[Chart courtesy of MarketWatch.com]

1. Moving the market

Stocks slipped early on as tech earnings took center stage, with the S&P 500 and Nasdaq both retreating from recent highs.

Alphabet provided a bright spot by rallying about 5% on better-than-expected results, but Meta Platforms and Microsoft tumbled roughly 12% and 2%, respectively, after their quarterly reports triggered investor worries over rising spending forecasts and soft profit figures.

The rotation out of mega cap tech—especially artificial intelligence leaders like Nvidia—meant under-the-radar sectors and the broader market held up better.

All eyes were also on Washington and Beijing after President Trump and Chinese President Xi Jinping wrapped up a meeting that included a new deal: the U.S. agreed to cut tariffs on Chinese fentanyl to 10%, with pledged action from China to curb shipments and boost agricultural buys, plus a one-year delay to rare earth export curbs.

Despite the hoped-for trade progress, hawkish remarks from Fed Chair Jerome Powell about December rate cuts kept investors on edge.

Powell made it clear that another reduction is “far from a foregone conclusion,” sending bond yields and the dollar higher, while Bitcoin and most major asset classes lost ground except for gold and silver, which managed to notch solid gains of 1.96% and 2.59% respectively.

The day proved a wild ride, with our portfolios rescued by precious metals as tech giants disappointed.

Will coming earnings help shake off the Fed’s tough stance and spark a new rally, or is a bumpy stretch ahead as trepidation grows going into the year-end?

[Chart courtesy of MarketWatch.com]

1. Moving the market

Stocks took off in early trading today, hitting record highs as traders cheered the Feds widely anticipated rate cut and yet another tech sector rally.

Nvidia led the pack, soaring over 4% and making Wall Street history by becoming the world’s first $5 trillion company, fueled by relentless demand for AI chips. AMD and Micron piggybacked on the momentum, each logging solid gains as well.

The S&P 500 briefly topped 6,900 for the first time ever, underscoring just how much optimism is baked in this week.

Traders were riding high early on, expecting a dovish follow-through from Fed Chair Powell after the central bank delivered a telegraphed quarter-point rate cut and ended quantitative tightening as predicted.

But Powell threw a curve ball not long after, warning that another cut in December was “far from certain.” That took some wind out of the market’s sails, instantly flipping much of the green to red.

Rate-cut odds for December tumbled from over 95% to near 65%, with the selloff hitting just about every asset class except the tech-heavy Nasdaq.

Bond yields popped alongside the dollar, gold gave back early gains, but silver bucked the downtrend and closed higher. Bitcoin stumbled. Meanwhile, the most-shorted stocks extended their losing streak, but it was Nvidia’s historic run that really stole headlines.

After a rollercoaster session like today’s, will the market find its footing on clearer economic data or does the volatility stick around as 2025 winds down?

[Chart courtesy of MarketWatch.com]

1. Moving the market

Stocks reached fresh highs Tuesday, but under the surface it was clear this was a tech-powered move—with most of the broad market sitting out the rally.

Strong earnings from big names grabbed attention: United Parcel Service jumped 7% and Wayfair soared 20% on their upbeat third-quarter results, while PayPal rallied 11% after also topping expectations.

Earnings season is proving robust so far; about one-third of S&P 500 companies have reported, and 83% are beating estimates.

The week’s focus is squarely on the “Magnificent Seven,” with Alphabet, Amazon, Apple, Meta Platforms, and Microsoft set to report in coming days—together these giants make up about a quarter of the S&P 500’s value, underscoring their outsized influence on the indexes.

Amazon stole some headlines with news of its largest round of layoffs ever, a move that fits the broader tech-industry trend of cost-cutting in 2025.

The Fed also kicked off its latest meeting, widely expected to deliver a second rate cut this year, with traders hoping Chair Jerome Powell will tee up another cut in December as labor market concerns linger.

Despite the positive action in the major averages, market breadth disappointed—350 S&P 500 stocks closed lower, and gains were concentrated entirely among the big technology names.

Bond yields continued to ease, the dollar fell, gold moderated, while silver found its footing and Bitcoin remained directionless.

If the Fed delivers another rate cut Wednesday, will that finally jolt bitcoin out of its sideways grind—or keep the Mag 7 doing the heavy lifting for the rally?

[Chart courtesy of MarketWatch.com]

1. Moving the market

Stocks kicked off the week with a bang, hitting new record highs after U.S. and Chinese officials announced a breakthrough in trade talks over the weekend.

The early rally never fizzled, with all three major indexes closing at all-time highs and the Nasdaq leading the way, up nearly 2% thanks to a surge in chip stocks like Nvidia.

Driving optimism was news that President Trump and President Xi Jinping are expected to formalize a trade deal this week.

The proposed framework includes a one-year delay on China’s rare earth export curbs, a halt to Trump’s threatened 100% tariffs that were set to begin in November, resumed Chinese purchases of U.S. soybeans, progress on the TikTok dispute, and possible cooperation on fentanyl.

While the finer points are still being worked out, the mood on Wall Street was positive, with traders betting the truce will hold and pave the way for lower trade barriers moving forward.

Meanwhile, traders are also eyeing Wednesday’s expected Fed rate cut, which could offer another tailwind for equities after last week’s tamer inflation data.

Gold cooled but held its ground near $4,000, silver dipped, and bitcoin staged a weekend rally past $115,000. Bond yields were choppy as the 10-year tested the 4% mark again, and the dollar edged lower.

With bulls firmly in control and a trade deal seemingly within reach, will these new highs stick—or are we in for another surprise as world leaders finalize their agreement?