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Investing.com -- U.S. stocks rose Friday, lifted in part by Amazon’s strong quarterly results that fueled gains across major indexes.
The Nasdaq Composite advanced 0.61% to 23,724.96, while the S&P 500 added 0.26% to 6,840.20. The Dow Jones Industrial Average inched up 40.75 points, or 0.09%, to 47,562.87.
Amazon shares jumped nearly 10% after the tech giant said revenue at its cloud division grew 20% in the third quarter, surpassing expectations.
The results helped the Nasdaq notch a solid finish to the week. The S&P 500 gained 0.7% this week, with the Nasdaq up 2.2% and the Dow higher by 0.8%.
October brought strong monthly gains as well. The S&P 500 rose 2.3%, the Nasdaq climbed 4.7%, and the Dow advanced 2.5% — its sixth consecutive monthly increase and the longest streak since 2018.
Investors will shift focus to corporate earnings next week as the reporting season enters a busy stretch. With the government shutdown halting most official data releases, market participants are also watching company staffing announcements for clues about the labor market.
Amazon said it plans to cut about 14,000 corporate jobs globally, with additional reductions expected next year.
The shutdown, which began on October 1, is now the second-longest in U.S. history, trailing only the 35-day lapse in 2018–2019.
The delay of key reports, including monthly jobs data originally set for November 7, means investors will rely more heavily on private indicators such as the ADP employment report and University of Michigan consumer sentiment survey to assess the economy’s direction.
Investors brace for another busy earnings week
U.S. stocks enter another busy stretch of earnings with momentum intact, as investors weigh the durability of the AI rally and how aggressively the Federal Reserve may cut rates.
Corporate results have so far outpaced expectations. S&P 500 companies are on track to post a 13.8% year-on-year profit increase for the third quarter, according to LSEG IBES data. More than 130 firms in the index are set to report in the coming week.
Technology names will remain in focus. Semiconductor makers Advanced Micro Devices and Qualcomm, along with data analytics firm Palantir Technologies, are among the key reports due.
Other notable companies scheduled to release results include Pinterest, Snap, McDonald’s, and Uber.
What analysts are saying about U.S. stocks
Morgan Stanley: "We’re encouraged by the sales beat rate in earnings season (>2x avg.) and the best EPS growth for the median stock (11%) in 4 years—supportive of our call that a new cycle and bull market began in April. Near-term risks to watch—Fed moving too slow and funding market stress increasing."
JPMorgan: "The starting point between US and International equity weights, as well as valuation divergence, remain extreme. The potential resumption of the rotation into International markets, post the last 6 months pause, could work even if the AI trade does not take a back seat, given the changed correlations, and even if risk markets were to see some weakness, as the US might not be a traditional low beta that it was in times of elevated volatility."
Evercore ISI: "Enthusiasm has spurred double-digit SPX returns YTD, in what would be the third year in a row. EVR ISI Strategy continues to see S&P 500 upside to 7,750 by YE 2026 as signs of an end to this (relatively) young bull market – hawkish Fed, capital market froth, slowing AI spending – remain absent."
BTIG: "The Nasdaq 100 closed higher for a seventh consecutive month, something it has only done five other times in its history. Only twice did it continue higher for an eighth straight, and not since 1995. While we are well aware that November is historically bullish (higher 12 of last 13 years), we think there could be some November rain this year."
RBC Capital Markets: "We continue to think earnings are providing a solid foundation for the US equity market. But we also continue to think it’s important to note that earnings sentiment is still tracking a notch below what we saw in the last reporting season, suggesting the best part of the earnings story may be behind us.