Stocks rallied as Big Tech earnings led a risk-on wave: S&P 500 and Nasdaq logged monthly gains while the Dow outperformed on cyclical strength. Volatility eased but pockets of stress persisted in short-term funding and regional banks; AI and cloud names drove leadership while energy reacted to geopolitical oil risks.
Banks leaned on the Fed’s newly launched Standing Repo Facility as month-end repo stress spiked, highlighting strains in short-term funding markets. The moves flagged liquidity pressure that could ripple through money markets if sustained.
381.7B – Berkshire Hathaway’s cash hoard, record high at quarter end.
Fed officials are publicly clashing over policy as some urge faster cuts while others caution against premature easing. The debate raises recession risk questions and clouded expectations for upcoming rate moves.
The government shutdown is inflicting major social and logistical damage, with food aid and emergency funding becoming legal flashpoints. Courts have intervened, ordering continued SNAP payments as millions face disruption.
Amazon’s Cloud Acceleration Calms AI Bubble Fears – Investors Reassured
Amazon’s AWS beat and raised guidance, lifting the stock and tempering worries that AI capex is creating an unsustainable market bubble; markets rallied on the report.
More on siliconvalley.com
Airlines and controllers warn that the shutdown is cascading into the aviation system, with staffing shortages creating mounting flight delays. Industry leaders are pressing Congress to reopen government before the holiday travel rush.
Big Tech earnings and Amazon’s blowout report reignited a market rally this week, lifting major indices and risk appetite. Investors parsed cloud strength and AI spending to gauge sustainability of the run.
First Brands Accused of Massive Fraud – Lenders Seek Trustee
Creditors formally accused auto-parts maker First Brands of massive fraud as the company heads into bankruptcy, raising insolvency and legal risk for stakeholders.
More on ft.com
AI investment mania faces scrutiny as investors demand proof of profit amid bubbly valuations. Analysts warn some names must now deliver measurable revenue to justify sky-high multiples.
Berkshire reported a sharp jump in operating profit and hoarded a record cash pile, underscoring capital accumulation ahead of Warren Buffett’s step-down. The results fuel debate over buybacks and succession risks.
China is moving to exempt some Nexperia chip orders from an export ban; U.S. courts ordered emergency SNAP funding amid the shutdown; new U.S. tariffs on heavy trucks and buses took effect Nov. 1.
China signals a softening of its export curbs on Nexperia, easing a weeks-long chip freeze that threatened global auto production. The U.S. is preparing to announce resumed shipments, relieving manufacturers nervy about supply gaps.
Israel said remains transferred by Hamas are not recent hostages, deepening the emotional and forensic stakes of the conflict. The handling and verification of returned bodies complicate ceasefire and repatriation messaging.
If we don’t cut policy rapidly, the risk of tipping the economy into recession is real.
— Stephen Miran, Fed Governor
U.S.-Venezuela tensions surged after reports of possible strikes and political discord across the region. Washington and Caracas traded denials and diplomatic splinters as the prospect of military action unnerved markets and allies.
Exxon and Chevron boosted output despite weak oil prices, a sign major producers are prioritizing share and production over spot markets. Geopolitical frictions, including Venezuela risks, nudged crude prices higher this week.
Regulators and global standard-setters are rethinking crypto rules as banks’ and stablecoins’ roles evolve. Basel reviews and issuer attestations point to mounting scrutiny and attempts to shore up reserve transparency.
Public-health scares expanded as a blood-pressure drug recall and an expanding listeria outbreak hit food and pharma supply chains. The episodes raise liability and regulatory risk for manufacturers and retailers heading into year-end.
Telecom and cloud M&A is active as buyers pay up for cloud-deployment and managed services expertise. Strategic deals reflect ongoing corporate demand for managed cloud solutions and digital transformation assets.
Defense-tech firm Anduril successfully flew its jet-powered uncrewed drone, highlighting the Pentagon’s push for autonomous swarming aircraft. The milestone intensifies competition in high-end military robotics.
Space actors reposition as NASA secures backup lunar lander options while SpaceX adjusts Starship plans for Artemis missions. Competition between commercial providers and NASA intensifies over moon-landing architecture.
Tech sector job cuts continued, led by Amazon and a wave of Bay Area layoffs, testing the labor market’s resilience. Firms cite restructuring, AI adoption and cost control even as markets rally on earnings.
APEC diplomacy underscored shifting US-China dynamics as Xi seized the stage and Trump’s early exit reshaped summit optics. Leaders used the forum to pitch trade, AI cooperation and regional stability amid tense bilateral ties.