Key insights
- Amazon is cutting jobs to fund AI infrastructure investments, projecting sustained growth in AWS. Separately, Meta and Google face legal challenges and significant penalties related to user safety and addiction, raising concerns about the ethical responsibilities of tech companies. These developments exert a slightly negative influence on the US equity market.
đź“Ś Top story -- scroll down for more updates
10:30 am -- AMZN -3.1%
Amazon (AMZN 3.11%) is accelerating its transition into an AI-first powerhouse, with AWS CEO Matt Garman projecting that current demand for cloud tools will sustain growth for the next decade. To seize this window, the company is ratcheting up infrastructure spending to a staggering $200 billion this year while simultaneously thinning its workforce by tens of thousands to increase operational speed. AWS, which generated $128.7 billion in sales last year, remains the backbone for giants like Netflix (NFLX +0.30%) and Starbucks (SBUX 3.43%). Garman suggests the current AI upheaval mirrors the early days of cloud computing—a "misunderstood" bet that ultimately redefined the enterprise landscape.
10:40 am -- META -2.9%, GOOG -1.1%
By Morning Show host Jim Mueller, CFATeam Rule Breakers
A couple of recent court rulings lead me to ask the following: How much responsibility do tech companies bear for taking advantage of human psychology? Note, salespeople have been taking advantage of that for a very long time. Is there a line that is too far?
Earlier this week, a jury in California found that Meta (META 3.22%) and Alphabet's (GOOG 0.70%) Google were "liable for a young woman's depression and suicidal thoughts after she said she became addicted to Instagram and YouTube at a young age." They ordered the companies to pay her a combined $6 million.
In a second case in New Mexico, Meta was found to have "misled users about the safety of its products for young users and enabled the sexual exploitation of children on its ​platforms." There, a jury penalized the company to the tune of $375 million.
In both of these cases (and many others now winding their way through the court system), the question of where the line lies is being argued. Where should we draw the line between good business and what could be viewed as damaging, predatory business?
10:25 am
By Morning Show host Jim Gillies
Something of an "energy stream-of-consciousness" rumination this morning, but it's been interesting to see that "Energy" has been somewhat forgotten in recent years by investors.
Tell me I'm wrong. The Energy sector weighting in the S&P 500 is currently a somewhat minuscule 3.5% (by comparison, as of early 2026 Information Technology was 32.5% and Financials were 12.5%). Note that this is after the energy sector has risen about 25% in 2026 due to [points in general direction of the Middle East].
Probably my favorite "Energy gets no respect" factoid is how ExxonMobil (XOM +2.34%) was wrenched out of the Dow Jones Industrial Average in August 2020 (you know, when the world was under COVID shutdown restrictions and just a couple of months after oil prices briefly went negative), replaced by Salesforce (CRM 2.58%). Since that switch Exxon is up 307% (409% with dividends assumed reinvested), while Salesforce is down 31.5% (or down "just" 30.7% with dividends).
Shout out to the pointy heads who made that decision.
But things are, somewhat obviously, different today.
9:40 am
By Morning Show host Alicia AlfiereTeam Rule Breakers
In a partnership with Coinbase (COIN 7.08%), Better Mortgage (BETR 2.38%) has a new mortgage product that aims to help younger homebuyers use Bitcoin as collateral.
So, how does it work?
According to the Better Mortgage website, "…Instead of putting cash down, you pledge Bitcoin or USDC and receive two loans: a conforming Fannie Mae mortgage on the home, and a separate loan that is secured by the crypto that you pledge and a second lien on the home to fund your cash down payment..."
Why is this a thing?
Higher housing prices mean that a lot of buyers are effectively priced out of the market. That means the pool of buyers is likely a bit older and a bit smaller than some in the mortgage business might prefer. So it's not surprising that some mortgage brokers would create products to lure younger buyers into the market.
9:35 am
U.S. equities fell Friday as the Nasdaq entered a technical correction, dropping 10% from its October high. Despite President Trump extending a pause on attacking Iranian energy facilities until April 6, Brent crude futures jumped 2% to over $110. The S&P 500 is pacing for its fifth straight losing week as the Strait of Hormuz remains effectively closed, with Iranian forces reportedly turning back Chinese vessels. While the Dow remains 9% below its record, the looming threat of 10,000 additional U.S. troops in the Middle East continues to fuel a "war premium" that is punishing growth-sensitive sectors.
9:05 am -- AAPL -0.07%, GOOG -1.3% in pre-market trading
Apple (AAPL 0.17%) is planning to open up the Siri operating system to outside AI assistants in the upcoming software release in a bid to catch up to peers and generate more revenue from third-party AI subscriptions. The stock rose almost 1% ahead of the market open.
8:55 am -- NFLX +1.1% in pre-market trading
Netflix (NFLX +0.30%) increased subscription costs across all tiers Thursday, its first hike since early 2025. Monthly rates for the ad-supported tier rose to $8.99, while the premium plan climbed to $26.99. These adjustments support a massive $20 billion content budget for 2026 as the company expands into live events and video podcasts. Management is betting on "pricing power" to reach a revenue target of over $50 billion this year, even after losing the Warner Bros. bidding war to Paramount Skydance (PSKY +0.56%). The move follows a broader industry trend where streamers prioritize profitability over pure subscriber growth.
8:50 am
U.S. equity futures retreated Friday as the Nasdaq officially entered correction territory, down 10% from its October peak. Despite President Trump extending the deadline for potential strikes on Iranian energy facilities to April 6, Brent crude futures jumped 2% to over $110 per barrel. The S&P 500 and Dow Jones Industrial Average remain under pressure as the Strait of Hormuz remains closed, with Iranian forces reportedly turning back Chinese vessels. While the administration signals "ongoing" talks, conflicting reports from Tehran and a potential 10,000-troop Pentagon deployment have fueled a fifth consecutive week of losses for major benchmarks.