U.S. stocks climbed Friday, propelled by strong performances from the technology sector and robust earnings announcements from two of Wall Street’s marquee names. The market’s momentum reflected renewed investor confidence after a week marked by concerns over technology spending patterns.

At mid-morning trading, the S&P 500 rose 30 points, or 0.5%, while the tech-heavy NASDAQ Composite gained 260 points, or 1.1%. The Dow Jones Industrial Average ticked up 20 points, or 0.1%, as traditional sectors offered modest support to the broader market advance.

Apple and Amazon earnings drive sentiment shift

Apple’s stock surged after the iPhone manufacturer issued an upbeat forward guidance for the critical holiday shopping season. The company expects total revenue to grow between 10% and 12% during the December quarter, driven by strong demand for its newest iPhone 17 model. Management anticipates this period will mark the strongest December quarter in company history.

The positive outlook reflects management’s confidence that consumers will upgrade to Apple’s latest technology as the holiday season approaches. The company’s financial guidance provided meaningful reassurance to investors who had worried about potential weakness in consumer spending heading into the final months of the year. Apple’s performance influenced broader tech sector sentiment, which had faced skepticism earlier in the week regarding large capital expenditure commitments.

Amazon shares similarly benefited from earnings that exceeded analyst expectations. The e-commerce and cloud computing giant reported strong results driven by healthy retail margins and solid performance from its cloud division. Amazon Web Services achieved 20% top-line growth, representing the fastest increase since 2022 and demonstrating the division’s importance to the company’s artificial intelligence ambitions.

Cloud division shows resilience amid AI competition

Despite some observers viewing Amazon as a relative laggard in the artificial intelligence arms race, the cloud division’s performance provided evidence of the company’s competitive positioning in emerging technology. Web Services growth of 20% represented the strongest year-over-year increase in the past three years, signaling sustained demand for cloud infrastructure services.

The cloud division’s results matter significantly because analysts view AWS revenue growth as a proxy for corporate investment in artificial intelligence infrastructure. The division has become increasingly tied to Amazon’s strategic positioning in the rapidly evolving technology landscape. Strong performance in this segment provided tangible evidence that spending on cloud and AI infrastructure remains robust despite macroeconomic uncertainties.

October market strength continues climbing

October proved to be an exceptionally strong month for U.S. equities. The S&P 500 climbed 2% over the month, while the tech-heavy NASDAQ Composite gained over 4%. The 30-stock Dow Jones Industrial Average rose 2.4% month to date. The Dow Jones is on pace for its sixth consecutive positive month, the first occurrence of this streak since 2018.

The monthly performance reflected a combination of improving corporate earnings, moderating inflation concerns, and Federal Reserve policy that balanced rate cuts against concerns about economic momentum. October’s strength follows months of more volatile trading patterns, establishing a foundation of confidence heading into the final two months of the year.

Federal Reserve signals measured approach

Investors continued to process the implications of the Federal Reserve’s latest policy meeting. While the Fed cut interest rates by 25 basis points this week, Chair Jerome Powell tempered expectations for aggressive monetary easing by indicating that another rate cut in December was uncertain. Powell’s cautious language suggested the central bank may pause its rate-cutting cycle to assess economic data more thoroughly.

The Fed chair’s measured approach reflected concerns about inflation persistence and labor market strength despite rising unemployment claims in recent weeks. The central bank appears inclined to evaluate economic conditions more carefully before committing to additional rate reductions. This stance provides some support for equities while avoiding the exuberance that could emerge if investors expected rapid monetary accommodation.

Oil sector mixed as prices decline

Energy stocks displayed divergent performance Friday as crude prices fell. Brent crude futures climbed 0.6% to $64.78 a barrel, while U.S. West Texas Intermediate crude futures rose 0.7% to $61.02 a barrel. Both benchmarks are tracking toward approximately 3% monthly declines during October.

Exxon Mobil reported year-over-year earnings declines in the third quarter as oil prices tumbled due largely to OPEC+ increasing production. The company’s struggles contrasted with Chevron’s third-quarter profit, which exceeded estimates, benefiting partly from oil production tied to its earlier acquisition of Hess. The divergent performances highlighted how individual company strategies and acquisition timing influenced earnings resilience amid commodity price pressure.

Trade negotiations and supply dynamics

Oil prices faced headwinds from a stronger dollar and expectations of rising supply from major producers. OPEC and major non-OPEC producers have been ramping up output to capture additional market share, with supply growth expected to exceed demand growth during the year. Additional supply will help cushion the impact of Western sanctions disrupting Russian oil exports to primary buyers China and India.

Meanwhile, President Donald Trump characterized his Thursday meeting with China’s Xi as amazing and outstanding, offering limited specific detail about how the countries will address trade tensions. Trump suggested a trade deal with China could materialize pretty soon and indicated plans to visit China in April. The vague timeline and limited specificity left markets uncertain about the trajectory of U.S.-China trade relations heading into the final quarter of the year.

Entertainment sector realignment

Beyond the core market movements, Netflix announced a 10-for-1 stock split, a corporate action that makes shares more accessible to retail investors while maintaining the company’s market capitalization. The streaming giant’s stock rose 3.24% during the day’s trading, reflecting investor enthusiasm for the stock split announcement and the company’s ongoing streaming strategy.