Strong Amazon Stock Bounce at the Open Is Erased
The shares of Amazon (AMZN) begun the day with a major gap higher, but it has reversed and given back all gains now.
The week opened with intense volatility across global financial markets, triggered by a wave of heavy selling in Asia that reignited fears of a looming “Black Monday.” U.S. equity futures reflected that anxiety early on, with major indexes plunging by as much as 5 percent before the opening bell. This sharp downturn was driven by escalating trade tensions and lingering uncertainty over tariffs announced by the U.S. administration, leading to widespread risk aversion.
Market Sentiment Shifts During U.S. Session
As the trading session progressed, sentiment began to stabilize. The Dow Jones Industrial Average and the S&P 500 both posted losses by the close, but managed to recover from much deeper declines earlier in the day. The S&P 500, in particular, bounced off a low near 4,835—its weakest level since January 2024—and managed to close just above the key 5,000 support level, offering some technical reassurance to investors.
Meanwhile, the Nasdaq Composite defied the broader trend and finished slightly in the green, ending the day up by 0.1 percent. A resurgence in tech stocks helped lift the index, reflecting hopes that recent losses may have been overdone and that sentiment could improve in the short term if trade-related fears subside.
Closing Levels for Major U.S. Stock Indices
Dow Jones Industrial Average (DJIA)
Closed: 37,965.60
Change: ▼ -349.26 points (▼ -0.91%)
Session High: ▲ +885.91 points
Session Low: ▼ -1,703 points
Summary: The Dow swung dramatically intraday, reversing early gains and ultimately ending the day nearly 1% lower.
S&P 500 Index
Closed: 5,062.25
Change: ▼ -11.83 points (▼ -0.23%)
Session High: ▲ +172.49 points
Session Low: ▼ -239 points
Summary: The S&P showed relative stability, recovering from deep losses but still closing modestly lower.
Nasdaq Composite Index
Closed: 15,603.26
Change: ▲ +15.48 points (▲ +0.10%)
Session High: ▲ +704.49 points
Session Low: ▼ -803.75 points
Summary: Despite extreme volatility, the Nasdaq managed a small gain, supported by a late-session tech bounce.
Amazon Leads Tech Bounce with Strong Intraday Reversal
One of the standout performers of the day was Amazon. After suffering weeks of downward pressure—dropping more than 26 percent from its late December high of $242.52—the stock opened Monday with another sharp drop. It gapped lower at $161.95, around 7 percent down from the previous close, marking its lowest level since September.
However, the stock quickly found support and staged a robust recovery. The catalyst for the rebound appeared to be comments from President Trump suggesting that some tariffs might be delayed for three months, except for China. This hint at possible flexibility in trade policy triggered a wave of renewed risk appetite across markets.
Amazon ended the regular session up 2.5 percent at $175.25 and extended those gains in after-hours trading, rising to $177.70. This reversal was notable not just for its strength, but also for the timing—offering a glimmer of optimism after a bruising sell-off.
Structural Headwinds Remain, But Resilience Stands Out
Despite the rebound, Amazon remains under pressure from structural risks linked to trade policy. A large share of the company’s third-party sellers are based in China and rely heavily on Chinese imports. With new tariffs potentially raising import costs by up to 34 percent, Amazon may face upward pressure on prices or disruption to its vast marketplace. By the end of 2024, over half of Amazon’s top-selling vendors were Chinese-based, making the company particularly sensitive to shifts in trade policy.
Still, Amazon’s sharp rebound suggests that investors are willing to step back into leading tech names when sentiment begins to turn. The stock’s resilience, even in the face of ongoing uncertainty, could be a sign of stabilization—not just for Amazon, but for the broader market as well.
Outlook for the Week Ahead
While volatility may persist in the days to come, the late-session rally in tech stocks and Amazon’s strong performance hint that markets could find firmer footing if geopolitical tensions ease. The ability of key stocks to bounce from deep losses indicates that investors remain focused on long-term fundamentals, even as they navigate short-term headwinds.
If trade developments remain in flux but point toward negotiations, this week may see further consolidation—and perhaps recovery—in risk assets. Amazon’s rebound could prove to be an early signal of a broader tech recovery, making the company one to watch closely as events unfold.
Dow Jones Live Chart
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