Stock markets mostly opened higher on Friday, buoyed by robust earnings reports from tech giants Amazon (AMZN) and Intel (INTC). The positive earnings results served to alleviate some of the pressure that the tech sector had been under in previous weeks due to mixed performance. As the trading day commenced with a promising outlook, investors were eagerly anticipating the release of the closely watched US inflation data later in the day.
The tech-heavy Nasdaq Composite Index (^IXIC) exhibited a strong rebound on Friday, with gains of nearly 1 percent. Simultaneously, the benchmark S&P 500 (^GSPC) also experienced upward momentum, rising approximately 0.4 percent. In contrast, the Dow Jones Industrial Average (^DJI) remained relatively stable, displaying minimal fluctuations.
Towards the end of the trading day, the Federal Reserve released the Personal Consumption Expenditures (PCE) Index, offering valuable insights into the state of price trends in the United States. The data indicated that prices continued to moderate in September. The core PCE, which excludes the volatile categories of food and energy, rose by 3.7 percent, in line with economists’ expectations. On a month-over-month basis, core PCE witnessed a 0.3 percent increase, a notable uptick from the 0.1 percent rise observed in August.
The Federal Reserve’s impending decision regarding interest rates remained a topic of uncertainty in the market, with investors eagerly awaiting the central bank’s next meeting. The question of whether rates would be raised again later in the year loomed large, as some analysts questioned the sustainability of consumer resilience. Cautionary remarks in companies’ earnings outlooks contributed to this uncertainty.
Overall, the tech giants’ impressive earnings undeniably propelled the surge in stock markets on Friday. Amazon, Intel, Exxon Mobil (XOM), and Chevron (CVX) emerged as standout performers, capturing investors’ attention. The upcoming Federal Reserve meeting scheduled for November 1 was also a focal point for market participants, who sought greater clarity on US inflation readings and monetary policy.
As investors eagerly await the Federal Reserve’s decision on interest rates and assess the impact of inflation on the economy, the stock market continues to be a dynamic arena of economic activity.
Source: Yahoo Finance
