The U.S. stock market concluded October 2025 on a high note, driven by a significant surge in technology stocks. Amazon’s impressive performance, with its stock rising 9.6% following a better-than-expected third-quarter earnings report, catalyzed gains in major indices. The Nasdaq Composite increased by 0.61% to close at 23,724.96, while the S&P 500 saw a rise of 0.26%, finishing at 6,840.20. The Dow Jones Industrial Average also experienced a slight uptick, adding 40.75 points (0.09%) to end at 47,562.87.
Over the week, the S&P 500 advanced by 0.7%, the Nasdaq climbed 2.2%, and the Dow increased by 0.8%. Overall, October proved to be a notable month for equities with the S&P 500 gaining 2.3%, the Nasdaq surging by 4.7%, and the Dow rising 2.5%. This marked the sixth consecutive month of gains for the Dow—the longest stretch since 2018. As November approaches, Wall Street remains cautiously optimistic, historically showing an average gain of 1.8% for the S&P 500 since 1950, according to the Stock Trader’s Almanac.
Amidst strong momentum in artificial intelligence (AI) and easing trade tensions, many market participants anticipate that the bullish trend may persist through the holiday season—unless an unforeseen credit event disrupts the current sentiment.
Amazon reported $180.2 billion in revenue for Q3, eclipsing Wall Street’s expectations of $177.9 billion. Its cloud computing segment, AWS, experienced a robust growth rate of 20% year-over-year, the quickest pace of expansion since 2022. CEO Andy Jassy highlighted a strong demand for AI services and infrastructure, describing AWS’s growth as “broad-based and accelerating.” This news spurred gains for other AI-related stocks, including Palantir, which rose 3%, Oracle gaining 2.2%, and AMD, which soared a staggering 58% for the month—the best performance since 2001.
Aside from Amazon, the consumer technology sector also thrived. Netflix’s stock surged by 2.7% following its announcement of a 10-for-1 stock split, igniting speculation concerning its potential inclusion in the Dow. Tesla’s shares climbed 3.7% as optimism regarding electric vehicle demand increased ahead of year-end. Social media and content companies also benefited from the positive market mood, with Reddit shares soaring 14% on a robust revenue figure of $585 million—up 68% year-over-year—while Getty Images spiked 19% after completing a long-term AI content agreement.
Looking forward, analysts are closely monitoring several key developments: potential credit shocks, weaknesses in the job market, and declining rent prices. Economists express concerns that more corporate defaults could arise following the bankruptcies of Tricolor Holdings and First Brands, which prompted significant write-offs from major banks like JPMorgan, UBS, and Jefferies.
The labor market is displaying troubling signs as the ADP report indicated a loss of 32,000 jobs in September, with major layoffs announced by companies like Amazon and UPS. Job growth has averaged fewer than 30,000 positions per month from June to August, signaling the weakest expansion since the pandemic.
On the housing front, data from Apartment List show that average rents in the U.S. have decreased for two consecutive months. With nearly 600,000 new apartments completed in 2024—the highest number since 1974—pressure on rental prices appears to be easing. This trend could positively impact inflation, particularly as Owner’s Equivalent Rent constitutes a significant portion of the Consumer Price Index (CPI).
As the market transitions into November, several forecasts emerge regarding potential risks. The stock market remains bullish after October’s performance, but analysts caution that valuations are high. The Market Cap to GDP ratio suggests that stocks are trading at elevated levels, and recent remarks from Jamie Dimon, CEO of JPMorgan Chase, indicate concerns about the fragility of the credit system.
Commercial real estate could become a flashpoint, with delinquency rates on office loans rising above levels seen during the 2008 financial crisis. The $4.8 trillion U.S. commercial real estate debt market may encounter further stress if borrowing costs remain elevated.
Additionally, job growth is facing a downturn. The ADP report highlighted job losses in September and revealed that layoffs at Amazon and UPS could deepen the employment crisis. If the government shutdown extends into November, the impact on employment numbers is expected to worsen, raising the likelihood of negative job growth.
Finally, the rental market shows signs of cooling as national average rents fall, influenced by an influx of new housing and reduced immigration, which have decreased rental demand. This could contribute to easing inflationary pressures, as decreasing shelter costs will help bring the overall inflation rate closer to the Federal Reserve’s target.
As November unfolds, investors remain cautious yet hopeful. The market’s ability to defy negative news will be tested, with credit risks, employment trends, and the housing market steering conversations around the economy’s trajectory. The focus now turns to the Federal Reserve’s monetary policy, and whether rate cuts can balance growth with stability or if further financial turbulence is looming on the horizon.
