Amazon Web Services (AWS) generated more operating profit than Amazon’s combined retail segments during the 2024 fiscal year.
At $39.8 billion in operating income, AWS outpaced the North America and International retail businesses, which together contributed $28.8 billion in operating income. Its high-margin cloud services continue to drive Amazon’s profitability and fund further innovation.
This underscores AWS’s critical role as Amazon’s primary profit engine.
Market Wrap
Debt Deal Debate Fuels Treasury Yield Spike
“One Big Beautiful Bill” Advances Amid Debt Concerns:
The House Budget Committee pushed forward President Trump’s sweeping domestic policy package—extending 2017 tax cuts and adding roughly $3.4 trillion in deficits over ten years.
Treasury Yields, Gold and Dollar Moves:
The U.S. 10-year Treasury yield climbed to 4.51% as investors demanded higher compensation following Moody’s downgrade, while spot gold rebounded about 0.6% on safe-haven demand and the dollar index dipped amid waning confidence in U.S. fiscal policy.
Fed Patience Justified by Uncertainty:
New York Fed President John Williams said ongoing economic uncertainty—especially from volatile tariffs—justifies the Federal Reserve’s current cautious stance, with interest rates likely to remain unchanged until clearer data emerge by summer.
Nvidia-Foxconn AI Supercomputer Deal in Taiwan:
Taipei announced a joint project between Nvidia, Foxconn, and TSMC to build a 10,000-GPU AI supercomputer, driving gains in global chip stocks and lifting U.S. semiconductor names on optimism around expanded AI capacity.
Ceasefire Talks with Russia and Ukraine:
On May 19, President Trump said after a two-hour call with President Putin that Russia and Ukraine would “immediately start negotiations toward a ceasefire,” expressing cautious optimism for diplomatic progress. However, Putin conditioned any talks on Russia’s security preconditions and withdrawal of Ukrainian forces from occupied regions, and Ukrainian officials have noted that no formal ceasefire framework has yet been agreed upon.
Visa Inc. shares rose to a fresh all-time high after the payments giant reported Q1 earnings of $2.76 per share on $9.59 billion in revenue, beating analysts’ estimates and highlighting continued strength in consumer spending.
Mastercard Inc. shares rose after the company posted Q1 EPS of $3.82 and 14% revenue growth to $7.49 billion, driven by resilient transaction volumes and strong global payments trends.
UnitedHealth Group Inc. shares jumped 8.2% after filings showed incoming CEO Stephen Hemsley purchased a significant stake and reports of a Justice Department probe into Medicare fraud eased.
Dollar General Corp. shares advanced 4.9% as analysts highlighted its limited tariff exposure relative to peers following Walmart’s discussion of tariff-related price impacts.
First Solar Inc. shares plunged 7.6% after House Republicans proposed rolling back clean energy tax credits earlier than anticipated, weighing on solar installer valuations.
Enphase Energy Inc. shares fell 3.2% amid reports that Congressional budget plans may eliminate residential solar incentives, raising concerns for the renewables sector.
Novavax Inc. shares surged 15% after the FDA granted full approval for its protein-based COVID-19 vaccine, bolstering investor confidence in the biotech sector.
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