Amazon Stock AMZN Slips After Rally, Weighed by Supply Chain and Labor Backlash
Tech stock have paired earlier losses but the Amazon stock remains under pressure, with AMZN price down 1.5% on the day.
Tech stock have paired earlier losses but the Amazon stock remains under pressure, with AMZN price down 1.5% on the day.
Early February Highs Fade as AMZN Faces Renewed Selling Pressure
Amazon’s stock price continues to lose ground, reversing much of last week’s strong recovery. After peaking above $242 in early February, AMZN has steadily declined, and recent sessions have done little to halt the downtrend.
Early last week, markets were rattled by fears of a potential “Black Monday,” sending U.S. equity futures sharply lower before the open. That panic was short-lived, however, as a dramatic turnaround midweek spurred one of the strongest stock market rallies in recent memory.
Relief Rally Fueled by Tariff Suspension
The recovery began in earnest when U.S. President Donald Trump announced that tariffs on countries outside China would be temporarily suspended. That surprise move ignited a powerful rebound in equities, with the Nasdaq jumping 12% in a single session—one of its best days ever.
Amazon joined the surge, climbing over 12% in one day and continuing to gain ground later in the week, particularly after news that tariffs on Chinese electronic imports would be reduced from 125% to 20%. Tech shares broadly benefited, pushing AMZN higher to cap off a blockbuster week.
AMZN Chart Weekly – Buyers Failed at the 50 SMA
However, the upbeat momentum was cut short. On Monday, the market opened above the 200-day simple moving average, suggesting possible continuation—but Amazon failed to hold gains. After opening at $186.88, AMZN reversed course, closing lower at $182.33.
The renewed weakness followed comments from U.S. Commerce Secretary Lutnick, who warned that Chinese tariffs could return within a month or two. That shift in tone introduced fresh uncertainty and quickly deflated optimism across several large-cap tech names.
Factory Closures and Supply Chain Adjustments Add Pressure
Beyond macroeconomic pressures, Amazon has also faced criticism over internal decisions. News broke that the company is shutting down seven of its warehouses in Quebec, sparking backlash from both workers and shareholders. Labor groups, including the Confédération des syndicats nationaux, accused Amazon of union-busting, while a group of more than thirty institutional investors raised concerns over the company’s stance on labor rights and collective bargaining.
Meanwhile, it was reported earlier that Amazon has canceled a number of orders from manufacturers in China and across Asia. Given that over two-thirds of Amazon’s marketplace sellers source goods from China, this move could signal deeper shifts in the company’s supply chain strategy—potentially in anticipation of further trade policy changes or rising political risk.
Outlook Remains Cautious as Technicals Wobble
AMZN began today’s session with a bearish gap at $181.41 and has remained under pressure since. While some tech names like Palantir and Nvidia have managed to trade in positive territory, Amazon continues to lag, weighed down by a mix of macroeconomic worries and company-specific concerns. Unless buyers step in soon, the risk of a retest of lower support levels grows.
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