Apple Loses $100 Billion in Market Value as Amazon Holds Near Five-Month High

U.S. equity markets closed lower on Tuesday as early-session gains evaporated amid renewed concerns over escalating tensions in the Middle East, overshadowing otherwise strong corporate earnings momentum.

The downturn marked a broad-based selloff across major indices, with the Dow Jones Industrial Average posting its steepest daily loss since early April, while the S&P 500 fell for a second consecutive session. The Nasdaq Composite also extended losses, reflecting weakness in major technology names.

Market sentiment was further pressured as the so-called “fear index,” the VIX, rose for a second straight day, signaling heightened investor anxiety over geopolitical risks and the uncertain trajectory of U.S.-Iran negotiations.

Energy stocks were the standout winners, with the S&P energy sector climbing 1.3% as oil prices surged on supply concerns linked to the Iran conflict. It was the only major sector to finish in positive territory.

Technology heavyweight Apple Inc. dropped 2.5% in Tuesday’s session, marking its steepest daily decline in nearly two months and erasing roughly $100 billion from its market capitalization.

The selloff came after the company announced a major leadership transition, with CEO Tim Cook set to hand over operational responsibilities to hardware chief John Ternus beginning September 1. Investors are also awaiting Apple’s upcoming earnings report on April 30, as concerns grow over its position in the intensifying artificial intelligence race.

In contrast, Amazon rose 0.7%, holding near its highest level in five months after unveiling plans to invest up to $25 billion in AI firm Anthropic.

The move reinforced market expectations that major tech companies remain committed to aggressive artificial intelligence spending, even amid broader market volatility.

Recent U.S. economic data showed retail sales rising 1.7% last month, the strongest increase since March 2025 and above economist forecasts, suggesting resilient consumer demand despite rising energy costs.

However, geopolitical uncertainty continues to dominate investor sentiment. Reports of potential conditional talks between the U.S. and Iran offered limited reassurance, as markets remain focused on the risk of prolonged instability and its impact on global energy prices.

With volatility elevated and earnings season in full swing, investors appear increasingly sensitive to geopolitical headlines shaping both inflation expectations and corporate outlooks.