The US stock market rebounded on Friday, with the Nasdaq Composite gaining 0.8% and the S&P 500 rising 0.4%, despite a significant miss in the monthly jobs report. The Dow Jones Industrial Average added roughly 0.7%. The economy added just 12,000 jobs in October, falling short of expectations due to recent hurricanes and strike activity, particularly at Boeing.
This report is the last major economic data before the Federal Reserve’s policy decision on Nov. 7, where traders largely anticipate a quarter-point rate cut. Upbeat earnings from Amazon helped lift Big Tech’s prospects, with shares jumping over 6% after CEO Andy Jassy reported significant revenue growth.
Intel’s revived performance also contributed to the market’s positive movement. However, Apple shares slipped following a mixed earnings report. Despite Friday’s gains, the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average posted weekly losses.
The upcoming week includes the presidential election, significant corporate earnings, and a Federal Reserve policy meeting expected to result in another rate cut.
Amazon lifts market amid jobs miss
Several entertainment heavyweights, such as Sony, Warner Bros.
Discovery, and Paramount, are set to report earnings, along with sharing economy companies Airbnb and Lyft. Trump Media & Technology Group’s stock fell over 10% on Friday, capping a volatile week marked by multiple trading halts just days before the presidential election. The stock’s performance is being closely watched in relation to the upcoming election.
The final jobs report before the election became a focal point on the campaign trail, with Kamala Harris’s allies pointing to the “noisy” nature of the report, while the Trump campaign highlighted the low numbers and continued to claim, without evidence, that the numbers were manipulated. Amazon and Google’s earnings provided a roadmap for managing investor expectations amidst heavy AI spending, with their strong performance highlighting the potential of their core businesses to ease concerns about significant investments in AI. However, Microsoft and Meta faced a more critical response from investors due to their continued high capital expenditures.
Warren Buffett’s Berkshire Hathaway is set to report its third-quarter earnings on Saturday morning, with market watchers focused on any changes in Buffett’s portfolio. Atlassian shares soared after posting better-than-expected quarterly results and raising its guidance, driven by strong demand for artificial intelligence technology. Charter Communications shares jumped after reporting better-than-anticipated third-quarter results, despite a shrinking internet customer base and declining video customers.
Amazon shares also jumped after multiple analysts raised their price targets, pointing to the company’s surging business.
