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Markets opened volatile as the Fed’s 25bp cut tempered growth fears while Chairman Powell damped December cut bets. S&P 500 and Nasdaq traded mixed, Dow lagged; Nvidia-led AI rallies buoyed tech even as Meta and other megacaps sold off. Key catalysts: Fed signals, Nvidia’s $5T surge, Microsoft Azure outage and looming Trump-Xi trade talks.
U.S. and Chinese leaders met in Busan for high-stakes trade negotiations. Markets and policymakers watched for signs of a tariff thaw and investment commitments tied to the summit outcomes.
5.0 trillion – Nvidia becomes the first company to reach a $5 trillion market valuation.
President Trump’s public orders to restart U.S. nuclear testing have rattled allies and raised national security alarms. The Pentagon has been instructed to prepare immediate testing steps, prompting widespread international concern.
The Federal Reserve cut rates again while signaling uncertainty about future easing. Officials also set an end to quantitative tightening, shifting the Fed’s balance-sheet strategy as markets reassess rate-cut odds.
Microsoft Tops Targets on Cloud, AI – Shares Rally
Microsoft beat quarterly targets driven by cloud and AI demand, highlighting durable enterprise spending that supports its growth and capital plans.
More on investors.com
Nvidia’s stock surge pushed the company past an unprecedented valuation milestone as AI demand accelerates. Analysts and investors are recalibrating exposure to chipmakers and AI supply-chain beneficiaries.
A global Azure and Microsoft 365 outage disrupted services and highlighted cloud concentration risks. Microsoft has deployed fixes and is reporting progressive recovery while customers evaluate resilience plans.
Fiserv Erases $30B in Market Value After Guidance Pull
Payments firm Fiserv slashed outlook, triggering a dramatic market selloff that wiped roughly $30 billion from its valuation as investors fret over competitive pressures.
More on wsj.com
Meta’s quarter showed strong revenue but was hit by a massive one-time tax charge and rising AI spending forecasts, triggering a sharp stock reaction. Investors are weighing growth against heavy capex and tax impacts.
Alphabet beat revenue estimates as cloud and ad demand held up, but executives flagged a substantial capex ramp for AI infrastructure. The twin forces are reshaping Big Tech investment stories into 2026.
Fed cut rates 25bps and moved to end quantitative tightening, Bank of Canada trimmed its policy rate and major Canadian lenders cut prime; Hong Kong opened an IPO review to attract tech listings and regulators pressed cloud providers on resilience rules.
The Bank of Japan held policy steady in its first meeting under a new political backdrop, prompting currency moves. The yen weakened as markets parsed the BOJ’s cautious stance on inflation and rates.
Canada’s central bank cut its policy rate, prompting major lenders to lower prime rates. The moves reflect a global easing bias and signal shifting expectations on domestic growth and inflation.
A December cut is far from a foregone conclusion.
— Jerome Powell
Major employers continued a fresh wave of cost cuts and reorganizations as tech and media firms realign for AI and shifting demand. The rounds threaten near-term job markets and consumer sentiment.
Automakers are trimming EV and battery operations as demand softens and incentives shift. GM’s planned factory layoffs underscore the sector’s painful near-term reset.
Hurricane Melissa devastated parts of the Caribbean, leaving major damage and a rising death toll. Governments and relief groups are mobilizing as airports and ports begin phased reopenings.
The ongoing U.S. government shutdown is already denting output according to official estimates. Independent agencies warn deeper economic costs if the impasse persists into November.
The White House and negotiators signalled a possible deal to put TikTok under U.S. ownership, aiming to clear regulatory uncertainty. A closure this week would reshape social-media ownership and national-security controls.
Mastercard is moving to buy a stablecoin and crypto-infrastructure firm as payments players race into tokenized rails. The deal would expand traditional payments firms into core crypto plumbing and stablecoin issuance.
OpenAI is accelerating preparations for a blockbuster IPO, with sources flagging multibillion-dollar raise scenarios. The move would reshape valuation benchmarks for AI firms and recalibrate public-market access to the sector.
Japan’s new political leadership resisted U.S. pressure to blacklist Russian LNG, reflecting energy security and supplier ties. The dispute underscores tensions between geopolitics and domestic fuel needs.
Hong Kong’s financial authorities are moving to make the market friendlier to tech listings while mirroring global central bank easing. Reforms and rate cuts aim to revive IPO flows and lower financing costs.
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