Stunning results in Amazon's quarterly report as well as the South Korean much-hyped meeting between the U.S. and China leaders are still echoing through Wall Street, being the two major tech drivers till the middle of the current week even though both events took place last Thursday. So what if no written agreements were signed between U.S. president Donald Trump and China’s leader Xi Jinping. It's now clear to every investor that this round of tariff wars is over, with new outbursts being postponed for at least one year or so, as both sides respect each other's word. China will resume supplies of rare earth metals, so important to Trump. The arbitrarily introduced U.S. tariffs, including those related to the fentanyl, have been reduced. Port services and shipments of some of Nvidia's advanced chips outside the U.S. will be unblocked, even if latest Blackwell chips may remain banned for foreign customers. All of the above feeds the most favourable environment for further rallying in equity markets to unfold until Christmas time.

The details of the U.S. Federal Reserve's decision on October 29 are far less interesting, as its chair Jerome Powell's ritually flirtatious rhetoric about a supposedly undestined December rate cut faces the traders community's long and firmly betting on another inevitable slash in borrowing costs before the end of 2025. With U.S. jobs' relative weakness as a factor, all of this are medium-term expectations of the crowd and experts. Stock indexes moderate retreat on November 4 attributed to investors' worries about the health of the U.S. economy is still within the mainframe of this general concept. The pullback in the S&P 500 broad barometer came from the latest ISM manufacturing data, which showed that factory activity in the U.S. is still contracting for an eighth straight month, with a reading of 48.7 being below the 50-point mark to separate declining trends from growth indications. Testing the waters around 6,750 or some dips just below this level in terms of S&P 500 dynamics could even be worthwhile for attracting new purchases from local bottoms across a wider range of issuers.

Interestingly, the monetary easing with its cheaper U.S. Dollars funding haven't really helped many other companies aside from the AI-based surges and some of those firms who shared their most cool quarterly corporate news. Of course, there are also other beneficiaries aside prominent Amazon, which initially added about 13% to its market value last Friday, then pared this gain to nearly 10%, but only to jump another 4% on the first Monday of November. Even Apple Co, whose revenue exceeded the $100 billion milestone for the first time ever in the non-Christmas quarter and also surprisingly beat its Q2 number in the profit column by almost 18%, saw its share price rise solid within 3% to 5% but only in the first hours of Friday's trading session. Apple lost all those gains, sliding by more than $10 from its own fresh historical peaks above $277 per share. The bullish momentum has been lost amid Apple CEO's admission of continuing supply constraints and lag in rolling out all of its promised AI features globally. Anyway, Apple is still projecting 10% to 12% sales growth for the December quarter, potentially the biggest in its history. With the company successfully absorbing Trump tariffs, the market will probably respond sooner or later to clearly bullish fundamental signs, as it is based on a new AI-powered Siri on the horizon.

However, the leadership inside the so-called “Magnificent Seven” group of market cap trillionaires, including Apple, Alphabet, Amazon, Meta, Microsoft, Nvidia and Tesla, is now breaking. As for Amazon's Q3 results, we previously predicted that growing expectations of a potentially very strong holiday season with its Black Friday, Cyber Monday and then Christmas sales would largely offset softer growth in e-commerce businesses across the entire segment due to the lack of consumer confidence stemming from inflation and trade uncertainty, which, to a lesser extent, would also affect Amazon itself. But the core value of Amazon's report for investing minds is that it demonstrates the unwavering strength of cloud demand, which underpins Amazon's record-breaking performance. While e-commerce may be more or less vulnerable, cloud services and big data power will take care of everything. Every big company that taps into this cloud miracle just turns everything it touches into gold. Anyone who is outside this magic circle may fall behind as nothing is guaranteed for those who are not engaged enough into the cloud industry. A good message for many other AI-related giants, whose fortunes are built partially on cloud piles, including Microsoft and Google, which are next to Amazon in terms of cloud services' sales volume.

Meanwhile, Amazon Web Services (AWS), which is Amazon's cloud division, reported as much as 20% rise in Q3 sales compared with average expert estimates of an 18% increase. Amazon shrugged off a tough prior week when an extended outage at AWS felled many of the most popular websites and consumer apps. This provided its EPS (equity per share) soaring 24% above expectations as AWS typically accounts for only about 15% of Amazon’s total sales, but it makes up roughly 60% of the company’s total operating income. Despite Amazon has been the worst-performing stock among the “Magnificent Seven” in 2025, the explosive reaction to its Q3 report makes questionable which company could achieve the next $300-per-share barrier first, after Google-parent Alphabet nearly touched it in October, and it Amazon could be next rather than Apple, when firing on all cylinders. However, if all three behemoths leave this significant milestone behind their shoulders within the coming months, it seems that none of the adequate portfolio investors will be particularly upset.