{"id":46146,"date":"2026-04-29T08:17:46","date_gmt":"2026-04-29T08:17:46","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/46146\/"},"modified":"2026-04-29T08:17:46","modified_gmt":"2026-04-29T08:17:46","slug":"amazon-faces-ai-test-as-fed-risk-builds","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/analysis\/46146\/","title":{"rendered":"Amazon Faces AI Test As Fed Risk Builds"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/04\/1_AMZN1-1024x573.webp\" alt=\"\" class=\"wp-image-48990\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Amazon traded at 259.49, down 1.41 points, or 0.54%, after touching a session high of 260.94.<\/li>\n\n\n\n<li>MSCI\u2019s broadest index of Asia-Pacific shares outside Japan rose 0.2%, while S&amp;P 500 e-mini futures edged up 0.2%.<\/li>\n\n\n\n<li>Brent crude rose 0.2% to $111.51 per barrel as efforts to end the Iran conflict hit an impasse.<\/li>\n\n\n\n<li>Fed funds futures priced a 100% chance that the Federal Reserve keeps rates unchanged, with no policy changes expected until late in 2027.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>Amazon stock is trading close to recent highs as markets shift back toward corporate earnings, AI spending, and the Federal Reserve\u2019s rate decision. The wider market found support in Asian trading on Wednesday, helped by stronger earnings optimism and a calmer tone after recent worries over Iran and the AI sector.<\/p>\n\n\n\n<p>MSCI\u2019s broadest index of Asia-Pacific shares outside Japan reversed earlier losses to rise 0.2%, while S&amp;P 500 e-mini futures edged up 0.2%. Japanese markets were closed for a holiday.<\/p>\n\n\n\n<p>For Amazon, timing is key. Microsoft, Alphabet, Amazon, and Meta Platforms are due to report earnings later on Wednesday, and those results will test whether traders still trust the AI-led rally.<\/p>\n\n\n\n<p>The market has moved past the early stage of the AI boom. It now wants proof that cloud revenue, advertising demand, retail margins, and data-centre spending can still justify premium valuations.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Amazon said it will finally be able to make OpenAI&#39;s models available to its own customers after Microsoft agreed to drop its exclusive rights to resell the ChatGPT maker\u2019s products <a href=\"https:\/\/t.co\/sk3pet8dcB\">https:\/\/t.co\/sk3pet8dcB<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2049175104098062737?ref_src=twsrc%5Etfw\">April 28, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The cautious forecast is straightforward. If Amazon shows stronger cloud growth, clean retail margins, and disciplined AI investment, the stock can defend its recent breakout. If management points to heavier data-centre costs without a clear revenue payoff, traders may sell into strength.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Earnings Optimism Is Still Supporting Risk Appetite<\/h2>\n\n\n\n<p>The broader earnings picture remains firm. Corporate America has shown resilience during the Iran conflict, with slightly more than one-third of S&amp;P 500 sectors already reporting profits and 81% of companies beating estimates.<\/p>\n\n\n\n<p><a href=\"https:\/\/finance.yahoo.com\/sectors\/technology\/article\/amazon-q1-earnings-put-the-spotlight-on-ai-spending-and-revenue-132251483.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Q1 earnings<\/a> are tracking year-over-year growth and climbing, while analysts appear to be revising numbers higher rather than lower this season.<\/p>\n\n\n\n<p>That gives equity bulls a reason to stay involved. Strong earnings can offset some pressure from higher oil prices, a firmer dollar, and geopolitical risk. Amazon benefits from that backdrop because traders are still willing to reward companies that can prove earnings power in a tougher macro setting.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Amazon and Meta have struck a multibillion-dollar deal for the social-media giant to rent hundreds of thousands of Amazon\u2019s general-purpose chips for its AI efforts. <a href=\"https:\/\/t.co\/yKzaP9pT4M\">https:\/\/t.co\/yKzaP9pT4M<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2047650537273795063?ref_src=twsrc%5Etfw\">April 24, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Still, the bar is high. A broad beat rate of 81% means traders may punish even small disappointments. Amazon needs more than a headline beat. It needs guidance that calms concerns around AWS growth, AI infrastructure spending, consumer demand, and operating leverage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">AI Doubts Put More Pressure On Amazon\u2019s Cloud Story<\/h2>\n\n\n\n<p>AI sentiment weakened on Tuesday after The Wall Street Journal reported that OpenAI had missed internal targets for weekly users and revenue. The report raised fresh questions about whether the AI ecosystem can support massive spending on data centres. Oracle and CoreWeave came under pressure, while the S&amp;P 500 fell 0.5% and the Nasdaq Composite dropped 0.9%.