Technical analysis

Since reporting results, the AI names have been battered amid fears of out-of-control capital expenditure and the damage this is likely to inflict on free cash flow.

Optimistic start for markets following the fundamental updates, though the technical overview remains unchanged in both time frames while trader sentiment is majority long.

Stocks recovered on 5 November, with the S&P 500 rising by about 40 basis points.

It was a risk-off day for stocks, with the S&P 500 falling by around 1.2%. The damage was greater on the Nasdaq 100, where the index dropped by more than 2%.

The ADP jobs report on Wednesday, 5 November, at 8:15 a.m. Eastern Time is expected to show that hiring in October improved, rising by 25,000 jobs — a significant improvement from the September reading, which showed a decline of 32,000 jobs.

A break beneath the key level would hurt what are already weakened short-term technicals, and test what is clearly extreme buy bias among retail traders.

NVIDIA has become the first publicly traded company to exceed a $5 trillion market capitalization.

The S&P 500 finished the day unchanged, even though the Fed cut rates by 25 basis points.

The next couple of days will be a defining moment for US equity markets and markets globally, with the Fed, the BOJ, and the ECB all making monetary policy announcements and decisions.

The S&P 500 rallied about 1% on the day. This came as implied volatility, as measured by the VIX 1-Day, fell sharply from an elevated level on Friday, 24 October.