Stocks rise with Amazon; US yields up ahead of US election

U.S. stocks climbed on Friday, led by a surge in Amazon shares after the company reported robust earnings. Meanwhile, 10-year Treasury yields reached a four-month high as investors hesitated to buy bonds ahead of Tuesday's U.S. presidential election.

 

Initially, Treasury yields dropped following October's U.S. employment report, which showed minimal job growth due to industrial actions and hurricanes. However, the unemployment rate remained steady at 4.1%, indicating a stable labor market.

 

After the U.S. market closed, S&P Dow Jones Indices announced that Nvidia would replace Intel in the Dow Jones Industrial Average. Nvidia's shares rose 1.9% in after-hours trading, while Intel dropped 1.4%.

 

With four days until Election Day, polls show a tight race between Republican Donald Trump and Democratic Vice President Kamala Harris. Some analysts predict that U.S. fiscal conditions may worsen regardless of the election outcome.

 

The benchmark 10-year yield increased by 7.7 basis points to 4.361%, the highest since July, after a significant 48 basis point rise in October.

 

On Wall Street, Amazon shares surged 6.2% after forecasting strong holiday quarter results. This gain helped counterbalance a 1.2% drop in Apple shares following the company's conservative growth outlook. “We’ve seen mixed results from Big Tech, but it wasn't as bad as expected,” said Rick Meckler of Cherry Lane Investments.

 

The Dow rose 288.73 points (0.69%) to 42,052.19, the S&P 500 gained 23.35 points (0.41%) to 5,728.80, and the Nasdaq rose 144.77 points (0.80%) to 18,239.92. However, the S&P 500 finished the week down 1.4%.

 

Globally, the MSCI index rose 0.34%, while Europe’s STOXX 600 had its best day in five weeks, boosted by bank stocks.

 

The dollar strengthened against the euro and other major currencies after the U.S. jobs report. The euro fell 0.40% to $1.084, while the dollar index gained 0.36%. Against the yen, the dollar rose 0.60% to 152.94 ahead of Japan’s long weekend.

 

Bitcoin saw a modest rise of 0.57%, trading at $69,531.

 

In commodities, oil prices rose amid reports that Iran was preparing a retaliatory strike on Israel from Iraq. Brent crude futures gained 29 cents to $73.10 per barrel, and WTI crude rose 23 cents to $69.49. Gold edged down, pressured by the stronger dollar.