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Investors piled back into artificial intelligence names on Monday stateside. Shares of Nvidia jumped 5.8%, Broadcom advanced 2.6% and Microsoft climbed 1.9% to end its eight-day losing streak, its longest consecutive decline since 2011. Market watchers are hoping that another historically long streak — the U.S. government shutdown — could soon be snapped as well. As of this newsletter's publication time, lawmakers in the U.S. Senate are voting on a deal to reopen the government, though it still has to pass through the House and then signed into law by President Donald Trump (who has already given it his approval). That's not to say worries about AI's high valuations have gone away completely. CoreWeave on Monday reported its third-quarter earnings. It rents out Nvidia cards to AI-related firms, such as Google and Microsoft, a business model that ties it intimately to the AI trade. The company's revenue swelled 134% year on year, but it still reported a net loss and gave lower-than-expected guidance for this year. The general shape of those figures — high revenue and high losses — broadly reminds one of OpenAI, the industry-leading, money-bleeding startup that kickstarted the AI frenzy. Though it would of course be a stretch to equate the two companies and the factors driving their finances. Still, Mark Haefele, CIO of UBS's global wealth management, thinks "AI-related stocks should drive equity markets." With the U.S. government shutdown in sight to end (hopefully this doesn't jinx it), that's another obstacle surpassed for markets. Technology stocks lead gains. Major U.S. indexes rose Monday stateside amid signs of the government shutdown ending, with the Nasdaq Composite jumping 2.27%. Europe's regional Stoxx 600 added 1.42%, with technology and financial stocks leading gains. CoreWeave's third-quarter earnings are a mixed bag. The company, which provides infrastructure for AI, reported revenue that more than doubled from a year earlier, beating analyst expectations. But CoreWeave issued disappointing guidance for the year. Fed Governor Stephen Miran urges for a half-point cut. In an interview with CNBC, Trump-appointee Miran said that a rate reduction of that size is "appropriate" because policy should be tailored to where "the economy is going to be." U.S. lawmakers vote for shutdown deal. The Senate is, as of Monday night stateside, conducting a series of votes for an agreement to reopen the government, though any deal would also have to be passed by the House of Representatives. [PRO] AMD will be the next test for the AI trade. The chipmaker will be hosting its financial analyst day on Tuesday — its first in three years. Here's what analysts think AMD will be announcing.
