Closing Bell: Stocks Fall Into Close, Apple and Amazon Rally on Earnings

Key Points

• Markets closed lower, with the S&P 500 down 0.99%, the Nasdaq-100 down 1.47%, and the Russell 2000 down 0.76%
• Amazon delivered strong Q3 2025 results, with net sales up 13% and adjusted EPS of $1.95 beating expectations, driven by robust AWS and international growth
• Apple reported Q4 revenue of $102.47 billion and adjusted EPS of $1.85, both beating consensus estimates, while CEO Tim Cook projected strong fiscal Q1 growth despite supply constraints.

Markets ended the day lower, with the S&P 500 (SPX) down 0.99%, the Nasdaq-100 (NDX) down 1.47%, and the Russell 2000 (RUT) down 0.76%. Real Estate, Financials, and Health Care led the gains, while Consumer Discretionary, Communication Services, and Information Technology lagged.

After earnings reports from Meta (META), Microsoft (MSFT), and Alphabet (GOOGL), technology and communication services stocks came under pressure as investors began scrutinizing capital expenditure trends and year-over-year revenue comparisons became more challenging. The trade meeting between President Trump and President Xi prompted mixed reactions, particularly in the materials sector and agricultural markets.

Amazon’s Stellar Earnings Beat

Amazon reported strong Q3 2025 results, with net sales rising 13% year-over-year, surpassing analyst expectations thanks to robust performance in AWS and international segments. Adjusted EPS of $1.95 also beat consensus estimates of $1.57, reflecting strong operating margin improvement—excluding two one-time charges. AWS sales jumped 20%, driven by high demand for AI. However, operating income was impacted by a $2.5 billion legal settlement and $1.8 billion in severance costs.

Meta Faces Market Pressure Over Spending Plans and Bond Offering

Meta Platforms (META) closed the session down 11.3% despite reporting an earnings beat on both revenue and adjusted EPS, as investor sentiment was weighed down by vague Cap-ex guidance. Additionally, Meta announced a bond offering to raise at least $25 billion, according to Bloomberg. Multiple analysts revised their ratings and price targets, with Stifel lowering its target to $870 from $900 and Jefferies cutting its target to $910 from $950. 

iPhone Sales Fall Short, Demand Not to Blame

Apple reported Q4 revenue of $102.47 billion, slightly above the consensus estimate of $102.2 billion, and delivered adjusted EPS of $1.85, beating expectations of $1.77. CEO Tim Cook projected double-digit year-over-year sales growth for the iPhone segment and overall revenue growth of 10% to 12% in fiscal Q1. China revenue fell short due to the delayed iPhone Air launch and supply constraints on iPhone 16 and 17 models, which are expected to persist into Q1. iPhone sales totaled $49.03 billion, below estimates, while services and Mac segments exceeded expectations.

Key Market Events for Tomorrow

• 9:30 AM ET: FOMC Member Logan Speaks
• 9:45 AM ET: Chicago PMI
• 12:00 PM ET: FOMC Member Bostic and Hammack Speaks 

Notable Earnings for Tomorrow

• Premarket: ABBV, CVX, XOM
• Postmarket: None