Apple Stock Outpaces Amazon AMZN as Investors Weigh Tariff Cuts
Today we had a positive market open, but while with Apple shares have held to their gains, Amazon stock is down on the day.
Markets Open Higher After Tariff Easing, But Momentum Fades
Global equity markets started the new week on a stronger footing after U.S. President Donald Trump announced over the weekend a significant reduction in tariffs on Chinese electronics—from a punishing 125% to a more manageable 20% for the coming months. This surprising policy shift, which excluded most countries from high tariffs and temporarily eased U.S.-China trade tensions, fueled early gains across global indices.
In premarket trading, U.S. equity futures rebounded sharply from last week’s fears of a “Black Monday,” when some markets saw declines as steep as 5% before the open. The Dow Jones and Nasdaq surged around 5% higher at the open on Monday, driven largely by optimism in the tech sector.
Amazon (AMZN) Struggles Below Key Resistance Despite Strong Start
Amazon (NASDAQ: AMZN) opened 1% higher on Monday at $186.88 but was unable to maintain momentum throughout the day. The stock briefly rallied to an intraday high of $192 last week, only to stall at the 50-week simple moving average (SMA)—a critical technical level that has flipped from support to resistance.
As the rally faded and broader market enthusiasm cooled, AMZN slipped by 1.5% to close lower on the day. The stock now finds itself sandwiched between the 50-week SMA above and the 100-week SMA (red) below, consolidating within a narrow range. A breakout above the 50 SMA could trigger renewed bullish sentiment, with buyers gaining the upper hand.
Apple (AAPL) Gains as India Supply Shift and Tariff Cut Boost Confidence
Apple (NASDAQ: AAPL), in contrast, managed to hold onto gains and close higher despite similar intraday retracement. Shares opened the week with a 7% jump to $213 on the back of positive trade news and finished the day at $202.52.
Over the past two weeks, AAPL has shown remarkable resilience amid tariff-related volatility. After dipping below $170 last Monday due to mounting fears over U.S.-China trade friction, Apple bounced back as sentiment improved. The company has also taken proactive steps to diversify its supply chain—already shipping up to 1.5 million iPhones directly from Indian factories to the U.S., minimizing exposure to Chinese tariffs.
The weekend news that China export duties may be reduced on tech goods even further added another layer of optimism, particularly for companies like Apple that rely heavily on Chinese manufacturing infrastructure. Easing trade barriers could allow Apple to continue producing in China with less financial strain, even as it simultaneously builds out alternative supply routes in India.
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