Amazon Stock (AMZN) Gives Back Half of Tariff Gains on A 5% Fall
Yesterday Amazon shares surged 12% after the tariff freeze, while today we are seeing a bearish mode, sending the price 5% down so far.
Live AMZN Chart
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Yesterday Amazon shares surged 12% after the tariff freeze, while today we are seeing a bearish mode, sending the price 5% down so far.
A Wild Week of Market Swings
This week began on shaky footing, with global markets rattled by a wave of heavy selling in Asia. Fears of a potential “Black Monday” gripped traders as U.S. equity futures plunged by up to 5% before markets even opened. The panic was fueled by uncertainty over trade policy and broader macroeconomic stressors.
However, the tide turned sharply midweek. On Wednesday, President Trump announced a suspension of tariffs on all countries except China. This sudden policy shift sparked a euphoric relief rally in U.S. equities, with the Dow Jones and S&P 500 surging 9–10%. Amazon (AMZN) joined the rebound, leaping over 12% in a single session as sentiment shifted dramatically.
Amazon’s Rollercoaster: From Breakdown to Resistance Rejection
Despite the Wednesday surge, Amazon stock struggled to maintain its momentum. The stock opened the week with a sharp gap down at $161.95, extending a multi-week downtrend that has now seen it lose over 30% since peaking at $242 in early February.
Wednesday’s rally pushed the price up to an intraday high of $192.64, but the move stalled precisely at the 50-week simple moving average (SMA)—a critical technical level that previously acted as support but has now flipped to resistance. The failure to break above this line triggered renewed selling, leading to a 5% drop in Thursday’s session.
CEO Letter Highlights Bold AI Vision
Amid the market turbulence, Amazon CEO Andy Jassy released his highly anticipated annual letter to shareholders, doubling down on the company’s bold and far-reaching investment in artificial intelligence. In the letter, Jassy reaffirmed Amazon’s multibillion-dollar commitment to AI, positioning it as a cornerstone of the company’s long-term strategy and a key driver of future innovation.
Jassy defended the heavy spending, calling it essential for Amazon to stay ahead in a rapidly evolving digital landscape marked by intense competition and technological disruption. He highlighted three critical areas of focus: the development of custom-built AI chips tailored for high-efficiency machine learning tasks; the expansion of Amazon’s cloud infrastructure to handle massive AI workloads; and the deployment of next-generation servers to support these operations at scale.
Amazon Stock Chart Weekly – The Surge Stalled at the 50 SMA
Furthermore, Jassy emphasized that AI will be deeply integrated across Amazon’s ecosystem—from powering smarter product recommendations and automating warehouse operations to enhancing AWS cloud tools and improving search and advertising services. While the upfront costs are significant, Jassy argued that the long-term returns—both in operational efficiency and customer experience—will far outweigh the investment.
His message was clear: Amazon sees AI not as a future experiment, but as a present necessity that will shape its competitive edge for years to come.
Conclusion – The Trend Is Still Bearish Until the 50 Weekly SMA Breaks
While Amazon remains under pressure and technically vulnerable, its strategic spending could offer long-term upside—if the company manages to navigate near-term headwinds and win over investors skeptical of its spending. For now, though, the stock’s struggle to break above key resistance level of $190 where the 50 SMA stands suggests that bulls still have work to do before regaining firm control.
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