WALL STREET FINISHES WITH A BANG
US stocks ended a volatile month on a strong note as Amazon’s blockbuster earnings reignited optimism around AI.
• S&P 500: +0.7%
• Nasdaq 100: +0.6%
CORPORATE UPDATES
• Amazon surged 15% after reporting stronger than expected earnings. AWS revenue jumped 37%, its fastest growth since 2021, and the company increased its AI investment plans for next year.
• Apple fell 7.4% after warning that component shortages will impact future sales, disappointing investors with weaker guidance.
• Microsoft and Amazon have now delivered back to back earnings that strengthened confidence in the AI investment cycle.
• Samsung expects memory shortages to continue into next year, highlighting the relentless demand for AI infrastructure.
• Reports suggest China’s Moonshot has secured access to around 20,000 Nvidia Hopper chips through Alibaba to support its AI expansion.
• SpaceX slipped ahead of next week’s earnings and a major insider share unlock, with investors watching for possible selling pressure.
• Higher oil prices supported energy giants ExxonMobil and Chevron, helping lift the energy sector.
EARNINGS SCORECARD
So far, 86% of S&P 500 companies reporting earnings have beaten expectations, the highest success rate in five years.
AI BOOM CONTINUES
Companies continue spending billions to expand AI infrastructure, and investors are rewarding businesses that can demonstrate strong AI driven growth.
FED WATCH
Treasury yields moved higher after fresh inflation data and comments from Fed officials reinforced expectations that interest rates could stay higher for longer.
WHAT INVESTORS ARE WATCHING NOW
The market is rewarding companies delivering strong execution while punishing weaker guidance.
With earnings season still underway, investors are watching whether AI leaders can continue justifying their massive investments.