Markets await key data and Nvidia earnings

General market commentary

US equity markets fell sharply on Monday amid a broad based sell off, with major indices closing lower as volatility rose ahead of key economic data and Nvidia’s upcoming earnings. The S&P 500 slipped almost one per cent, the Nasdaq Composite declined close to one per cent, and the Dow Jones Industrial Average dropped more than one per cent. Losses were widespread across technology, energy, materials and financial equities, while communication services and utilities were the only sectors to advance. The CBOE Volatility Index (VIX) jumped 13 per cent to 22.38, highlighting increased investor caution, while most US Treasury yields edged lower.

Among the largest technology shares, several of the Magnificent Seven weakened, with Nvidia and Apple among the biggest fallers. Nvidia shares declined as investors focused on concerns around financing conditions and capital spending from major clients ahead of Wednesday’s results, while Apple slipped after a court ruling ordered it to pay substantial damages in a patent dispute. Dell Technologies was the weakest performer in the S&P 500 following a broker downgrade, whereas Alphabet gained strongly after Berkshire Hathaway disclosed a sizeable new stake. Mixed macroeconomic data, including stronger than expected manufacturing activity and modestly higher construction spending, contributed to uncertainty as markets reassessed expectations for Federal Reserve policy ahead of labour market figures later in the week.

Latest market and economic update

Most Asian markets fell on Tuesday, led by Japan where the Nikkei 225 slid 2% and the TOPIX dropped 1.5% amid a bond sell-off and concerns over fiscal expansion under Prime Minister Takaichi. Tech shares were broadly weaker, with South Korea’s KOSPI down 1.8%, Hong Kong’s Hang Seng losing 1%, and SoftBank, Samsung and Xiaomi all retreating ahead of Nvidia’s earnings.

Wall Street futures rose modestly on Monday evening, with S&P 500 futures up 0.2% to 6,702.75, Nasdaq 100 futures up 0.2% to 24,924.0, and Dow Jones futures up 0.1% to 46,724.0. Gains followed cautious after-hours trading, supported by Fed Governor Christopher Waller advocating further rate cuts, while broader market expectations still leaned toward a December hold.

European shares fell on Monday, with Germany’s DAX down 1.2%, France’s CAC 40 slipping 0.6%, and the U.K.’s FTSE 100 easing 0.2%. Losses were driven by caution ahead of Nvidia’s earnings and weakness in technology shares, while investors also reacted to slower global growth, including disappointing data from Japan and China, affecting broader market sentiment.

The US dollar strengthened today, rebounding 0.2% to a one-week high on the dollar index at 99.545, snapping a four-day losing streak. Against the euro, the dollar held steady at $1.1594, near its weakest level of the week, as markets weighed slower US jobs data and reduced expectations for a December Fed rate cut.

Oil prices dipped in Asian trade this morning, with Brent at $63.83 and WTI at $59.54 per barrel, as supply concerns eased after Russia’s Novorossiysk port resumed loadings following a Ukrainian attack. Market attention remains on the Federal Reserve’s rate outlook and delayed US jobs data, with policy uncertainty influencing demand expectations and crude pricing.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

Amazon.com plans to raise $15 billion in its first US bond offering in three years, issuing notes dated 2028 to 2065, with $80 billion of demand reported. Proceeds will support debt repayment, acquisitions, working capital, and buybacks. The move reflects rising investment in AI infrastructure, following similar bond sales by Meta and Oracle.

Novo Nordisk will cut the US price of its injectable Wegovy obesity drug from $499 to $349 per month and focus on its upcoming oral weight-loss pill, aiming to boost patient access and counter competition from Eli Lilly and cheaper copies. CEO Doustdar acknowledged slowing sales growth, emphasising volume gains as central to the company’s strategy.

Apple’s iPhone 17 lineup continues to face strong demand, with JPMorgan reporting average global lead times around seven days, compared with two days for the same week last year. The Base iPhone 17 records the longest waits, while lead times for the Air, Pro, and Pro Max models remain stable, highlighting supply has yet to catch up.

Ford Motor has partnered with Amazon to sell certified pre-owned vehicles online in Los Angeles, Seattle, and Dallas. Customers can browse and buy on Amazon but must collect cars from participating dealers, who handle delivery and inspections. Following Hyundai, the programme reflects Ford’s push for smoother, dealership-free shopping, with 20 dealers preparing to launch.

Chinese automaker BYD plans to double its European sales network by the end of next year, aiming for 2,000 points of sale. By the end of 2025, the company expects 1,000 locations, reflecting its ambitious strategy to strengthen its presence in the region, expand its customer base, and compete more effectively in the European automotive market.

WPP shares rose 8.8% on takeover speculation, with reports that Havas, Apollo, and KKR explored full or partial acquisitions. BofA cautions discussions are preliminary, noting challenges including scale mismatches and debt levels. Under new CEO Cindy Rose, WPP is pursuing AI-led restructuring, attracting strategic interest despite a 60% share price decline.

Prosus expects first-half fiscal 2026 earnings per share to rise up to 37%, driven by higher profitability across its businesses and gains from Tencent. Core headline EPS is projected to increase 20–29%, while total operations EPS could grow 31–40%. The group highlighted strong revenue growth, profitable operations, and a global ecosystem serving around 2 billion consumers.

Sea Limited announced a $1 billion share repurchase programme and receiving an upgrade from Phillip Securities to Buy with a $170 target. The Singapore-based company highlighted confidence in its long-term prospects, while analyst Helena Wang cited improved growth across its Garena, Shopee, and Monee business segments.

Evercore ISI reaffirmed its Outperform rating on Nvidia with a $261 target, citing strong demand, improving supply, and attractive valuation ahead of the company’s November 19 earnings. Analysts expect a beat-and-raise quarter, noting AI-driven cloud capital spending and underappreciated growth potential, with Nvidia’s 2025–26 pipeline far exceeding current Street estimates.

Stifel has raised its Tesla price target to $508 from $483, maintaining a Buy rating, citing strong progress in full self-driving and Robotaxi development. The updated valuation reflects bullish long-term technology monetisation, with higher 2025–2026 EBITDA forecasts. The firm anticipates near-term auto sales headwinds but highlights FSD and Robotaxi as key drivers of shareholder value.

Deutsche Bank has downgraded BNP Paribas to Hold from Buy, lowering its price target to €78 from €91. The move reflects uncertainty surrounding Sudan-related litigation, which has eroded around €8 billion of market value, and the bank’s relatively low CET1 buffer. The downgrade underscores the potential impact of fines on capital ratios despite solid fundamentals.

Morgan Stanley raised its 12-month S&P 500 target to 7,800, citing stronger earnings growth, broadening leadership, and AI-driven efficiency gains. Small caps and cyclicals are expected to outperform, with several sectors upgraded. Despite near-term liquidity and labour risks, strategists see upside as operating leverage, pricing power, and earnings momentum support the rally.

Upcoming data and events

Today's key economic data include factory orders, industrial production, import and export prices, and the federal budget balance. In earnings, Home Depot, Medtronic, and Amer Sports are among the notable companies reporting, providing investors with insights ahead of the Thanksgiving holiday and potential market-moving developments.

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