Amazon’s Surge Lifts Wall Street to a Strong Finish

The stock market closed out its record-setting week with another round of gains, led by a powerful rally in Amazon (AMZN +9.6%), which vaulted to new all-time highs after a blockbuster earnings report. The e-commerce and cloud giant’s 20% acceleration in AWS sales growth reignited investor enthusiasm for big tech, propelling the Nasdaq Composite (+0.6%) to the top of the leaderboard, while the S&P 500 (+0.3%) and Dow Jones Industrial Average (+0.1%) posted smaller advances.

The consumer discretionary sector (+4.1%) led the charge, as Amazon’s gains rippled across other retail and growth names. Tesla (TSLA +3.7%) also added to the strength, rebounding from earlier softness in the week. In contrast, Apple (AAPL -0.4%), despite posting an earnings beat, finished slightly lower, dragging the information technology sector (-0.3%) into negative territory. NVIDIA (NVDA -0.2%) also eased modestly, though the PHLX Semiconductor Index (+0.2%) managed to stay in positive territory thanks to upbeat results from First Solar (+14.3%) and Western Digital (+8.8%).

The communication services sector (-0.3%) slipped as Meta Platforms (-2.7%) extended its post-earnings decline, offsetting a mild gain in Alphabet (GOOG flat) and a late-session boost from Netflix (+2.7%) after the company announced a 10-for-1 stock split.

Energy stocks showed some life, with the energy sector (+0.6%) rising alongside crude oil, which settled 0.6% higher at $60.95 per barrel. Chevron (+2.7%) rallied on strong results, while Exxon Mobil (-0.3%) slipped despite an earnings beat. Losses elsewhere were modest, with only materials (-0.9%) and utilities (-0.8%) finishing more than half a percent lower.

Breadth improved notably after three sessions of negative participation, as advancers outpaced decliners 4-to-3 on the NYSE and 7-to-5 on the Nasdaq. Smaller-cap names also joined the rebound, with the Russell 2000 (+0.5%) and S&P Mid Cap 400 (+0.6%) outperforming.

On the macro front, the tone from the Federal Reserve turned slightly more hawkish, tempering expectations for another rate cut this year. Kansas City Fed President Jeffrey Schmid and Dallas Fed’s Lorie Logan both voiced concerns that inflation remains too sticky to justify further near-term easing. According to the CME FedWatch tool, the probability of a December rate cut dropped to 65%, down sharply from 95% a week ago.

Despite the softer policy outlook, the market’s momentum remained intact, capped by Amazon’s powerful move to record highs. With most mega-cap earnings now behind and the AI investment cycle continuing to fuel optimism, investors appear content to ride the wave of large-cap leadership—though the broader market still has ground to make up in the weeks ahead.

Our FTinvest 11 Model Portfolio closed higher on Friday, rising 1.05% to 840.84, as investors stepped back into several of the portfolio’s growth names after a volatile stretch earlier in the week. The late-session recovery helped the index recapture part of its midweek losses, though it still finished the week down 0.72%.

The session opened firmly in positive territory, supported by renewed buying. Gains broadened as the day progressed, with cyclical holdings rebounding from recent weakness. However, despite Friday’s strength, the index remained below last week’s closing level, reflecting the uneven tone across broader equity markets.

Still, FTinvest 11 continues to outperform most mid-cap benchmarks year to date, maintaining a solid double-digit gain and holding near the upper end of its three-month range. The strong finish to the week suggests that underlying risk appetite remains resilient, even as market leadership consolidates.