The mood on Wall Street shifted sharply on Friday as the S&P 500 and Dow Jones Industrial Average reversed early gains. Apple’s shares plunged almost 10% after warning of supply chain issues and rising iPhone prices, dragging the markets down despite Amazon’s impressive rally.

By late morning, the S&P 500 had slipped 0.4% while the Dow lost 151 points, or 0.3%. The Nasdaq also pulled back about 0.3% after an initial 1% gain. This downturn erased the previous day’s gains when the S&P 500 jumped 1.7%, the Dow climbed 1.2%, and the Nasdaq surged 2.8%.

Apple’s Decline and Market Impact

Apple’s nearly 9.3% drop was the biggest weight on the Dow, a price-weighted index where large stock price declines hit hardest. Combined with Boeing, these two companies shaved about 221 points from the Dow during morning trading. Apple’s warning about supply constraints limiting growth and increasing iPhone costs rattled investors.

Meanwhile, Amazon surged nearly 14%, fueled by strong cloud computing and artificial intelligence growth that drove its fastest revenue expansion in over four years. Though Amazon’s jump briefly buoyed the consumer discretionary sector, it couldn’t offset the broader market weakness as selling spread across technology, energy, industrials, and consumer stocks, including Broadcom, Micron, Exxon Mobil, Eli Lilly, and Tesla.

Bond Yields Add Pressure

Adding to the sell-off, Treasury yields climbed notably. The 10-year Treasury yield hit 4.737%, the highest intraday level since January 2025, pushing borrowing costs higher for households and businesses. Rising yields have made investors wary of stretched stock valuations, prompting more risk reduction.

The S&P 500 E-mini futures graph captured the intensity of the reversal, dropping from above 7,510 to 7,438.50 in minutes. This snapshot reflects how quickly early optimism faded despite Amazon’s strong earnings. The market heat map showed widespread weakness, not limited to the big names but spreading across multiple sectors.

This material is for informational purposes only and does not constitute financial advice.