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Tech Giants Dominate as AI Deals Heat Up Markets

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US stocks mixed today: S&P 500 +0.08%, Nasdaq 100 +0.55% on fresh M&A wave. Big moves—Amazon jumped +5% after landing a $38B OpenAI AWS deal, while Nvidia climbed +2% on a Street-high price target hitting $8.5T market cap. Microsoft’s $10B data-center play also sparked IREN +20%.

On the deal front: Kimberly-Clark swooped in to buy Tylenol-maker Kenvue for ~$50B (KVUE +16%), and Eaton grabbed Boyd’s thermal biz for $9.5B.

What’s holding back gains? 10-year yields jumped +3.3bp to 4.11% as Treasury demand weakens. Fed Governor Stephen Miran threw dovish vibes today, saying “policy is too restrictive”—markets now pricing 66% odds of another -25bp rate cut Dec 9-10.

Earnings keep rolling: 136 S&P 500 firms report this week, with 80% beating forecasts so far (best quarter since 2021). But heads up—Q3 profit growth slowing to +7.2% YoY, smallest gain in 2 years.

Overhead: Supreme Court hears Trump’s tariff case Wednesday. If struck down, the gov could owe $80B+ in refunds. Plus, US shutdown now in week 6, dragging on sentiment.

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