November Started with Growth: The Rise of Amazon and Nvidia

S&P 500 and Nasdaq made a strong start to November. Agreements in the field of artificial intelligence have increased the market value of major companies such as Amazon and Nvidia. In this context, Kenvue stocks also made a significant jump following Kimberly-Clark's acquisition agreement.

Amazon.com reached record levels thanks to its multi-year $38 billion cloud services contract with OpenAI, which enabled the company that produces ChatGPT to access Nvidia's graphics processors.

Nvidia stocks gained 2.5% following President Donald Trump's announcement that the company's most advanced chips would be allocated to U.S. companies. Additionally, Microsoft received an export license for chips used in data centers in the United Arab Emirates.

Loop Capital also contributed to gains by raising its price target for Nvidia by $100. Optimism about artificial intelligence drove markets to record levels, indicating increased spending in the technology sector by the so-called "Magnificent Seven" companies. S&P 500 and Nasdaq recorded the longest annual gain streak in October.

Investors are eagerly awaiting results from companies such as Advanced Micro Devices and Qualcomm this week. Michael Sansoterra, CEO of Silvant Capital Management, stated that the market is witnessing profit growth for most companies outside of major technology firms. This indicates that the markets are not just limited to the artificial intelligence theme. Despite concerns about the economy, inflation, and unemployment, the fundamentals are showing a more resilient picture than expected.

Consumer spending and information technology sectors supported the S&P 500 with increases of 1.9% and 0.5% respectively. However, many other sectors experienced a decline. Kenvue stocks saw a 17.4% increase following the announcement of Kimberly-Clark’s acquisition of the Tylenol manufacturer worth over $40 billion, while Kimberly-Clark lost 11.8% in value.

As of 10:02 AM ET, the Dow Jones Industrial Average declined by 177.70 points, or 0.37%, to 47,385.17. The S&P 500 rose by 4.14 points, or 0.06%, to 6,844.34, and the Nasdaq Composite saw an increase of 128.77 points, or 0.54%, to 23,853.72.

Sector giants Caterpillar and Honeywell negatively affected the index with declines of 1.5% and 0.8%, respectively. This week, private sector economic data will be monitored, with special employment data on Wednesday. The second longest government shutdown in the U.S. is expected to create uncertainty in the data as well as uncertainties regarding monetary policy.

Federal Reserve Chairman Jerome Powell reduced the likelihood of a rate cut in December, as some Fed officials expressed their discomfort with rate cut decisions last week. In October, U.S. manufacturing contracted for the eighth consecutive month due to weak new orders. Meanwhile, the U.S. Supreme Court gathered on Wednesday to hear a case regarding Trump's tariffs.

IDEXX became one of the standout names in the S&P 500 after raising its annual forecasts, gaining 13%. Berkshire Hathaway’s Class B shares turned negative after falling 0.8% following quarterly results. IREN surged 19.8% after signing a $9.7 billion contract with Microsoft to gain access to Nvidia GB300 processors over five years.

On the NYSE, the number of declining stocks outnumbered advancing stocks by a ratio of 1.9 to 1, while this ratio on the Nasdaq was set at 1.61 to 1.

S&P 500 recorded 11 new 52-week highs and 25 new lows, while the Nasdaq Composite saw 50 new highs and 95 new lows.