Apple and Amazon's profit boosts market sentiment, US Nasdaq futures rise over 1%, spot gold fluctuates downward, and cryptocurrencies decline

Amazon and Apple's strong earnings reports boosted market sentiment, with most major global stock markets rising.

On October 31, U.S. stock index futures rose collectively, while Asian stocks were mixed. The U.S. dollar index and U.S. Treasury yields were basically flat, spot gold fell, and most cryptocurrencies declined.

Garfield Reynolds, head of the MLIV Asia team, analyzed that the latest earnings reports seem to further alleviate concerns about a bubble. The artificial intelligence boom remains strong and is rapidly expanding beyond the United States. This week, amid trade negotiations, market volatility was intense, but investors are still looking for signals of global stock market trends in the AI sector.

• U.S. stock index futures rose collectively, with S&P 500 futures up 0.7%, Nasdaq 100 futures up over 1.2%, and Dow futures up 0.1%
• Pre-market, Amazon rose about 12%, Apple rose about 3%, and Netflix rose about 4%
• The Nikkei 225 index rose as much as 2.1%, and the Korea Composite Stock Price Index (KOSPI) rose 0.7%
• The U.S. dollar index rose 0.06%, to 99.6
• The yield on 10-year U.S. Treasury bonds was basically flat, at 4.10%
• Spot gold fell slightly by 0.17%, to $4017.24 per ounce
• Bitcoin fell over 1.5%, and Ethereum fell 2.6%

U.S. stock index futures rose, with S&P 500 futures up 0.7%, Nasdaq 100 futures up over 1.2%, and Dow futures up 0.1%. Major tech companies like Meta and Microsoft reported earnings that fell short of market expectations, leading to a sharp decline in large tech stocks on Thursday in Eastern U.S. time. After hours, strong earnings reports from Apple and Amazon boosted market sentiment.

Large tech companies are betting on AI driven by data center servers, with increasing and substantial investments. There are still doubts about whether the massive investments in the AI sector will yield returns. Matt Maley of Miller Tabak stated:

“This does not mean that the AI bubble is about to burst, nor does it mean that the stock market is about to face a major reversal. However, it does increase the likelihood of a short-term pullback.”

Pre-market, Amazon rose about 12%, with the company's AWS achieving the fastest growth in three years, and capital expenditures exceeding expectations.

Pre-market, Apple rose about 3%, with services supporting Apple's revenue to a record high for the same period last year. The CEO stated that the fourth quarter will be Apple's best performance season, with revenue expected to increase by 10%-12%.

Before the US stock market opens, Netflix is up about 4%. According to Reuters, Netflix is actively considering bidding for Warner Bros. Discovery's film production and streaming business.

Spot gold fell 0.17% to $4,017 per ounce.