LONDON - Stocks traded mixed on Friday as blockbuster earnings from Amazon and Intel fuelled hope of a tech bounce despite a report showing persistent US inflation.
Wall Street opened mostly higher, with the tech-heavy Nasdaq rising 1.0% and the S&P 500 also rising. The blue-chip Dow opened flat before sliding lower.
Both Amazon and Intel beat expectations in earnings reports released after the close of trading on Thursday.
Shares in Amazon climbed 5.6% at the opening bell on Friday, and shares in Intel jumped 8.2%.
Investors have been keenly watching how companies take advantage of artificial intelligence while navigating high interest rates.
Meanwhile the personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation, came in unchanged at 3.4% in September on an annual basis. Prices rose by 0.4% from August, the same rate as in August.
The figures "had a sticky feel to them, meaning they lacked a stronger trend of disinflation", said Briefing.com analyst Patrick O'Hare.
"That is apt to keep the Fed in a more hawkish mindset ... the Fed won't be thinking about a rate cut anytime soon," he said.
The inflation data comes after figures released Thursday showed that the US economy had its best growth since late 2021 during the third quarter.
"We're in a bull market until proven otherwise for one simple reason: most data indicates we're far away from a recession," said Callie Cox at eToro.
The data come ahead of the Fed's monetary policy decision next week, with expectations it will hold interest rates steady again given high inflation and the resilient US economy.
Officials have lined up in recent months to say that while there might not be any more cuts, rates could be kept at two-decade highs for an extended period.
Asian equity markets rose on the strong US tech earnings, but European stocks were lower in afternoon trade as a number of companies failed to meet earnings expectations.
The showing comes at the end of a rollercoaster week for equities, but the Middle East crisis continued to cast a shadow as Israel said ground forces had raided central Gaza for a second day.
Oil prices rallied more than two percent before paring gains, recovering much of their losses from Thursday, as traders tracked developments in the Israel-Hamas war amid concerns it could draw in other countries.
The drop came even after the Israeli military reported Friday more attacks by ground forces, which followed news that tanks and infantry had entered Gaza in a "targeted raid" before withdrawing to home soil.
Aircraft also struck targets in Lebanon late Wednesday in retaliation for a missile launch.
Fears of a region-wide conflict were stoked after Iran's foreign minister warned the United States it would not go unaffected if the hostilities spread.
Key figures as of 1330 GMT:
- New York - Dow: FLAT at 32,785.09 points
- London - FTSE 100: DOWN 0.1% at 7,346.83
- Frankfurt - DAX: DOWN 0.4% at 14,790.36
- Paris - CAC 40: DOWN 0.5% at 6,855.82
- EURO STOXX 50: DOWN less than 0.1% at 4,047.34
- Tokyo - Nikkei 225: UP 1.3% at 30,991.69 (close)
- Hong Kong - Hang Seng Index: UP 2.1% at 17,398.73 (close)
- Shanghai - Composite: UP 1.0% at 3,017.78 (close)
- Euro/dollar: DOWN at $1.0582 from $1.0563 on Thursday
- Dollar/yen: DOWN at 149.72 yen from 150.43 yen
- Pound/dollar: UP at $1.2150 from $1.2129
- Euro/pound: FLAT at 87.08 pence from 87.08 pence
- Brent North Sea crude: UP 1.3% at $89.07 per barrel
- West Texas Intermediate: UP 1.5% at $84.49 per barrel