U.S. stock markets extended gains with Dow Jones Industrial Average rising over 300 points, and NASDAQ up by 1.3%. Tech stocks led the surge as the market focused on the U.S. presidential election and upcoming corporate earnings as well as a Federal Reserve policy meeting. The ISM services index for October increased to 56%, marking the largest rise in two years.
The Dow climbed 315.47 points, or 0.75%, to 42,110.07. The NASDAQ gained 240.18 points, or 1.32%, reaching 18,420.16. The S&P 500 increased 58.10 points, or 1.02%, to 5,770.79.
The upcoming U.S. presidential election remains a focal point for the market. Latest polls indicate a tight race between former President Trump and Vice President Harris, with a close result expected. The election's result could potentially influence Congress's control and lead to significant fiscal policy changes.
Analysts suggest that Trump's stance on immigration, tax cuts, and trade might drive inflation upward, affecting bond yields and the dollar. Conversely, Harris is seen as a candidate who would maintain current policies.
A report from the National Retail Federation indicates that Trump's proposed tax plan might reduce U.S. consumer spending power by up to $78 billion annually, affecting various consumer goods, particularly those from Asia.
Historically, U.S. markets have shown growth in election years, except during crises in 2000 and 2008. However, short-term volatility is expected around election results. Analysts like Adam Parker suggest that the bullish sentiment in U.S. stocks remains strong unless significant new restrictive policies are implemented.
Investors are also closely watching the Federal Reserve's monetary policy outlook. The Fed is expected to announce a rate decision soon, with a likely 25-basis-point cut, following a half-point cut in September.
In corporate earnings, Palantir's stock surged on strong quarterly results and optimistic revenue forecasts. Meanwhile, NXP Semiconductors saw a dip due to declining Q3 results and a pessimistic Q4 outlook.
Data showed robust growth in the U.S. service sector, with the ISM services index rising from September's 54.9% to 56.0% in October, indicating economic expansion. Services remain the largest segment of the U.S. economy, employing the majority of Americans.
Nvidia (NVDA) is set to replace Intel in the Dow Jones Industrial Average, reflecting a more accurate representation of the chip industry. Nvidia has surged 173% this year, while Intel has seen significant declines.
Tesla announced a 4% wage increase for employees at its Berlin Gigafactory, amidst wider industry discussions on layoffs.
Reports indicate Microsoft will invest nearly $10 billion in AI startup CoreWeave for server rentals, marking a significant business venture.
Amazon reported a 11% revenue increase to $158.9 billion for Q3 2024, with growth across North America, international operations, and its AWS segment. Goldman Sachs raised Amazon's target price, maintaining a "buy" rating.
Meta Platforms plans to use AI tools to identify and adjust privacy settings for young users on Instagram.
Palantir outperformed expectations with its Q3 earnings and has raised its annual revenue guidance.
