Stock Market Today - Nasdaq Climbs as Amazon’s $38B AI Deal Ignites Tech Rally; Dow Jones Slips on Weak Breadth

Nasdaq Surges as AI Megacaps Lead Wall Street’s Momentum

The U.S. stock market opened November with a divided tone, as the Nasdaq Composite (NASDAQ:IXIC) advanced 0.46% to 23,834.98, driven by artificial intelligence enthusiasm, while the Dow Jones Industrial Average (DJIA) slipped 0.36% to 47,392.06 under pressure from healthcare laggards such as UnitedHealth (NYSE:UNH). The S&P 500 (INDEXSP:SPX) managed a modest gain of 0.13% to 6,848.85, showcasing the same narrow market breadth that has defined much of the recent rally. More than 400 components of the index traded lower despite gains in large-cap tech, underscoring a concentrated leadership environment. Meanwhile, the Russell 2000 fell 0.71% to 2,461.81, extending its underperformance as investors rotated out of small caps and cyclicals. Bond yields were steady with the U.S. 10-Year Treasury at 4.117%, while the CBOE Volatility Index (VIX) edged up 3.33% to 18.02, signaling mild hedging activity ahead of key earnings.

Amazon (NASDAQ:AMZN) Hits New High on $38 Billion OpenAI Partnership

Amazon (AMZN) shares jumped 4.5% to $254.59, setting up for a potential record close after sealing a $38 billion multi-year partnership with OpenAI, marking the startup’s first collaboration outside of Microsoft (MSFT). Under the agreement, Amazon Web Services (AWS) will supply the ChatGPT creator with vast cloud capacity powered by Nvidia (NASDAQ:NVDA) GB300 GPUs. This partnership places Amazon directly into the AI supercloud race, competing with OpenAI’s prior $300 billion contract with Oracle (ORCL) and $250 billion commitment to Microsoft. The deal is projected to expand in multiple phases through 2027, leveraging AWS’s high-performance infrastructure for AI model training at scale. This announcement comes as part of Amazon’s ongoing strategic push to reinforce AWS’s dominance, following recent AI-related CapEx growth of more than 25% year over year.

Nvidia (NASDAQ:NVDA) Extends Rally as Microsoft Gains UAE Export Approval

Nvidia (NVDA) climbed 2.7% to $207.96 after Microsoft (MSFT) confirmed that U.S. regulators approved the export of advanced Nvidia A100 and GB300 GPUs to the United Arab Emirates. The approval coincides with Microsoft’s $8 billion AI investment pledge in the UAE, bringing its total regional commitment to $15.2 billion through 2029, including new data center projects. The chipmaker also benefited from renewed optimism following Loop Capital’s price target upgrade to $350, suggesting a potential $8.5 trillion market cap and reaffirming its position at the center of the generative AI buildout. The ongoing rally marks Nvidia’s 54% year-to-date gain, even as President Trump reiterated that the most advanced chips will remain restricted from Chinese markets.

Kenvue (NYSE:KVUE) Skyrockets as Kimberly-Clark (NYSE:KMB) Bets $48.7 Billion on Health Expansion

Kenvue (KVUE) shares surged 16% to $16.73 after Kimberly-Clark (KMB) announced a $48.7 billion cash-and-stock acquisition that will merge household staples with health and wellness assets. Kimberly-Clark stock fell 15% to $118.44, recording its sharpest single-day drop since the 1987 market crash. The deal is expected to deliver $1.9 billion in cost synergies within three years and an additional $500 million in incremental profit from cross-brand operations, giving the combined company an annual revenue potential exceeding $30 billion. This move signals Kimberly-Clark’s strategic shift toward diversified healthcare exposure amid slowing growth in traditional consumer products.

Berkshire Hathaway (NYSE:BRK.B) Reports 17% Profit Growth and Record $381.6 Billion Cash

Berkshire Hathaway (BRK.B) gained 1% to $475.74 after reporting a 17% increase in quarterly earnings, with insurance underwriting income soaring over 200% year-on-year. Operating profit rose to $13.485 billion, while total cash holdings reached a record $381.6 billion, signaling Warren Buffett’s continued caution despite robust earnings from insurance and energy subsidiaries. The firm’s Class A shares (BRK.A), which closed at $715,740, remain below their $812,855 peak, but Buffett’s decision not to repurchase stock implies his valuation discipline remains intact. With Vice Chair Greg Abel set to take over as CEO in January 2026, investors are watching closely for shifts in capital deployment strategy and potential dividend policy.

