The Amazon Web Services outage disrupted work during the Monday morning rush hour, but it did little to dampen Wall Street’s momentum. The market surged across the board, led by strong gains in Apple and optimism ahead of a heavy earnings week.
- The S&P 500 was up 1.1% at closing; credit Apple, which is soaring on optimistic analyst sentiment.
- The Nasdaq Composite, up 1.4%, gained more than 300 points, bullish ahead of earnings of major companies this week.
- The Dow Jones Industrial Average trading 500 points higher, advanced 1.1%.
- Even the Russell 2000 joined the rally, climbing 1.9% at the close.
Optimism about artificial industry and the potential for a government reopening contributed to a bullish market as we enter the 20th day of shutdown.
Market veteran Dan Niles, Founder of Niles Investment Management, said on X.
“While I believe the market is suffering from “irrational exuberance” given current valuations, I believe it can extend even further fueled by easy money, strong Q3 earnings and AI optimism.”
Dan Niles
Niles added, “The goal is to catch as much of this inflating AI bubble as possible.”
Investors are also eyeing a key CPI report, which is needed for Social Security cost-of-living adjustments and potentially influences what’s next for Fed interest rate cuts, even as most government operations remain stalled.
Image Source: Justin Sullivan/Getty Images
Meanwhile, Gold prices surged 4%, crossing the $4300 mark on Monday despite a relatively stable economy. Silver is trudging along, up 3%.
The U.S. 10-year Treasury dipped below 4%, prompting speculations about the health of the US economy.
Apple’s stock was up 4.5% on Monday owing to optimistic iPhone sales. Netflix stock was trading 3.5% higher ahead of its Q3 report on Oct. 21. CoreWeave, an up-and-coming cloud infrastructure provider, suffered, with its stock down 7%.
Here are the most active stocks today
Five S&P 500 stocks making big moves today are:
- Expand Energy: +6.1%
- Super Micro Computer: +5.5%
- Trade Desk Inc: +5%
- Moderna Inc : +4.7%
- Jacobs Solution: +4.6%
The worst-performing five S&P 500 stocks today are:
- Applovin Corp: -5.6%
- Seagate Technology: -4.9%
- Oracle Corp : -4.9%
- Constellation Energy Group: -4.3%
- Western Digital Corp: -3.7%
Stocks also worth noting include:
- Beyond Meat: +127.7%
- Celcuity: +37%
- Robinhood: +4.5%
- Alibaba ADR: +3.8%
- Amazon.com: +1.6%
Analysts optimistic on Apple amid increased sales
Apple (AAPL) led the rally, its stock up 3.9%, recording a new high, after multiple analysts upgraded their rating on the stock and raised their targets on healthy iPhone demand.
Loop Capital analyst Ananda Baruah upgraded Apple to Buy from Hold with a price target of $315 from $226, citing “material upside” to iPhone shipment estimates through 2027.
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The firm’s supply chain checks suggest that Apple could be entering a multi-year iPhone refresh and design cycle that may deliver three consecutive record years of shipments.
Everscore ISI also added Apple to the firm’s “Tactical Outperform List”, maintaining Outperform rating and a $290 price target. The firm pointed to stronger-than-expected iPhone demand and higher lead times than the prior model, as reported by TheFly.
Netflix stock rises with new collaborations
Netflix’s (NFLX) shares rose 3.3% ahead of its Q3 earnings report due Tuesday, supported by bullish sentiment from Wedbush and new partnerships with AMC and Peacock.
Wedbush reiterated an Outperform rating and a price target of $1,500 on the stock, saying that research indicates strong subscriber retention and acceptance of recent price increases.
The firm noted that advertising revenue could become Netflix’s primary growth driver by 2026, fueled by live event programming, better ad targeting and broader ad partnerships.
In a surprise collaboration, AMC Entertainment (AMC) announced that it will screen Netflix’s most-watched film, KPop Demon Hunters, across 400 theatres in the US and Europe starting Halloween weekend.
Related: Netflix makes a major move to win over subscribers
AMC CEO Adam Aron posted to X, “Netflix, the world’s largest streaming service, and AMC Entertainment, the world’s largest theatre chain, have jointly decided to work together. This new cooperation will start this Halloween weekend.”
Aron said that the partnership opens “mutually beneficial opportunities” between the two companies, hinting at further cooperation ahead.
CoreWeave slumps with acquisition controversy
The stock of CoreWeave (CRWV) slipped 7% on Monday over its proposed acquisition of Core Scientific.
Investment firm Two Seas Capital, one of Core Scientific’s largest shareholders, urged investors to vote against the merger, arguing that CoreWeave’s attempt to acquire Core Scientific substantially undervalues the company “at a time of unprecedented value creation across the sector.”
Related: CoreWeave’s $5 billion gamble hits a wall
The firm believes Core Scientific could achieve greater returns as an independent company.
CoreWeave considers the acquisition pivotal to cementing its position as a force in the AI cloud infrastructure space.
Additionally, CoreWeave announced the appointment of Jon Jones as its first Chief Revenue Officer. Jones, a former Amazon executive, is expected to spearhead global expansion as the company scales its AI-focused cloud infrastructure business.
Michael Intrator, Co-Founder, Chairman, and CEO of CoreWeave, said of Jones’ appointment,
“The scale of AI adoption demands entirely new products and services, and with Jon Jones on board, we are well-positioned to extend our leadership as the platform of choice for AI innovation and adoption.”
Related: Bank of America resets inflation prediction ahead of CPI
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