Stocks Advance as Amazon’s Surge Sparks $300 Billion Market Rally

The S&P 500 is on track to extend its winning streak to a sixth consecutive month after Amazon.com Inc.’s standout earnings report reignited momentum in global markets.

‍

Futures tied to the U.S. benchmark advanced on Friday as Amazon surged 13% in premarket trading, poised to add nearly $300 billion to its market capitalization. The e-commerce and cloud giant posted its fastest cloud revenue growth in nearly three years, giving a significant boost to market sentiment.

‍

Apple Inc. also joined the rally after reporting better-than-expected revenue and issuing an optimistic holiday-season forecast. Nasdaq 100 futures climbed 1.2%, underscoring renewed enthusiasm for technology stocks.

‍

Nvidia Corp. added fuel to the tech-driven rebound by unveiling new partnerships with South Korea’s largest companies, strengthening its global push to expand artificial intelligence infrastructure. The wave of positive corporate announcements lifted all members of the so-called “Magnificent Seven” after a brief selloff in the prior session.

‍

Overseas, European equities struggled, with the Stoxx 600 Index slipping for a fourth consecutive day marking its longest losing streak since July. In Asia, benchmark indexes pared monthly gains, while U.S. Treasuries steadied following two sessions of sharp yield increases. The U.S. dollar, meanwhile, held relatively steady.

‍

Friday’s rebound in U.S. stocks provided a welcome breather after Thursday’s steep declines, which had raised fresh questions about whether massive AI-related investments will ultimately deliver the expected returns. Much of the S&P 500’s advance this year has been driven by a handful of mega-cap tech names, prompting analysts to warn about stretched valuations following the index’s powerful rally.

‍

“Volatility has become more of a feature than a flaw in this market,” said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg. “Day-to-day swings can now move the valuations of major companies by hundreds of billions of dollars. The feedback loop of investor sentiment, speculative positioning, and fast-moving news flow has only intensified these fluctuations.”

‍

If Friday’s gains hold, the S&P 500 will notch its longest monthly winning streak since August 2021. The rally has persisted despite persistent trade frictions and geopolitical uncertainties, with corporate results providing a steady source of support. Roughly 80% of S&P 500 companies that have reported earnings so far have exceeded Wall Street expectations an encouraging sign for investors heading into year-end.

‍

Global equity markets have also benefited from strong inflows. According to Bank of America Corp., citing EPFR data, investors poured $17.2 billion into equities during the week ending October 29. Strategists led by Michael Hartnett noted that leadership in AI-related stocks remains firmly intact.

‍

“The real risk lies in the flow of funds,” said Karen Georges, equity fund manager at Ecofi. “Flows, rather than earnings growth, have been the dominant force behind this rally. If investors start pulling back from riskier assets, a true selloff could follow but as with a black swan event, it’s impossible to predict when it might happen.”

‍

On the geopolitical front, Treasury Secretary Scott Bessent said he expects the U.S. to resume trade talks with China within the next year. His comments followed an agreement between former President Donald Trump and Chinese President Xi Jinping to pause tariffs, roll back certain export controls, and reduce other trade restrictions.

‍

After the meeting, Xi cautioned against “breaking supply chains” in his first public remarks, signaling a desire for stability even as underlying tensions persist.

‍

“A comprehensive trade agreement still appears distant,” said Mohit Kumar, chief economist and strategist at Jefferies International. “While the latest truce has eased tensions temporarily, the potential for renewed friction remains high.”

‍

As earnings season nears its conclusion, the U.S. stock market continues to show remarkable resilience, powered by strong tech results and steady investor inflows. However, with volatility rising and valuations running hot, investors may need to tread carefully.

‍

The combination of robust corporate performance, ongoing enthusiasm for AI, and easing trade risks has kept the S&P 500 on course for another month of gains. But whether this rally can maintain its pace or if shifting sentiment and global uncertainty will trigger a correction remains the key question for markets heading into year-end.

‍