The stock market finished its record-setting week on a higher note as Amazon (AMZN 244.22, +21.36, +9.58%) soared past all-time highs while the broader market overcame some intraday sluggishness, ultimately helping the major averages close well off their session lows.

Gains in Amazon and other mega-cap names saw the Nasdaq Composite (+0.6%) advance the furthest, while the S&P 500 (+0.3%) and DJIA (+0.1%) captured more modest gains. 

Amazon rallied after besting earnings expectations yesterday afternoon, with investors particularly enthused by a 20% acceleration in AWS sales growth. Tesley Advisory Group raised its target for the stock to $300 from $265, while Pivotal Research Group raised its target to $300 from $285.

The consumer discretionary sector (+4.1%) was the epicenter of mega-cap strength today, as Tesla (TSLA 456.56, +16.46, +3.74%) also mounted a solid advance. 

While an earnings beat from Apple (AAPL 270.37, -1.03, -0.38%) left investors hoping for another full-blown mega-cap rally, the stock, along with the broader information technology sector (-0.3%), faced some choppiness throughout the day, ultimately finishing modestly lower.

NVIDIA (NVDA 202.49, -0.40, -0.20%) also faced a slight retreat, though the PHLX Semiconductor Index (+0.2%) closed with a gain. 

First Solar (FSLR 266.94, +33.36, +14.28%) and Western Digital (WDC 150.21, +12.08, +8.75%) were among the best-performing S&P 500 names after reporting their earnings. 

Meanwhile, the communication services sector (-0.3%) also faced a loss as Meta Platforms (META 648.35, -18.12, -2.72%) lagged while Alphabet (GOOG 281.82, -0.08, -0.03%) finished flattish. Netflix (NFLX 1118.86, +29.86, +2.74%) captured a nice gain after announcing a 10-for-1 stock split this morning. 

Ultimately, the Vanguard Mega Cap Growth ETF finished 0.3% higher. The S&P 500 Equal Weighted Index (+0.2%) performed similarly to the market-weighted S&P 500 (+0.3%). 

Advancers outpaced decliners by a roughly 4-to-3 ratio on the NYSE and a roughly 7-to-5 pace on the Nasdaq after three consecutive days of negative breadth. 

Five S&P 500 sectors finished with gains, though outside of the communication services sector (+4.1%), they were relatively modest. 

The energy sector (+0.6%) was the only other sector to close with a gain wider than 0.5%, supported by crude oil futures settling today's session $0.39 higher (+0.6%) at $60.95 per barrel. Chevron (CVX 157.64, +4.11, +2.68%) advanced after beating earnings expectations, while Exxon Mobil (XOM 114.36, -0.34, -0.29%) faced a slight retreat after its earnings report. 

Losses were also relatively modest today, as only the materials (-0.9%) and utilities (-0.8%) sectors finished more than 0.5% lower. 

Outside of the S&P 500, the small-cap Russell 2000 (+0.5%) and S&P Mid Cap 400 (+0.6%) outperformed.

On the macro front, the market's expectations for further easing from the Fed this year were dampened by commentary from a handful of officials. 

Kansas City Fed President Jeffrey Schmid (voting FOMC member) said his decision to oppose this week's 25-basis-point rate cut stemmed from inflation remaining above target and market conditions that he viewed as still strong. Dallas Fed President Lorie Logan, who will be a voting member in 2026, echoed similar concerns regarding the October decision and added, "I find it difficult to cut rates again in December unless there is clear evidence that inflation will fall faster than expected or that the labor market will cool more rapidly."

The CME FedWatch tool now assigns a 65.0% probability of at least a 25-basis point rate cut in December, down from 72.8% yesterday and 95.8% one week ago.

Despite the softer rate-cut expectations, Amazon's surge to record highs was enough to warrant a solid ending to a strong week of mega-cap leadership. With mega-cap earnings now in the rearview, the market's largest names are largely in record territory as the AI investment cycle booms, though the broader market has some catching up to do. 

U.S. Treasuries had a quiet finish to October, with yields finishing the month at levels last seen three weeks ago. The 2-year note yield finished unchanged at 3.61% (+13 basis points this week, +1 basis point in October), and the 10-year note yield settled up one basis point to 4.10% (+10 basis points this week, -5 basis points in October). 

• Nasdaq Composite: +22.9% YTD
• S&P 500: + 16.3% YTD
• DJIA: +11.8% YTD
• Russell 2000: +11.2% YTD
• S&P Mid Cap 400: +4.0% YTD

Reviewing today's data:

• The Chicago PMI hit 43.8 in October (Briefing.com consensus 42.0), up from 40.6 in September.