Market Rebound: Stocks Surge on Upbeat Earnings and Jobs Report
The US stock market staged a remarkable comeback on Friday, shrugging off earlier concerns about Big Tech’s AI spending and instead focusing on strong earnings reports from Amazon and Intel. The tech-heavy Nasdaq Composite surged 1%, while the S&P 500 rose 0.8%, and the Dow Jones Industrial Average added roughly 0.8%.
Jobs Report: A Mixed Bag
The US economy added just 12,000 jobs in October, significantly missing expectations. However, the government attributed the disappointing numbers to recent hurricanes and strike activity, particularly at Boeing. Despite this, market expectations for the Federal Reserve’s next policy decision on November 7 remained largely unchanged, with traders pricing in about 98% odds of a quarter-point rate cut.
Earnings Boost: Amazon and Intel Shine
Amazon’s upbeat earnings report helped dissipate concerns about Big Tech’s prospects, with its shares jumping over 6% in morning trading. CEO Andy Jassy highlighted the company’s cloud unit’s AI business, which is seeing triple-digit revenue growth. Intel’s earnings beat and outlook also revived hopes for the chipmaker’s turnaround, boosting its stock.
Oil Prices Rise Amid Mideast Fears
Oil prices rose over 2% amid revived fears of Middle East tensions, following a report that Iran is planning a strike on Israel via militias it backs in Iraq. Brent crude futures traded at around $74 a barrel, while West Texas Intermediate futures were not far off the $71 level.
Corporate Roundup
Boeing shares tipped higher after the union backed its latest offer to end a significant factory workers’ strike, which would lift wages by 38%. Meanwhile, Apple shares slipped as its results and outlook left Wall Street wanting more.
Market Outlook
Wall Street positioned itself for a turnaround on Friday, driven by strong earnings reports from Amazon and Intel. The tech-heavy Nasdaq Composite popped 0.5%, and the S&P 500 rose 0.4%, both coming off steep losses fueled by after-earnings tumbles in Meta and Microsoft.
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