Amazon soars on earnings, why the gold rally could return

Market Overview - Major indices are experiencing declines, with the Dow down about 20 points, S&P 500 down approximately 0.7%, and Nasdaq down about 1.4% [1][2][3] - The 10-year Treasury yield has increased to 4.09% following the Fed's recent rate cut, impacting broader market sentiment [4][5] - Bitcoin has dropped over 3.5%, trading around $107,000 per token, while Ether is down more than 5% at approximately $3,700 [5][9] Tech Earnings Insights - Mixed results from major tech companies, with Nvidia down over 2%, Microsoft down more than 3%, and Meta down 11% after their earnings reports [6][7] - Alphabet has seen a nearly 50% increase year-to-date, indicating positive investor sentiment towards its AI investments [8] - Apple is expected to report iPhone sales of $49.3 billion, up 6.7% year-over-year, with a focus on iPhone 17 sales, which are reportedly up 14% year-over-year in the US and China [11][12] Amazon's Performance - Amazon's Q3 earnings report shows EPS of $1.95, beating expectations, and net sales of $180.17 billion, also above consensus [67][68] - AWS revenue is projected at $3.2 billion, up 18%, indicating a recovery in its cloud computing business [17][68] - The company is launching its tranium chip business, which is now a $1 billion annual business, and has initiated a significant data center project [90][91] Consumer Sentiment and Economic Outlook - Concerns are rising regarding consumer spending, particularly among lower-income groups, as seen in Chipotle's recent earnings report [25][27] - The Fed's recent rate cut has led to speculation about future cuts, with mixed signals from Fed Chair Jerome Powell regarding the December meeting [30][32] - Analysts suggest that while the economy shows signs of growth, inflation remains a concern, impacting consumer behavior and spending patterns [82][84] Investment Strategies - Analysts recommend looking beyond the "magnificent seven" tech stocks for investment opportunities, suggesting that many other companies are growing at comparable rates [73][74] - There is a growing interest in sectors outside of big tech, particularly in small-cap stocks that may offer better valuations [23][24] - The ongoing AI boom is prompting significant capital investment, but concerns about over-speculation in the market are also being raised [19][78]