Stock Market Today: S&P 500 and Nasdaq Close Higher as Amazon Surges 9%, AI Trade Stabilizes After Brutal Week

New York, Nov. 2, 2026 — U.S. stocks closed higher on Monday, with the S&P 500 and Nasdaq Composite advancing as Amazon surged nearly 10% on blowout earnings and the AI trade stabilized following last week’s dramatic selloff.

The S&P 500 gained 0.58% to close at 7,766.29, while the Nasdaq Composite rose 0.73% to 26,379.19. The Dow Jones Industrial Average added 0.41%, settling at 52,558.36 .

Why Did the Stock Market Rise Today?

1. Amazon surged 9.5% on earnings beat. The e-commerce and cloud giant reported third-quarter results that crushed expectations, with AWS revenue growing 20% to $33 billion and earnings per share of **$1.95** far exceeding the $1.57 consensus . CEO Andy Jassy said the company is seeing strong AI demand and plans to increase capital expenditures, reassuring investors that AI spending is translating into cloud growth rather than just expenses .

2. The AI trade stabilized after last week’s rout. The Philadelphia Semiconductor Index rose 1.2%, extending Friday’s recovery after the index had suffered its worst week since April . Nvidia gained 1.8%, Broadcom added 2.1%, and AMD rose 1.5% as investors returned to the sector following the Alphabet-driven selloff .

3. A flurry of M&A and deal news boosted sentiment. DoorDash agreed to acquire Deliveroo in a £2.9 billion ($3.9 billion)** deal, sending Deliveroo shares up **2.7%** and DoorDash up **1.4%** . **Kimberly-Clark** announced it would acquire **Kenvue** in a cash-and-stock deal valued at roughly **$48.7 billion, creating a combined consumer health company .

Which Stocks and Sectors Moved the Most?

On the upside:

• Amazon jumped 9.5%, lifting the consumer discretionary sector by 2.1%
• Apple rose 1.4%, continuing its recovery after last week’s earnings .
• Meta Platforms gained 1.2%, extending Friday’s rebound .
• Microsoft added 0.8%, stabilizing after its own strong earnings report .

On the downside:

• Alphabet slipped 0.7%, still under pressure following its historic 12.6% plunge last Thursday .
• Caterpillar fell 1.1%, continuing to suffer from AI-spending concerns .
• Boeing dropped 0.9% amid ongoing production concerns .

What Are Treasury Yields and the VIX Saying?

The 10-year Treasury yield held near 4.91%, close to seven-week lows, as investors continued to favor safe-haven assets despite the equity rebound . The 30-year yield hovered around 5.38% .

The CBOE Volatility Index (VIX) declined 5.3% to 15.82, retreating from last week’s elevated levels and signaling that market anxiety has eased significantly .

What Economic Data Was Released Today?

The Institute for Supply Management (ISM) Manufacturing PMI for October came in at 48.9, slightly below the 49.2 consensus but above September’s 48.5. The reading remains below the 50 threshold that separates expansion from contraction, indicating that manufacturing activity continues to contract at a modest pace .

The Employment Cost Index released Friday showed labor cost growth of 0.8%, down from 0.9% previously, providing modest relief on the inflation front .

What’s Next for Investors?

Attention now shifts to Federal Reserve speakers scheduled throughout the week, including appearances by Kevin Warsh and other FOMC members. Markets will parse their comments for clues about the rate path following Wednesday’s decision to hold rates steady at 3.75%-4.00% .

The October nonfarm payrolls report is due Friday, with economists expecting job growth of approximately 75,000 after September’s surprisingly weak 29,000 reading. A stronger-than-expected print could revive rate-hike expectations, while another soft reading would likely reinforce the view that the Fed is done tightening .

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Key Takeaways (Quick Summary)

• S&P 500 gained 0.58% to 7,766.29; Nasdaq rose 0.73% to 26,379.19; Dow added 0.41% to 52,558.36
• Amazon surged 9.5% on a blowout earnings beat with AWS revenue up 20%
• AI trade stabilized: semiconductor index rose 1.2%, Nvidia and Broadcom advanced
• DoorDash agreed to acquire Deliveroo for $3.9 billion; **Kimberly-Clark** announced $48.7 billion Kenvue deal
• 10-year Treasury yield held near 4.91%; VIX dropped 5.3% to 15.82
• ISM Manufacturing PMI came in at 48.9, slightly below expectations but above September
• October jobs report due Friday: consensus expects ~75,000 jobs added