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US Stock Market Bloodbath: Amazon's $200B AI Spending Spree Sends Tech Into Tailspin

 By: Pungky

This analysis is based on public data and is not investment advice. Trading US financial instruments carries high risk.


If there's one lesson the US stock market is teaching us right now, it's this: the market offers no discounts for inflated expectations. And tonight, Amazon has become a brutally harsh teacher of that lesson.

It feels like watching the sequel to yesterday's horror show. After a bloody regular session on Thursday with tech stocks as the main casualty, after-hours trading delivered more bad news. Amazon (AMZN) plunged over 10% after reporting disappointing earnings and—more crucially—announcing a staggering capital expenditure plan: USD 200 billion for this year.

That number isn't just big; it's monstrous. It sets off alarm bells in investors' heads: "How much deeper will this AI spending go? When will we see the return?". That concern is valid, and the market reacted with brutality.

Inevitable Wreckage: Futures Bleed Red Across the Board

Ahead of Friday's US open, futures were already in mourning:

  • Nasdaq 100 Futures (NQ=F): Plummeted 1.2%. A direct hit from Amazon and fears of excessive tech spending.

  • S&P 500 Futures (ES=F): Down 0.7%. Heavy pressure from the tech sector, which carries significant weight in this index.

  • Dow Jones Futures (YM=F): Relatively more resilient, but still eroded 0.4%.

A critical note: The S&P 500 and Nasdaq Composite have officially turned negative for 2026. This means all year-to-date gains have evaporated. This is a significant psychological shift.

Domino Effect Beyond Tech: From Bitcoin to Labor

This risk-off sentiment is proving contagious. It's no longer just about tech stocks:

  1. Bitcoin (BTC-USD): Continued its slide, touching levels not seen since 2024. Stocks like MicroStrategy (MSTR), which holds a large Bitcoin treasury, also posted a loss and fell.

  2. Commodities: Silver (SI=F), which recently surged on retail frenzy, is losing momentum and declining again.

  3. Labor Data: Behind the scenes, the strength of the US labor market is being questioned. Job openings sank to their lowest level since 2020, and layoff announcements surged. The delayed nonfarm payrolls report, now due next week, is awaited with anxiety, not hope.

Glimmers in the Gloom: Reddit and Roblox

Despite the gloom, some stars still shine. Reddit (RDDT) soared after beating earnings expectations, issuing upbeat guidance, and—most sweetly—announcing a share buyback program. Roblox (RBLX) also rocketed. This shows that even in a storm, companies with concrete performance and confident management (proven by the buyback) can still earn appreciation.

What This Means for Us in Indonesia?

  1. Brace for Global Volatility: The sell-off in the US, especially in tech, will almost certainly affect global sentiment on Friday. Technology and growth stocks in Asian markets, including Indonesia's tech sector, could face selling pressure.

  2. The Lesson from Amazon: The market is in "show me the money" mode. High expectations from the AI hype must be backed by profitability and prudent cash flow management. Companies that spend lavishly without showing clear results will be punished. This is relevant for evaluating growth stocks anywhere.

  3. Ammunition for Discerning Investors: A US market correction driven by sentiment and profit-taking could open the door for market players to seek opportunities in emerging markets like Indonesia, if our fundamentals remain solid. At the very least, it's a reminder to always diversify.

Conclusion: The Market is Clearing Its Head

Amazon's collapse tonight is the climax of a correction that has been brewing in the tech sector. The market is conducting both a price correction and an expectations correction. The era where the story of "AI and future growth" alone was enough to boost prices appears to be on pause.

Investors are now demanding proof. They are questioning the sustainability of massive spending sprees. This is actually healthy in the long run, even if it's painful in the short term.

For those of us observing from afar, now is the time for caution, to resist the urge to immediately buy the dip in the global tech sector, and to focus on selecting domestic stocks with truly resilient fundamentals and fair valuations. Because when a giant like Amazon stumbles, the wind rushing out of the market can feel very, very strong.

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Location: Jember, Kaliwates, Jember Regency, East Java, Indonesia

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