Amazon lifts markets to close out another winning week and month

Amazon led the U.S. stock market higher on October 31, concluding a winning week and month for many indexes. The S&P 500 was nearly flat but remained close to an all-time high, on track for its longest monthly winning streak since 2021. The Dow Jones Industrial Average saw a slight decline, while the Nasdaq composite gained. Amazon's stock surged over 10% after reporting quarterly profits that significantly exceeded expectations, driven by strong performance in its cloud computing business. Due to its massive market capitalization, Amazon's stock movements have a substantial impact on the S&P 500. Apple, despite being larger than Amazon, had a minimal effect on the market with its stock showing modest fluctuations. Apple also reported better-than-expected profits, boosted by iPhone sales and services revenue. Reddit's stock jumped significantly after exceeding profit and revenue forecasts, recovering earlier losses. Coinbase Global also rose after its crypto exchange reported profits above analyst expectations. Netflix added to gains after announcing a 10-for-1 stock split to make its shares more accessible. These gains helped offset a drop in AbbVie's stock despite its strong earnings report. Companies face pressure to demonstrate robust profit growth to justify recent stock price increases amidst concerns of an overvalued market. Previous market declines were influenced by planned spending increases by Meta and Microsoft for AI technology and skepticism about a trade truce between the U.S. and China. International markets showed mixed results, with European indexes falling and some Asian markets declining, though Japan's Nikkei 225 reached a record high. In bond markets, Treasury yields eased after a previous rise, with the 10-year yield settling slightly above its level before a Federal Reserve warning about interest rate cuts.