Preparation for Investors for a Fast-Tracking Week

Investors are expecting another fast-paced week after a busy one, as the first week of November approaches. Amazon's earnings report lifted technology stocks, closing the Nasdaq up more than 2.5%. The S&P 500 and Dow Jones also saw more modest increases, rising by 1%.

As the week begins, the Federal Reserve lowered interest rates as anticipated, and there were signs that trade tensions have further eased during the meeting between President Trump and Chinese President Xi Jinping.

Next week, while artificial intelligence trading will continue to be a focus for investors, quarterly results from firms such as Palantir, Advanced Micro Devices, Supermicro, and Constellation Energy are expected. Many other companies in the S&P 500 are also anticipated to release earnings reports.

In terms of economic data, the ongoing government shutdown is expected to delay ADP's private employment report once again. This makes the report, which will be released on Wednesday, the week's biggest labor update. Additionally, updates from the Institute for Supply Management and S&P Global on manufacturing and services sector activities will also be significant.

After the anticipated quarter-point rate cut in the Federal Reserve’s October meeting, Chairman Jay Powell noted that another cut by the end of the year is not guaranteed, which negatively impacted the markets. Bank of America analysts emphasized that November is typically a high-performing month for the stock market.

After a lengthy discussion, President Trump announced the outcome of trade talks with China with the statement, "We have a deal." The new agreement between the two countries encompasses a wide range, from rare earth metals to soybeans.

With the new agreement, the U.S. will halve tariffs on China related to fentanyl. At the same time, China has agreed to purchase 25 million tons of soybeans. However, it is noted that some key issues, particularly matters concerning TikTok and Taiwan, were not addressed in the discussions.

In the coming days, investors will be looking at how effective this new agreement will be in the markets and what steps will be taken to alleviate uncertainties.