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The US stock market closed the week on a positive note with the Dow Jones Industrial Average, S&P 500, and the Nasdaq Composite all closing at new highs. Investor confidence was boosted by sharp midweek rebounds from losses among leading technology and growth stocks.
Artificial Intelligence remains a significant growth driver for the market. Investors are eagerly awaiting the news from major technology companies after they release their quarterly results. Microsoft, Meta Platforms, Google, Amazon, and Apple are expected to report earnings this week, offering insights into trends across all areas of cloud computing, online advertising, and investment in AI.
A more robust but less intense growth outlook for the year, with particular attention paid to the role that these companies' capital expenditures may play in the broader economy and continued growth of AI.
Exchange-traded funds (ETFs) tracking growth and technology sectors also advanced. The iShares Expanded Tech-Software ETF (IGV) rose nearly 3%, while semiconductor-focused funds such as the VanEck Vectors Semiconductor ETF (SMH) gained 2.4%. Nvidia and Broadcom, key players in AI chip manufacturing, remain in buy zones according to market analysts.
President Donald Trump announced a 10% tariff increase on Canadian goods on Saturday, escalating tensions following an Ontario government advertisement that featured clips of a 1987 Ronald Reagan speech in support of free trade. Trump called the ad “fraudulent” and accused Canada of misrepresentation.
Ontario Premier Doug Ford announced that the province will pause its ad campaign on Monday to help restart trade negotiations. Canadian Prime Minister Mark Carney indicated he is prepared to re-enter discussions with US negotiators. Meanwhile, the Canadian Chamber of Commerce cautioned that further tariffs could damage North American economic relations.
The new tariff is in addition to the existing 35% base rate on Canadian imports, although goods covered under the United States-Mexico-Canada Agreement (USMCA) remain exempt. Canada’s key export sectors, including steel, aluminum, and automotive manufacturing, continue to face economic strain from recent US trade measures.
Also Read: Trump’s 200% Drug Tariff Plan Sparks Fears of Rising Costs and Shortages in the US
Trade negotiations between the United States and China also advanced over the weekend. Officials from both sides reported progress toward a comprehensive trade deal that Presidents Trump and Xi Jinping are expected to finalize at the APEC summit in South Korea later this week.
Meanwhile, markets are preparing for a Federal Reserve interest rate cut on Wednesday. Fed Chair Jerome Powell is expected to signal openness to another cut in December as the central bank considers ending its balance sheet reduction program.
Investors are optimistic yet cautious as they head into the new week. Analysts advise a cautious approach to equities due to several events that could affect the market.
