Amazon set for $300 billion rally, lifting stocks: Markets Wrap

by Andre Janse van Vuuren and Eman Abouhassira 

The S&P 500 is set for a sixth month of gains after Amazon.com Inc.’s blowout results fueled a rebound in stocks following a brief pause in the global rally. 

Futures on the US benchmark rose as Amazon jumped 13% in premarket trading, a move set to add about $300 billion to its market value after reporting the fastest cloud-unit growth in nearly three years. Apple Inc. also advanced on a revenue beat and upbeat holiday forecast. Nasdaq 100 contracts advanced 1.1%. 

Nvidia Corp., meanwhile, unveiled new partnerships with South Korea’s biggest firms, extending a global push to expand artificial intelligence infrastructure. The wave of earnings and announcements lifted all members of the Magnificent Seven tech giants after a selloff in the previous session. 

The gains offered investors a respite from Thursday’s bruising session, amid lingering doubts over whether heavy AI spending will pay off. The S&P 500’s advance has increasingly relied on a shrinking group of tech megacaps, with warnings over lofty valuations following a blistering rally. 

“Volatility has become a feature rather than a bug — day-to-day swings now regularly move major stocks by hundreds of billions of dollars,” said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg. “The feedback loop of investor sentiment, speculative positioning, and rapid news-driven reactions amplifies these moves.”Gains in the S&P 500 on Friday will seal the index’s longest monthly winning streak since August 2021, capping a rally that has withstood global trade tensions and geopolitical risks. Earnings have also broadly topped forecasts, with about 80% of S&P 500 companies that have reported so far beating expectations. 

Global equities drew $17.2 billion in inflows in the week to Oct. 29, Bank of America Corp. said, citing EPFR data. Strategists led by Michael Hartnett added that AI’s leadership remains firmly in place. 

“The risks are mainly flows. They have been the main driver, much more than EPS growth,” said Karen Georges, an equity fund manager at Ecofi. “If flows begin to halt on risky assets, then there will be a genuine selloff. But it’s like a black swan, you never know when it’s coming.” 

On the trade front, Treasury Secretary Scott Bessent said he expects the US to return to the negotiating table with China in a year. That came after Trump and Xi agreed to extend a tariff truce, roll back export controls and reduce other trade barriers in a landmark summit on Thursday. Xi also warned against “breaking supply chains,” in his first public remarks after his meeting with Trump. 

“A comprehensive deal still looks far away and while trade tensions have eased for the time being, they have the potential to resurface,” warned Mohit Kumar, chief economist and strategist at Jefferies International. 

What Bloomberg strategists say… 

Bubble concerns seem to have been pushed back further by the latest set of earnings. The AI boom is alive and well and broadening out far beyond just the US. There’s been plenty of volatility across markets this week as Presidents Trump and Xi finally met, but the AI theme is where investors look for signals regarding global equities. 

— Garfield Reynolds, MLIV Asia Team Leader. Click here for the full analysis. 

Corporate News: 

• Telefónica SA is set to cut its dividend as part of a new strategy plan due next week, according to people familiar with the matter. 
• Netflix Inc. is actively exploring a bid for Warner Bros Discovery’s studio and streaming business, Reuters reported, citing three sources familiar with the matter. Netflix also approved a 10-for-1 stock split. 
• BYD Co. shares tumbled on Friday after the automaker reported a decline in third-quarter net income and revenue, missing analyst expectations. 

Some of the main moves in markets: 

Stocks 

• S&P 500 futures rose 0.6% as of 6:06 a.m. New York time 
• Nasdaq 100 futures rose 1.1% 
• Futures on the Dow Jones Industrial Average were little changed 
• The Stoxx Europe 600 fell 0.5% 
• The MSCI World Index was little changed 

Currencies 

• The Bloomberg Dollar Spot Index was little changed 
• The euro was little changed at $1.1572 
• The British pound was little changed at $1.3143 
• The Japanese yen was little changed at 154.12 per dollar 

Cryptocurrencies 

• Bitcoin rose 2.2% to $109,850.23 
• Ether rose 2.3% to $3,845.1 

Bonds 

• The yield on 10-year Treasuries was little changed at 4.10% 
• Germany’s 10-year yield was little changed at 2.65% 
• Britain’s 10-year yield was little changed at 4.43% 

Commodities 

• West Texas Intermediate crude fell 0.7% to $60.13 a barrel 
• Spot gold fell 0.3% to $4,012.75 an ounce 

This story was produced with the assistance of Bloomberg Automation. 

© 2025 Bloomberg L.P.