Amazon.com’s Impact

Amazon.com, Inc. (AMZN) helped enliven an otherwise flat session on Wall Street Tuesday. Shares of the e-commerce and technology juggernaut moved up slightly over 1% in late afternoon trading, fueled by a collaboration with chipmaker Intel Corp. (INTC).

Collaboration and Challenges

The announcement of Intel producing an artificial-intelligence fabric chip for Amazon Web Services (AWS) signifies an expansion of their 18-year partnership. Additionally, Amazon’s upcoming Prime Big Deal Days may boost market confidence amid economic uncertainties.

Concerns and Controversies

However, Amazon faced criticism for ending remote-work privileges and implementing office return policies, leading to fluctuations in AMZN stock. Furthermore, inflationary pressures may impact consumer spending on platforms like Amazon, potentially affecting events like Prime Big Deal Days.

Direxion’s ETFs

Despite challenges, Direxion offers investment opportunities with the Direxion Daily AMZN Bull 2X Shares (AMZU) for positive outlooks and the Direxion Daily AMZN Bear 1X Shares (AMZD) for anticipated downturns, cautioning investors on holding these leveraged ETFs for over a day.

AMZU Performance

The 2X-leveraged Amazon fund, AMZU, showed resilience in 2021 with a 24% gain from January. Recent momentum pushed shares up over 7%, yet facing resistance at $33, a crucial level for market sentiment.

AMZD Outlook

Contrastingly, AMZD fell by 21% year-to-date despite AMZN’s overall positive performance. Volatility pushed the inverse ETF below its moving averages, but potential support levels at $14 could steer it towards recovery amidst market uncertainties.