Amidst all this: Alphabet's billion-dollar deal with NATO, the possible release of Nvidia chips to Beijing, and the S&P targeting 7,800 points.
See what's behind the most important movement of the day!
1️⃣ Morgan Stanley sees a new AI-led rally
The bank projects the S&P 500 to rise 7,800 points in the next 12 months, driven by artificial intelligence, Big Tech, and productivity.
This would be a jump of more than 1,000 points from current levels.
2️⃣ Corrections open up space for new positions
Morgan Stanley sees the market as poorly positioned and states that moments of weakness should be used to increase exposure.
They predict that flow and profit are still far from their peak.
3️⃣ Tech stocks drive the market in New York
The Nasdaq is up 2.5% today.
Alphabet ($GOOGL) stands out with a 5% increase, nearing a 52-week high and a market capitalization of US$3.8 trillion.
4️⃣ Alphabet closes strategic deal with NATO
The company secures a major cloud and AI contract with the military alliance, based on its custom chips (TPUs).
This news adds to strong results, Berkshire Hathaway's investment, and growing momentum in AI.
5️⃣ Short week, but full of triggers
The market is operating with lower liquidity due to the Thanksgiving holiday on Thursday (stock exchanges closed) and a shortened trading session on Friday.
But between Tuesday and Wednesday, important data will be released: inflation (PPI and PCE), GDP, retail sales, and consumer confidence.
6️⃣ Fundamentals remain strong in the sector
Companies continue to increase investments.
Profits are revised upwards.
And AI monetization is still only in its early stages — with a growing impact on productivity.
7️⃣ Trump considers allowing Nvidia chips to be exported to China
The government is evaluating allowing Nvidia to export H200 chips, currently banned from the Chinese market.
The company itself is currently projecting zero AI sales to China.
7️⃣ Trump considers allowing Nvidia chips to be exported to China
The government is evaluating allowing Nvidia to export H200 chips, currently banned from the Chinese market.
The company itself is currently projecting zero AI sales to China.
8️⃣ Xi and Trump signal strategic rapprochement
This Monday morning, the two presidents spoke by phone.
Xi Jinping stated that the trade relationship maintains a “positive momentum” and proposed expanding cooperation with the US.
9️⃣ Technology Becomes a Key Piece of Global Diplomacy
The indication that chips could be released soon after the phone call between the leaders doesn't seem like a coincidence.
China seeks to advance in AI, while the US tries to maintain influence over the global technology chain.
🔟 Valuation doesn't yet price in the new cycle
Even with the recent rally, multiples don't reflect the full impact of AI on margins, revenue, and return on capital.
This mismatch could be the next source of repricing.