U.S. stocks advanced on Friday, buoyed by robust earnings from Amazon and softer job growth, which bolstered expectations for an impending Federal Reserve rate cut.
- Market Performance: By midday, the Dow Jones Industrial Average had gained 337 points (0.8%), the S&P 500 was up 0.6%, and the NASDAQ Composite increased by 0.9%.
- Job Market Weakness: The U.S. economy added only 12,000 jobs in October, significantly below the anticipated 106,000. This weak payroll report, influenced by recent hurricanes and strikes, supports the likelihood of the Federal Reserve cutting interest rates in their next meeting.
- Fed’s Next Moves: Economists at Macquarie predict the Federal Reserve will reduce interest rates by 25 basis points in their upcoming November and December meetings, continuing their approach to ease policy in response to economic data.
- Tech Giants in Focus: Apple shares dipped over 1% following a conservative revenue forecast for the crucial holiday quarter. In contrast, Amazon’s stock jumped more than 6% after the company reported an 11% increase in quarterly revenues, surpassing expectations with help from its ventures into generative AI.
- Energy Sector Mixed: Energy stocks were relatively flat as oil majors like Exxon Mobil and Chevron reported earnings. Exxon Mobil saw a slight decline after a revenue miss, while Chevron’s performance met expectations, providing some stability to the sector amid rising oil prices due to increasing geopolitical tensions in the Middle East.
The day’s trading highlighted a mixed but optimistic outlook for U.S. stocks as tech earnings and economic indicators paint a complex picture of the market dynamics. Investors remain focused on the Federal Reserve’s upcoming decisions, which are expected to further influence market trajectories as the year ends.
