US stock futures rose, with Dow futures up 0.8% and S&P 500 futures up 0.3%, while Nasdaq-100 contracts were just above flat.
Nvidia shares fell as much as 8.8% after its board formed a committee of independent directors with outside counsel to investigate CEO Jensen Huang's relationship.
Oil slid more than 3% after President Trump told CNN further strikes on Iran were highly unlikely while negotiations made progress.
The 10-year Treasury yield edged lower to 4.84% ahead of this week's CPI and PPI releases, with market-implied odds of a December 25 basis point Fed hike at around 80%.
KKR reported third-quarter adjusted net income of $1.65 billion, or $1.78 a share, up 29% and above the $1.57 average estimate.
Nvidia shares fell in premarket trading after the company's board launched an investigation into Chief Executive Officer Jensen Huang, following his admission of an affair with a woman identified in reports as a suspected Chinese spy. KKR shares moved higher ahead of quarterly earnings, with Bloomberg Intelligence expecting a 13% rise in assets under management, its slowest increase since 2023. Berkshire Hathaway's third-quarter operating earnings fell, hurt by weaker insurance underwriting, while the conglomerate spent about $9.6 billion buying back its own shares.
Market analyst James Sohn argued that the rationale for additional Fed rate hikes is crumbling, noting that gasoline prices have declined and some DRAM spot prices turned downward. He said two-year breakeven inflation fell 20 basis points in just three days to approximately 2.18%. He argued that tariffs and semiconductor supply shortages can raise price levels but do not necessarily lead to sustained inflation.
Futures on the Dow Jones Industrial Average rose 0.8% and those on the S&P 500 gained 0.3%, while Nasdaq-100 contracts rose just above the flatline. Nvidia stock fell 4% in premarket trading after its board opened an investigation into CEO Jensen Huang over his affair. Hims & Hers, Rocket Lab and Monday.com were among the companies due to report earnings on Monday.
Nvidia shares slid as much as 8.8% on Monday after the board began assembling a committee of independent directors, with outside counsel, to investigate CEO Jensen Huang's relationship, which he disclosed in a memo to employees. DraftKings fell after downgrades from JPMorgan and Stifel that followed a disappointing full-year profit outlook tied to heavy investment in its prediction-market product. Ionis Pharmaceuticals cut its full-year sales guidance for Tryngolza, and partner Novartis said it is largely abandoning development of pelacarsen.
KKR reported third-quarter adjusted net income of $1.65 billion, or $1.78 a share, up 29% and above the $1.57 average estimate in a Bloomberg survey, and said it expects to return more than $40 billion to clients this year, exceeding its prior record by more than 50%. American Airlines rose as travel stocks gained on oil extending losses amid optimism over diplomatic efforts to end the war in the Middle East. Alphabet rose after Google said it is introducing two new variations of its tensor processing units.
Barrick Mining shares rose in premarket trading after the miner reported third-quarter earnings that beat the average analyst estimate as strength in gold offset copper weakness, and said its Nevada Gold Mines initial public offering remains on track for late 2026 or early 2027. Alphabet edged higher after news that Google is rolling out two new variations of its tensor processing units. KKR rallied after a third-quarter profit that beat analysts' estimates, helped by its long-term private equity holdings amid a slump at its Global Atlantic insurance arm.
Morgan Stanley analysts led by Stephen Byrd told clients they expect AI-related capital expenditures to stay at pre-election levels, though some data center spending may shift to 2029 from 2028, and said they view the recent market weakness as unwarranted. They pointed to multiple names among AI enablers, infrastructure and adopters that they see as attractively valued. The Nasdaq composite dropped more than 5% last Thursday after a market rout in AI stocks.
Nearly two-to-one earnings-per-share increases versus decreases so far in the third quarter, with 63% of reporting companies topping their prior EPS figure, above the 54% historical baseline. Apple reported $114.48 billion in revenue and earnings per share of $2.10, but its shares slid roughly 3% as forward gross margin projections of 45% to 46% reflected rising memory chip costs. The Nasdaq came under pressure Thursday as AI stocks fell on concerns the data center buildout could slow under new leadership.
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Morgan Stanley, UBS, HSBC and Jefferies called last week's AI rout overdone, arguing that extreme regulation of data center development under a Democratic-controlled Congress is unlikely to play out. Morgan Stanley said the impact would be a push-out of some projects from 2028 to 2029 rather than a derailing of the capex story, and said it recommended "buying the drop" while remaining positive on AI hyperscalers including Amazon.com. HSBC said it is using the correction to increase equity exposure again, and pointed to Anthropic's IPO and Nvidia's quarterly earnings on November 17 as bigger catalysts.
