What Happened in the Financial Markets?
The capital market finished a mixed week against the backdrop of the interest rate cut and a successful meeting between Trump and the President of China, which eased geopolitical tensions.
S&P 500 index rose by 0.71%
NASDAQ closed with a gain of 2.24%
Dow Jones rose by 0.75%
10-year bond yields fell by 2.6% to 4.08%
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Important Events This Week:
Monday, Manufacturing PMI
The U.S. Manufacturing Purchasing Managers’ Index (PMI) for October will be released on Monday. Forecasts call for a stable reading of 52.2, unchanged from the prior month. A level above 50 signals expansion, reflecting moderate growth.
The steady reading suggests American factories are holding a consistent production pace, even as global demand shows signs of slowing and cost pressures remain. Traders will be watching closely for details in the employment and new orders components of the report.
Tuesday, JOLTS Job Openings
Wednesday, DP Employment Report
The October ADP Employment Report, due Wednesday, is expected to show a modest gain of 28,000 jobs after September’s sharp decline of 32,000, signaling only a slight rebound from last month’s weakness.
The data will be closely watched as an early read on Nonfarm Payrolls, reinforcing the view of a gradually cooling labor market that supports expectations for further interest rate cuts.
Thursday, Initial Jobless Claims
Friday, University of Michigan Consumer Sentiment
Forecasts suggest a slight rise to 54.0 points, up from a reading of 53.6 in October. This represents a modest improvement in consumer mood following a period of declines, against the backdrop of price stabilization and gradual easing of inflation.
However, the level of confidence remains low compared to previous years, reflecting growing caution among households due to labor market volatility and ongoing uncertainty surrounding the Fed's economic policy.
This data is expected to provide an important indication of consumer spending leading up to the year-end holiday shopping season. A key factor in the pace of U.S. economic growth and potential clues about the direction of economic activity in the final quarter of 2025.
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Tech Stocks in the Headlines
NVIDIA (NVDA)
The semiconductor giant trading at a valuation of $4.93 trillion, rose by 8.7% over the past week. It reached an all-time high following its annual GTC event where the company unveiled a series of strategic announcements.
CEO Jensen Huang presented an impressive outlook, forecasting cumulative revenue visibility exceeding $500 billion by the end of 2026 from its Blackwell and Rubin AI chips, which are utilized by most of the artificial intelligence industry.
Additionally, NVIDIA announced new collaborations, including the development of linkage technology for quantum computing and an agreement with Uber to produce a fleet of 100,000 robo-taxis based on the company's chips.
Despite increasing competition from Qualcomm and Broadcom, analysts believe NVIDIA's dominance in the market, thanks to its CUDA software ecosystem, continues to give it a distinct advantage. The stock ended the week close to a historic $5 trillion market capitalization threshold.
Alphabet (GOOGL)
Google's parent company, trading at a valuation of $3.4 trillion, rose by 8.2% last week after reporting record results for the third quarter. Revenues surged by 16% to a peak of $102.3 billion, while net profit jumped by 33% to $35 billion, both figures exceeding analyst forecasts.
The Cloud segment particularly stood out with a 34% annual increase in revenue to $15.2 billion. The company continues to expand massive annual investments in artificial intelligence, amounting to up to $93 billion.
CEO Sundar Pichai noted that AI is already generating tangible business results, mainly through flagship products like Gemini and AI Mode in the search engine. Core areas also continued to grow: Search revenue hit $56.6 billion and YouTube revenue reached $10.3 billion.
Amazon (AMZN)
The e-commerce giant trading at a valuation of $2.6 trillion, rose by 8.9% last week after reporting stronger-than-expected third-quarter results and raising its annual investment forecast to $125 billion a move reflecting accelerated growth in the artificial intelligence sector.
Total revenues increased by 13% to $180.2 billion, and Earnings Per Share (EPS) amounted to $1.95 compared to a forecast of $1.57. The AWS Cloud unit led the growth with a 20% annual increase in revenue to $33 billion and an operating profit of $11.4 billion, accounting for approximately two-thirds of the total profit.
