To The Moon

Nasdaq, S&P, Dow fall more than 2% each for the week, primarily on big tech weakness$Nasdaq100 Bull 3X ETF(TQQQ)$ 

U.S. stocks on Friday ended largely lower, as an initial positive start to the day on the back of stellar earnings reports from Amazon (AMZN) and Intel (INTC) was wiped out by geopolitical concerns over the ongoing conflict between Israel and Islamist group Hamas.

The tech-heavy Nasdaq Composite (COMP.IND) closed 0.38% higher at 12,643.01 points, boosted by a ~7% surge in Amazon (AMZN). The retail and tech giant smashed quarterly profit expectations and reassured investors of a strong future in cloud computing and generative artificial intelligence. The "Magnificent 7" member's report comes after disappointing results from Google-parent Alphabet (GOOG) (GOOGL) and Facebook-owner Meta Platforms (META).

Additionally, Intel (INTC) soared ~9%, after a rebound in the personal computing market helped the chip giant top quarterly expectations.

The benchmark S&P 500 (SP500) slipped 0.48% to settle at 4,117.37 points, pushing into correction territory, while the blue-chip Dow (DJI) retreated 1.12% to finish at 32,417.59 points. Both averages were partly weighed down by a slide in Chevron (CVX), after the oil and gas major missed quarterly profit estimates by a wide margin. Enphase Energy (ENPH) was another significant drag on the S&P, after issuing a dour forecast.

Of the 11 S&P sectors, eight closed in negative territory, led by Energy and Financials. Consumer Discretionary, Technology and Communication Services were the three gainers.

WTI crude oil futures (CL1:COM) jumped +2% while safe-haven asset gold (XAUUSD:CUR) advanced. The moves put pressure on equities and came amid reports of reports of bombardment and a connectivity blackout in Gaza. Moreover, an Israel Defense Forces spokesperson said that ground operations in the Strip would be expanding.

Treasury yields pulled back on the geopolitical concerns. The longer-end 30-year yield (US30Y) was up 3 basis points to 5.02%, while the 10-year yield (US10Y) was little changed at 4.84%. The shorter-end more rate-sensitive 2-year yield (US2Y) was down 3 basis points to 5.01%.

Earlier in the day, traders received the latest personal income and outlays report from the U.S. Bureau of Economic Analysis. The data showed that the core personal consumption expenditures (PCE) price index - the Federal Reserve's preferred inflation gauge - rose 0.3% M/M in September, its biggest gain since May and higher than the +0.1% M/M reading in August. On a Y/Y basis, the core PCE price index rose 3.7%, in-line with estimates and a shade lower than the 3.8% increase in the prior month.

The September report came a day after data that showed the core PCE price index rose at a cooler-than-expected rate in Q3, while also decelerating from Q2.