The U.S. stock market concluded the week on a high note, with major indices showing solid gains driven primarily by Amazon’s impressive earnings report. The Nasdaq Composite surged 0.61% to finish at 23,724.96, while the S&P 500 added 0.26% to close at 6,840.20. The Dow Jones Industrial Average saw a smaller uptick, climbing 40.75 points, or 0.09%, to end at 47,562.87.
Friday’s trading session was largely influenced by technology stocks, especially following Amazon’s announcement of third-quarter revenue amounting to $180.2 billion, which exceeded Wall Street’s expectations of $177.9 billion. The company’s cloud computing division, Amazon Web Services (AWS), reported a 20% increase in revenue, marking its fastest growth rate since 2022. CEO Andy Jassy attributed this success to accelerated adoption of artificial intelligence (AI) and a robust demand for core infrastructure.
The ripple effects of Amazon’s performance were vividly seen in AI-linked stocks, which experienced notable gains. Palantir Technologies saw a 3% increase, Oracle’s stock rose by 2.2%, and Advanced Micro Devices (AMD) recorded an astonishing 58% gain in October—its best performance since 2001.
The enthusiasm extended beyond Amazon, with consumer tech stocks performing well. Netflix climbed 2.7% after announcing a 10-for-1 stock split, stirring discussions about potential inclusion in the Dow Jones Industrial Average. Tesla shares also rose 3.7%, buoyed by investor optimism regarding electric vehicle demand.
Noteworthy gains were seen from Reddit, which posted a 14% increase after reporting a remarkable 68% year-over-year revenue surge, reaching $585 million. Getty Images experienced a robust 19% rise after securing a multi-year AI content partnership with Perplexity AI.
Overall, the S&P 500 finished the week up 0.7%, the Nasdaq gained 2.2%, and the Dow rose 0.8%. Throughout October, the S&P 500 recorded a 2.3% rise, while the Nasdaq climbed 4.7% and the Dow advanced by 2.5%, marking the sixth consecutive monthly increase for the Dow, the longest such streak since 2018. Year-to-date, the Nasdaq has surged 22%, the S&P 500 over 16%, and the Dow 12%, underlining a resilient market backed by AI enthusiasm and strong earnings.
Looking ahead, market analysts express optimism for November, historically regarded as the strongest month for the S&P 500, with an average gain of 1.8% since 1950. Analysts suggest that seasonal trends, easing trade tensions, and continued robust earnings could further propel the market. However, inflation remains a lingering concern. Bank of America analyst Aditya Bhave highlighted that existing tariffs have contributed to higher consumer prices, with rising cocoa costs causing Halloween chocolate prices to increase nearly 30% year-over-year.
Investors are also closely monitoring the recent U.S.–China trade truce, which analysts at UBS believe could stabilize global equities. As the S&P 500 approaches the 7,000 mark and AI demand continues to grow, the mood on Wall Street remains cautiously optimistic heading into the holiday season.
