The U.S. markets posted(although not a lot). It shows green but that does not tell the full story.The week started strong with record highs across the board, fueled by optimism over a potential easing of trade tensions between the U.S. and China and continued momentum in the technology sector. This good mood was cut short when the Fed delivered the widely expected 25 basis point rate cut bringing the range to $3.75 from 4% but Mr Powell said that a December rate cut is not guaranteed immediately sending the major indexes lower and crushing hopes for an aggressive cycle of cuts. This caution was not helped by the ongoing U.S. government shutdown, which continued to delay the release of key economic data, forcing investors and the Fed to operate in an environment where they barely knew anything. Nasdaq was carried by a few major winners like Amazon (following its strong cloud/AI-related news). However, stocks like NVIDIA and Palantir(which I predicted to go up), plummeted. I did say the AI bubble was gonna burst a few weeks back but I did not anticipate it to happen last week. The green ending really just felt like a cover up for a volatile week. The market is really gonna focus on the government shutdown and possible resolutions for it.
Riser
Walt Disney- It is reporting earnings after the market closes on Wednesday. It has gone through a lot of restructuring and a strong free cash flow report could indicate that the cost cutting measures are working. Strong park attendance could also boost the stock.
Faller
Cisco– This is also reporting earnings same day as Walt Disney. If guidance isn’t good or if there is lack of enterprise spending, Cisco could definetely fall. I will admit, I am not very sure about this one but it has potential to fall.
Market Memo 