Overview
The U.S. stock market started November, historically its best month, with strong tech stocks performance. Amazon's $38 billion deal with OpenAI boosted AI-related investments. Semiconductor and data companies also benefitted, but the technological advance didn't spread throughout the market. Over 300 S&P 500 stocks closed lower, highlighting concerns about a narrow market.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News Story
- Amazon's Major AI Contract: Amazon's $38 billion deal with OpenAI sparked interest in AI stocks. Concurrently, I-REN secured a $2.7 billion long-term contract with Microsoft, positively impacting the sector.
- Semiconductor and Data Sector: MVIDIA's stock rose following news of receiving semiconductor export clearance from Trumping Administration to Arab partners.
- U.S. Manufacturing and Inflation: October's U.S. manufacturing activity remained sluggish, showing easing inflation pressures. Despite improvements in orders and employment, the general manufacturing sector faces challenges.
- Fed Members' Conflicting Statements: Fed members delivered mixed messages about future rate cuts and inflation concerns, leading to market uncertainty.
- Positive Corporate Earnings: Corporate earnings for the third quarter hit record levels, exceeding market expectations.
Tomorrow's Economic Indicators
| Time | Event |
|---|---|
| 22:25 | U.S. Johnson Red Sales Index Announcement |
| 20:35 | Speech by Fed Vice Chair Bowman |
General Opinion
November typically records the highest average returns over the past 30 years, keeping bullish investors optimistic despite the risks of volatility. Concerns over market overvaluation and Fed policy uncertainty could trigger short-term corrections. Experts warn of market vulnerability to unexpected news. Nonetheless, the positive fall in earnings supports a favorable market outlook, though caution is advised.
