Global Markets Rebound on Amazon Earnings, U.S. Job Growth Stumbles
Global markets exhibited a mixed performance on Friday, November 1st, with U.S. markets staging a comeback from Thursday’s decline, fueled by Amazon’s robust earnings. However, weak U.S. job growth cast a shadow over the positive sentiment.
U.S. Markets:
Amazon’s strong retail sales performance helped to offset investor concerns stemming from weak October job growth in the U.S. While Amazon soared, Apple faced pressure due to declining sales in China. Other tech giants like Meta and Microsoft reported earnings, but with caution surrounding AI infrastructure costs, impacting the Nasdaq earlier in the day.
The U.S. economy added a mere 2,000 jobs, a significant drop from the revised 223,000 positions added in September and falling short of the anticipated 113,000. Average hourly wages increased by 0.4% to $35.46, while the unemployment rate remained steady at 4.1%.
The Dow Jones Industrial Average closed 0.69% higher at 42,052.19, the S&P 500 rose 0.41% to 5,728.80, and the Nasdaq Composite climbed 0.80% to 18,239.92. Most S&P 500 sectors ended the day in the red, with utilities, energy, and real estate experiencing losses. However, consumer discretionary and tech stocks closed in the green.
Asian Markets:
Japanese markets were closed for the Culture Day holiday. Australia’s S&P/ASX 200 gained 0.56% to 8,164.60, driven by gains in the IT, Utilities, and Telecoms Services sectors. India’s Nifty 50 traded lower by 1.29% at 23,989.65, and the Nifty 500 was down 1.38% at 22,508.65. China’s Shanghai Composite climbed 1.17% to 3,310.21, and the Shenzhen CSI 300 increased by 1.41% to 3,944.76. Hong Kong’s Hang Seng gained 0.30% to 20,567.52.
European Markets:
The European STOXX 50 index rose 0.27%. Germany’s DAX gained 0.15%, France’s CAC climbed 0.40%, and the U.K.’s FTSE 100 index traded higher by 0.63%.
Commodities:
Crude Oil WTI traded higher by 2.33% at $71.10/bbl, and Brent was up 2.19% at $74.70/bbl. Oil prices rose as OPEC+ postponed its planned output increase, signaling support amid weak demand. Natural Gas decreased 1.01% to $2.636. Gold traded higher by 0.07% at $2,751.15, Silver gained 0.65% to $32.883, and Copper rose 0.87% to $4.4095.
U.S. Futures:
Dow futures were up 0.09%, S&P 500 futures gained 0.22%, and Nasdaq 100 Futures rose 0.21%.
Forex:
The U.S. dollar index fell 0.54% to 103.72, the USD/JPY was down 0.76% to 151.82, and the USD/AUD gained 0.30% to 1.5169. The dollar weakened as markets reacted to a surprise poll showing Kamala Harris leading, boosting investor sentiment for continuity. Uncertainty surrounding the closely contested U.S. election and potential Fed rate cut also contributed to caution in currency markets.
The global market is now gearing up for a significant week, with the U.S. presidential election, potential Federal Reserve rate cuts, and key economic decisions from China’s Congress set to influence market dynamics.
