Markets enter November following a strong finish to October, with U.S. stocks closing higher on Friday as the S&P 500 ($SPX) (SPY), Nasdaq, and Dow all posted gains driven by impressive tech earnings and optimism around potential Federal Reserve rate cuts. Amazon (AMZN) surged over 10% on earnings, helping offset declines in Microsoft (MSFT) and Meta (META), while traders recalibrated expectations for a December rate cut to around 60% probability following last week's Fed meeting.
October ended with solid monthly gains across major indexes, signaling cautious optimism heading into November despite ongoing uncertainties around U.S.-China trade relations following the Trump-Xi summit and the continuing government shutdown. This week features a convergence of manufacturing and services sector data Monday through Wednesday that will provide comprehensive insights into business activity and pricing pressures across the economy. The earnings calendar intensifies with a diverse lineup including semiconductor leaders Advanced Micro Devices (AMD) and Qualcomm (QCOM), high-growth software names Palantir (PLTR) and Datadog (DDOG), and consumer-facing giants Uber (UBER) and McDonald's (MCD) that together will test the sustainability of technology leadership and consumer spending resilience.
