Stock Market News: Dow Breaks 47,000 as Inflation Cools and Tech Earnings Ignite Wall Street

Wall Street Closes Historic Week as Dow Tops 47,000 and S&P 500 Hits 6,800 Amid Cooling Inflation and Earnings Surge

U.S. equities ended the week of October 24, 2025, on an explosive note, marking one of the strongest market closes of the year. The Dow Jones Industrial Average (DJIA) climbed 472.51 points (+1.01%) to 47,207.12, closing above the 47,000 milestone for the first time in history. The S&P 500 (SPX) rose 0.79% to 6,791.69, while the Nasdaq Composite (IXIC) rallied 1.15% to 23,204.87, both logging new all-time highs.

Investors cheered the latest Consumer Price Index (CPI) data, which came in softer than expected at 3.0% year-over-year and 0.3% month-over-month, compared with expectations for 3.1% and 0.4% respectively. Core inflation, excluding food and energy, eased to 0.2% monthly and 3.0% annually, underscoring disinflation momentum. With this report delayed by the ongoing government shutdown, it became the market’s key macro catalyst — solidifying the case for Federal Reserve rate cuts in both November and December. The CME FedWatch tool now places the probability of a rate cut next week at 99%, and a subsequent December cut at 96%, fueling equity enthusiasm across sectors.

Record-Breaking Indices Signal Widespread Strength Across Sectors

The S&P 500 is now up 15% year-to-date, while the Nasdaq Composite has surged 20%, powered by technology and industrial strength. The Russell 2000 (RUT) small-cap index gained 1.24% to 2,513.47, marking its sixth record close of 2025, as traders rotated into rate-sensitive cyclicals. Market breadth was strong, with 28 S&P 500 constituents hitting new 52-week highs, including Alphabet (GOOG), AMD (AMD), Micron (MU), CrowdStrike (CRWD), Ralph Lauren (RL), and American Express (AXP).

Earnings momentum remained robust. About 30% of S&P 500 companies have reported Q3 results, with an astonishing 87% beating EPS expectations and 82% topping revenue forecasts — far above historical averages of 67% and 62%. Double beats (EPS and revenue) reached 75%, compared with 54% in Q1, driving renewed institutional inflows.

Ford (F) Ignites the Auto Sector With a 12% Surge After Massive Earnings Beat

Ford Motor Co. (NYSE:F) was Friday’s biggest gainer, skyrocketing 12.16% to $13.84 after posting stronger-than-expected Q3 results. Adjusted earnings came in at $0.45 per share versus the $0.36 consensus, while revenue surged to $47.19 billion, beating forecasts by over $4 billion. Investors celebrated Ford’s operational resilience amid supply constraints from the Novelis aluminum plant fire, which management now expects to reopen earlier than planned.

The fire’s financial impact, previously estimated at $1.5–$2.0 billion in adjusted EBIT, will now be partly offset in 2026, reducing the projected headwind to below $1 billion. The company reaffirmed its 2026 profitability roadmap and guided toward a stronger North American recovery. With improving margin visibility and stabilized production for its F-150 and EV lineup, Ford remains a Buy, reflecting cyclical upside and a forward P/E ratio below 7x.

Alphabet (GOOG) Extends Gains on $10B Anthropic AI Partnership

Alphabet Inc. (NASDAQ:GOOG) jumped 2.67% to $260.51 after formally unveiling a multi-billion-dollar partnership with AI firm Anthropic. The deal grants Anthropic access to 1 million of Google’s custom Tensor Processing Units (TPUs), the largest AI chip deployment in Google Cloud history. The arrangement is expected to contribute well over 1 gigawatt of AI compute capacity by 2026, cementing Google’s status as a global AI infrastructure leader.

The TPU segment, combined with Google’s DeepMind division, is estimated to exceed $900 billion in enterprise value, as analysts view it as a strategic counterbalance to NVIDIA’s (NASDAQ:NVDA) dominance in GPU computing. Alphabet’s AI momentum, coupled with its $7 billion cloud revenue run rate from Anthropic workloads, positions the stock for further expansion. Buy rating maintained, with technical support near $255 and potential upside toward $285 short term.

NVIDIA (NVDA) Holds Ground as AI Spending Broadens Beyond GPUs

While Alphabet stole Friday’s AI spotlight, NVIDIA Corp. (NASDAQ:NVDA) gained 2.25% to $186.26, extending its year-to-date advance to over 185%. The stock remains the bellwether for the AI semiconductor trade, supported by sustained data center demand and robust inference workloads. The expansion of Google’s TPU ecosystem and AMD’s new chip integrations didn’t dent investor sentiment — instead, it validated NVIDIA’s central role in AI computing infrastructure.

With Q3 earnings due in November, the market is pricing EPS near $4.19 on revenue of $28.5 billion, implying 89% year-over-year growth. Despite its lofty valuation, NVIDIA’s earnings trajectory and supply dominance justify a Buy, with strong institutional accumulation continuing.

AMD (AMD) and IBM (IBM) Rally on Quantum Computing Milestone

Advanced Micro Devices (NASDAQ:AMD) surged 7.63% to $252.92, its best single-day gain in over two months, after IBM (NYSE:IBM) announced a critical advancement in quantum error correction using AMD’s field-programmable gate arrays (FPGAs). IBM confirmed that its algorithm executed 10 times faster than target benchmarks, a key step toward building a fully functional quantum computer by 2029.

AMD shares are now up 106.7% in 2025, underscoring investor enthusiasm for its expansion into AI, quantum, and data center hardware. IBM shares also rose 7%, reflecting optimism in hybrid cloud and quantum investments. Both companies are positioned to benefit from U.S. industrial policy incentives for advanced semiconductor R&D. AMD – Buy, IBM – Hold with upside bias.

