Market Recap: Wall Street Rebounds on Tech Surge, Eyes on Jobs Report
Major Indexes Close Higher as Amazon Leads Tech Rally
In a dramatic turnaround from Thursday’s selloff, U.S. stock markets closed higher on Friday, November 1, 2024, with tech stocks leading the charge. The S&P 500 gained 1.9%, closing at 5,705.45, while the Dow Jones Industrial Average rose 0.9% to 41,763.46. The tech-heavy Nasdaq Composite surged 2.8%, ending the session at 18,095.15.
Amazon Sparks Tech Sector Rally
The day’s standout performer was Amazon (AMZN), which saw its stock price soar by 5.3% in after-hours trading following its impressive third-quarter earnings report. The e-commerce giant’s profit exceeded Wall Street expectations, driven by strong retail sales and continued growth in its cloud services division. This stellar performance added a staggering $104 billion to Amazon’s market capitalization.
Intel (INTC) also contributed to the tech sector’s positive momentum, with its shares jumping 7% after hours. The chipmaker surprised investors with upbeat revenue projections, signaling a potential turnaround in the semiconductor industry.
Market Sentiment Improves Despite Recent Volatility
The market’s rebound comes after a challenging week marked by volatility and concerns over Big Tech earnings. Meta Platforms (META) and Microsoft (MSFT) had faced significant pressure earlier in the week, with their shares dropping 4% and 6% respectively, despite beating earnings estimates. Investors’ worries about the impact of growing artificial intelligence investments on profits seemed to ease by Friday.
Upcoming Market Events: All Eyes on Jobs Report
As we look ahead, the market’s attention is firmly fixed on the upcoming U.S. nonfarm payrolls report, set to be released later today. Economists anticipate the addition of 113,000 jobs in October, although some analysts, including Goldman Sachs, project a more conservative figure of 95,000 new jobs. The jobs data will be crucial in shaping expectations for the Federal Reserve’s next move.
Federal Reserve Meeting and Interest Rate Outlook
Investors are keenly awaiting the Federal Reserve’s policy meeting next Tuesday. Market sentiment strongly favors a quarter-point rate cut, with a 94% probability priced in. This expectation comes on the heels of recent data showing robust U.S. consumption and signs of easing inflationary pressures.
Global Market Influences
International markets presented a mixed picture. Asian markets started the month cautiously, with Japan’s Nikkei index falling 2.1% due to a stronger yen. However, Chinese markets showed resilience, with the Hang Seng index in Hong Kong rising 0.4% after a private survey indicated China’s factory activity returned to expansion in October.
Oil Prices and Geopolitical Tensions
In the commodities market, oil prices extended their rally, with Brent crude up almost 2% to $74.13 a barrel. This increase is attributed to reports of potential geopolitical tensions, specifically concerns about Iran preparing a retaliatory strike on Israel.
Looking Ahead: Key Factors to Watch
As we move into the new month, investors should keep a close eye on several key factors:
1. The U.S. jobs report and its impact on Fed policy expectations
2. The upcoming U.S. presidential election on Tuesday
3. The Federal Reserve’s policy decision and commentary
4. Ongoing earnings reports from major corporations
5. Developments in global trade and geopolitical situations
Conclusion
Friday’s market rebound, led by strong performances in the tech sector, provides a positive end to a volatile week. As we enter a crucial period with significant economic data and events on the horizon, market participants will be closely monitoring how these factors shape the investment landscape in the coming weeks.
