Nvidia shares fell 4% in premarket trading after its board opened an investigation into CEO Jensen Huang, while Dow futures rose 0.8% and S&P 500 futures gained 0.3%.
Money markets price a 75% probability of another quarter-point Fed rate increase in December, with October CPI due Tuesday and producer prices Friday.
The Fed left its key rate unchanged in October, and a December increase is seen as likely amid stubborn inflation, higher oil prices and a tech selloff.
Alphabet fell 13% in a single session after third-quarter search revenue came in below expectations, marking a second straight quarter of negative free cash flow.
Berkshire Hathaway's third-quarter operating earnings fell on weaker insurance underwriting, while the conglomerate spent about $9.6 billion buying back its own shares.
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.
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.
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.
Summary by WaZii, written by AI
Globes - Israel Business News ·
AST SpaceMobile is scheduled to report third-quarter 2026 earnings on Nov. 9, 2026, after market close, with the Zacks Consensus Estimate at $44.4 million in revenue and a loss of 41 cents per share. Over the past 60 days, the consensus estimates in the article's table declined by 5.73% for F1 and 26.04% for F2. ASTS has an Earnings ESP of -15.86% and a Zacks Rank #3.
Ronald Temple of Lazard Asset Management said rate expectations for the Fed, the ECB and the Bank of Japan have aligned since the war in Iran, as energy prices and geopolitical uncertainty exert similar pressure. Since the day before the conflict began, US expectations shifted from about 60 basis points of cuts to about 45 basis points of hikes, and Europe from about 20 basis points of cuts to about 65 basis points of hikes. Markets expect all three central banks to raise rates by 25 basis points at their December meetings, though Lazard sees the paths diverging in 2027.
Wall Street is reassessing technology giants as hundreds of billions of dollars keep flowing into the AI race, questioning their ability to turn those huge investments into profit. Alphabet fell 13% in a single session after third-quarter results showed search revenue, which accounts for nearly 56% of total revenue, came in below expectations, marking a second straight quarter of negative free cash flow. Amazon also posted negative free cash flow, Meta fell after announcing a sharp increase in capital spending and S&P Global Ratings cut its outlook to negative, while Microsoft shares came under selling pressure despite positive free cash flow and Azure revenue beating forecasts.
The article examines whether the Fed needs to keep raising rates with the pace it has planned, given that rising bond yields and the technology stock selloff are already tightening financial conditions. It cites Reuters data showing oil prices fell about 15% in the week to November 6 but remained 64% higher than at the start of 2026, while European natural gas prices rose to nearly three times their level at the start of the year. AllianceBernstein's Inigo Fraser Jenkins said geopolitical tensions and supply disruptions will keep inflation pressure even after the US midterm elections.
US consumer price inflation for October is due Tuesday, alongside producer price figures on Friday and speeches from Federal Reserve policymakers, as investors gauge the likelihood of another rate hike in December. LSEG data show money markets currently price a 75% probability of another quarter-point Fed rate increase next month. Monex's Nick Rees said a 25 basis-point hike should be near fully priced by the time the committee meets, barring a major downside surprise in the October CPI release or the November jobs report on December 4.
The Federal Reserve left its key rate unchanged at its October decision and a December increase is seen as likely, according to the report. It cites stubborn US inflation, a jump in oil prices and a tech selloff after the US midterms as sources of market nervousness. The Dow Jones edged higher in October while the tech-heavy Nasdaq declined, with Nvidia and AMD shares under pressure.
New York stocks ended the week mixed, recovering after the previous day's selloff and reassured by a solid monthly US employment report. The US labour market showed unexpected strength in October with nonfarm payrolls beating economists' expectations, while unemployment edged lower and wage growth accelerated. Alphabet invested in Qualcomm during the third quarter to support the chipmaker's data-centre expansion, Tesla is considering gradually reducing Cybertruck production by mid-2027, Airbnb jumped after raising its revenue growth forecast for 2026, Charter Communications plans a reorganization to cut annual operating costs, and Oklo reported a wider quarterly net loss.
Gartner beat Wall Street's earnings forecast and raised its full-year outlook on November 3, but its shares fell 13% to close at $204.22, and Barclays later cut the stock to Underweight. Barclays noted that Gartner rose 27% from early October to early November, alongside Thomson Reuters at 25% and FactSet at 29%, while the S&P 500 fell 2.2%. Contract value growth of 2.5% in the third quarter lagged expectations, and Barclays highlighted AI disruption risks to per-seat research models.
In a November 5 research note, Bank of America rates strategist Ralph Axel wrote that if oil prices continue to rise over the next 3-6 months, "we could see significantly higher interest rates." The report said US two-year swap rates rose a cumulative 196 basis points on days oil gained ground during 2026 through November 4, but fell 83 basis points on other days.
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.
The S&P 500 rose 0.61% and the Nasdaq Composite gained 1.1%, while the Dow Jones Industrial Average was down 0.08%, with technology, communication services and consumer discretionary stocks driving the gains. The Philadelphia Semiconductor Index was up 4% after its biggest one-day drop since April 2025, and Nvidia rose 4%. AMD, Intel, Broadcom and Micron Technology were up between 2% and 10%.
Jeff Klingelhofer said he does not believe the Fed will take its foot off the brake on interest rates even if the cost of oil goes down, and he expects the Fed to raise rates at least two more times to curb inflationary pressures. He said the Fed wants to watch the markets without the markets watching the Fed, and that it has to function as the counter-stimulus to the US economy.
