🚀 Nvidia demand rising

Market Overview
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Year To Date Performances:

1. Nvidia Chief Executive Officer Jensen Huang highlighted soaring global demand for specialized artificial intelligence infrastructure at the company's GTC conference in Berlin, saying fundamental demand for neocloud providers is off the charts but constrained by a lack of working capital. Speaking on the sidelines of the event, Huang emphasized that the immediate bottleneck hindering European and global AI ecosystem expansion is the supply of capital and localized energy allocation needed to power large-scale data centers for operators like Nebius and Mistral. The comments come amid a pronounced market sell-off in high-leverage neocloud equities—including CoreWeave, Nebius, Applied Digital, and Iren—as investors scrutinize heavy debt loads, power-acquisition timelines, and capital-expenditure payback periods. To kickstart regional adoption and bridge computing-capacity disparities, with Europe holding just 5 percent of global AI compute, Nvidia has committed nearly $10 billion to European startups, research institutions, and modular infrastructure deployments.

2. President Donald Trump’s economic approval rating fell to an all-time low of 34 percent, with disapproval surging to 65 percent. With less than two weeks remaining before the midterm congressional elections, economic pessimism has intensified across the electorate, driven by a notable shift among Republicans, 35 percent of whom now view the current economic trajectory negatively. Registered voters favoured Democratic control of Congress by a 52 percent to 45 percent margin, reflecting elevated voter concern surrounding government corruption and the rising cost of living, where combined anxieties over food, fuel, and housing prices represent the top priority for 57 percent of respondents. The polling shift aligns with broader public skepticism regarding ongoing U.S. military engagement in Iran and persistent inflationary pressures, putting Republican candidates on the defensive across key competitive Senate battlegrounds heading into the November elections.

3. American Airlines lowered its full-year 2026 financial outlook, forecasting an adjusted loss of $1.00 to $1.60 per share despite record third-quarter revenue of $16.34 billion. The Fort Worth-based carrier joins Delta Air Lines, United Airlines, and Southwest Airlines in trimming annual guidance as a sharp geopolitical spike in jet fuel costs—up 67.5 percent year-over-year to $4.64 billion for American—overshadowed strong passenger demand and 19.3 percent top-line growth. While Chief Executive Officer Robert Isom highlighted ongoing commercial momentum in premium cabin seating and loyalty program performance, persistent cost headwinds have forced management to slow next year's capacity growth plans as the company projects a fourth-quarter adjusted loss of $0.50 to $1.10 per share.

   Headlines

   1. Southwest Airlines has reduced its future guidance due to higher fuel costs.

   2. California’s Prop 40 will be on the ballot Nov 3rd, proposing a one-time 5% tax on billionaires.