AMD(US:AMD) The Economic Times·2025-11-01 04:02Market Performance - The S&P 500 ended October up 2.3%, marking its sixth consecutive month of gains, despite fluctuations due to mixed results from megacap companies [1][12] - Year-to-date, the S&P 500 has increased by 16%, while the Nasdaq Composite has gained approximately 23% [6][12] Corporate Earnings - Third-quarter profits for the S&P 500 are projected to rise by 13.8% compared to the previous year, with over 130 companies set to report earnings in the coming week [2][12] - As of Wednesday, 44% of S&P 500 companies that reported had an 83% earnings beat rate, which would be the sixth highest on record if maintained [7][12] Valuation Concerns - The S&P 500's forward price-to-earnings multiple has surpassed 23, indicating market valuations are at their highest since the dot-com bubble [3][12] - Analysts suggest that earnings will need to drive returns forward as investors may be hesitant to pay multiples similar to those during the tech bubble [4][12] Sector Insights - Companies like Meta Platforms and Microsoft saw stock declines after announcing increased spending for AI expansions, while Alphabet's shares rose due to investor confidence in its cash flow management [8][12] - Amazon's stock surged following strong growth in its cloud unit, alleviating concerns about its position in the AI sector [8][12] Economic Context - The ongoing U.S. government shutdown, now the second-longest in history, has delayed the release of monthly jobs data, leading investors to rely on alternative economic indicators [10][12] - The lack of official economic reports has heightened concerns about the labor market, especially with companies like Amazon announcing workforce reductions [9][10][12]