Apple Drops 9%, Loses $373B in Record Selloff
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- Apple stock fell 9% after its latest forecasts disappointed investors, erasing approximately $373 billion in market capitalization — on pace for its largest one-day market-cap decline on record and the third-largest single-day drop for any U.S. company.
- Amazon surged 14% on accelerating cloud-computing sales, putting it on pace for its largest-ever market-cap gain and offsetting Apple's slide to keep the Nasdaq composite slightly higher at July's close.
- The S&P 500's tech sector dropped 1.5% while consumer discretionary (Amazon's sector) jumped more than 5%, even though the tech sector's 14% year-to-date gain still leads broader benchmarks.
- Two Federal Reserve officials explained their dissenting votes in favor of raising interest rates this week, pushing the 10-year Treasury yield to 4.737% — its highest intraday level since January 2025.
- Situational Awareness, an AI-focused hedge fund that lost 67% in July, finished selling the bulk of its holdings, providing premarket relief that helped set up the broader tech moves.
- South Korea's Kospi jumped 18% on Friday after plunging in recent weeks amid a frenzy in AI-related stocks earlier this year.
Why it matters: Apple's $373 billion single-day loss illustrates how a handful of mega-caps now dictate index performance — one earnings miss erased more value than most entire sectors are worth. Amazon's offsetting 14% surge signals intra-mega-cap rotation rather than a broad tech selloff, even as rising 10-year yields at 4.737% keep macro pressure on growth-stock valuations.
