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Why is AMZU Down Today After Tech Sector Challenges

The Direxion Daily AMZN Bull 1.5X Shares ETF (AMZU) closed at $47.95 on February 5, 2025, down 4.94% as Amazon's stock faced pressure amid broader tech sector challenges. Amazon's shares were impacted by a deceleration in profit growth among the Magnificent Seven, raising concerns about high valuations. The tech-heavy Nasdaq Composite and S&P 500 both opened lower, influenced by mixed quarterly results from major tech firms. Alphabet's shares dropped 7% due to disappointing cloud revenue, while Advanced Micro Devices reported weaker-than-expected data center revenue, contributing to negative sentiment. Additionally, ongoing trade tensions between the U.S. and China and a record U.S. trade deficit have added to market volatility. As Amazon prepares to announce its earnings on February 6, investor focus is on whether Amazon Web Services can deliver strong revenue growth amid competitive pressures.