US stocks ended mixed as large-cap tech firms drove gains while smaller caps fell. The Nasdaq outperformed, lifted by AI-related mega-cap strength, though market breadth was narrow. About two-thirds of S&P 500 firms reported earnings, with 83% beating estimates; reactions to “Magnificent Seven” results were mixed. Meanwhile, NVIDIA’s market cap surpassed US$ 5tn, underscoring tech dominance.
The Fed cut rates by 25 bps to 3.75%-4.00%, with dissent among policymakers signaling division. Chair Jerome Powell warned another cut in December was uncertain amid limited data from the ongoing federal government shutdown. Treasury yields rose on his hawkish tone, pressuring bonds; investment-grade corporates lagged while high yield sentiment softened modestly. A US-China meeting produced a one-year trade truce, easing tariffs and resuming agricultural purchases, offering temporary relief and supporting investor sentiment.
In Europe, the STOXX 600 slipped 0.67% as the ECB held rates steady, citing near-target inflation and moderate growth momentum. Eurozone GDP rose 0.2% q/q in 3Q25, with inflation at 2.1%. The UK’s FTSE 100 gained 0.74% on a weaker pound; UK housing remained resilient with prices up 0.3% in October and mortgage approvals at a nine-month high.
