US equities edge higher despite tech weakness
US markets showed resilience on Tuesday, with major indices posting mixed results. Defensive and cyclical sectors led gains, offsetting a mild retreat in technology shares.
Sector performance and market drivers
Healthcare, energy, and consumer staples supported the S&P 500, while the Dow Jones Industrial Average outperformed thanks to strength in industrial and energy stocks. The Nasdaq Composite dipped slightly as investors took profits in major technology companies following recent rallies.
Bond markets were closed for Veterans Day, resulting in lighter trading volumes. The shift in positioning reflects a preference for sectors with stable cash flows and lower valuations amid uncertainty over interest rates.
Earnings season highlights
Strong third-quarter earnings continued to bolster sentiment. Most S&P 500 companies exceeded expectations, with healthcare and financial firms showing robust profit growth. Energy stocks gained as WTI crude rose following a production halt by Russia’s Lukoil in Iraq, raising concerns about tightening global supply.
Global markets react to earnings and policy signals
Asian and European markets posted gains, driven by corporate results and macroeconomic developments. Below is a regional breakdown of performance and drivers.
Asia: Hong Kong leads, Japan mixed
Hong Kong’s Hang Seng surged to a one-month high, led by technology and healthcare shares. Japan’s Nikkei was flat, weighed down by SoftBank’s Nvidia stake sale, though gains in Sony and cyclical stocks supported the broader TOPIX.
Europe: Record highs on STOXX indices
European equities rallied, with the STOXX 600 and STOXX 50 reaching new highs. Gains in healthcare, luxury, and banking sectors offset concerns over tech valuations. Optimism over the US government reopening also supported sentiment. Germany’s DAX and France’s CAC 40 advanced on strong corporate earnings.
Currency and commodity movements
This section outlines key developments in forex and energy markets.
Currency trends
The US dollar weakened following ADP data indicating weekly job losses, raising expectations of a December Federal Reserve rate cut. The euro held steady at $1.1586 and sterling at $1.3149, while risk currencies like the Australian and New Zealand dollars gained. The yen declined further amid Japanese policy signals.
Oil market update
Oil prices dipped in Asian trade. Brent stood at $65.04 and WTI at $60.85 per barrel. While Lukoil’s production halt offered some support, concerns over rising OPEC+ output, ongoing sanctions on Russia, and weak Chinese demand weighed on prices.
Equities on the move
Several companies saw notable share price movements driven by earnings, analyst ratings, and strategic decisions. Below are the key highlights.
Advanced Micro Devices (AMD)
AMD shares rose 4% post-market after forecasting strong growth in data centre chips. CEO Lisa Su highlighted AI-driven expansion, a $1 trillion data centre market by 2030, and next-generation MI400 chips and server racks expected in 2026. The company expects annual data centre chip revenue to reach $100 billion within five years and earnings to triple.
SoftBank
SoftBank fell up to 10% after selling its entire $5.8 billion stake in Nvidia to fund new AI ventures. Despite stronger-than-expected earnings, concerns over overheated tech valuations and a potential AI-driven market bubble emerged, with investor Michael Burry warning of risks.
JD.com
JD.com reported record Singles’ Day sales, with orders up 40% and volume nearly 60%. Growth was strong in electronics, AI products, apparel, and daily necessities. Its logistics, offline stores, and international business performed well, while AI operations, including JoyStreamer, improved efficiency and generated over 2.3 billion yuan in sales.
Adyen
Adyen shares jumped over 8% after the Dutch payments firm outlined long-term targets, projecting around 20% annual net revenue growth beyond 2026 and an EBITDA margin above 55% by 2028. Morgan Stanley called the guidance stronger than expected, reaffirming its Overweight rating and €1,885 price target.
AstraZeneca
AstraZeneca shares surged past their September 2024 peak on Tuesday, reaching a record high and making it the largest UK-listed equity by market value at nearly £210 billion ($282 billion). The rise followed strong quarterly earnings and a US drug-pricing deal.
Hensoldt
Hensoldt shares fell over 8% after Morgan Stanley and Jefferies questioned its 2026 revenue, margin targets, and cash conversion. The 2030 outlook was in line with consensus, but growth appeared backend-loaded. Hensoldt plans accelerated sales from 2027, Optronics expansion, and Operations 2.0 upgrades, with capital spending peaking in 2026.
Other notable moves
- Wells Fargo raised its year-end 2025 S&P 500 target to 7,100, citing a near-contrarian buy signal and improving liquidity. Analyst Ohsung Kwon highlighted easing funding, government reopening, and AI-driven investment as support for a “risk-on rally.” With expected 10% annual earnings growth, the S&P 500 could deliver around 8% annual returns, reaching 9,500 by 2030.
- Mizuho analysts view Oracle’s recent weakness as “largely unwarranted” and a buying opportunity ahead of its fiscal second-quarter earnings in December. CoreWeave’s issues were company-specific, while strong AI demand and resilient GPU pricing support Oracle’s fundamentals and growth prospects.
- Bank of America notes Advanced Micro Devices remains under-owned by active managers, with just 24% holding, despite strong year-on-year and quarterly performance. Ownership rose 438 basis points this quarter, supported by key customers. BofA maintains a Buy rating with a $300 target, citing AMD’s AI accelerator potential and 33% consensus sales growth into year-end.
- JPMorgan downgraded CoreWeave to Neutral, cutting its December 2025 price target to $110 due to supply chain delays in data centre construction. The company trimmed 2025 revenue and operating income forecasts, while reducing capital expenditure. Despite short-term setbacks, analysts highlighted strong long-term AI growth potential, a $56 billion backlog, and government opportunities.
- BMO Capital Markets upgraded Instacart to Outperform with a $58 price target, citing strong execution, upside potential, and discounted valuation. Q3 results included 10% year-on-year gross transaction value growth and improved margins. BMO highlighted the core grocery marketplace, enterprise platform, and retail media as growth drivers, with $1.5 billion in share buybacks supporting fundamentals.
- UBS upgraded Linde PLC to Buy from Neutral, citing “quality at a discount” and attractive risk/reward. Adjusted earnings per share growth is expected to rise from 6% in 2025 to 9–10% in 2026, supported by project startups, recovering helium and rare gas pricing, and a $7 billion backlog. The price target was set at $500, implying around 20% upside.
Upcoming economic events
Today’s key releases include the OPEC Monthly Report, API Weekly Crude Stock data, and the EIA Short-Term Energy Outlook. Federal Reserve officials Williams, Waller, Bostic, and Collins are scheduled to speak. Major earnings reports include Cisco Systems and Flutter Entertainment.
Disclaimer: This information is provided solely for educational and informational purposes and should not be construed as investment advice, advice on specific investments or investment decisions, tax advice, legal advice, or any other form of professional or regulatory advice. The information does not take into account your personal circumstances and is provided to you on the express understanding that it does not constitute advice and should not be relied upon in making any investment decision. Investing in financial instruments involves risk. You should conduct your own research before making any investment decisions and seek the assistance of a licensed financial advisor if you are unsure. No person should act on any opinion or information contained in this document without first obtaining appropriate professional advice. Calamatta Cuschieri Investment Services Limited does not accept liability for any actions, proceedings, costs, demands, expenses, damages, or losses suffered as a result of reliance on the information herein.
