Market Summary
Markets are jittery as the S&P 500 and Nasdaq oscillate ahead of Nvidia’s earnings and follow mixed macro cues. The S&P 500 is paring losses while the Nasdaq remains volatile on megacap tech swings; the Dow is steadier. Key catalysts: split Fed minutes, delayed jobs data, and fresh AI funding and earnings, driving sector rotation and higher intraday volatility.
Federal Reserve minutes expose deep divisions over the path of policy, with officials split on timing of further rate cuts and moves to end quantitative tightening. Markets are watching for how the schism will shape December’s decision and balance-sheet policy.
Figure of the Day
24% – Drop in U.S. goods trade deficit in August after delayed government data showed imports plunged amid tariff-driven contractions.
The Bureau of Labor Statistics canceled the October jobs report and warned the November release will miss the Fed’s meeting window, depriving policymakers of critical labor-market data. Officials say some household-survey data was lost during the shutdown, complicating rate decisions.
Nvidia’s earnings report is the central market catalyst as investors test whether AI spending justifies sky-high valuations. The company’s results and guidance will reshape sentiment across chipmakers and megacap tech.
Bullish
TJX lifts outlook as off‑price spending surges
TJX parent TJ Maxx and Marshalls raised guidance after another quarter of strong sales, signaling resilient consumer demand for value retailers amid inflation pressure.
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Big capital is flowing into AI startups and cloud commitments, with Microsoft and Nvidia backing Anthropic in a major funding push. The deals underscore circular financing risks but also lock in cloud capacity at scale.
Asset managers and infrastructure groups are racing to build AI data-center capacity, with Brookfield launching multi‑billion dollar funds in partnership with Nvidia. The moves signal an industry tilt from software to physical AI infrastructure.
Bearish
Klarna plunges after disappointing Q3 results
Klarna stock tumbled after the BNPL firm reported a large net loss and cut guidance, prompting analyst downgrades and investor sell‑pressure.
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Kraken confidentially filed for a U.S. IPO after fresh fundraising that values the crypto exchange in the tens of billions. The filing signals renewed institutional appetite for major crypto platforms despite market turmoil.
Bitcoin slipped back below key $90,000 support as a broader crypto correction accelerates. Traders warn rising derivatives leverage and fragile positioning could deepen the selloff.
Regulatory Impact
Congress fast‑tracked a bill forcing DOJ to release Epstein files; the EU proposed pausing parts of the AI Act via a ‘digital omnibus’; BLS canceled October payroll data after the shutdown, delaying labor inputs for the Fed.
Institutional flows into Bitcoin ETFs swung sharply, with BlackRock’s IBIT posting record one‑day outflows. The episode highlights fragility in institutional crypto demand amid price volatility.
Congress moved quickly to force disclosure of Justice Department files tied to Jeffrey Epstein, sending a bill to the president. The mandate could trigger high‑profile releases and political fallout for figures cited in the records.
Quote
“I would love to fire Powell”
— President Donald Trump
Emails linked to Jeffrey Epstein prompted resignations and probes at elite institutions, forcing corporate and academic boards to reckon with reputational fallout. The disclosures are reshaping governance and boardroom risk.
President Trump and Saudi Crown Prince Mohammed bin Salman touted vast commercial deals and deeper security ties during a high‑profile White House visit. Announcements include huge investment pledges and a move to make Saudi a major non‑NATO ally.
Brussels plans to roll back parts of its toughest digital regulations to ease burdens on tech firms, proposing delays to elements of the AI Act. The ‘digital omnibus’ seeks to streamline rules but raises privacy and competition concerns.
The Dutch government stepped back from seizing control of Nexperia after talks with Beijing, easing a confrontation that risked disrupting auto chip supply. The U‑turn buys breathing room for European carmakers but leaves strategic questions unresolved.
Data‑center buildouts are driving record electricity demand and raising grid reliability alarms ahead of winter. Local opposition is also rising as communities push back on the infrastructure required to power AI growth.
The U.S. government moved to finance nuclear power restarts to shore up grid capacity, with a $1 billion loan tied to Three Mile Island. The intervention aims to secure power for AI data centers but shifts risk onto taxpayers.
Target reported weakening traffic and trimmed guidance as consumers pare discretionary spending, deepening concerns for holiday retail. The retailer is also testing AI features to improve shopping as it battles a tough macro backdrop.
Meta prevailed in a major U.S. antitrust case, avoiding a breakup, and rolled out new AI tools for image and video editing. The twin developments clear acquisition risks and show the company doubling down on AI content tooling.
Google launched Gemini 3, drawing praise for improved reasoning and coding capabilities and sending Alphabet shares sharply higher. The release intensifies competition between tech giants and lifts AI sentiment across markets.