{"id":62427,"date":"2026-05-27T16:38:17","date_gmt":"2026-05-27T20:38:17","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/amazon-and-snowflake-ink-6b-chip-deal-as-salesforce-beats-estimates-and-fed-signals-rate-caution\/62427\/"},"modified":"2026-05-27T16:38:17","modified_gmt":"2026-05-27T20:38:17","slug":"amazon-and-snowflake-ink-6b-chip-deal-as-salesforce-beats-estimates-and-fed-signals-rate-caution","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/amazon-and-snowflake-ink-6b-chip-deal-as-salesforce-beats-estimates-and-fed-signals-rate-caution\/62427\/","title":{"rendered":"Amazon and Snowflake Ink $6B Chip Deal as Salesforce Beats Estimates and Fed Signals Rate Caution"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/amazon-and-snowflake-ink-6b-chip-deal-as-salesforce-beats-estimates-and-fed-signals-rate-caution\/62427\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/amazon-and-snowflake-ink-6b-chip-deal-as-salesforce-beats-estimates-and-fed-signals-rate-caution\/62427\/#Tech_Giants_Forge_6_Billion_Infrastructure_Partnership\" >Tech Giants Forge $6 Billion Infrastructure Partnership<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/amazon-and-snowflake-ink-6b-chip-deal-as-salesforce-beats-estimates-and-fed-signals-rate-caution\/62427\/#Salesforce_Beats_Earnings_Targets_Amid_Mixed_Guidance\" >Salesforce Beats Earnings Targets Amid Mixed Guidance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/amazon-and-snowflake-ink-6b-chip-deal-as-salesforce-beats-estimates-and-fed-signals-rate-caution\/62427\/#Fed_Governor_Cook_Warns_of_Persistent_Inflation_Risks\" >Fed Governor Cook Warns of Persistent Inflation Risks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/amazon-and-snowflake-ink-6b-chip-deal-as-salesforce-beats-estimates-and-fed-signals-rate-caution\/62427\/#Geopolitical_Uncertainty_Weighs_on_Market_Sentiment\" >Geopolitical Uncertainty Weighs on Market Sentiment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/amazon-and-snowflake-ink-6b-chip-deal-as-salesforce-beats-estimates-and-fed-signals-rate-caution\/62427\/#Corporate_Highlights_and_Market_Close\" >Corporate Highlights and Market Close<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>) and Snowflake (<a href=\"\/stock\/SNOW\">SNOW<\/a>) signed a massive $6 billion deal<\/strong> over five years for the use of AWS Graviton processors, highlighting the surging demand for custom AI and cloud infrastructure.<\/li>\n<li><strong>Salesforce (<a href=\"\/stock\/CRM\">CRM<\/a>) outperformed Q1 expectations<\/strong> with an adjusted EPS of $3.88 on $11.13 billion in revenue, though its Q2 revenue guidance came in slightly below analyst estimates.<\/li>\n<li><strong>Federal Reserve Governor Cook signaled a hawkish stance<\/strong>, stating the central bank is prepared to raise interest rates if inflation fails to cool, while warning that AI-driven job losses could precede productivity gains.<\/li>\n<li><strong>Geopolitical tensions involving Iran and the Strait of Hormuz<\/strong> kept investors cautious, leading to a flat close for the <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> despite continued optimism in AI-driven growth.<\/li>\n<li><strong>Major U.S. indices finished mixed<\/strong> as the <a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average gained nearly 200 points, while the Nasdaq and S&amp;P 500 saw only marginal gains.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Tech_Giants_Forge_6_Billion_Infrastructure_Partnership\"><\/span>Tech Giants Forge $6 Billion Infrastructure Partnership<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>) has secured one of its largest CPU computing agreements to date, striking a <strong>$6 billion deal with Snowflake (<a href=\"\/stock\/SNOW\">SNOW<\/a>)<\/strong>. Under the five-year agreement, Snowflake will utilize <strong>AWS Graviton chips<\/strong> within Amazon\u2019s data centers to power its cloud-based data services.<\/p>\n<p>This partnership underscores the accelerating shift toward <strong>custom silicon and agentic computing infrastructure<\/strong>. Snowflake joins other tech titans like Meta (<a href=\"\/stock\/META\">META<\/a>) and Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>) as major adopters of Amazon\u2019s proprietary Graviton processors, which are designed to offer better price-performance for cloud workloads compared to traditional x86 chips.