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Monday saw a mixed movement in stock markets, with economic data and corporate events contributing to investor sentiment. At 10:35 a.m., New York time, the S&P 500 dropped marginally by 0.2 percent, reflecting cautious market activity.
At the same time, the Nasdaq 100, which is heavily weighted in tech, rose by 0.2%, indicating a strong performance in the technology sector. The Dow Jones Industrial Average, on the other hand, fell more drastically by 0.8%, and the MSCI World Index fell by 0.3% as well. The Stoxx Europe 600 was nearly flat, and the Russell 2000 Index declined by 1.5 percent, suggesting a widespread decline in smaller stocks.
Although the overall market was in a downtrend, some technology sector stocks posted gains. The Bloomberg Magnificent 7 Total Return Index rose by 1.4 percent, led by major technology firms. Amazon, in particular, saw a 4.5% increase after signing an agreement with OpenAI, underscoring the continued growth of the AI-driven market.
Furthermore, cryptocurrencies experienced sharp declines, with Bitcoin falling by 3.5% and Ether decreasing by 6.2%, increasing the volatility of digital assets.
In addition, the economic outlook shows a mixed picture, as factory activity in the US decreased in October, according to the Institute for Supply Management (ISM). The ISM manufacturing index fell to 48.7, signaling a slowdown in the industry. When the reading is below 50, it indicates that factory activity is in decline, marking another period of constant battles in the US manufacturing industry.
Although the data showed weaker factory activity, there were some positive signs. The ISM report indicated slight improvements in new orders and employment, which may point to a possible stabilization. Analysts note that, despite widespread manufacturing challenges, other sectors, such as data centers, have experienced significant growth and are benefiting from the AI boom.
Investors are eagerly awaiting the publication of additional economic data, including a survey on US services and manufacturing activity, which is scheduled for release later this week. These reports offer further insight into the health of the US economy and may inform future monetary policy decisions.
In corporate news, several major companies made headlines, influencing stock movements.
Microsoft Corp. signed a $9.7 billion deal to purchase artificial intelligence computing capacity from IREN Ltd., becoming the Australian company's largest customer.
Microsoft plans to invest over $7.9 billion in data centers, cloud computing, and AI-related employee development in the UAE over the next four years.
SM Energy Co. announced an all-stock deal to acquire Civitas Resources Inc. for $2.8 billion, further consolidating the US shale industry.
Coeur Mining Inc. agreed to acquire New Gold Inc. for about $7 billion in an all-stock deal to combine two midsize North American gold producers.
Airbus SE delivered 78 aircraft in October, keeping its ambitious annual production target on track.
NVIDIA Corp. became the first company to surpass a $5 trillion market cap, with Loop Capital raising its price target to $350 from $250.
Alphabet Inc. plans to raise $15 billion through bonds in the US and €6.5 billion ($7.48 billion) in Europe, funding its aggressive investments in AI.
Cisco Systems Inc. introduced a new all-in-one product to help retail stores, health care facilities, and factories utilize artificial intelligence with a single rack of equipment.
Pfizer Inc. filed a lawsuit against Novo Nordisk A/S, accusing the company of stifling competition in the weight-loss market by attempting to acquire Metsera Inc., a startup focused on obesity.
Kimberly-Clark Corp. agreed to acquire Kenvue Inc. in a $40 billion deal, aiming to create a company with $32 billion in revenue and surpass Unilever in the health and wellness products sector.
Eaton Corp. agreed to acquire liquid cooling specialist Boyd Thermal for $9.5 billion, capitalizing on the growing demand for AI data centers.
UBS Group AG issued its first bonds since a court decision raised questions about its exposure to previously canceled AT1 debt.
Ryanair Holdings Plc expects to surpass its passenger growth target, thanks to early aircraft deliveries from Boeing and robust
travel demand.
BP Plc agreed to divest stakes in US shale assets to Sixth Street for $1.5 billion as part of efforts to strengthen its balance sheet and regain investor confidence.
Although the market has recently been volatile, confident analysts remain optimistic. November is a historically strong month for stocks, and prospects of earnings growth and possible rate reductions may help in further gains till the end of the year. Nonetheless, issues of overvaluation and declining market depth have cast doubt on the issue, with some of its key sectors, including the technological segment, contributing significantly to the recent improvements.
