Stock market today: Nasdaq, S&P 500 rebound as Amazon surges, market shrugs off jobs data

Published On Nov 1, 2024, 2:59 PM

US stock markets showed signs of recovery, buoyed by strong earnings reports from Amazon and Intel, despite a disappointing jobs report. The US economy added just 12,000 jobs in October, falling well short of expectations. The negative employment figures did not significantly impact market expectations for an interest rate cut by the Federal Reserve, which traders now largely anticipate. Amazon shares rose over 6% after it posted strong growth in its AWS AI business, while Intel reported earnings that surpassed expectations, leading to an 8% increase in its stock. In contrast, Apple saw its stock fall following mixed results and a weak outlook for sales in China. Overall, the market is cautiously optimistic about tech stocks, particularly in light of Amazon's performance, which highlights potential for significant returns in expenditure on AI and cloud computing.

Stock Forecasts

Amazon's robust earnings and growth outlook provide confidence in its continued growth despite high capital expenditures, which are aimed at expanding its cloud and AI capabilities. Investor sentiment is expected to remain positive, particularly given the broader tech market environment.

Intel's strong earnings and optimistic outlook suggest a potential turnaround for the company, which has been struggling in recent quarters. This positive news could indicate a sustained upward movement in its stock price as investors regain confidence.

Apple is currently facing headwinds from disappointing earnings related to weaker-than-expected sales in China and a mixed sales outlook. This negative sentiment is likely to continue affecting its stock price in the near term as investors reassess growth projections amid global economic concerns.

Boeing's stock could see a positive influence from the resolution of the workers' strike, as union support of the latest proposal may stabilize operations and restore investor confidence, suggesting a potential upward momentum in its stock price.

The unfavorable jobs report could indicate a slowing economy, leading to more rate cuts and impacting financials negatively as tighter monetary policy could dampen economic growth. This may prompt a negative outlook for financial stocks which typically rely on rising interest rates.

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