Stocks finished significantly higher in the US on Friday, starting November on a positive note as robust earnings from Amazon (NASDAQ:AMZN) and Intel (NASDAQ:INTC) lifted sentiment, helping traders overlook a disappointing jobs report. In October 2024, the unemployment rate in the United States remained steady at 4.10%, unchanged from the three-month low recorded the previous month and in line with market expectations. The S&P 500 and Nasdaq gained 0.40% and 0.80%, respectively, while the Dow Jones added 288 points. The US payroll report revealed only 12 thousand new jobs in October, far below expectations, with analysts attributing the weak data to disruptions from a hurricane and a Boeing (NYSE:BA) strike. Investors are also anticipating the upcoming Fed policy meeting and the US presidential election, both likely to introduce volatility next week. Despite Friday’s gains, all three major indices declined over the week.
The FTSE/JSE All Share Index recorded its strongest gains in five weeks as global markets rebounded from the previous session's losses. After a drop of over 1.50% in the prior session, the all-share index bounced back on Friday, climbing up to 1.11% during intraday trading. This recovery was fuelled by shifting sentiment on earnings from major tech companies. Initial concerns surrounding Meta’s lower-than-expected user growth and Microsoft’s underwhelming revenue forecast were softened by Amazon’s strong cloud and advertising performance, lifting market optimism. The JSE all share closed 0.95% higher, with all major indices up, and the top 40 rising by 0.99%.
In Asia, the Hang Seng gained 0.90% on the first day of the month, ending a two-day slide as China’s factory activity improved last month. Positive effects of recent stimulus measures from Beijing became visible, ahead of the upcoming National People’s Congress session where further initiatives could be introduced. The Nikkei, however, dropped 2.63% on Friday, continuing its losses from the prior session, reflecting declines in US markets due to disappointing earnings reports from Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META).
European markets continued to advance on Friday, with the STOXX 50 up 1% and the STOXX 600 increasing by 1.10%, ending a three-day losing streak and slightly easing weekly losses to 1.50% and 1.30%, respectively. Investors closely monitored corporate earnings and the economic outlook, with strong reports from Amazon and Intel buoying sentiment. A weaker-than-expected US payroll report briefly supported credit markets, but this was tempered by a sharp rise in the ISM manufacturing prices index later in the day.
WTI crude oil futures increased to $69.5 per barrel on Friday, marking a third consecutive day of gains, although still down 3% over the week. This rise is attributed to expectations of a potential response from Tehran following Israel’s recent retaliatory strikes. Investor sentiment remains cautious, especially after Israel’s military chief warned of a “severe” response to any further missile attacks from Iran. The ongoing conflict between Iran and Israel, involving air strikes and counterattacks, is linked to the broader unrest in Gaza.
