U.S. Markets: Sentiment Shift Ahead?

Wall Street navigated a volatile trading week, pressured by Nvidia’s earnings and a surprisingly robust U.S. jobs report. While both events initially dampened investor sentiment, underlying trends suggest potential for renewed optimism.

Nvidia’s third-quarter results exceeded expectations, yet failed to fully alleviate concerns surrounding stretched valuations and the sustainability of the AI boom. This triggered a broader sell-off, particularly impacting the “Magnificent Seven” tech giants, with the exception of Alphabet.

The U.S. Bureau of Labor Statistics’ September payrolls release further complicated the outlook. The unexpectedly strong job gains led investors to recalibrate expectations for an imminent interest rate cut by the Federal Reserve. The report’s delayed release added to market jitters, arriving at a time when uncertainty was already elevated.

By week’s end, the S&P 500 and Dow Jones Industrial Average both declined approximately 2%, while the Nasdaq Composite experienced a steeper drop of 2.7%.

However, a glimmer of hope emerged late in the week.

New York Federal Reserve President John Williams signaled potential “room” for the central bank to ease monetary policy, characterizing the current stance as “modestly restrictive.” These comments triggered a surge in market expectations for a December rate cut, with probabilities jumping to around 70%, according to the CME FedWatch tool.

Adding to the cautiously optimistic tone, Alphabet’s shares defied the overall weakness in AI stocks. Investors responded favorably to the company’s new AI model, Gemini 3, and its ongoing investments in custom chip development, which are viewed as a long-term challenge to Nvidia’s dominance in the AI hardware space. The strategic importance of in-house silicon is becoming increasingly clear, allowing for optimized performance and reduced reliance on external suppliers in the rapidly evolving AI landscape.

Eli Lilly’s milestone achievement, reaching a $1 trillion market capitalization, underscored the broader diversification of market leadership beyond the technology sector. In an environment characterized by concentrated gains, any indication of expanding strength is a welcome sign, suggesting a more resilient and balanced market foundation. Lilly’s success, fueled by advancements in areas like weight loss and diabetes treatments, highlights the importance of healthcare innovation and its potential to drive significant market value.

Diversification, even within the vast AI ecosystem itself, could provide a crucial stabilizing force for the market moving forward. Investors are increasingly looking beyond pure-play AI companies to identify complementary businesses and enabling technologies that will benefit from the broader adoption of artificial intelligence.

U.S. stocks experienced a Friday rebound. Nevertheless, major indexes concluded the week in negative territory. U.S. futures edged higher in Sunday evening trading. Asia-Pacific markets largely advanced on Monday, with Hong Kong’s Hang Seng index surging by as much as 2%.

Qube Holdings considers takeover proposal from Macquarie. The asset management firm has submitted a non-binding proposal to acquire Qube Holdings, an Australian logistics company, at an enterprise value of 11.6 billion Australian dollars ($7.49 billion). The potential acquisition reflects growing investor interest in critical infrastructure assets and the strategic importance of logistics networks in the global economy.

U.S. Treasury Secretary foresees continued economic strength. “We have set the table for a very strong, noninflationary growth economy,” the U.S. Treasury secretary stated, acknowledging sectoral challenges. This assessment highlights the ongoing debate regarding the trajectory of the U.S. economy and the potential impacts of fiscal and monetary policy.

Singapore inflation sees a slight uptick. The country’s consumer price index for October increased 1.2% year on year, exceeding expectations. Core inflation also rose a higher-than-expected 1.2%. The data underscores the persistent challenges of managing inflation in a globalized economy and the potential for diverging monetary policy responses among central banks.

[PRO] Investment Opportunities in China’s tech sector. Analysts anticipate continued investment in homegrown technology despite trade tensions. Several Chinese tech firms are drawing attention from Wall Street banks, presenting potential opportunities for investors seeking exposure to the dynamic and rapidly evolving Chinese technology market. However, geopolitical risks remain a significant consideration.

Chinese consumer brands expand into Africa as old investment model fades

Chinese business activities in Africa are increasingly shifting from state-owned enterprises focused on resource extraction to private sector companies specializing in consumer goods. This transition reflects a broader shift in the dynamics of Sino-African economic relations, with a greater emphasis on trade and consumer-driven growth.

Chinese investments in Africa’s resource-intensive sectors have decreased by approximately 40% since their 2015 peak, according to Rhodium Group China Cross-Border Monitor. Conversely, China’s exports to Africa surged by 28% year on year over the first three quarters of 2025. The shift signifies a move toward a more diversified and sustainable economic relationship between China and Africa.

— Evelyn Cheng