<\/p>\n\n\n\n<p>AWS sits at the centre of the AI infrastructure trade. Traders want to know whether cloud clients are still spending, whether demand for AI workloads is rising fast enough, and whether capex will turn into stronger cash flow over time.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Amazon and Meta signed a deal for Meta to deploy AWS Graviton chips, making Meta one of the top five customers of Amazon&#39;s custom CPU. CNBC&#39;s Kristina Partsinevelos has the details. <a href=\"https:\/\/t.co\/sx6uD8ebF9\">https:\/\/t.co\/sx6uD8ebF9<\/a> <a href=\"https:\/\/t.co\/r0Q0TgH7mK\">pic.twitter.com\/r0Q0TgH7mK<\/a><\/p>&mdash; CNBC (@CNBC) <a href=\"https:\/\/twitter.com\/CNBC\/status\/2047658927186174165?ref_src=twsrc%5Etfw\">April 24, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Amazon\u2019s cautious upside case depends on AWS delivering a clear growth story. A strong cloud result could help the stock push above its recent 264.3 chart peak. A weaker cloud tone could leave the shares exposed, especially after the sharp rally from the 196.09 low.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Iran, Oil and the Fed Keep Macro Risk Alive<\/h2>\n\n\n\n<p>The Iran conflict remains the main macro risk. Brent crude rose 0.2% to $111.51 per barrel as efforts to end the conflict hit an impasse. A US official said President Donald Trump was unhappy with Tehran\u2019s latest proposal because he wants nuclear issues dealt with from the outset. The Wall Street Journal also reported that Trump had instructed aides to prepare for an extended blockade of Iran.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Exclusive: Trump approval sinks to new low as war with Iran drives cost-of-living concerns <a href=\"https:\/\/t.co\/iBriHUbAjq\">https:\/\/t.co\/iBriHUbAjq<\/a> <a href=\"https:\/\/t.co\/iBriHUbAjq\">https:\/\/t.co\/iBriHUbAjq<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/2049243568443691310?ref_src=twsrc%5Etfw\">April 28, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Higher oil keeps inflation risk alive. For companies like Amazon, energy costs can affect logistics, shipping, warehouse expenses, and consumer confidence. A prolonged oil shock can also push the Fed into a more cautious stance, which tends to weigh on long-duration growth stocks.<\/p>\n\n\n\n<p>The Federal Reserve\u2019s April meeting now sits at the centre of the next market move. Traders see a hold as certain, with fed funds futures pricing an implied 100% probability that the Fed keeps rates unchanged. No policy changes are expected until late in 2027, according to the CME Group\u2019s FedWatch tool. ING analysts said the Fed could adopt a hawkish tilt while staying in wait-and-see mode because of the war-hit inflation backdrop.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Technical Analysis<\/h2>\n\n\n\n<p>AMAZON is trading near <strong>259.50<\/strong>, easing slightly after a strong upside run that pushed price into the <strong>264.30 region<\/strong>, marking a fresh swing high. The broader structure shows a clear shift from consolidation into a <strong>firm bullish trend<\/strong>, with buyers maintaining control following the breakout from the <strong>210\u2013230 base<\/strong> earlier this month.<\/p>\n\n\n\n<p>From a technical standpoint, momentum remains <strong>constructive but stretched in the short term<\/strong>. Price is holding above the <strong>5-day (259.00)<\/strong> and <strong>10-day (254.10)<\/strong> moving averages, both of which are trending higher and acting as dynamic support. The <strong>20-day (238.80)<\/strong> sits well below, reinforcing the strength of the underlying move and highlighting how aggressive the recent rally has been.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/04\/image-34-1024x473.jpg\" alt=\"\" class=\"wp-image-48989\"\/><\/figure>\n\n\n\n<p>Key levels to watch:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Support:<\/strong> 259.00 \u2192 254.10 \u2192 238.80<\/li>\n\n\n\n<li><strong>Resistance:<\/strong> 264.30 \u2192 269.90 \u2192 275.00<\/li>\n<\/ul>\n\n\n\n<p>Price is now hovering just below <strong>264.30 resistance<\/strong>, where recent upside stalled. A clean break above this level could extend the move toward <strong>269.90<\/strong>, with further upside possible if momentum continues to build. However, given the sharp run higher, some <strong>near-term consolidation or pullback would be typical<\/strong> before any sustained continuation.