IREN (NASDAQ:IREN) Jumps 20% After Securing $9.7 Billion Microsoft AI Infrastructure Deal

IREN Limited (IREN) soared 20% to $66.60 after finalizing a $9.7 billion five-year cloud services agreement with Microsoft (MSFT) to supply access to Nvidia GB300 processors across its North American data center network. The company also inked a $5.8 billion equipment deal with Dell Technologies (NYSE:DELL) to bolster GPU deployment across its 3-gigawatt infrastructure. This dual arrangement positions IREN as a critical hyperscale partner in the AI infrastructure arms race, reinforcing its leadership in GPU hosting and power optimization. Dell and Nvidia also rose following the announcement, underscoring investor conviction in AI-driven capacity expansion.

Palantir (NYSE:PLTR) Builds Momentum Ahead of Earnings Amid AI Surge

Palantir Technologies (PLTR) gained 2% to $25.82 ahead of its Q3 earnings release, with expectations centered on sustained government contracts and expanding commercial AI deployments. Analysts forecast revenue growth near 18% year-over-year, with continued positive free cash flow and widening operating margins. The stock remains one of the most traded AI plays of 2025, benefiting from institutional rotation into data analytics infrastructure. Investors anticipate updates on Palantir’s Foundry and AIP platforms, which have secured over $1 billion in cumulative federal contracts since 2023.

AI and Semiconductor Stocks Dominate Market Leadership

Semiconductors maintained strong momentum, with Micron Technology (NASDAQ:MU) up 4% to $93.47, Advanced Micro Devices (NASDAQ:AMD) rising 1% to $142.28, and the VanEck Semiconductor ETF (SMH) climbing 1% to $252.63. The AI-driven rally continues to show resilience, with more than 80% of Q3 S&P 500 reports beating earnings expectations, and nearly $405 billion in projected CapEx for 2025 concentrated within cloud, chip, and AI compute capacity.

Manufacturing Weakness, Tariff Impact, and Government Shutdown Prolong Market Uncertainty

The ISM Manufacturing Index fell to 48.7 in October, marking the eighth consecutive month of contraction, while production dipped to 48.2 and employment edged up to 46%, still below expansion thresholds. The data reflects softening industrial demand as higher interest rates weigh on activity. Meanwhile, U.S. customs revenue hit $34 billion for October, suggesting an effective tariff rate of 12.5%, below Treasury expectations. The ongoing government shutdown, now approaching record length, continues to stall key economic releases, with Polymarket pricing the chance of resolution at less than 1% this week.

Global and Commodity Moves Reflect Caution

Asian and European stocks posted gains amid easing U.S.-China trade tensions. South Korea’s KOSPI hit a new record, while Japan’s Nikkei was closed for a holiday. Commodity markets were mixed: Gold (XAU/USD) eased to $4,010.60 per ounce, down 0.35%, after Beijing withdrew retail VAT incentives on bullion. Crude Oil (WTI) rebounded 0.67% to $61.39 per barrel, supported by expectations of reduced Russian output following fresh U.S. sanctions. Bitcoin (BTC-USD) tumbled 3.28% to $106,467, extending losses as traders took profits from October’s record run, dragging related equities like Coinbase (NASDAQ:COIN) and Cipher Mining (NASDAQ:CIFR) lower.

Market Sentiment and Outlook Signal Cautious Optimism

Despite the Nasdaq’s outperformance, internal breadth remains weak, with over 80% of S&P 500 constituents in the red. The Bank of America Sell Side Indicator climbed to 55.7%, approaching a sell zone but still consistent with historical 13% six-month gains when markets remain in neutral sentiment territory. While valuation risks persist, investors continue to favor balance-sheet strength, AI exposure, and companies with strong free cash flow.

Final Market Stance: Bullish Bias for AI Leaders, Cautious Hold on Broader Market

Momentum remains firmly anchored around the AI ecosystem — Amazon (AMZN), Microsoft (MSFT), Nvidia (NVDA), and Alphabet (GOOG) — which collectively dominate CapEx and infrastructure buildouts. The S&P 500 and Nasdaq retain bullish momentum supported by earnings beats and AI expansion, while the Dow Jones and Russell 2000 lag amid sector rotation.

That's TradingNEWS