U.S. stock markets experienced a positive uptick on Friday to usher in November, primarily driven by strong performances from major technology firms, particularly Amazon, which helped alleviate concerns following a lackluster jobs report.
The Dow Jones Industrial Average surged by 450 points, or 1.1%. Meanwhile, the S&P 500 and Nasdaq Composite indices increased by 0.9% and 1.2%, respectively.
Amazon’s stock price rose by over 7%, boosted by robust growth in its cloud computing and advertising sectors that surpassed Wall Street’s earnings forecasts. Intel also saw significant gains, climbing nearly 8% after reported revenues exceeded analysts’ expectations and providing encouraging future projections. Such movements in these tech stocks improved overall market sentiment, especially after recent disappointing earnings reports from other big-name companies.
Rob Williams, chief investment strategist at Sage Advisory, noted that large technology companies continue to play a critical role in market dynamics, stating, “You’re seeing some broadening, but it’s still such a massive component right now.”
In contrast, the jobs report released on Friday indicated a sluggish labor market, with only 12,000 jobs added in October—substantially less than the anticipated 100,000—and marking the lowest job creation level since December 2020. The unemployment rate remained steady at 4.1%. However, market reactions to this report were muted, as traders attributed the poor performance to external factors such as hurricanes and a strike at Boeing.
Clark Bellin, president and chief investment officer at Bellwether Wealth, commented on the job report’s implications for federal monetary policy, suggesting the report’s instability was unlikely to deter the Federal Reserve from its expected 25 basis point rate cut in their upcoming meeting.
As investors approach the upcoming U.S. Presidential election on November 5 and the Federal Reserve’s policy meeting on November 6 and 7, market volatility remains heightened.
The trading week was turbulent overall, with the S&P 500 and Nasdaq showing declines of 0.9% and 1.1% for the week respectively, amid downward pressures from earnings results of companies like Microsoft and Meta Platforms. In contrast, the Dow closed up slightly by 0.3%.
Looking forward, the market’s strong start to November could signal a renewed sense of optimism, even after a challenging October where the Dow declined by 1.3% and the S&P 500 and Nasdaq fell by 1% and 0.5%, respectively. The resilience shown by major tech companies reflects potential growth opportunities for investors in the upcoming months, despite broader economic uncertainties.