U.S. stocks showed notable resilience on Friday, concluding a robust week and marking significant monthly gains as investors reacted positively to strong earnings reports from major technology firms like Amazon and Apple. The Nasdaq Composite climbed 0.6%, while the S&P 500 increased by 0.3%. The Dow Jones Industrial Average, which comprises fewer tech stocks, managed a modest gain of 0.1%.
All three major indexes completed October with impressive performances, with the Nasdaq achieving a growth of over 4% for the second consecutive month. This marked the Nasdaq’s seventh straight month of gains, while the S&P 500 and Dow also recorded solid performances for the sixth month in a row. The overall trend for these indexes suggested a favorable environment for tech stocks, driven by renewed optimism following the so-called “Magnificent Seven” earnings.
Amazon’s shares surged nearly 10% to reach an all-time high after its third-quarter results exceeded analyst expectations. The company’s cloud division, Amazon Web Services, reported a remarkable 20% increase in revenue, indicating strong demand from enterprises. Similarly, Apple’s stock also hit record levels, buoyed by better-than-anticipated earnings and an optimistic outlook for the highly significant holiday season. However, it did experience some fluctuations during the session.
In the tech sector, Nvidia saw its shares experience volatility as it announced its intent to supply up to 260,000 AI chips to South Korea, further solidifying its global standing in the AI market. Meanwhile, Netflix maintained its gains following the announcement of a 10-for-1 stock split, a move generating additional investor interest.
Comments from Federal Reserve officials following a recent meeting added complexity to the market landscape. Kansas City Fed President Jeff Schmid expressed his preference for keeping interest rates steady, citing ongoing inflation concerns, while Dallas Fed President Lorie Logan also indicated her reluctance to adjust rates further. This led to a notable shift in trader sentiment, with expectations for a rate cut in December dropping to just over 60%, down from over 90% the previous week.
As the markets capped off the month, the review of previous weeks painted a positive picture; October would wrap up as a strong month, contrasting with performances in the preceding years. The Nasdaq was set to report a monthly gain of approximately 5.3%, with the S&P 500 and Dow also experiencing healthy increases.
In the cryptocurrency sphere, Bitcoin rebounded slightly to hover around $109,800 per token after a turbulent week. However, it remains down roughly 4% for October, even as it reached an all-time high earlier in the month.
Oil prices showed little movement as major energy companies like Exxon Mobil and Chevron released their quarterly earnings, both surpassing analysts’ expectations. Despite declines in oil prices for the month, these companies managed to improve production levels, demonstrating resilience despite market fluctuations.
Overall, investor sentiment appeared buoyed by the positive earnings reports and optimistic outlooks from major tech firms, contributing to a constructive atmosphere in the U.S. stock market as it transitioned into November.