The Advertising segment also recorded a 24% leap to $17.7 billion. Analysts noted that Amazon's scale and investment capacity reinforce its position as a global leader in Cloud and AI, despite personnel cuts designed to improve operational efficiency.
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Stock in Focus: Palantir Technologies
Recent Performance and Growth Drivers
Palantir posted its first-ever $1 billion quarterly revenue, up 48% year-over-year, driven by a 93% surge in U.S. commercial activity and steady government business.
The company secured $2.3 billion in new deals, including 157 contracts over $1 million and 42 above $10 million, underscoring its expanding reach.
The AIP Platform and Strategic Partnerships
The AIP platform gained strong traction in 2025 as industrial, health, and financial firms adopted it for automation, forecasting, and risk management.
Partnerships with NVIDIA, Oracle, and Snowflake, including a joint AI infrastructure project with NVIDIA, further cement Palantir’s role in enterprise AI.
Market Positioning and Valuation Concern
Palantir’s government contracts remain a reliable profit anchor, while rapid growth in commercial customers signals a shift toward a more balanced revenue mix.
Shares are up 160% YTD, hitting about $200, with a $460 billion market cap that fuels both optimism and valuation concerns.
Upcoming Earnings Report
Palantir reports Q3 2025 results on Monday, Nov. 3, after the close, with focus on U.S. commercial growth, AIP adoption, and government revenue stability.
The market will watch for signs of sustained profitability, new deal momentum, and potential updates on strategic investments or a stock split.
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Macroeconomics:
U.S. Interest Rate Decision and Monetary Policy
On Wednesday, the U.S. interest rate decision was published. The Federal Reserve announced an interest rate cut to 4.00%, in line with market expectations, down from 4.25% in the previous decision.
This is the second consecutive interest rate reduction; part of a cautious monetary easing trend aimed at supporting growth given signs of a slowdown in the American economy.
The Fed emphasized that while inflation continues to moderate, it remains above the target. Therefore, any future decision will depend on incoming economic data. This move signals to the markets that the central bank believes the risk of a slowdown outweighs the risk of a renewed rise in inflation.
Market reaction was positive: bond yields fell and stocks rose, based on the assessment that the Fed is nearing the end of its monetary tightening cycle and is ready to support the economy if necessary.
Consumer Confidence Index
On Tuesday, the CB Consumer Confidence Index for the U.S. was released, showing a rise in October to 94.6 points, compared to a previous reading of 95.6 and a forecast of 93.4.
Although the figure is higher than expected, it still reflects a moderate level of confidence among consumers, who are affected by ongoing uncertainty surrounding monetary policy and the global situation.
The slight drop from the previous reading indicates growing caution from households regarding future spending, primarily due to high interest rates and a cooling labor market.
However, the increase relative to the forecast suggests consumers continue to show some resilience, partly due to reasonable employment levels and stable income.
The data gives the Fed an indication that domestic demand remains relatively stable but still requires monitoring to ensure the cooling does not develop into a broader slowdown.
US-China Trade Deal and Geopolitics
On Thursday, U.S. President Donald Trump and Chinese President Xi Jinping met at the APEC Summit in South Korea. The meeting led to a historic agreement designed to de-escalate the trade war between the world's two largest economies.
According to the understandings:
Washington will halve tariffs on Chinese products related to fentanyl production.
Beijing will suspend for one year the new export restrictions it imposed on rare earth minerals and magnets components essential for the chip, electric vehicle, and weapons industries.
China committed to resuming purchases of American soybeans and lifting tariffs on U.S. agricultural produce, a step aimed at appeasing American farmers.
The U.S., in turn, announced a freeze on expanding the list of prohibited exports to Chinese companies.
The agreement is viewed as a temporary pause in economic tensions, but experts stress that this is only a fragile ceasefire, dependent on both sides' ability to maintain continuous dialogue and prevent a renewed deterioration in the global trade conflict.
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