Amazon and Apple carry hopes to investors amid general economic slowdown

Earlier this week, Apple and Amazon have been in the spotlight of market players. The companies’ combined market value increased by $175 billion as of July 29. These results indicate the ability of two technological giants to overcome an economic downturn. 

Although analysts pointed out Apple and Amazon were not spared from the difficulties, they said the decrease in consumer spending isn’t expected to have a strong impact on companies, deeming them to incur losses. Thus, the corporations are considered "strong enough to withstand the trend of the global downturn".

Amazon shares surged about 11% to hit $135 after a forecasted profit growth in the third quarter. On the other hand, Apple shares rose 3% as the company reported strong demand for the iPhone despite tightening consumer spending. 

There have been rallies in the U.S. stock market over the last decade, which are caused by the emergence of fast-growing companies with megacaps. In addition, the policy of raising interest rates to combat high inflation, as well as the sharp rise in the dollar, are also in the picture.

Amazon, like a majority of retailers, is aware of the forthcoming cuts in consumer spending. The population is actively buying lower-priced essential goods in view of the imminent economic crisis.

The e-commerce giant Amazon has expanded its range of products by offering cloud services to users, which is likely to mitigate the impact of soaring company's costs.