Rise in Wall Street at the Beginning of November!

November Starts Promising on Wall Street

In 2025, Wall Street futures contracts made a strong start to November, buoyed by optimism about artificial intelligence demand and a ceasefire in US-China trade tensions.

S&P 500 rose for the sixth consecutive month in October, marking its longest monthly gain streak in four years. At the same time, the technology-focused Nasdaq recorded its longest period of gains since January 2018. The earnings declared so far by companies dubbed the "Magnificent Seven" indicate a significant increase in spending on artificial intelligence.

Investors will closely monitor the results of semiconductor firms like Advanced Micro Devices and Qualcomm this week for more clues on artificial intelligence demand.

American President Donald Trump stated that the most advanced chipsets from artificial intelligence giant Nvidia will be allocated only to US companies and will not be shipped to China or other countries. In pre-market trading, Nvidia shares rose by 1.6%.

Trump and Chinese President Xi Jinping reached an agreement last week to postpone mutual tariffs for one year in order to reduce tensions. However, this agreement has not been sufficient to address the deeper divisions between the two economic superpowers.

As of 06:04 Eastern Time, Dow E-mini increased by 48 points (0.1%), while S&P 500 E-mini rose by 25.25 points (0.37%) and Nasdaq 100 E-mini gained 152.5 points (0.59%).

Private Economic Data Expected

This week, attention will be on private sector economic data expected to provide clues about the health of the economy. The US government's second-longest shutdown has contributed to data uncertainty and concerns over monetary policy.

Investors will closely watch ADP private employment data on Wednesday. Federal Reserve Chair Jerome Powell dampened optimism for a rate cut in December last week.

A group of Federal Reserve officials expressed discomfort regarding a rate cut last week; however, Fed Governor Christopher Waller called for further easing to support the weak labor market.

Currently, through the CME Group's FedWatch tool, the probability of a 25 basis point rate cut in December is priced at 69%. This figure was at 90% the previous week.

Meanwhile, the US Supreme Court will address the legality of Trump's tariffs on Wednesday. A lower court had indicated that the administration exceeded its authority by implementing taxes under a law designed for emergencies.

In pre-market trading, Berkshire Hathaway’s Class B shares rose by 1.4%, following an increase in Warren Buffett's holding's third-quarter profits. Data-storage companies gained after a report that Samsung postponed pricing contracts for DDR5 to mid-November. Seagate Technology and Western Digital increased by 2.9% and 2.3%, respectively. Sandisk rose by 6.4%.

Roku shares gained 2.2% after Piper Sandler rated the stock as 'overweight.'