US stocks advanced Friday, lifted by strong earnings from major technology companies Amazon and Apple.
The S&P 500 rose 0.7%, the Nasdaq Composite gained 1.5%, and the Dow Jones Industrial Average added 83 points, or 0.2%.
Amazon shares surged more than 12% after the company reported a 20% jump in cloud revenue during the third quarter, surpassing Wall Street expectations.
Apple climbed 1.6% after posting better-than-expected quarterly results and offering an upbeat forecast for the December quarter.
“Following a reacceleration in AWS growth and positive commentary this quarter, we believe investors have regained comfort in management’s ability to retain a leading position in the AI space,” said Dan Ives, global head of technology research at Wedbush Securities, in a note.
Netflix also gained more than 1% after announcing a 10-for-1 stock split.
The rebound followed Thursday’s losses, when all three major indexes finished lower as declines in Meta, Microsoft, and Nvidia weighed on sentiment amid concerns over rising AI-related spending.
Meta suffered its sharpest single-day decline in three years.
Investors were also watching developments on the trade front.
President Donald Trump and President Xi Jinping agreed to a one-year trade truce after their meeting in South Korea, easing concerns about an escalation in tensions.
Trump said the US would cut fentanyl-related tariffs on China by 10%, reducing overall duties on Chinese imports to about 47%, while Beijing agreed to delay rare earth export controls for one year.
Disputes over Nvidia’s AI chip exports and TikTok’s US divestiture remain unresolved.
All three major US indices remain on track to finish the week and month higher.
The S&P 500 has gained 0.45% this week, while the Nasdaq and Dow are up about 1.6% and 0.7%, respectively.
For October, the S&P 500 is up 2%, the Nasdaq has advanced 4.1%, and the Dow has added 2.4%, setting it up for its sixth consecutive monthly gain, the longest streak since 2018.
Big Tech earnings recap
Wall Street turned its attention to another round of Big Tech earnings on Thursday, with overnight trading suggesting a calmer reaction from investors compared with the sharp selloff that followed Meta’s results.
Amazon shares jumped 13% after the company posted stronger-than-expected earnings and 20% revenue growth in its cloud division.
The e-commerce giant also raised its 2025 capital expenditure outlook to $125 billion, noting that spending will likely be even higher the following year.
Apple stock rose 2% after beating analyst forecasts. CEO Tim Cook said demand for the new iPhone 17 was “off the chart.”
Unlike peers, Apple has taken a more measured approach to its artificial intelligence investments.
Thursday’s session was marked by weakness in the technology sector, as post-earnings declines in Meta and Microsoft weighed on the broader market.
Even so, all three major US indices remain on track to close the month — which wraps up with today’s session — in positive territory.
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