Stocks Climb on Fed Day as Nvidia Hits $5 Trillion: Markets Wrap
(Bloomberg) — Wall Street traders looked past concerns about elevated technology valuations, with the high-profile industry driving stocks toward a fresh record as prospects for another Federal Reserve rate cut bolsters the outlook for corporate earnings.
A renewed tech rally sent the S&P 500 up for a fifth straight day, putting the gauge on track for its longest streak of monthly gains since 2021. While there have been worries about narrowing breadth that could jeopardize the sustainability of the advance, confidence in the outlook for artificial intelligence keeps powering the cohort of tech megacaps, and as a result, the US equity benchmark.
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In a bull market that’s been driven by optimism for AI to revolutionize the global economy, Nvidia Corp. became the first $5 trillion company after President Donald Trump said he’ll discuss the chipmaker’s Blackwell AI processors with Chinese leader Xi Jinping. This week Chief Executive Officer Jensen Huang announced a flurry of new partnerships and dismissed concerns about an AI bubble.
When some of the world’s biggest tech companies report earnings tonight, traders will be closely parsing outlooks on AI expenditures and examining any updates on when they expect to start seeing returns on those investments.
Microsoft Corp., Alphabet Inc. and Meta Platforms Inc. kick things off with their results on Wednesday afternoon, with Amazon.com Inc. and Apple Inc. following on Thursday.
Corporate Highlights:
Boeing Co. announced a $4.9 billion accounting charge and delayed debut for its 777X jetliner, a reminder of the long recovery ahead for the US planemaker even as rising aircraft deliveries bolster its cash. Caterpillar Inc. posted higher third-quarter revenue, with its energy and transportation business boosting earnings amid rising demand for equipment needed to fuel data centers for artificial intelligence. Kraft Heinz Co. lowered its sales outlook in a sign of increasing weakness among US consumers as the maker of Kraft Mac & Cheese and Heinz ketchup prepares to split up its business. Verizon Communications Inc., the nation’s largest mobile-service provider, reported gains in revenue and profit in the third quarter as a new chief executive officer laid out an aggressive growth strategy to reclaim market share. CVS Health Corp. raised its 2025 profit guidance for a third time in less than six months, a sign that it’s set a new foundation a year into Chief Executive Officer David Joyner’s tenure even as the company struggles with underperforming business units and pressure from Washington. Paramount Skydance Corp. began a planned round of job cuts involving 1,000 workers on Wednesday as part of an effort to slash $2 billion in costs following its August merger with Skydance Media. More cuts are expected at a later date. Fiserv Inc. plunged after the fintech slashed its outlook for full-year earnings and announced a broad overhaul of its board and top leadership committee. Centene Corp.’s third-quarter profit surpassed Wall Street expectations and the health insurer raised its outlook, a potential sign of relief for investors after the company’s profit view collapsed earlier this year. Uber Technologies Inc. is preparing to offer driverless rides on vehicles developed by Lucid Group Inc. and Nuro Inc. in the San Francisco Bay Area for the first time next year, thrusting the company into direct competition with Waymo’s robotaxi service. Thermo Fisher Scientific Inc. agreed to acquire Clario Holdings Inc., a privately held maker of drug trial software, for about $8.9 billion in cash. Online marketplace Etsy Inc. will elevate Chief Growth Officer Kruti Patel Goyal to the CEO job, entrusting the company veteran with navigating the artificial intelligence era. UBS Group AG results failed to dispel investor anxiety about risks from previously canceled Credit Suisse bonds, the potential impact of Swiss capital reforms and the lender’s involvement in the First Brands bankruptcy, overshadowing a set of earnings that broadly beat expectations. Deutsche Bank AG exceeded analyst estimates for fixed-income trading, giving tailwind to Chief Executive Officer Christian Sewing just a couple of weeks before he presents a new strategy. Banco Santander SA posted third-quarter results that beat analysts’ estimates as profit jumped in the US and provisions for souring loans remained contained. GSK Plc raised its profit and sales forecasts for the year, aided by its HIV and immunology medicines, in Emma Walmsley’s last report as chief executive officer. Mercedes-Benz Group AG confirmed its annual outlook and plans to proceed with a €2 billion ($2.3 billion) share buyback after the company’s automaking margin climbed in the third quarter. SK Hynix Inc. reported a 62% jump in profit and revealed it’s sold its entire memory chip lineup for next year, illustrating how a global AI infrastructure buildout is ratcheting up sector-wide demand. Indonesia’s GoTo Group raised its earnings forecast for the year, a sign that new initiatives and cost cuts to cope with fierce competition in the ride-hailing and delivery market are paying off. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.2% as of 9:31 a.m. New York time The Nasdaq 100 rose 0.5% The Dow Jones Industrial Average rose 0.2% The Stoxx Europe 600 rose 0.1% The MSCI World Index rose 0.2% Bloomberg Magnificent 7 Total Return Index rose 0.9% The Russell 2000 Index was little changed Nvidia rose 3.5% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1643 The British pound fell 0.4% to $1.3216 The Japanese yen rose 0.1% to 151.90 per dollar Cryptocurrencies
Bitcoin rose 0.6% to $113,534.33 Ether rose 1.1% to $4,023.47 Bonds
The yield on 10-year Treasuries advanced one basis point to 3.99% Germany’s 10-year yield was little changed at 2.62% Britain’s 10-year yield declined one basis point to 4.39% The yield on 2-year Treasuries was little changed at 3.49% The yield on 30-year Treasuries advanced two basis points to 4.56% Commodities
West Texas Intermediate crude rose 0.4% to $60.37 a barrel Spot gold rose 1.6% to $4,016.03 an ounce ©2025 Bloomberg L.P.
