After a sharp sell-off on Thursday, the stock market experienced a robust recovery in early Friday trading. Though the major averages retreated slightly as the day progressed, they maintained a solid foothold in positive territory.
Leading the charge was the tech-heavy Nasdaq, which climbed 144.77 points, or 0.8%, to settle at 18,239.92, rebounding after two consecutive days of sharp declines. The Dow also advanced 288.73 points, or 0.7%, to 42,052.19, recovering from its lowest close in over a month. Meanwhile, the S&P 500 increased by 23.35 points, or 0.4%, ending at 5,728.80.
However, despite Friday's rebound, the major indices recorded losses for the week. The Dow dipped by 0.2%, while the S&P 500 and the Nasdaq declined by 1.4% and 1.5%, respectively.
The uptick on Wall Street was partly due to positive earnings reports from prominent companies, including Intel (INTC) and Amazon (AMZN).
Intel, a leading semiconductor firm, surged by 7.8% following the release of stronger-than-expected third-quarter results and upbeat future guidance.
Similarly, Amazon's shares spiked by 6.2% after the online retail behemoth reported third-quarter earnings that surpassed analysts' expectations on both revenue and profit lines.
Conversely, Apple (AAPL) shares edged lower despite the company posting better-than-anticipated fiscal fourth-quarter results.
Investors also took into account the Labor Department's much-anticipated report, revealing weaker-than-expected job growth for October.
According to the Labor Department, non-farm payroll employment saw a modest increase of 12,000 jobs in October, following a downward revision of the September figure to 223,000 jobs.
Economists had projected an increase of 113,000 jobs, in contrast to the initially reported 254,000 additions for the previous month.
Meanwhile, the unemployment rate remained steady at 4.1% in October, consistent with September's figures and in line with economic forecasts.
Although the data raised concerns about the economic landscape, it also sparked optimism regarding future interest rate trends.
Nevertheless, due to the effects of Hurricanes Helene and Milton coupled with the Boeing (BA) strike, the report is unlikely to alter the Federal Reserve's approach to gradually reducing rates.
**Sector Analysis**
Retail stocks saw a sharp rise, buoyed by Amazon's upbeat performance, propelling the Dow Jones U.S. Retail Index to a record closing high with a 2.6% gain.
Biotechnology stocks demonstrated significant strength, with the NYSE Arca Biotechnology Index jumping 2.2%.
Airline, networking, and computer hardware stocks also displayed notable strength, whereas utilities and natural gas stocks faced marked weakness.
**Global Markets**
In international markets, the Asia-Pacific stock indices mostly trended downwards on Friday. Japan's Nikkei 225 Index plummeted by 2.6%, and China's Shanghai Composite Index eased by 0.2%. However, Hong Kong's Hang Seng Index defied the downward trend by rising 0.9%.
Conversely, major European markets turned upward for the day. The German DAX Index rose by 0.9%, with the U.K.'s FTSE 100 Index and France's CAC 40 Index both advancing by 0.8%.
In the bond market, treasury yields increased sharply following an initial rally sparked by the jobs report. The yield on the benchmark ten-year note, which inversely correlates with its price, jumped by 7.7 basis points, reaching a nearly four-month high at 4.361%, after touching a low of 4.223%.
**Looking Forward**
In the week ahead, attention is expected to focus on the U.S. presidential election results, as well as reports on factory orders, service sector activity, and consumer sentiment.
Market activity may also be influenced by reactions to the latest earnings announcements, with a number of high-profile companies scheduled to release their quarterly reports.