Finance

Nasdaq Soars: Will Amazon’s AI Push and Upcoming Earnings Keep the Bull Run Alive?

Nasdaq led gains, fueled by Amazon‘s earnings, closing a strong October; investors await Palantir and Robinhood reports.

byAndres Castro

October 31, 2025, 8:15 PM

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Executive Summary

The stock market concluded a volatile week with significant gains, capping a strong October performance for the Nasdaq composite, which saw a 4.7% rise.

Amazon’s recent earnings report provided a major boost to the market, with investors now anticipating upcoming results from Palantir Technologies and Robinhood.

A broader trend of sustained investment in artificial intelligence (AI) by major technology firms continues to shape the market, dispelling concerns of an AI bubble.

The Story So Far

The stock market’s recent gains, particularly in the tech sector, are primarily fueled by strong earnings reports from major companies like Amazon. This positive momentum is further bolstered by a broader trend of significant and sustained capital investment in artificial intelligence by leading technology firms such as Meta, Google, Microsoft, and Apple, which is actively dispelling earlier concerns about an “AI bubble.”

Why This Matters

The stock market’s strong October performance, particularly in the tech-heavy Nasdaq, driven by robust earnings from companies like Amazon, suggests a positive investor sentiment entering the next period. However, upcoming earnings reports from firms such as Palantir and Robinhood will be crucial in determining if this momentum can be sustained. Moreover, continued capital investment in artificial intelligence by major tech companies is seen as dispelling “AI bubble” fears, indicating a potentially stable growth trajectory for the AI sector.

Who Thinks What?

Investors are showing optimism, driving significant market gains, particularly in the Nasdaq, largely due to strong tech earnings from companies like Amazon and anticipation of upcoming reports from Palantir Technologies and Robinhood.

Major technology firms, including Meta, Amazon, Google, Microsoft, and Apple, are demonstrating confidence in the AI sector by signaling continued commitment to capital spending.

Market observers suggest that the sustained investment in AI by major tech firms is dispelling concerns of an “AI bubble,” while also considering how external factors, such as a potential government shutdown, might influence future company guidance.

The stock market concluded a volatile week with significant gains, capping a strong October performance, particularly for the Nasdaq composite. Amazon.com’s recent earnings report provided a boost to its industry group, while investors are now anticipating upcoming results from Palantir Technologies and Robinhood.

Market Performance Highlights

On Friday, the Nasdaq composite led the major indexes, recording a 0.6% increase. This strong finish contributed to a 2.2% weekly gain for the tech-heavy index and a substantial 4.7% rise for the month of October, marking one of its best monthly performances in seven years.

Key Earnings Reports

Amazon’s earnings played a crucial role in the market’s positive momentum, with its stock experiencing a significant jump to a new high and entering a new buy zone. Looking ahead, Palantir Technologies and Robinhood are among the companies scheduled to release their earnings, which will be closely watched by investors.

Palantir’s stock has also reached a new high recently. Market observers are considering how potential external factors, such as a government shutdown, might influence the company’s fourth-quarter guidance.

Broader Market Trends

Beyond individual company performances, a broader trend of investment in artificial intelligence (AI) continues to shape the market. Major technology firms, including Meta, Amazon, Google, Microsoft, and Apple, have signaled ongoing commitment to capital spending in the AI sector, a development that analysts suggest is dispelling concerns of an AI bubble.

Outlook

The market’s positive close to October, driven by strong tech earnings and sustained investment in AI, sets a constructive tone as investors prepare for further key earnings reports and monitor economic indicators in the coming weeks.