AI tailwinds still strong. The Nasdaq is feeling it most, and with both the Technology and Communication Services sectors in the red, the S&P isn’t immune.

Who’s Catching a Bid Instead?

It’s a classic value rotation. Financials and health care are both catching a bid. JPMorgan and Bank of America are in the green, while Eli Lilly is up 3% after strong earnings and an upbeat forecast. Cardinal Health is ripping higher—up more than 12% on a beat-and-raise quarter. Bristol-Myers is also rallying after topping estimates and tightening guidance.

On the flip side, CVS is getting hit—down over 4%—after sounding cautious on Medicaid and PBM growth. Cigna is weaker too, citing margin pressure ahead. Still, sector breadth favors the defensive and cyclical plays, especially as traders lighten up on tech risk ahead of two major reports.

Do Apple and Amazon Turn the Tide After the Close?

That’s the real question. Apple and Amazon step into the spotlight post-close, and what they say could reset the tone. For Amazon, AWS and advertising are the levers. Traders are looking for a re-acceleration in AWS growth toward 20% and margin stability despite heavy AI spend.

Apple needs to show the iPhone 17 cycle is for real—and that China’s coming back online. Street consensus pegs iPhone revenue near $49.75 billion. Services and Mac growth matter too, but any commentary on AI integration and supply chain efficiency could make or break the stock near term.

Bottom Line

Traders are fading Big Tech today, but they’re not abandoning the sector—not yet. If Apple and Amazon deliver clean beats and constructive guidance, this could be a short-lived dip. But if capex worries stick or guidance wobbles, the rotation into value may have legs into month-end. All eyes on the earnings call.

More Information in our Economic Calendar.