US stock indexes closed higher on Friday, with the S&P 500 up +0.26%, the Dow Jones up +0.09%, and the Nasdaq up +0.48%. Positive corporate earnings drove the gains, with Amazon.com and Western Digital leading the charge. Hawkish Fed comments were a negative factor. Markets are pricing in a 64% chance of a -25 bp rate cut in December. A tariff truce between the US and China boosted sentiment. Q3 earnings have been strong, but profit growth is slowing. The government shutdown continues, affecting economic data. Overseas markets were mixed, with Japan’s Nikkei hitting a record high. T-note yields fell slightly.

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