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Salesforce_Beats_Earnings_Targets_Amid_Mixed_Guidance\"><\/span>Salesforce Beats Earnings Targets Amid Mixed Guidance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Salesforce (<a href=\"\/stock\/CRM\">CRM<\/a>) reported strong first-quarter results for fiscal 2027, posting <strong>adjusted EPS of $3.88<\/strong>, significantly beating the consensus estimate of $3.13. The company\u2019s <strong>revenue reached $11.13 billion<\/strong>, surpassing the $11.05 billion expected by Wall Street, while adjusted operating income hit <strong>$3.87 billion<\/strong>.<\/p>\n<p>Despite the Q1 beat, the company provided a cautious outlook for the second quarter. Salesforce projects <strong>Q2 revenue between $11.27 billion and $11.35 billion<\/strong>, slightly trailing the $11.36 billion analyst estimate. The company expects adjusted EPS for the upcoming quarter to land between $3.25 and $3.27.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Fed_Governor_Cook_Warns_of_Persistent_Inflation_Risks\"><\/span>Fed Governor Cook Warns of Persistent Inflation Risks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Federal Reserve Governor Lisa Cook delivered a cautious message on Wednesday, stating that the <strong>&quot;right course of action&quot; is to hold interest rates steady<\/strong> as inflation risks remain tilted to the upside. Cook emphasized that the Fed is <strong>prepared to lift rates further<\/strong> if disinflation stalls, though she noted the central bank would also be ready to cut if the labor market shows signs of significant deterioration.<\/p>\n<p>In a notable comment on the evolving economy, Cook warned that <strong>AI-driven job losses could manifest before the technology delivers broader productivity gains<\/strong>. This hawkish tone contributed to a stall in the recent stock market rally, as investors weighed the possibility of &quot;higher for longer&quot; borrowing costs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_Uncertainty_Weighs_on_Market_Sentiment\"><\/span>Geopolitical Uncertainty Weighs on Market Sentiment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Market momentum was further tempered by mixed signals regarding <strong>U.S.-Iran negotiations<\/strong>. Former President Trump expressed dissatisfaction with current talks and rejected the notion of any single nation controlling the <strong>Strait of Hormuz<\/strong>, a critical chokepoint for global oil transit.<\/p>\n<p>Secretary of State Marco Rubio reiterated that while <strong>diplomacy remains the primary approach<\/strong>, the administration maintains &quot;other options&quot; to prevent Tehran from obtaining a nuclear weapon. These tensions caused <strong>oil prices to retreat below $89 a barrel<\/strong>, while the S&amp;P 500 (<a href=\"\/stock\/SPY\">SPY<\/a>) closed nearly flat, adding just 0.02% to end at 7,520.80.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Corporate_Highlights_and_Market_Close\"><\/span>Corporate Highlights and Market Close<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In other corporate news, JPMorgan Chase &amp; Co. (<a href=\"\/stock\/JPM\">JPM<\/a>) announced it will <strong>redeem the entire $2 billion<\/strong> of its 3.65% fixed-rate reset non-cumulative preferred stock, Series KK. Meanwhile, Synopsys (<a href=\"\/stock\/SNPS\">SNPS<\/a>) entered into a cooperation agreement with <strong>Elliott Management<\/strong>, where the activist investor agreed to cap its economic exposure in the company at 7.5%.<\/p>\n<p>The <strong>Dow Jones Industrial Average (<a href=\"\/stock\/DIA\">DIA<\/a>)<\/strong> was the day&#39;s top performer, rising 196.86 points, or 0.39%, to close at 50,658.54. The <strong>Nasdaq Composite (<a href=\"\/stock\/QQQ\">QQQ<\/a>)<\/strong> edged up 0.06% to 26,671.47, supported by the ongoing bet that AI-driven earnings growth will continue to underpin equity valuations despite macroeconomic headwinds.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Amazon (AMZN) and Snowflake (SNOW) signed a massive $6 billion deal over five years for the use of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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