CNH Industrial reported quarterly earnings of 16 cents per share, beating the analyst consensus estimate of 10 cents, and quarterly sales of $4.354 billion versus an estimate of $4.160 billion. The company also raised its FY2026 adjusted EPS guidance above estimates, and its shares jumped 13.5% to $13.19 on Monday as the Dow Jones index gained around 900 points. Greenfire Resources rose 38% to $7.74 after a year-over-year increase in third-quarter sales.
KKR, the alternative-asset manager, reported higher-than-expected third-quarter profit while telling investors its AI exposure is limited, according to comments from its Nuttall. The New York Stock Exchange said it would settle tokenized stocks on its upcoming 24/7 trading platform exclusively using the Avalanche blockchain. American Express is partnering with Fanatics to offer a co-branded credit card that lets people earn FanCash, the sports platform's loyalty currency.
The yield on the US 10-year Treasury note edged lower to 4.84% on Monday as investors positioned ahead of key economic releases, with declining oil prices helping ease concerns over inflation. Markets are watching this week's CPI and PPI releases, with expectations pointing to an acceleration in both annual headline consumer and producer inflation. Market-implied odds of another 25 basis point Fed rate hike next month stand at around 80%.
Richmond Fed President Tom Barkin said robust demand and stubbornly high inflation mean interest rates will need to go higher, while cautioning that any hikes should come at a careful pace. He described corporate profits as remarkable and noted consumers continue to spend in an economy with unemployment at or below 4.5%. Fed officials held rates steady last month after a September quarter-point hike to a target range of 3.75% to 4%, and traders see about an 80% chance of a December hike.
Tony Pasquariello, global head of Goldman Sachs' hedge fund business, said the US stock market's main uptrend is intact but has entered a countdown, expecting the S&P 500 to complete one final rally before a turning point. He said 2027 will face the largest net equity supply shock since the bursting of the internet bubble in 2000. He noted Goldman forecasts S&P earnings per share growth of about 18% in 2027, with second-quarter earnings growth at 33% and third-quarter growth expected at 35%.
Goldman Sachs prime brokerage data showed hedge funds dumped global technology stocks at roughly the highest pace on record in figures going back to 2016, with tech the most heavily net-sold sector, after the Democratic sweep in the midterms raised concerns about tighter AI regulation. The Nasdaq 100 posted its deepest plunge since the Covid pandemic on Thursday, wiping $2.3 trillion off its value in a day, and the S&P 500 notched its heaviest weekly loss since April 2025. JPMorgan strategists said the momentum unwind was the largest in about 40 years and saw increasing signs of investor capitulation.
Expectations of a Federal Reserve rate increase in December are strengthening ahead of the central bank's final rate decision of 2026, after an October jobs report that blew past expectations with the unemployment rate ticking lower. Overall inflation is still outpacing hourly wage growth, rising by 3.7% at last reading compared with a 3.1% increase in wages, and core PCE inflation rose by 3.1% year over year in September. Oxford Economics' chief US economist Michael Pearce said the US tariff regime, higher oil prices from the war in Iran and AI investment are likely to keep putting upward pressure on headline inflation, while last week's midterm election result sparked speculation that a Democrat-led Congress could curb the AI boom.
Goldman Sachs CEO David Solomon told CNBC that financing demand for AI infrastructure remains strong and that the bank has stayed "very active" on AI capital-markets transactions, expecting that pace to continue. He said political shifts will create "recalibrations and ups and downs" but that he still believes in the long-term productivity impact of AI. Goldman is one of several banks running a potential IPO for AI model lab Anthropic, and Solomon said the market environment is still pretty constructive.
US stocks rallied even as Nvidia shares fell after the company's board launched an investigation into Chief Executive Jensen Huang. Oil slid more than 3% after President Trump told CNN that further strikes on Iran were highly unlikely as long as negotiations over Tehran's nuclear program and the reopening of the Strait of Hormuz made progress. Richmond Fed President Barkin said the appropriate direction of monetary policy is relatively straightforward and that moving policy with care is warranted.
The report examines how the US midterm elections reshuffled Wall Street, from high-flying AI stocks to alcohol companies hit by tariffs. It includes scenes from the New York Stock Exchange on Friday, November 6, 2026, anti-data center protests at the Pennsylvania state Capitol and Nvidia CEO Jensen Huang's keynote at the company's GTC event in Berlin.
