NEW YORK, October 31, 2025 – Wall Street’s major indexes ended higher on Friday, led by a sharp rally in Amazon shares following an upbeat earnings forecast, but investor sentiment was tempered by ongoing concerns that the Federal Reserve may remain cautious about cutting interest rates in the near term.

The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all recorded weekly gains and marked their longest monthly winning streaks in years, demonstrating resilience amid economic uncertainty and a prolonged government shutdown.

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Amazon and Sector Leaders Boost Markets

Amazon (AMZN.O) shares surged 9.6%, hitting an all-time high after forecasting quarterly sales above Wall Street estimates. The move fueled a 4% gain in the consumer discretionary sector, its largest single-day increase since May 12, 2025.

Other companies also posted strong performances:

• Warner Bros Discovery (WBD.O) jumped 8.7% following Reuters reports that Netflix (NFLX.O) is exploring a bid for its studio and streaming business.
• Western Digital (WDC.O) reached an all-time high, rising 8.7% after exceeding quarterly earnings expectations.
• First Solar (FSLR.O) surged 14.3% following stronger-than-expected third-quarter sales.

In contrast, Apple (AAPL.O) fell slightly 0.4%, despite a positive iPhone holiday quarter sales forecast, as CEO Tim Cook highlighted supply chain constraints.

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Fed Policy Cautions Temper Optimism

Investor optimism was tempered by remarks from Fed officials signaling caution on further rate cuts:

• Raphael Bostic, Atlanta Fed President, noted that a December rate reduction is not guaranteed.
• Beth Hammack, Cleveland Fed President, opposed Wednesday’s recent rate cut, citing persistent inflation above target levels.

As a result, the market-implied probability of a December rate cut fell to 65%, down from 72.8% on Thursday and 91.7% a week ago, according to CME Group’s FedWatch Tool.

James Ragan, co-CIO at D.A. Davidson, said:

“The theme today is earnings beating expectations, tempered by a little more hawkish commentary from the Fed.”

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Government Shutdown Impacts Consumer Stocks

Concerns over the ongoing federal government shutdown affected grocery and food suppliers, despite judicial rulings requiring Supplemental Nutrition Assistance Program (SNAP) benefits to continue:

• Kroger (KR.N) fell 2.8%
• Conagra Brands (CAG.N) lost 1.3%
• Walmart (WMT.N) declined 1%

Investors worry that disruptions in federal food aid could negatively impact November sales for these companies.

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Index Performance and Monthly Trends

• Dow Jones Industrial Average: +0.09%, 47,562.87 points
• S&P 500: +0.26%, 6,840.20 points
• Nasdaq Composite: +0.61%, 23,724.96 points

For October, the S&P 500 gained 2.27%, marking its sixth consecutive monthly increase, the longest streak since August 2021. The Nasdaq added 4.7%, capping a seven-month winning streak, its longest since early 2018, while the Dow rose 2.5%, also achieving its longest monthly advance since January 2018.

Of the 315 S&P 500 companies reporting third-quarter results so far, 83.2% surpassed analysts’ estimates, well above the historical average of roughly 67%.

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Market Breadth and Trading Activity

On Friday:

• NYSE: Advancing issues outnumbered decliners 1.28-to-1, with 159 new highs and 131 new lows
• Nasdaq: Advancers outpaced decliners 1.42-to-1, with 71 new highs and 159 new lows
• Total shares traded: 21.03 billion, slightly below the 20-session average of 21.13 billion

Investors, lacking official government economic data due to the shutdown, relied heavily on corporate earnings reports for insight into economic trends.

Kim Forrest, CIO at Bokeh Capital, commented:

“The government isn’t giving us the data we have become dependent on, so we’re using companies as we should—guidance about how the economy is going.”

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Key Takeaways

• Amazon’s strong forecast propelled consumer discretionary gains and boosted Wall Street indexes.
• Fed caution on rate cuts moderated enthusiasm despite strong earnings.
• Warner Bros Discovery surged on potential Netflix acquisition news, while Apple faced supply constraints.
• S&P 500 and Nasdaq achieved longest monthly winning streaks in years, reflecting sustained market resilience.
• Investors remain attentive to corporate earnings due to the ongoing government shutdown limiting economic data.