<\/p>\n\n\n\n<p>On the downside, <strong>259.00 is the first level to watch<\/strong>, aligning with the short-term trend support. A break below this could trigger a deeper retracement toward <strong>254.10<\/strong>, though such a move would still be considered corrective within the broader uptrend unless momentum deteriorates more materially.<\/p>\n\n\n\n<p>Overall, Amazon remains in a <strong>strong uptrend with shallow pullbacks<\/strong>, but price is now testing a resistance zone where buyers may need to pause before attempting the next leg higher.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Cross-Asset Sentiment Stays Mixed<\/h2>\n\n\n\n<p>Gold fell 0.2% to $4,583.40 as the dollar edged higher. In crypto, bitcoin gained 1.1% to $77,296.62, while ether rallied 1.5% to $2,331.23. That mix shows a market willing to take selective risk, but not ready to ignore inflation, oil, and central bank pressure.<\/p>\n\n\n\n<p>For Amazon, the cautious forecast favours a volatile but constructive setup while the stock holds above 254.10. A strong earnings report could push price back toward 264.3 and then 269.91. A weak AI or AWS message could trigger a move back toward 250.00 and 238.81, especially if the Fed leans hawkish or Brent stays above $111.51.<\/p>\n\n\n\n<p><strong>Create a live <a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noreferrer noopener\">VT Markets account<\/a> today to access our platform features, including market insights and educational content<\/strong>.<\/p>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\"><summary><strong>Trader Questions<\/strong><\/summary>\n<p><strong>Why Is Amazon Stock In Focus?<\/strong><\/p>\n\n\n\n<p>Amazon stock is in focus because its earnings are due alongside other major US tech names, including Microsoft, Alphabet, and Meta Platforms.<\/p>\n\n\n\n<p>The results will test whether investors still trust the AI-driven rally, especially after recent concerns over data-centre spending and slower AI revenue momentum.<\/p>\n\n\n\n<p><strong>How Is Amazon Trading On The Chart?<\/strong><\/p>\n\n\n\n<p>Amazon traded at 259.49, down 1.41 points, or 0.54%.<\/p>\n\n\n\n<p>The session high was 260.94, with a low of 256.57, an open at 257.87, and a close at 260.90. The stock remains close to its recent peak near 264.3.<\/p>\n\n\n\n<p><strong>What Are The Key Amazon Stock Levels To Watch?<\/strong><\/p>\n\n\n\n<p>The first resistance sits near 260.94, followed by the recent high around 264.3.<\/p>\n\n\n\n<p>A daily close above 264.3 could bring 269.91 into focus. Support sits near 259.00, then 256.57 and 254.10. A break below 254.10 could expose 250.00 and the 20-day moving average at 238.81.<\/p>\n\n\n\n<p><strong>Is Amazon Still<\/strong><strong> In<\/strong><strong> An Uptrend?<\/strong><\/p>\n\n\n\n<p>Amazon remains in a short-term uptrend while it holds above its key moving averages.<\/p>\n\n\n\n<p>The 5-day moving average sits at 259.00, the 10-day moving average at 254.10, and the 20-day moving average at 238.81. Price remains above all three, which keeps the technical setup constructive for now.<\/p>\n\n\n\n<p><strong>Why Do Amazon Earnings Matter For The AI Trade?<\/strong><\/p>\n\n\n\n<p>Amazon earnings matter because AWS sits at the centre of cloud and AI infrastructure demand.<\/p>\n\n\n\n<p>Investors want to see whether cloud clients are still spending, whether AI workloads are growing, and whether data-centre investment can turn into stronger revenue and cash flow.<\/p>\n<\/details>\n\n<p>\r\n\r\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>Amazon holds near highs as earnings, AI doubts, the Fed and Iran risk steer market mood. | VT Markets<\/p>\n","protected":false},"author":38,"featured_media":46143,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-46146","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":[],"aioseo_notices":[],"featured_image_src":"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/04\/AMZN1-600x400.webp","featured_image_src_square":"https:\/\/www.vtmarketsglobal.com\/en\/wp-content\/uploads\/sites\/6\/2026\/04\/AMZN1-600x600.webp","author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/46146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=46146"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/46146\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media\/46143"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=46146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=46146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=46146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}