Intel (INTC) Rebounds on Solid Earnings and AI-Driven Turnaround

Intel Corp. (NASDAQ:INTC) added 0.31% to $35.90 after delivering Q3 revenue of $13.65 billion, above expectations of $13.14 billion, and EPS of $0.23 adjusted. The results signal stabilization in Intel’s PC segment, with management emphasizing progress in server chips and AI co-processors. The U.S. government’s 10% strategic stake, secured in August, reflects renewed national focus on semiconductor independence.

Intel also announced expanded foundry collaborations and hinted at competitive positioning versus AMD and NVIDIA in AI inference acceleration. The company’s data-center division showed sequential growth, and free cash flow improved modestly. With the stock trading at 14x forward earnings, Intel remains a Hold, offering asymmetric upside if execution improves in 2026.

Financials Jump as Traders Price in Rate Cuts and Yield Recovery

Bank stocks rose sharply following the CPI release. JPMorgan Chase (NYSE:JPM) gained 2% to $300.44, Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) climbed over 2%, and Bank of America (NYSE:BAC) added 2.1%. The sector benefited from expectations that lower policy rates will revive loan growth and reduce funding pressure. The 10-year Treasury yield (TNX) held near 3.99%, while the 30-year stayed below 4.6%, stabilizing the yield curve. With improving net interest margins on the horizon, large-cap banks remain Bullish (Buy) through 2026.

Consumer and Retail Update: P&G Steady, Target Restructures, Deckers Sinks

Procter & Gamble (NYSE:PG) gained 0.88% to $152.49 after posting Q1 EPS of $1.99 versus $1.90 expected on $22.39 billion in sales, reaffirming full-year guidance. The company saw strength in beauty and grooming offsetting slower health care. Management cited stable demand despite consumer caution — maintaining a Hold recommendation.

Target (NYSE:TGT) was little changed at $94.26, announcing an 8% corporate workforce reduction (around 1,800 roles) to streamline operations ahead of a leadership transition in early 2026. Meanwhile, Deckers Outdoor Corp. (NYSE:DECK) plunged 15.21% to $86.94 after lowering guidance due to tariff costs estimated at $150 million, with growth in Hoka and Ugg slowing sharply. Deckers remains a Sell, given exposure to tariff-sensitive consumer segments.

Commodities Diverge: Oil Soars, Gold Eases

Crude oil (CL=F) closed at $61.50 per barrel, logging its largest weekly gain since June (+7.6%), driven by U.S. sanctions on Rosneft and Lukoil. Brent crude (BZ=F) ended at $66.00, with supply disruptions in Russia and falling Chinese imports tightening global balances. Conversely, gold (GC=F) eased 0.19% to $4,137.80 per ounce, capping a volatile week down 1.5%. The divergence underscores risk rotation away from safe havens into equities as monetary policy eases.

Crypto and Digital Assets Rebound as Fed Optimism Fuels Risk Appetite

Crypto markets mirrored equities’ risk-on tone. Bitcoin (BTC-USD) climbed back above $110,000, supported by stable institutional inflows and optimism around decentralized finance revenues. Coinbase Global (NASDAQ:COIN) spiked 7% to $392.20 after JPMorgan upgraded the stock to Overweight with a $404 target, citing progress in subscription and staking services. Mining names such as Riot Platforms (RIOT) and Marathon Digital (MARA) rose 5.3% and 2.6%, respectively, as investors rotated back into blockchain-linked assets.

Global Headlines and Trade Developments Shape Outlook

Markets brushed off political noise as President Trump halted trade negotiations with Canada after a controversial Ontario ad quoting Ronald Reagan on tariffs. The Canadian dollar (CAD/USD) weakened 0.06% to 0.7141, while Ontario Premier Doug Ford confirmed a suspension of the campaign to resume talks. In Asia, China’s Commerce Minister Wang Wentao reaffirmed opposition to “decoupling,” signaling a cooperative stance ahead of next week’s Trump–Xi summit in Seoul.

AI ETFs and Small Caps Lead Momentum into Next Week

AI-focused ETFs outperformed the broader market, highlighting the continuing enthusiasm around next-generation computing. The Roundhill Generative AI ETF (CHAT) rose 2.57% to $65.02, and the Global X AIQ ETF gained 1.68% to $51.94, both surpassing the Nasdaq’s 1.15% gain. The Magnificent Seven ETF (MAGS) added 0.76%, driven by gains in Alphabet (+2.7%), NVIDIA (+2.25%), Amazon (+1.4%), Apple (+1.25%), and Microsoft (+0.59%).

TradingNews Market Verdict: Data-Driven Optimism, Selective Rotation Ahead

Friday’s session underscored a rare alignment of cooling inflation, strong corporate earnings, and broad-based participation — an ideal setup for risk assets. Equity leadership remains concentrated in technology and financials, with AI infrastructure, automakers, and quantum computing names outperforming.

Verdict:

• S&P 500, Nasdaq, Dow – BUY: Rate cuts and earnings strength justify continuation of the bull trend.

• Ford (F), Alphabet (GOOG), AMD (AMD), NVIDIA (NVDA) – STRONG BUY: Earnings momentum and AI tailwinds driving valuations higher.

• Intel (INTC), JPMorgan (JPM), P&G (PG) – HOLD: Fundamental stability but slower growth.

• Deckers (DECK) – SELL: Tariff exposure and weakening consumer demand.

• Oil (CL=F), Bitcoin (BTC-USD) – BUY ON STRENGTH: Macro tailwinds intact with potential volatility.

As the Federal Reserve meeting approaches, markets enter next week with full momentum — record valuations, cooling inflation, and a U.S. economy proving remarkably resilient against global uncertainty.

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