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U.S. markets opened higher on Friday, led by gains in big tech stocks after strong earnings from Apple and Amazon lifted investor confidence.
By mid-morning, the Dow Jones was up slightly by about 20 points, while the S&P 500 rose 0.5% and the tech-heavy NASDAQ jumped 1.1%. October has been a solid month overall, with the S&P 500 up around 2%, the NASDAQ gaining more than 4%, and the Dow rising 2.4%. The Dow is also on track for its sixth straight month of gains, something not seen since 2018.
Investor mood improved after Apple and Amazon reported better-than-expected results, easing worries about rising tech spending. Apple’s stock rose after the company predicted a strong holiday season, expecting revenue to grow 10% to 12%. CEO Tim Cook told CNBC that the iPhone 17 launch would make this December the best quarter in Apple’s history.
Amazon shares also surged after it reported strong quarterly earnings. The company saw retail profits recover and demand for its cloud business, Amazon Web Services, grow by 20%, its fastest pace since 2022. Analysts said this shows Amazon’s AI-related business is gaining strength even though it’s seen as slower in the AI race compared to rivals.
Elsewhere, Netflix announced a 10-for-1 stock split to make its shares more affordable to investors. In the energy sector, Exxon Mobil reported lower quarterly earnings because of falling oil prices, while Chevron posted stronger profits helped by its recent Hess acquisition.
Investors also continued to analyze the latest Federal Reserve update. The Fed cut interest rates by 0.25% this week, but Chair Jerome Powell said another cut in December is not guaranteed. This cautious message cooled expectations for more aggressive rate cuts soon.
On the political front, President Donald Trump said he had an “amazing” meeting with China’s President Xi, calling it positive and hinting that a trade deal could happen soon. He said there were few issues left to settle and that he plans to visit China in April, though no signing date was given.
Oil prices ticked up slightly on Friday, but both Brent and WTI crude are still headed for a third straight monthly drop, each down about 3% in October. A stronger dollar and higher output from OPEC and other major producers are putting pressure on prices. Rising production is expected to outweigh global demand and may also help offset the impact of Western sanctions on Russian exports.