Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
The U.S. stock market concluded October 2025 with significant gains, propelled by robust third-quarter earnings from Amazon.com Inc. and a broader rally in technology and artificial intelligence (AI) related stocks. On Friday, October 31, the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average all closed higher, marking a strong finish to the week and month, with the Dow achieving its longest monthly winning streak since 2018.
Friday’s Market Performance
The Nasdaq Composite jumped 0.61% to close at 23,724.96, while the S&P 500 added 0.26%, finishing at 6,840.20. The Dow Jones Industrial Average edged up 40.75 points, or 0.09%, to settle at 47,562.87. Tech stocks dominated the session as investors reacted to strong earnings reports and positive outlooks.
Amazon’s Earnings Drive Gains
Amazon’s shares surged 9.6% after the e-commerce and cloud giant reported third-quarter revenue of $180.2 billion, surpassing Wall Street’s estimate of $177.9 billion. Its cloud unit, Amazon Web Services (AWS), posted a 20% revenue jump, marking its fastest growth since 2022. CEO Andy Jassy attributed this acceleration to strong and broad-based AI adoption and core infrastructure demand.
AI Stocks Rally
The rally in Amazon sparked gains across AI-related stocks. Palantir Technologies climbed 3%, Oracle gained 2.2%, and chipmaker Advanced Micro Devices (AMD) advanced further, capping a 58% monthly gain—its best since 2001. Brian Mulberry, a portfolio manager at Zacks Investment Management, noted that AI adoption is picking up and investments in computing power are paying off, suggesting the market will watch how these investments translate into AI-driven revenue growth next year.
Other Key Movers
In consumer technology, Netflix rose 2.7% after announcing a 10-for-1 stock split, fueling speculation about potential Dow inclusion. Tesla shares jumped 3.7%, extending gains amid optimism about electric vehicle demand into the year-end. Additionally, Reddit surged 14% after reporting a 68% year-over-year revenue increase to $585 million, while Getty Images rocketed 19% following a multi-year AI content deal with Perplexity AI.
Strong Monthly and Year-to-Date Performance
Friday capped a winning week for Wall Street, with the S&P 500 gaining 0.7%, the Nasdaq jumping 2.2%, and the Dow adding 0.8%. For October, the S&P 500 rose 2.3%, the Nasdaq gained 4.7%, and the Dow advanced 2.5%, marking its sixth consecutive monthly rise, the longest streak since 2018. Year-to-date, the Nasdaq is up 22%, the S&P 500 more than 16%, and the Dow 12%, reflecting continued optimism around AI and resilient earnings.
Outlook for November
Market strategists anticipate the momentum to carry into November, historically the best month for the S&P 500, with an average 1.8% gain since 1950. Seasonal tailwinds and an easing U.S.–China trade truce, which UBS noted could help stabilize global equities, are expected to support further market advancement. Sarah Min of CNBC Pro added that with the S&P 500 nearing 7,000 and more bears turning bullish, the path forward appears constructive through the holidays.
Lingering Concerns
Despite the bullish sentiment, inflation risks remain a concern. Bank of America’s Aditya Bhave warned that tariffs, including those implemented by President Donald Trump, have “pushed prices higher.” Rising cocoa costs, which have sent Halloween chocolate prices up nearly 30% year-over-year, are also squeezing candy makers like Hershey, despite a recent valuation upgrade from Piper Sandler.
