US Stocks Inch Higher Despite Amazon Disappointment, Positive Jobs Report

US stocks closed slightly higher on Friday as investors analyzed the latest monthly jobs report and digested Amazon's (AMZN) disappointing revenue forecast. The S&P 500 (^GSPC) gained 0.1%, while the Nasdaq Composite (^IXIC) edged up 0.3%. The Dow Jones Industrial Average (^DJI) remained flat, mirroring the mixed performance of stocks on Wall Street.

Jobs Report Signals Resilience

The US economy added 143,000 jobs in January, falling short of economists' expectations but indicating a resilient labor market. The unemployment rate declined to 4.0% from 4.1% in December, according to Friday's data. The jobs report has heightened anticipation for another interest rate cut by the Federal Reserve.

Investors are monitoring financial stability amidst President Donald Trump's tariff policies and inflation concerns. However, Friday's report is unlikely to trigger immediate action, as economists anticipate no rate cuts until the central bank's June meeting.

Amazon's Earnings Disappoint

Analysts scrutinized Amazon's (AMZN) earnings following similar disappointing revenue outlooks from Google (GOOG) and other AI-focused tech companies. Amazon's shares fell over 2% in early trading, aligning with post-earnings declines for Google and AMD (AMD) amid concerns about high AI development spending.

Mixed Market Performance

The three major stock market indexes are on track to conclude the earnings-heavy week with modest gains, despite unpredictable tariff updates from President Trump. The president has targeted hedge funds, proposing to eliminate a tax deduction loophole for fund managers. His administration has also indicated plans to adjust the state and local tax (SALT) deduction.

European Stocks Wobble, but Remain Resilient

European stocks fluctuated on Friday but were poised for weekly gains driven by robust earnings reports from companies like Novo Nordisk (NVO). The pan-European Stoxx 600 (^STOXX) index remained steady, approaching record highs and aiming for its seventh consecutive weekly win.

Chinese Tech Stocks Surpass Bull Market

Chinese tech stocks traded in Hong Kong entered a technical bull market, fueled by renewed interest in internet firms following DeepSeek's AI model. The Hang Seng Tech Index climbed 2.5%, marking a 20% year-to-date surge, as reported by Bloomberg.

Amazon Faces AI Capacity Concerns

Amazon (AMZN) cautioned investors about potential capacity constraints in its cloud computing division, despite plans to invest approximately $100 billion in 2025. The investments will focus on expanding data centers, developing custom chips, and enhancing infrastructure for AI support, as reported by Bloomberg.