Market Recap: Wall Street Rebounds on Tech Surge and Jobs Data
S&P 500, Nasdaq, and Dow Jones Close Higher Despite Weak Job Growth
Wall Street closed higher on Friday, November 1, 2024, as investors digested a mix of tech earnings and weaker-than-expected job growth data. The market rebound was primarily fueled by strong performances from tech giants and renewed speculation about the Federal Reserve’s interest rate trajectory.
Market Performance
The major indexes finished the day on a positive note:
– S&P 500 (^GSPC) added 0.6%
– Dow Jones Industrial Average (^DJI) gained 0.8%
– Nasdaq Composite (^IXIC) rose 1%
Despite Friday’s gains, both the S&P 500 and Nasdaq are on track to finish the week with losses, snapping their multi-month winning streaks.
Key Factors Driving the Market
1. Tech Earnings
Amazon (AMZN) led the tech sector’s rebound, surging over 6% after reporting strong quarterly results driven by growth in its cloud and advertising businesses. Intel (INTC) also impressed investors with better-than-expected revenue, sending its shares up by 6%.
However, Apple (AAPL) bucked the trend, dropping 1.5% as investors expressed concerns over declining sales in China, despite the company beating overall quarterly sales forecasts.
2. Jobs Report
The highly anticipated October jobs report showed that U.S. employers added far fewer jobs than expected last month. The economy added only 12,000 jobs, significantly below economists’ estimates of 113,000. Despite this, the unemployment rate held steady at 4.1%.
This weaker-than-expected job growth data has reinforced expectations that the Federal Reserve will continue its interest rate cutting cycle, which began in September with the first rate cut in four years.
Upcoming Market Events
Investors are now focusing on two critical events in the coming week:
1. U.S. Presidential Election (November 5, 2024): Analysts predict a close race, which could introduce some uncertainty into the markets.
2. Federal Reserve Meeting (November 6-7, 2024): The Fed is scheduled to announce its decision on interest rates. Market participants are largely expecting another 25 basis point cut.
Major Stock News
– Boeing (BA): Shares rose over 3% after the company reached a tentative deal with its machinists union, potentially ending a seven-week strike.
– Chevron (CVX): Gained 3% following the release of its quarterly results.
– ExxonMobil (XOM): Dipped about 1% after reporting its earnings.
– Atlassian (TEAM): Surged 20% after posting better-than-expected quarterly results and raising guidance, driven by strong demand for AI technology.
– Charter Communications (CHTR): Jumped significantly after reporting better-than-anticipated results and lower-than-expected subscriber losses.
Market Outlook
As we move into a crucial week with the presidential election and Fed meeting on the horizon, market volatility is expected to remain elevated. The CBOE Volatility Index (^VIX) is trading at a more than three-week high, reflecting increased uncertainty.
Investors will be closely monitoring the outcome of these events and their potential impact on interest rates, fiscal policy, and overall market sentiment. Additionally, ongoing earnings reports and economic data releases will continue to influence market movements in the coming days.
Conclusion
Friday’s market rebound, driven by strong tech performances and labor market data, sets the stage for an eventful week ahead. As investors navigate through election uncertainty and anticipate the Fed’s next move, staying informed about market trends and company-specific news will be crucial for making well-informed investment decisions.
