Tech titans drive Wall Street gains
US equity markets continued their upward trajectory on Tuesday, fueled once again by strong performance in mega-cap technology stocks. A 1.3% surge across the “Magnificent Seven” pushed key indices to all-time highs, even as broader market participation remained weak.
Nasdaq Composite: +0.8% to 23,827.5
Dow Jones Industrial Average: +0.3% to 47,706.4
S&P 500: +0.2% to 6,890.9
Despite gains in the major benchmarks, the equal-weighted S&P 500 ended in the red, highlighting uneven sector performance. Most other sectors traded lower, overshadowed by investor focus on tech earnings and AI developments.
Global markets react to mixed signals
Markets outside the US showed a more cautious tone as regional developments and inflation readings influenced sentiment.
European and Asian market overview
While European equities ended slightly lower due to pressure on materials and mixed corporate earnings, Asian markets posted mixed performances. Australian shares slipped after higher inflation data dimmed hopes for rate cuts, but Japanese and South Korean indices hit record highs on AI-driven sentiment.
US Treasury, oil, and commodities update
This section offers a quick look at other key asset classes influencing investor sentiment.
- US Treasury yields remained steady, with the 10-year note around 4%
- Oil prices dropped below $60 per barrel before rebounding slightly in Asia
- Gold continued its slide, falling below $4,000 per ounce
Renewed tensions in the Middle East and a surprise US inventory draw supported oil prices, but gains were capped due to oversupply concerns and upcoming Fed decisions.
Corporate earnings in focus
With the earnings season in full swing, investors are closely monitoring reports from major corporations, particularly tech leaders.
Big tech and AI partnerships fuel optimism
This week’s rally was bolstered by corporate earnings and strategic AI partnerships:
- PayPal surged 4% after unveiling an integration with OpenAI’s ChatGPT, allowing users to make purchases directly
- Microsoft’s 27% stake in OpenAI and its restructuring deal were viewed as game-changers, removing capital and compute bottlenecks
- Investors are now watching for reports from Microsoft, Alphabet, and Meta midweek, followed by Apple and Amazon later this week
Company highlights
This section highlights major movers in the US and global equity markets, driven by earnings, guidance, ratings changes, and strategic developments.
US equities on the move
- UPS jumped 8% after stronger-than-expected Q3 earnings and guidance
- UnitedHealth Group raised its 2025 profit forecast, citing growth in Optum Rx services
- Booking Holdings exceeded Q3 expectations with a 14% rise in gross bookings
- Visa narrowly beat forecasts, helped by strong US consumer spending
- PayPal raised its full-year EPS forecast and declared a first-ever dividend of $0.14 per share
- UnitedHealth reported Q3 EPS of $2.92, beating estimates despite Medicaid cost pressures
- Cameco surged 23% after the US announced an $80 billion nuclear reactor partnership with Brookfield
- Nordex shares rose 23% after the company raised 2025 margin guidance to 7.5–8.5% on strong Q3 profit of €136 million
- Nokia jumped 20% after Nvidia announced a $1 billion investment in the company
Stocks under pressure
- Mondelez International trimmed its outlook due to higher cocoa prices and slowing snack demand
- Royal Caribbean declined 8.5% following weaker-than-expected Q4 projections
- Enphase Energy dropped over 8% after citing tariff-related margin pressures
AI and tech innovation take centre stage
AI developments remained a major market catalyst this week, with key strategic partnerships and initiatives gaining attention.
Strategic partnerships and investments
- Uber and Stellantis announced a large-scale autonomous vehicle project using Nvidia technology
- Eli Lilly partnered with Nvidia to build a supercomputer for AI-driven drug discovery
- Thermo Fisher is reportedly close to acquiring Clario for approximately $10 billion, which would be its largest deal since 2021
- Jefferies upgraded Nokia to “buy” from “hold” and raised its price target to €6.60, citing AI-driven data center demand and the Infinera merger
- Tesla is considering internal CEO successors amid uncertainty over Elon Musk’s $1 trillion pay package. Board chair Robyn Denholm urged support for the plan, as Musk remains central to Tesla’s strategy
Fed decision and economic data
Investors are now turning their attention to the Federal Reserve’s rate decision, with expectations for a 25-basis-point cut. The focus will be on Chair Jerome Powell’s remarks, especially amid limited economic data during the ongoing US government shutdown.
Today’s calendar includes:
- Housing and trade data
- Crude oil and fuel inventory updates from the EIA
- Earnings reports from Microsoft, Alphabet, Meta, Caterpillar, and ServiceNow
Currency and forex update
The US dollar remained firm ahead of the Fed’s policy decision. EUR/USD traded around 1.1656, supported by softer US inflation data and growing expectations of continued Fed easing amid moderate risk sentiment.
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