Stock Market Recap: Why Was the Market Up Today? – October 30, 2024
Major Indexes Close Higher as Tech Earnings Drive Optimism
The U.S. stock market ended Wednesday, October 30, 2024, on a positive note, with major indexes closing higher as investors digested a flurry of tech earnings and economic data. The S&P 500 and Nasdaq Composite continued their upward trajectory, while the Dow Jones Industrial Average managed to reverse earlier losses.
Market Performance Highlights
– The S&P 500 gained 0.2%, building on Tuesday’s 0.16% increase.
– The Nasdaq Composite rose 0.6%, extending its 0.78% climb from the previous session.
– The Dow Jones Industrial Average edged up 0.1%, recovering from an earlier dip of 0.2%.
Tech Earnings Boost Market Sentiment
Alphabet (GOOGL) set a positive tone for the tech sector, with shares surging over 5% following strong quarterly results, particularly in its cloud division. This performance helped lift other tech giants, with Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META) all gaining ground.
However, not all tech news was positive. Advanced Micro Devices (AMD) saw its shares slide 8% in premarket trading after issuing weaker-than-expected revenue guidance for the fourth quarter.
Economic Data in Focus
Investors closely watched the release of the preliminary Gross Domestic Product (GDP) reading for the third quarter. The report showed that the U.S. economy grew at a 3.1% annualized pace, slightly above the previous quarter’s rate. This marks the 10th consecutive quarter of expansion, indicating resilient economic growth despite ongoing challenges.
Upcoming Market Events
Market participants are now turning their attention to additional tech earnings reports scheduled for release:
1. Meta Platforms (META) and Microsoft (MSFT) are set to report later today.
2. Apple (AAPL) and Amazon (AMZN) are due to release their earnings on Thursday.
These reports are expected to provide further insights into the health of the tech sector and its impact on the broader market.
Notable Stock Movements
– McDonald’s (MCD): Shares dipped slightly despite beating expectations on both top and bottom lines, as same-store sales figures disappointed investors.
– Ford (F): The automaker’s stock plummeted 9%, leading S&P 500 decliners, after reporting lower-than-expected profit and trimming its full-year outlook.
– VF Corp. (VFC): Shares of the apparel company surged 24% following its quarterly results, making it the day’s biggest gainer.
– Tesla (TSLA): The electric vehicle maker’s stock fell 2.5%, continuing its decline for the second consecutive day after last week’s 25% surge.
Global Market Overview
Asian markets showed mixed performance on Wednesday:
– Japan’s Nikkei 225 rose 0.96% to close at 39,277.39.
– Hong Kong’s Hang Seng index fell 1.65% to 20,358.
– China’s CSI 300 closed 0.90% lower at 3,889.45.
European markets opened lower as investors awaited key economic data, including GDP and inflation figures from the region.
Looking Ahead
As the week progresses, market participants will continue to monitor tech earnings, economic indicators, and any developments in global trade relations. The resilience of growth-oriented stocks, particularly in the tech sector, will be crucial in determining the market’s direction in the coming days.
With inflation showing signs of moderating and economic growth remaining steady, investors are cautiously optimistic about the market’s prospects. However, concerns about high interest rates and geopolitical tensions continue to linger, potentially impacting market sentiment in the near term.
In conclusion, today’s market performance reflects a delicate balance between positive earnings surprises and ongoing economic uncertainties. As we move forward, the interplay between corporate performance and macroeconomic factors will likely continue to drive market dynamics.
