Amazon Boosts Market Cap by $104 Billion on Earnings Beat

Amazon shares jumped 5.3% after a strong earnings report, adding $104 billion to its market cap and lifting European futures slightly. Asian stocks were mixed as the Nikkei fell 2.3%, while Chinese shares rose on manufacturing data suggesting a rebound in China’s economy. Oil extended gains on Iran-Israel tensions, while the US dollar remained range-bound ahead of key US jobs data and the presidential election next week.

Equities

The FTSE 100 slid 0.6% on Thursday, touching near three-month lows, while the FTSE 250 dropped 1.5%, both weighed by market concerns following the UK government’s recent budget. New finance minister Rachel Reeves announced substantial tax increases—the largest in three decades—paired with a commitment to boost public service funding, stoking inflation concerns and leading investors to curb expectations of a swift rate cut by the Bank of England (BoE).

Among individual stocks, British medical equipment firm Smith + Nephew saw its shares plunge 12.5% after it lowered its revenue growth forecast for the year. Conversely, DS Smith gained 14.3%, benefiting from positive earnings from its US-based buyer, International Paper, which exceeded market expectations. Energy giant Shell climbed 3.5% on robust third-quarter results, bolstered by increased LNG sales that offset weaker refining and trading.

In the US, major indices also ended the day in the red, with the S&P 500 declining 1.86% and the Nasdaq dropping 2.76%, reflecting cautious investor sentiment after Microsoft and Meta Platforms raised concerns over escalating artificial intelligence costs. Despite both companies surpassing earnings expectations, Microsoft shares fell 6% and Meta declined 4.1%, with both tech giants attributing increased spending to AI-related capital expenses, which could weigh on profits. Alphabet’s stock slipped 1.9% following its earlier earnings report, adding to the broader tech downturn.

Other major players saw mixed results. Amazon’s revenue exceeded forecasts, largely due to growth in its cloud services division, while Apple also reported a solid quarter, with iPhone sales driving results above profit expectations. Nonetheless, pressure persisted across US tech stocks. Semiconductor-related companies, particularly Nvidia and Monolithic Power Systems, saw notable drops, with Monolithic Power tumbling 17.4% after weaker-than-expected results. Estee Lauder faced its worst trading day on record, declining 20.9% after withdrawing its 2025 forecast, and Uber fell 9.3% on a lowered gross bookings outlook.

Forex & Commodities

The dollar eased against the yen on Thursday after less dovish comments from the Bank of Japan and US economic data reinforced expectations of a rate cut by the Federal Reserve next week. Data showed US consumer spending grew more than anticipated in September, setting up a strong end-of-year growth trend. The Fed’s preferred inflation gauge, the personal consumption expenditures index, rose by 2.1% annually, down from August’s 2.3%, which supports a likely 25 basis point rate cut at the upcoming meeting.

The dollar index, which measures the dollar against other major currencies, fell by 0.8% to 152.18 yen, while the euro rose 0.04% to $1.0859 following strong inflation data in the eurozone. Sterling also fell by 0.8% to $1.2857, reacting to UK tax hikes from Chancellor Rachel Reeves’ budget announcement.

In commodities, gold edged up 0.4% to $2,753.75 per ounce after hitting an all-time high of $2,790.15 earlier in the week, buoyed by concerns over US election uncertainty. US futures for gold also rose by 0.5% to $2,763.60, reflecting continued demand for safe-haven assets. Oil prices jumped, with Brent crude rising $1.39 to $74.20 per barrel and US West Texas Intermediate up $1.44 to $70.70. Reports that Iran is preparing a retaliatory strike on Israel contributed to this increase, as did speculation that OPEC+ may delay a planned production boost in December.