US stocks extended their gains on Friday, with the S&P 500 increasing by 0.9%, the Nasdaq rising by 1.1%, and the Dow surging by 385 points, as fresh economic data reinforced expectations that the Federal Reserve has room to maintain a loose monetary policy.
U.S. stocks increase on Friday
The ISM Manufacturing PMI fell short of forecasts, indicating another significant contraction in the manufacturing sector, while the jobs report revealed that the US economy added only 12,000 jobs in October, drastically lower than the anticipated 113,000. This disappointing figure was partly influenced by Boeing strikes and disruptions caused by hurricanes.
Market participants also focused on the latest earnings reports, which contributed to the day's positive momentum. Shares of Amazon soared nearly 7% following better-than-expected third-quarter results, driven by robust growth in its cloud computing and advertising segments. Intel also saw a notable rally, with its stock rising 5.2% after reporting stronger-than-expected revenue and providing an optimistic sales outlook for the upcoming quarters. Conversely, Apple shares dipped by 0.4% after the company cautioned about weak growth projections for the holiday season and ongoing challenges in the Chinese market.
Energy shares gain
Additionally, energy stocks saw gains, with Exxon Mobil rising by 0.7% and Chevron up 3.9%, both benefiting from strong earnings reports and a sharp increase in oil prices. Overall, the positive earnings from major companies combined with the weak labor market data contributed to a sense of optimism in the markets, even as traders remained vigilant about economic indicators that could influence future Federal Reserve decisions. As the day progressed, investors continued to monitor developments in the economic landscape, looking for further signs of recovery or challenges ahead.
