U.S. stocks ended higher on Friday, bolstered by gains in Amazon shares as investors looked ahead to the upcoming U.S. election. Nonfarm payrolls increased by 12,000 jobs last month, signaling a resilient job market. In other positive news, Nvidia will be added to the Dow Jones Industrial Average, further lifting market sentiment.
The stock market gains came amid a backdrop of rising U.S. Treasury yields, reflecting investor caution as the election approaches. The yield on the benchmark 10-year Treasury note rose to its highest level in several months. In international news, Australia’s central bank announced on Tuesday that underlying inflation is expected to slow gradually.
The bank revised its outlook for employment gains while trimming forecasts for economic growth as consumer spending remains subdued. Stocks rose on Friday as investors digested the latest earnings results and labor market data, reinforcing expectations that the Federal Reserve will continue cutting interest rates. The S&P 500 rose 0.4%, while the Dow Jones Industrial Average and Nasdaq Composite added 0.7% and 0.8%, respectively.
Despite the Friday rally, all three indexes finished the week lower. The Nasdaq snapped a seven-week winning streak, while the S&P and Dow suffered a second consecutive week of losses. The October jobs report, released early Friday, showed that U.S. employers added jobs last month, while the unemployment rate held steady at 4.1%.
The monthly report has gained particular importance as the Federal Reserve has recently expressed concerns about a weakening labor market. The Fed, which cut its benchmark rate for the first time in four years in September, is scheduled to announce a decision on interest rates next Thursday. The yield on 10-year Treasuries, which is sensitive to interest rate expectations, was at 4.38% in recent trading, up from 4.28% on Thursday.
The yield had fallen as low as 4.22% just after the labor market numbers were released Friday. Tech stocks spearheaded the move higher on Friday. Amazon gained more than 6% following strong growth in its cloud and advertising businesses.
Intel shares rose nearly 8% after reporting revenue that topped Wall Street expectations. Nvidia advanced 2%, and Microsoft ticked higher. Meanwhile, Apple shares slid 1.3% after earnings fell short of expectations.
Outside the tech sector, Boeing shares climbed 3% after reaching a new contract agreement with its machinists’ union, potentially ending a seven-week strike.
Gains amid economic and election uncertainties
In the oil sector, ExxonMobil slid 1.5% while Chevron gained 3% following their quarterly results.
Gold futures were little changed at around $2,740 an ounce, having risen above $2,800 for the first time earlier this week. Bitcoin traded around $69,200, down from an earlier high of $71,500. Waters Corp.
surged 19.8% to a 52-week high, delivering the top daily performance in the S&P 500, after reporting strong earnings. Charter Communications jumped 11.9% after a solid increase in mobile customers, despite losses in other service areas. Intel gained 7.8% following better-than-expected sales guidance for the current quarter.
Conversely, Super Micro Computer shares dropped 10.5%, extending steep losses from earlier in the week amid concerns about its accounting practices. Power generation company AES Corp. sank 9.9% despite reporting better-than-expected profits due to lower sales from its energy infrastructure unit.
Amcor slipped 7.8% after missing quarterly sales estimates, with destocking in health care packaging posing a headwind. As the stock market kicked off November on a high note, uncertainty about the U.S. presidential election and the Federal Reserve’s next moves on interest rates loom large. Third-quarter earnings season will wind down in November with big names including Nvidia and Home Depot reporting.
However, the presidential election on Nov. 5 is likely to dominate headlines and market movements. Warren Buffett’s Berkshire Hathaway is set to report its third-quarter earnings on Saturday morning.
Market watchers will look for changes in Buffett’s portfolio, especially following the firm’s public trimming of its stake in Bank of America. The health of the insurance business will also be in focus. Atlassian shares skyrocketed Friday after the business-software company posted better-than-expected quarterly results and raised its guidance, driven by a surge in demand for artificial intelligence technology.
Shares of Atlassian were up 20% in recent trading, leading Nasdaq gainers. Charter Communications shares jumped following better-than-anticipated third-quarter results, with fewer subscriber losses than expected and a significant increase in mobile customers. Amazon shares rose as multiple analysts raised their price targets for the e-commerce giant, following strong earnings reports fueled by surging business in AI technologies.
The broader market continues to navigate through earnings season and macroeconomic uncertainties, with investors keeping a close eye on upcoming Fed decisions and the presidential election.
