NEW YORK — Amazon shares climbed sharply Thursday after the e-commerce giant posted better than expected third quarter results, while Apple’s chief executive predicted the company’s best ever holiday quarter.
The upbeat tone from Big Tech helped lift investor sentiment, with Reddit and Coinbase also advancing as markets entered the busiest stretch of the third quarter earnings season.
The S&P 500 hovered near a three month high, supported by strong corporate results and easing inflation data, signaling resilience in both the tech sector and the broader US economy.
The latest earnings reports mark a critical moment for Wall Street. As of Oct. 24, roughly 29 percent of S&P 500 companies had released quarterly results, according to FactSet.
Analysts expect a 9.2 percent rise in earnings per share for the third quarter, extending a nine quarter streak of positive earnings growth. However, that would still represent a slowdown from the 12 percent growth reported in the second quarter.
Expectations had been tempered earlier in the year, with consensus forecasts calling for a 7.9 percent increase in EPS. But strong performances from Amazon, Microsoft, and Google parent Alphabet have helped lift sentiment, offsetting mixed results from the financial and consumer goods sectors.
“Investors came into this earnings season with modest expectations,” said Caroline Hwang, senior market strategist at Vanguard Global Research. The fact that so many tech firms are beating forecasts shows the fundamental strength of digital spending and enterprise demand.
Amazon’s third quarter earnings benefited from strong demand in its cloud computing and advertising divisions. Revenue rose 13 percent year over year to $143.1 billion, while operating income more than doubled from the same period last year.
CEO Andy Jassy said the company’s efficiency measures and continued investment in artificial intelligence were “paying off faster than anticipated.”
Apple, meanwhile, offered a bullish forecast for the holiday quarter, traditionally its most lucrative period. CEO Tim Cook told analysts that pent up demand for the iPhone 16 lineup and strong early sales of the new MacBook models could drive record breaking revenue through December.
“Apple’s ecosystem remains unmatched,” said Daniel Rosen, a senior analyst at Beacon Advisors. “Even with a mature smartphone market, Apple’s ability to monetize services and hardware integration gives it a unique advantage.”
Reddit also reported higher than expected advertising revenue, signaling renewed interest from digital marketers after last year’s slowdown.
Coinbase shares rose nearly 6 percent following a narrower than expected loss, as cryptocurrency trading volumes rebounded alongside Bitcoin’s rise past $70,000 earlier this month.
The broader tech sector has driven much of the market’s 2025 gains. The Nasdaq Composite is up nearly 18 percent year to date, outpacing the S&P 500’s 12 percent increase.
Technology companies now account for roughly 29 percent of the S&P 500’s total market capitalization, according to Bloomberg data.
FactSet data showed that if the projected 9.2 percent EPS growth for Q3 holds, it would mark the ninth consecutive quarter of earnings expansion the longest streak since 2018.
“Earnings breadth is improving,” noted JPMorgan equity strategist Mark Geller. More sectors beyond technology like industrials and health care are beginning to contribute meaningfully to overall profit growth.
That suggests a more balanced recovery ahead. Still, inflation pressures and cautious consumer spending remain potential headwinds.
The Federal Reserve is expected to keep interest rates steady at its November meeting, though officials have signaled vigilance about potential price rebounds.
Investors and market watchers across the country reacted positively to the latest round of earnings. “After months of uncertainty, it finally feels like the market has a direction again,” said Maria Torres, a retail investor from Houston.
Seeing Amazon and Apple perform this well gives me confidence to stay invested. Tech industry workers echoed that optimism. “We’ve seen hiring stabilize, especially in cloud and AI roles,” said Arjun Patel, a software engineer in Seattle.
Companies seem to be investing again instead of cutting back. However, some analysts cautioned that the rally could prove fragile.
“We’re still in a rate sensitive environment,” said Ellen Cho, a financial economist at the University of Chicago. “If borrowing costs remain elevated, consumer spending could weaken in early 2026, tempering some of this momentum.”
Looking ahead, analysts are watching for how companies manage supply chains and pricing amid geopolitical uncertainty and potential trade tensions.
Apple’s holiday quarter forecast will serve as a key bellwether for consumer demand during the peak shopping season.
“Fourth quarter guidance will be crucial,” said Goldman Sachs economist Jeremy Shaw. “If companies can sustain current margins and revenue growth into next year, it could set the stage for another year of double digit earnings gains.”
Amazon is expected to maintain its growth trajectory through continued AI integration in logistics and advertising, while Reddit’s upcoming expansion into international markets could test its ability to diversify revenue.
Coinbase, meanwhile, faces a volatile path as crypto markets remain highly sensitive to regulatory developments and investor sentiment.
The strong earnings from Amazon, Apple, Reddit, and Coinbase have provided a much needed boost to investor confidence, reinforcing the tech sector’s central role in driving market gains.
With earnings growth on pace to extend its nine quarter streak, the broader US economy appears resilient even as challenges loom.
For now, Wall Street’s focus shifts to the final quarter of the year and whether the momentum from Big Tech’s stellar performance can carry through the crucial holiday season.