Traders work on the floor of the New York Stock Exchange (NYSE) on October 29, 2025 in New York City, USA.
Brendan McDiarmid | Reuters
of S&P500 and Nasdaq Composite Gains on Friday after tech giant’s strong quarterly results Amazon Increased investor confidence in artificial intelligence.
The broader market index rose 0.3%, and the tech-heavy Nasdaq rose 0.8%. of Dow Jones Industrial Average It traded near the flatline.
Amazon shares rose 10% after the e-commerce giant said its cloud computing division’s third-quarter revenue rose 20%, beating Wall Street expectations. Andy Jassy, the company’s CEO, said AWS is “growing at a pace not seen since 2022” and demand for AI and core infrastructure is “strong.”
Brian Mulberry, client portfolio manager at Zacks Investment Management, told CNBC: “AI adoption is on the rise, making corporate investment in increased computing power and Gemini capabilities worthwhile. With more than $600 billion in capital spending currently committed for next year, this will be a key indicator going forward.”
Wall Streeters also bought up shares of other AI stocks in response to Amazon’s results. AI software company Palantir 2% increase despite being a major AI company oracle It was nearly 1% higher.
“Investors will be looking at how that spending is returned to companies in the form of increased AI revenue,” Mulberry said.
Streaming giant helps broader market on Friday Netflix Shares rose more than 3% after the company announced a 10-for-1 stock split. electric car manufacturers tesla was also a winner, with the stock up 2%.
Stocks are emerging from lackluster trading as each benchmark index ended in the red on Thursday. The market fell as big-name tech stocks fell. meta platform, microsoft So has Nvidia, amid investor concerns over rising AI spending. Meta recorded its biggest single-day loss in three years.
But fears of a potential full-scale trade war between the United States and China eased on Thursday after President Donald Trump and President Xi Jinping agreed to a one-year trade cease-fire after talks in South Korea.
President Trump has agreed to reduce tariffs on fentanyl to China by 10%, effective immediately. As a result, overall tariffs on Chinese products have been reduced to approximately 47%. Meanwhile, the Chinese government has agreed to suspend restrictions on rare earth exports announced earlier this month for one year. Still, other areas of dispute remained unresolved, including Nvidia’s export of advanced AI chips and the sale of its U.S. TikTok business.
The three major U.S. stock indexes are on track to end the week and month on a strong note. The S&P 500 is up nearly 1% so far this week, while the tech-heavy Nasdaq and Dow are up more than 2% and nearly 1%, respectively, since the start of the week.
Despite the largest single-day loss in stock market history in October, the S&P 500 index rose more than 2% for the month. The Nasdaq is up about 5%, and the 30-stock Dow Jones Industrial Average is up more than 2% since the beginning of the month. The Dow Jones Industrial Average has remained in positive territory for six consecutive months for the first time since 2018.
