It was a volatile but ultimately positive week on Wall Street, marked by renewed tensions in the U.S.-China trade war and a strong start to the earnings season. Major banks exceeded expectations, while regional lenders expressed concern over delinquencies, which kept the market in a state of flux.
- The S&P 500 rose 1.7% this week, despite being impacted by tariff threats mid-week.
- The tech-heavy Nasdaq Composite rose 2.1% this week, driven by continued reliance on AI.
- The Dow Jones Industrial Average recorded a 1.6% gain this week, while the small-cap Russell 2000, despite closing 0.6% lower on Friday, finished the week up 2.4%, primarily due to a midweek gain.
President Donald Trump slightly eased uncertainty over a possible renewal of the trade war with China, acknowledging that the 100% tariffs he threatened, effective November 1st, were not sustainable.
However, the CBOE Volatility or ‘Fear’ Index, which closed 17% lower on Friday, has seen a 32% rise this month, signaling the market push and pull. Visibly, the market is calm, with increased optimism on returns on the heavy investments in artificial intelligence infrastructures, but investors remain alert to geopolitical and policy uncertainties.
Adding to optimism were strong Q3 earnings from major banks, such as JPMorgan, Bank of America, Goldman Sachs, and, more recently, American Express, which showed increased customer spending and deposits.
Image source: Morris/Bloomberg via Getty Images
However, job growth is low, and layoffs are mounting. The ongoing government shutdown is also beginning to impact regional banks, adding to their existing concerns over bad commercial real estate loans and loan fraud risk.
In commodities, Gold crossed the $4,200 per troy ounce mark, up 6.7% this week, and a short squeeze in London pushed Silver to a record high, up 7% over the week.
Rare earths, energy, and soybeans have been at the forefront of global trade discussions this week, with China expanding Its Export Control over rare earths and ceasing to buy soybeans from the US.
The increased expansion of data centers to fuel AI infrastructure and cloud computing puts pressure on traditional energy suppliers, prompting them to seek alternative sources.
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This led to the rising price of rare earth stocks, along with the Trump administration’s increased equity holdings in these companies, such as MP Materials and Lithium Americas.
Bunge, a US-based cooking oil manufacturer, also benefited from President Trump’s interest in domestic cooking oil producers during the trade dispute with China.
Looking ahead, Netflix, Tesla, Coca-Cola, Intel, Ford and T-Mobile, among others, will release earnings next week.
The stocks that made big moves this week were TSMC, up 5% over the week, Apple, up 3% this week, bringing its quarter-to-date return to 19%, and Novo Nordisk, which was down 4.5% this week.
Apple is upping its revenue sources
Apple stock rose 1.9% on Friday and marked a 2.9% gain for the week following the announcement of a significant deal for Formula 1 broadcasting.
Apple is expanding its revenue sources by securing highly leveraged deals for its streaming service, Apple TV. On Friday, it officially announced a 5-year contract, valued at $700 million, to broadcast Formula 1 races exclusively on Apple TV, free for its subscribers.
2026 marks a transformative new era for Formula 1, from new teams to new regulations and cars with the best drivers in the world, and we look forward to delivering premium and innovative fan-first coverage to our customers in a way that only Apple can.
Eddy Cue, Senior VP of Services, Apple
Previously, ESPN held the exclusive broadcast rights for F1 racing.
Apple also announced a new bundle with NBCUniversal’s Peacock in a “first-of-its-kind initiative” to redefine customer journey, while “broadening the reach of Peacock to even more audiences,” said Matt Strauss, Chairman, NBCUniversal Media Group.
Additionally, Apple is working on a touch-screen MacBook and exploring robotics and smart home devices, according to a Bloomberg report.
TSMC continues to lead in semiconductor manufacturing
The stock of Taiwan Semiconductor Manufacturing was up 5% over the week, despite closing 1.6% lower on Friday.
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On Friday, TSMC and AI giant Nvidia unveiled the first Blackwell wafer produced on U.S. soil, marking a significant milestone in a three-decade-long partnership.
This is the vision of President Trump of reindustrialization – to bring back manufacturing to America, to create jobs.
Jensen Huang, CEO & Founder, NVIDIA
Adding, “This is a historic moment for several reasons. It’s the very first time in recent American history that the single most important chip is being manufactured here in the United States by the most advanced fab, by TSMC, here in the United States.”
Highlighting the semiconductor giant’s solid AI-driven demand and resilient gross margin, Citi increased its price target on TSMC to NT$1,800 from NT$1,600, keeping a Buy rating.
Analyst Simon Coles at Barclays also views TSMC’s strong Q3 results and growing AI demand as reasons to increase the price target to $355 from $330, with an Overweight rating, as reported by TheFly.
Novo Nordisk is on a losing streak
Despite announcing a U.S. FDA-approved GLP-1 medication, Rybelsus, the stock of healthcare company Novo Nordisk fell 4.5% this week, extending losses to 12% this month and a 36.8% loss year-to-date.
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This followed President Trump’s comments on the prices of fat loss drugs to be at $150 or less, on which Dr. Mehmet Oz, the Centers for Medicare and Medicaid Administrator, stressed that the prices had not been negotiated yet.
The oral GLP-1 drug Rybelsus reduces cardiovascular risks in adults with Type 2 diabetes.
More recently, Novo Nordisk also signed an asset purchase and licensing deal worth $2.1 billion with Omeros Corporation, for zaltenibart, a rare-disease therapy targeting blood and kidney disorders.
“Zaltenibart has a novel mode of action that could offer several advantages over other treatments for complement-mediated diseases.” Martin Holst Lange, chief scientific officer and executive vice president of Research & Development at Novo Nordisk.
A global phase 3 program is planned for 2025.
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