Amazon stock slides as tech market tumbles over Fed rate‑rise concerns

Amazon shares fell more than 3% on Friday, extending a broader pullback that has taken the stock down over 9% in five trading days. The drop occurred amid a sharp sell‑off in technology equities, with the Nasdaq losing 4%, the S&P 500 down 2.6% and the Dow Jones falling 1.35%. Chipmakers such as Micron, Intel, Cisco and Nvidia led the decline after Broadcom issued disappointing guidance, and a strong jobs report heightened expectations that the Federal Reserve will keep interest rates higher to combat inflation. The 10‑year Treasury yield rose to 4.532%. Within Amazon, cloud‑computing growth, advertising revenue and a newly profitable North American retail operation have boosted earnings, but the company is spending heavily on data‑centers and AI chips, eroding free‑cash flow. Analysts debate whether the AI‑driven demand surge will sustain the stock’s momentum or whether the higher‑cost environment will weigh on valuations.