Earnings Rally Overshadowed by Fed's Caution
The Nasdaq surged, thanks to Amazon's strong earnings forecast overshadowing tempered investor sentiment due to the Fed's rate cut caution. Apple and grocery stocks saw mixed results, while Netflix and others saw positive movement. Federal judges blocked food aid suspensions during the government shutdown, affecting related stock movements.
The Nasdaq closed at higher gains compared to the S&P 500 and the Dow on Friday, powered by Amazon's optimistic earnings forecast, despite investor concerns over the Federal Reserve's cautious stance on rate cuts.
Amazon shares soared to an all-time high after announcing quarterly sales expectations that beat estimates. Meanwhile, Apple saw a more modest stock movement after its sales forecast exceeded Wall Street's predictions, though supply issues were noted by CEO Tim Cook.
The market faced a cooling effect from Federal Reserve Bank of Atlanta President Raphael Bostic and Federal Reserve Bank of Cleveland President Beth Hammack, with concerns about rapid rate cuts and inflation. In related news, federal judges blocked President Trump's administration from halting food aid during the government shutdown, impacting stocks like Kroger. Significant movements were observed in the tech sector with Netflix and Western Digital climbing after positive announcements.
Google News