US Stocks Rebound on Amazon Results Ahead of Election Finale

AFP/APP
New York:Wall Street stocks rebounded Friday, following mixed tech earnings and investor concerns less than a week before a close US presidential election.

• Market Reaction: Major indices had tumbled Thursday after significant declines in Microsoft and Meta. However, strong results from Amazon provided a boost, countering some negativity around mega-cap stocks, according to Briefing.com analyst Patrick O’Hare.
• Employment Report: The US economy added only 12,000 jobs last month, well below expectations. The figure was affected by recent hurricanes and the Boeing strike. Nonetheless, the weak report bolstered hopes that the Federal Reserve might lower interest rates again next week. Futures markets overwhelmingly expect a 25 basis point cut.
• Major Indices:
  • Nasdaq led the gains, up 0.8%.
  • Dow rose by 0.7%.
  • S&P 500 climbed 0.4%.

Analysts expect cautious trading early next week ahead of Tuesday’s presidential election, with the potential for results being delayed by several days.

Geopolitical Developments:
Oil prices gained on reports that Iran was planning a major retaliatory strike on Israel, renewing geopolitical fears in the market.

Federal Reserve Outlook:
Expectations of a large rate cut (like the 50 basis point reduction in September) have lessened due to strong US economic growth and inflation hovering just above the Fed’s 2% target.

However, the low job growth in October may prompt the Fed to proceed with a 25 basis point cut next week, says ADSS senior analyst Mahmoud Alkudsi. eToro’s Bret Kenwell noted that the October jobs report keeps a potential December rate cut on the table.

European Markets:
European indices ended higher:

• London FTSE 100: Up 0.8%, despite concerns over the high-tax, high-spending budget proposed by the Labour government. Britain’s 10-year borrowing rate reached its highest since November 2023, driven by inflation fears.
• Paris CAC 40: Up 0.8%.
• Frankfurt DAX: Up 0.9%.

Asian Markets:
Asian markets closed mixed:

• Tokyo Nikkei 225: Down 2.6%, with tech shares dragging following Wall Street’s dip.
• Hong Kong Hang Seng: Up 0.9%.
• Shanghai Composite: Down 0.2%, despite a strong Chinese manufacturing report that boosted economic recovery hopes.
• Key Figures (as of 2030 GMT):

• New York:
  • Dow: UP 0.7% at 42,052.19
  • S&P 500: UP 0.4% at 5,728.80
  • Nasdaq: UP 0.8% at 18,239.92
• London FTSE 100: UP 0.8% at 8,177.15
• Paris CAC 40: UP 0.8% at 7,409.11
• Frankfurt DAX: UP 0.9% at 19,254.97
• Tokyo Nikkei 225: DOWN 2.6% at 38,053.67
• Hong Kong Hang Seng: UP 0.9% at 20,506.43
• Shanghai Composite: DOWN 0.2% at 3,272.01

Currencies:

• Euro/Dollar: DOWN at $1.0833 (from $1.0884 Thursday)
• Pound/Dollar: UP at $1.2917 (from $1.2899)
• Dollar/Yen: UP at 153.01 yen (from 152.03 yen)
• Euro/Pound: DOWN at 83.86 pence (from 84.37 pence)

Commodities:

• Brent Crude: UP 0.4% at $73.16 per barrel
• WTI Crude: UP 0.3% at $69.49 per barrel