Everything to Know about Macro and Markets
Last week, stocks finished with a mixed performance as investors weighed fresh inflation data and renewed concern about the cost of the AI buildout. The Nasdaq 100 (NDX) rose 0.06%, while the S&P 500 (SPX) slipped 0.05%, and the Dow Jones Industrial Average (DJIA) fell 0.65%. The Russell 2000 (IWM) gained 0.22% as small-cap stocks bounced from recent lows.
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Energy led all sectors with a 1.7% gain, while Financials lagged with a 1% decline. Crude oil rose 2.3% to $59.95 a barrel, and gold dropped 2.16% to $4,084 per ounce. Bitcoin fell 5.13% to $94,504, marking its lowest level since May.
Federal Reserve officials maintained a careful tone on rates. Kansas City Fed President Jeff Schmid said inflation “remains too high,” while Boston Fed President Susan Collins noted that another rate cut soon is unlikely. Traders now see only a 50% chance of a December rate cut, down from full expectations three weeks ago.
Meanwhile, bond yields ticked higher as the 10-year Treasury reached 4.148%. The U.S. Dollar Index held steady at 99.27. With valuations near record highs, many investors appear to be focused on holding onto gains as the year draws to a close.
AI Bubble Fears Take Center Stage
The focus this week remained on AI and the substantial amount of money being poured into it. Investors are starting to wonder if the spending spree can truly pay off.
The largest technology firms are investing record sums in AI hardware and data centers. Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL) (GOOG), and Meta Platforms (META) together spent almost $100 billion last quarter on property and equipment. That is far above Apple’s (AAPL) $3 billion.
However, this massive investment is running into physical and financial limits. Industry data show a shortage of transformers, gas turbines, and even land for new data centers. GE Vernova’s (GEV) CEO said nearly all the firm’s power equipment is already booked through 2028. Goldman Sachs (GS) and JPMorgan (JPM) analysts estimate that the total cost of building AI infrastructure could reach $5 trillion by 2030.
According to JPMorgan’s model, AI companies will need to generate about $650 billion in new yearly revenue to justify that investment. That is more than one and a half times Apple’s current annual sales. For now, the numbers look bold, but investors are starting to question how quickly the payoff will arrive. Even with big promises for smarter assistants and new AI tools, it is still unclear who will foot the bill for all this growth.
Stocks That Made the Week
Apple held its ground once again. Shares slipped only 0.13% to $272.83, showing calm amid broader market swings. The company continues to move carefully in AI development. It now uses Google’s Gemini model on iPhones under a $1 billion yearly deal. Apple also relies on both its own and third-party data centers to control costs. This steady approach has helped it sidestep investor worries about runaway AI budgets.
Micron (MU) gained 4.17% to $250.00 after a report that Samsung raised memory chip prices by as much as 60% since September. The jump highlights how vital and scarce memory chips have become in the AI supply chain. Analysts have noted that demand for these chips remains high, despite production lagging behind.
Warner Bros. Discovery (WBD) rose 4.02% to $22.90 as reports pointed to a bidding race among Paramount (PSKY), Comcast (CMCSA), and Netflix (NFLX). Paramount is said to have offered to buy the whole company, while its rivals are mainly focused on streaming assets.
Applied Digital (APLD) advanced 2.69% to $24.73, and Bloom Energy (BE) jumped 7.99% to $112.75 as speculative names bounced back from steep early losses. Iren (IREN) and Oklo (OKLO) also recovered part of their declines, showing that risk appetite remains alive even in a cautious market.
Upcoming Earnings and Dividend Announcements
The Q3 earnings season continues, with a packed lineup of key reports from major names across tech, retail, and industrials: On Monday, XPeng (XPEV) will report results, offering another look at the electric vehicle market in China after recent margin pressures. Investors will also watch Luckin Coffee (LKNCY), which continues to post strong growth in domestic sales.
On Tuesday, Baidu (BIDU) and Home Depot (HD) are expected to report their results. Baidu’s report will provide insight into online advertising demand and AI monetization in China, while Home Depot’s update will gauge consumer strength ahead of the holiday quarter.
Wednesday will bring one of the most anticipated reports of the quarter, with Nvidia (NVDA) set to release its results. Wall Street expects another strong print from the chipmaker as AI-related demand continues to fuel data-center growth. Target (TGT) and Lowe’s (LOW) will also report midweek, giving investors a pulse on retail spending.
Later in the week, Walmart (WMT), Deere (DE), and Intuit (INTU) will round out a busy stretch of earnings. Together, these names will provide a broad picture of both consumer demand and business investment trends heading into year-end.
Ex-Dividend Dates This Week
Several dividend-paying companies will trade ex-dividend in the coming days. On Monday, investors will watch United Parcel Service (UPS) and ConocoPhillips (COP), both offering solid yields and steady payout histories.
On Tuesday, attention will shift to Chevron (CVX) and Cognizant (CTSH), followed by PayPal (PYPL) and Marathon Petroleum (MPC) on Wednesday. Thursday’s list includes Microsoft (MSFT), Applied Materials (AMAT), and Valero Energy (VLO), while Friday features NextEra Energy (NEE), Amgen (AMGN), and RTX (RTX).
Income-focused investors may want to note these dates as companies across energy, tech, and healthcare continue to deliver consistent shareholder returns through the final quarter of the year.