US stocks jumped, set for a comeback on Friday as investors digested a big miss in the monthly jobs report, and welcomed Amazon (AMZN) and Intel (INTC) earnings.
The tech-heavy Nasdaq Composite (^IXIC) surged 1%, while the S&P 500 (^GSPC) rose 0.8%, both coming off a steep selloff fueled by worries about Big Tech’s AI spending. The Dow Jones Industrial Average (^DJI) added roughly 0.8%.
Markets took in their stride the disappointing headline numbers in the all-important jobs report. The US economy added just 12,000 jobs in October, significantly missing expectations. The government said those numbers were weighed down by recent hurricanes and strike activity, most prominently at Boeing (BA).
The report is the last major economic data before the Federal Reserve’s next policy decision on Nov. 7. Market expectations for that meeting moved little in its wake, with traders pricing in about 98% odds of a quarter-point rate cut at the Fed meeting next week, per CME FedWatch.
Meanwhile, upbeat earnings from Amazon helped dissipate the gloom around Big Tech’s prospects that drove Thursday’s slump in stocks. Its shares jumped over 6% in morning trading after CEO Andy Jassy said its cloud unit’s AI business was seeing triple-digit revenue growth.
Elsewhere in corporates, Boeing shares tipped higher after the union backed its latest offer to end a significant factory workers’ strike. The sweetened deal would lift wages by 38%.
Meanwhile, oil prices rose over 2% amid revived Mideast fears, after a report that Iran is planning a strike on Israel via militias that it backs in Iraq. Brent (BZ=F) crude futures traded at around $74 a barrel after briefly nudging $75, while West Texas Intermediate (CL=F) futures were not far off the $71 level.
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26 mins ago
Stocks aim for a comeback after strong Amazon earnings
Wall Street positioned itself for a turnaround Friday after a strong showing from Amazon (AMZN) lifted investor sentiment.
But impressive reports from Amazon and Intel (INTC) set stocks on a comeback trajectory. On Thursday night, Amazon said it expects to spend $75 billion in capital expenditures in 2024 and CEO Andy Jassy said the company expects to spend “more than that” in 2025, showing investors that heavy AI spending can coincide with profit growth.
53 mins ago
Tech stocks in focus: Amazon, Intel, Nvidia rise while Apple sinks
Amazon (AMZN) and Intel (INTC) stocks jumped Friday, lifting Nvidia (NVDA) shares with them.
Amazon stock jumped as much as 7% premarket as the company proved it can balance hefty AI spending with profit growth. The company’s profit jumped more than 50% to over $17 billion in the third quarter, and its 11% operating margin came in above Wall Street’s expectations of just over 9%. At the same time, CEO Andy Jassy said the company will likely rack up $75 billion in expenses for the full year and spend even more next year.
That’s good news for Nvidia, which rose 1.5% premarket. The AI chipmakers’ shares had fallen a day earlier amid fears of moderating AI spending from Big Tech firms. The stock was also helped by positive sentiment on Intel, which itself jumped 7.6% premarket after giving an upbeat fourth quarter outlook. Intel’s guidance lifted chip stocks across the board after a rough few days.
