Copyright CNBC
Traders who shorted the S&P 500 — essentially, betting that it would go down — last month were in for a rude surprise. The broad-based index ended the month 2.3% higher, defying "Octoberphobia," a term that arose because of the market crashes in 1929 and 1987 that happened during the month. The Nasdaq Composite had an even better month than the S&P 500. The tech-heavy index climbed 4.7%, giving a hint of what helped ward off the arrival of any ill omens: the technology sector. On Friday, Amazon shares popped 9.6% on robust growth in its cloud-computing unit and as CEO Andy Jassy pointed to "strong demand in AI and core infrastructure." The news pushed up other artificial intelligence-related stocks such as Palantir and Oracle too. AI's ascent in the market wasn't a one-day event. In October, Nvidia , the poster child of AI, became the first company to reach a valuation of $5 trillion, with CEO Jensen Huang describing the technology as having formed a "virtuous cycle" in which usage growth will lead to an increase in investment, in turn improving AI, which will boost usage, which will… You get the idea. Indeed, during their earnings disclosures last week, Big Tech companies announced dizzying increases in their capital expenditure, most of which will likely go toward AI infrastructure. All that is to say that the enthusiasm over AI looks, for now, less like the immediate sugar rush of a candy bar (and the subsequent crash), and more like the sustained energy boost from a fiber-rich pumpkin. Berkshire Hathaway operating profit rebounds. Year on year, that figure surged 34% to $13.485 billion in the third quarter. Warren Buffett's conglomerate now holds $381.6 billion in cash, the highest on record — but it isn't looking at stock buybacks yet. Nvidia CEO downplays security concerns of chip exports to China. Beijing blocking Nvidia's H20 chips is its way of saying it has "plenty of AI technology," Jensen Huang told CNBC on Friday. Separately, Huang said AI has reached a "virtuous cycle." Signs of Nexperia standoff easing. In October, the Netherlands seized control of Nexperia, a chip manufacturer owned by Chinese firm Wingtech . That led to China blocking exports of Nexperia chips — but Beijing on Saturday reportedly said the ban could be eased. U.S. markets ended Friday higher. The Nasdaq Composite was the top performer among major indexes. Europe's Stoxx 600 lost 0.51%, with major bourses and almost all sectors declining. U.S. futures were little changed Sunday night stateside. [PRO] Stocks enter November on a high. The S&P 500 is beginning November more than 16% up for the year. This week, investors should still keep an eye out for a Supreme Court case on Trump tariffs and earnings from firms like Advanced Micro Devices and Palantir.
