Alphabet (GOOGL) topped $100B in quarterly revenue, raised 2025 capex to $91–93B, and saw shares jump 6% after strong Google Cloud and YouTube results, despite EU fines and rising AI competition.
The Fed cut rates to 3.75%–4% and ended quantitative tightening, but Jerome Powell warned another cut in December is “not a foregone conclusion,” sending mixed signals to markets.
Wells Fargo forecasts a year-end rally with the S&P 500 hitting 7,100, citing AI capital spending, tariff lawsuit risks, tax refund stimulus, and a potential government reopening as key drivers.
Nvidia stock jumped nearly 5% to a $4.89T valuation after Jensen Huang’s GTC keynote unveiled $500B in orders, DOE supercomputers, an Eli Lilly partnership, NVQLink quantum interconnect, and a $1B Nokia investment.
Markets cheered a US-China trade truce framework, but Macquarie warns a true deal remains elusive. With tariffs still in place and core disputes unresolved, optimism may fade quickly.
Tesla stock jumped 4% after Morgan Stanley’s Adam Jonas said self-driving is “solved.” With robotaxis planned for 2025 and a camera-only approach, Tesla is challenging rivals like Waymo and Rivian.
Warren Buffett’s Berkshire Hathaway cut its Apple stake for tax reasons, missing out on $50B in potential gains. Apple remains Berkshire’s top holding, but Buffett says beating future tax hikes mattered more.
Microsoft, Alphabet, Meta, Amazon, and Apple report earnings this week, representing a quarter of the S&P 500. Their AI spending and results could matter more for the U.S. stock market than a Fed rate cut.
Intel jumps 7% on strong Q3 results, Ford rallies 4% despite guidance cut, Alphabet edges higher on Anthropic deal, while Deckers slumps 12% and Applied Materials falls on layoffs.
With mega-cap tech stocks dominating the S&P 500, investors are hedging concentration risk by shifting into cash, gold, and crypto. ETF flows show a new normal for diversification.