US stocks tumble

US stocks dropped on Friday to pull further from record highs as an underwhelming earnings report from Amazon.com Inc dampened the market mood, while the dollar bounced from its lows but still suffered its worst week in nearly two months.

After making record profits during the pandemic, Amazon said late on Thursday that its sales growth would slow in the next few quarters as people ventured outside their homes post-pandemic and reduced online shopping.

Investors sold Amazon stock as the online retailer revenue of $113 billion in the second quarter was $2 billion shy of analysts’ forecasts.

Amazon shares slumped 7.6 per cent, dragging the tech-focused Nasdaq composite down 0.7 per cent. That fed profit-taking elsewhere, with the S&P 500 losing 0.5 per cent. The Dow Jones Industrial Average shed 0.4 per cent. Both the S&P 500 and the Dow struck record highs on Thursday.

“Amazon’s weak report and the impact on futures immediately made its impact felt on global markets,” said Paul Hickey, co-founder of Bespoke Investment Group, LLC.

But Hickey also said: “Just because investors haven’t reacted to the company’s recent reports with excitement doesn’t mean Amazon has been a poor performer,” adding that the shares have climbed 17 per cent in the past year.