As Halloween casts its shadow over Wall Street, investors are navigating a market filled with both sweet surprises and unsettling scares. From Big Tech earnings to renewed U.S.-China diplomacy, the final days of October have delivered a whirlwind of developments shaping the outlook for the rest of the year.

Big Tech Earnings: A Tale of Two Extremes

Wall Street ended Thursday in the red, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all slipping after investor jitters over tech sector spending plans. Meta Platforms suffered its biggest single-day loss since October 2022, tumbling more than 11%, as skepticism grew over CEO Mark Zuckerberg’s aggressive push into artificial intelligence and the metaverse.

Despite Meta’s strong revenue and ad growth, investors balked at rising capital expenditures projected to exceed $37 billion in 2025, fueling concerns that the company’s profit margins could narrow in the near term. Microsoft also saw a 3% decline, weighed down by analyst caution over cloud segment costs, even after reporting robust AI-driven Azure growth.

But while some tech giants spooked investors, others delivered a welcome treat. Amazon shares soared over 13% in after-hours trading, after the company posted earnings that surpassed Wall Street expectations. The e-commerce giant’s cloud-computing unit, AWS, grew 17% year-over-year, reigniting optimism that corporate demand for AI and cloud infrastructure remains strong. CEO Andy Jassy highlighted the “fastest pace of customer adoption since 2020,” noting major enterprise clients are expanding their cloud commitments heading into 2025.

Adding to the positive sentiment, Netflix surprised investors by announcing a 10-for-1 stock split, its first in nearly a decade. The move will lower the per-share price, making the stock more accessible to retail investors and potentially broadening ownership as streaming growth stabilizes.

Global Trade: Trump and Xi Extend a Fragile Truce

Away from the earnings stage, geopolitics took center spotlight as U.S. President Donald Trump and Chinese President Xi Jinping met in Busan, South Korea, for a highly anticipated summit. The two leaders agreed to temporarily ease tariffs, including a one-year suspension of restrictions on rare earth exports, a sector critical to U.S. manufacturing and defense supply chains.

China also pledged to increase soybean and agricultural imports, offering a short-term relief for U.S. farmers hit by years of tariff tensions. However, details of the agreement remain vague, leaving analysts questioning how long the “trade truce” will hold.

Market watchers say this development could give a modest boost to Asian equities and commodity-linked currencies, while helping ease inflationary pressures in the U.S. if tariff suspensions are extended beyond 2025. Still, with Washington and Beijing holding competing interests in semiconductor supply chains, the broader trade picture remains fragile.

U.S. Market Performance: Fear Meets Optimism

By Thursday’s close, all three major indexes posted losses: the S&P 500 fell 0.8%, the Nasdaq slid 1.2%, and the Dow dropped 0.6%. The pullback came after a strong start to the week, as investors recalibrated expectations on Federal Reserve rate cuts.

With inflation showing signs of cooling and GDP growth moderating, analysts are split on whether the Fed will begin lowering interest rates before March 2026. The 10-year Treasury yield held steady around 4.65%, reflecting lingering caution.

Meanwhile, volatility indicators such as the CBOE VIX index ticked higher, suggesting a more nervous market heading into November. Traders are watching for guidance from upcoming U.S. labor data and consumer spending reports, which could determine how resilient the economy remains under current monetary policy.

Sectors to Watch: Energy, Tech, and Manufacturing

Following the Trump-Xi summit, analysts are keeping a close eye on energy and industrial sectors, as easing trade frictions could lift global demand forecasts. Semiconductor and rare earth-related stocks may also see renewed interest, with Nvidia advisors reportedly involved in new AI-focused SPAC deals, signaling strong institutional appetite for advanced chip investments.

Technology remains the heartbeat of the market, but diversification is becoming more important as volatility rises. Energy stocks have outperformed this quarter, buoyed by Brent crude holding near $88 per barrel, while cyclical sectors like consumer discretionary face pressure from tightening household budgets.

Outlook: A Market Balancing Act

As the ghosts of inflation, rate hikes, and global tensions linger, investors are bracing for a volatile but opportunity-filled close to the year. For now, Amazon’s rally and the Trump-Xi truce offer some optimism — but the market remains divided between the thrill of recovery and the fear of overreach.