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| Monday's Markets | |
|---|---|
| S&P 500 6,495 (+0.21%) |
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| Nasdaq 21,799 (+0.45%) |
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| Dow 45,515 (+0.25%) |
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| Bitcoin 112,019 (+0.76%) |
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Nebius (NASDAQ:NBIS) jumped over 50% after the market closed, following confirmation that it has signed a deal to supply artificial intelligence (AI) cloud computing power to Microsoft (NASDAQ:MSFT), worth up to $19.4 billion.
- "The economics of the deal are attractive in their own right": Nebius CEO Arkady Volozh said the contract will enable further growth in its AI cloud business for years to come, with new data centers likely needed.
- Microsoft doesn't have enough capacity to serve its needs: Microsoft has forecasted $30 billion in AI capex spending in this quarter alone but is still struggling to keep up with accelerating demand for AI services.
Apple (NASDAQ:AAPL) will host its annual product event entitled "Awe Dropping" today, with investors watching not just for new products but also for any pricing impact of tariffs and increased Apple Intelligence features.
- Tariffs disrupting iPhone's global supply chain: Consumers will be focused on the pricing for the iPhone 17 lineup, with a likelihood of having to shoulder the burden of higher costs due to Chinese levies and the swift shift in production to India.
- Progress eyed for Apple Intelligence: Updates for AirPods could include live translation, although more fundamental changes to bring enhanced generative AI features to iPhones would spark more investor excitement if revealed.
Lumber prices are now down 24% from their August highs, raising some concern given that the commodity is a historically reliable indicator of housing market demand and the broader U.S. economy.
- Impact of levies and production: Prices have become increasingly volatile due to the back and forth this year with regard to President Donald Trump threatening higher Canadian lumber duties, which led to large stockpiling and subsequent cutbacks in production.
- Historical precedent from the pandemic: Two-by-four prices nearly tripled the pre-pandemic record during lockdown, a leading indicator of the inflation that followed. Falling prices now could flag lower inflation being on the horizon.
Oracle (NYSE:ORCL) is set to release quarterly earnings after the closing bell, with investors keeping an eye on the size of the order backlog and growth in the cloud infrastructure platform.
- Topping earnings estimates in five of the last eight quarters: A modest increase in earnings per share (EPS) versus last year is expected, but the recent ramp-up in capital expenditure could put pressure on margins going forward.
- Largest quarterly revenue jump since Q1 2024 expected: Synopsys (NASDAQ:SNPS) also reports after the market closes, with strength coming through from the design IP (intellectual property) segment and hardware products.
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