
Monday’s session saw broad gains for US indices. The S&P 500 jumped nearly 1.5%, the Nasdaq surged 2.8%, and the Dow added 0.4%. Despite the rebound, all major indices remain negative for November as investors reassess stretched AI valuations.
Strong fundamentals behind AI spending remain intact. Investors are also closely watching Fed signals, with markets now pricing in over an 80% chance of a December rate cut after dovish comments from New York Fed governor John Williams
Amazon announced it will invest up to $50 billion to expand AI and high-performance computing capacity for U.S. government clients through new AWS data centers starting in 2026. Amazon says the investment will help agencies build custom AI solutions and boost productivity. AWS already serves over 11,000 government entities. The announcement comes as tech firms sharply increase spending to meet soaring AI demand, with Amazon raising its 2025 capex forecast to $125 billion.
Asia-Pacific markets were mixed on Tuesday as Wall Street tech stocks rebounded on strong gains in Alphabet and renewed hopes of a Fed rate cut. Optimism around Alphabet’s upgraded Gemini 3 AI model helped drive a 6% jump in its stock and lifted the broader market.
Japan’s Nikkei rose 0.1% while the Topix slipped 0.1%. Semiconductor-related stocks led gains on the Nikkei. South Korea’s Kospi edged up 0.19%. Australia’s ASX 200 added 0.14%. Hong Kong’s Hang Seng climbed 0.65%, its tech index rose 1.2%, and China’s CSI 300 gained 1.26%, extending its upward momentum.
In the forex market, EUR/USD edged slightly higher in early trading today trading near 1.1525–1.1530, but remained stuck within Monday’s range as buyers lacked momentum. The pair is supported by a weaker U.S. dollar after dovish comments from Federal Reserve officials boosted expectations of a December rate cut.
The euro is also benefiting from expectations that the European Central Bank has finished cutting rates, with most economists predicting no further changes this year or next. This supports the outlook for additional EUR/USD upside.
And in the commodities market, gold jumped 1.73% on Monday as the USD struggled to push higher above the 100.25 level. Gold is currently trading at $4,140 per ounce. Silver also rose around 2.6% and is currently around $51.50 per ounce.
Traders now await several key U.S. Release, including PPI, retail sales, pending home sales, and the Richmond Fed index, which could influence short-term USD moves and create trading opportunities.
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