Stocks traded mixed on Friday as blockbuster earnings from Amazon and Intel fuelled hope of a tech bounce despite a report showing persistent US inflation.
Wall Street pushed mostly higher, with the tech-heavy Nasdaq rising 1.3 percent and the S&P 500 also rising, though the blue-chip Dow dipped lower.
Both Amazon and Intel beat expectations in earnings reports released after the close of trading on Thursday, and shares in the two companies shot more than eight percent higher.
Investors have been keenly watching how companies take advantage of artificial intelligence while navigating high interest rates.
Meanwhile the personal consumption expenditures (PCE) price index, the Fed's preferred measure of inflation, came in unchanged at 3.4 percent in September on an annual basis. Prices rose by 0.4 percent from the previous month, the same rate as in August.
The figures "had a sticky feel to them, meaning they lacked a stronger trend of disinflation", said Briefing.com analyst Patrick O'Hare.
"That is apt to keep the Fed in a more hawkish mindset... the Fed won't be thinking about a rate cut anytime soon," he said.
The inflation data comes after figures released Thursday showed that the US economy had its best growth since late 2021 during the third quarter.
"We're in a bull market until proven otherwise for one simple reason: most data indicates we're far away from a recession," said Callie Cox at eToro.
The data come ahead of the Fed's monetary policy decision next week, with expectations it will hold interest rates steady again given high inflation and the resilient US economy.
Officials have lined up in recent months to say that while there might not be any more cuts, rates could be kept at two-decade highs for an extended period.
Asian equity markets rose on the strong US tech earnings, but European stocks finished lower as a number of companies failed to meet earnings expectations.
"It’s been another difficult week for European equity markets with most of the weakness being driven by disappointment over earnings as well as guidance downgrades, amidst concern over the outlook for demand as we head into the final quarter of this year," said CMC Markets analyst Michael Hewson.
The showing comes at the end of a rollercoaster week for equities, with the Middle East crisis continuing to cast a shadow as Israel said ground forces had raided central Gaza for a second day.
Oil prices rallied more than two percent before paring gains, recovering much of their losses from Thursday, as traders tracked developments in the Israel-Hamas war amid concerns it could draw in other countries.
"What will be interesting is how they end the day, as it could be a signal of how apprehensive traders are about events in the Middle East and the risk of significant escalation over the weekend," said Craig Erlam at OANDA.
- Key figures around 1530 GMT -
New York - Dow: DOWN 0.2 percent at 32,705.38 points
London - FTSE 100: DOWN 0.9 percent at 7,291.28 (close)
Frankfurt - DAX: DOWN 0.3 percent at 14,687.41 (close)
Paris - CAC 40: DOWN 1.4 percent at 6,795.38 (close)
EURO STOXX 50: DOWN 0.9 percent at 4,014.36 (close)
Tokyo - Nikkei 225: UP 1.3 percent at 30,991.69 (close)
Hong Kong - Hang Seng Index: UP 2.1 percent at 17,398.73 (close)
Shanghai - Composite: UP 1.0 percent at 3,017.78 (close)
Euro/dollar: UP at $1.0597 from $1.0563 on Thursday
Dollar/yen: DOWN at 149.60 yen from 150.43 yen
Pound/dollar: UP at $1.2149 from $1.2129
Euro/pound: UP at 87.20 pence from 87.08 pence
Brent North Sea crude: UP 0.8 percent at $88.70 per barrel
West Texas Intermediate: UP 0.8 percent at $83.91 per barrel
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