Amazon Jumps 6% as Markets Reassess Election Results (5 Nov)

Amazon reports 39% AWS growth and strong e-commerce income

Amazon reported that AWS achieved 39% year-over-year revenue growth in the third quarter, reaching a $184 billion revenue run rate. The company projects AWS revenue growth will exceed 40% in both 2027 and 2028.

North America e-commerce operating income increased 82% to $8.7 billion in the most recent quarter. Amazon holds a market capitalization of $2.7 trillion, with e-commerce operations accounting for nearly 80% of total revenue.

The company surpassed Walmart to become the largest company in the United States by revenue on the current Fortune 500 list.

Tech sector faces regulatory uncertainty over AI infrastructure

Palantir Technologies shares fell 2.3% in early pre-market trading on Wednesday due to concerns that a Democratic-controlled Congress might implement stricter regulations on data centers and AI infrastructure. SpaceX shares declined nearly 4.5% in early pre-market trading amid investor concerns over congressional scrutiny of government contracts and the political involvement of Elon Musk.

A blue wave election result is expected to delay the deployment of 10 to 15 gigawatts of planned AI data center capacity. Speaker Hakeem Jeffries and Leader Chuck Schumer campaigned on a platform of slowing down AI development.

The national political discourse is moving toward a more restrictive regulatory environment that could constrain the supply curve for AI infrastructure. While the election of Gina Hinojosa as Texas governor may lead to more restrictive regulations for data centers, a total moratorium is unlikely.

AMD, Super Micro, and Fractal report strong quarterly results

Advanced Micro Devices shares surged more than 7% in premarket trading on Wednesday after the company beat third-quarter estimates and provided a fourth-quarter sales forecast that exceeded Wall Street expectations. Super Micro Computer shares rose more than 6% in premarket trading on Wednesday after the firm reported third-quarter revenue of $19.9 billion, a 298% increase from the $5 billion reported a year earlier. Navitas Semiconductor shares increased 4% in premarket trading on Wednesday following a third-quarter earnings report that beat expectations and a positive fourth-quarter sales forecast.

Fractal reported second-quarter fiscal year 2027 revenue of over $100 million for the first time, marking a 20% increase year over year and a 5% increase sequentially. Net income reached INR 79 crore, a 139% increase from the previous year, resulting in a net income margin of 8.3%. Diluted earnings per share for the quarter were 4.48, a 132% increase year over year.

Chief Financial Officer Shilpa Kedia reported that 58% of revenue came from input-based engagements, while 42% came from output and outcome-based engagements, with 4% of total sales coming from products. Gross margin decreased by 225 basis points to 44% in the second quarter, attributed to investments in artificial intelligence engineering talent and annual merit increases.

As of September 30, 2026, Fractal held INR 1,728 crore in cash and equivalents, and reported trailing 12-month operating cash flow of INR 407 crore, up 11% year over year. Fractal shares traded down 1.25% at $732.8, placing the stock in the lower half of its 52-week range between a low of $696.3 and a high of $1,118. Management expects enterprise artificial intelligence adoption to accelerate in fiscal year 2028 and is currently investing in its Cogentiq platform and forward-deployed engineers to prepare for this demand.

Nasdaq and S&P 500 rebound as Dow Jones declines

The Nasdaq Composite rose 0.8%, or 207.65 points, to close at 25,372.01 on Tuesday. The S&P 500 gained 0.4%, or 27.52 points, to finish at 7,568.92. Both indices rebounded as the artificial intelligence sector recovered from a recent sell-off. The Nasdaq had previously reached a three-month closing low.

The Dow Jones Industrial Average dropped 0.4%, or 197.26 points, to close at 51,786.72. The decline followed losses in shares of Sherwin-Williams, Walmart, and Home Depot. Apple shares fell 1.9% after the company issued a gross margin forecast below analyst expectations.

Tuesday's market recovery showed uneven sentiment. Gains in technology shares were partially offset by losses in other areas. The Philadelphia Semiconductor Index rose 2.6% on Tuesday, recovering from a six-month low reached in the previous session. The Philadelphia Housing Sector Index fell 3.2%.

Airline stocks face pressure from fuel costs and travel demand. Gold-related equities respond to investor risk sentiment and precious metal prices. Oilfield services companies remain sensitive to energy market developments and exploration expectations. Markets anticipate a stronger opening on Wednesday following these fluctuations.

Trump-linked assets fall while Bitcoin gains

Retail sentiment on Stocktwits shifted to "extremely bearish". The TRUMP token price dropped 7.6% over the 24 hours prior to Wednesday morning, falling below $1.50. Retail sentiment for the token remained in the "bullish" zone on Stocktwits.

Bitcoin gained more than 2% over the 24 hours leading up to Wednesday morning, crossing the $78,000 mark. Ethereum and XRP rose nearly 3%. Solana and Dogecoin gained around 1%.

Analysts view election results as priced into the market

Hathorn added that "his continued veto powers mean significant policy disagreements remain likely".

Shay Baloor, chief market strategist at Futurum Equities, said Democratic gains appeared to be priced into the market. Baloor noted on X, "Looks like the blue tsunami was already priced in". Elon Musk commented on the election results on X, stating, "Data centers in space looking pretty appealing right now".

Brent crude futures rise amid Iran conflict monitoring

ET on Wednesday. US West Texas Intermediate crude futures gained 0.02% to $96. Markets are currently monitoring the war in Iran.

QQQ index experiences volatility during election night

The QQQ index experienced significant volatility during election night. The index moved from a 1% gain to a 2% loss overnight. It recovered to a 1% gain in the early morning and settled at 30 basis points.