MPC Morning Call 6th November 2025 – “Buy the Dip” Tech stocks default market back to the trend

Overnight – “Buy the Dip” Tech stocks default market back to the trend

Stock bounced overnight as the “Bull market default” of buying the dip saw investors pile back into tech following recent weakness just as President Donald Trump’s IEEPA tariffs* go on trial.  

The tech sector remained under close watch Wednesday, with company earnings driving sharp moves in notable stocks. AMD shares reversed initial losses to trade higher after reporting record sales and profit, thanks to robust demand for its AI chips, while Pinterest stock fell steeply on weaker-than-forecast revenue guidance, stoking concerns about a cooling digital ad market. Elsewhere, McDonald’s outperformed expectations for US same-store sales, Novo Nordisk slipped following dampened profit and sales forecasts, and Humana sank after lowering its full-year earnings outlook due to rising medical costs.​

Investor anxiety was further heightened as leading bank CEOs warned of high-tech valuations and speculative trading, casting doubt on the sustainability of Wall Street’s rally led by a handful of tech giants. With US equities now composing 72% of the global equity benchmark and several major firms trading at record highs, concerns over market concentration and a possible bubble have grown. Analysts warn that historically, high valuations reduce the chances of generating attractive long-term returns, and there’s increasing discussion about whether global investors should look beyond the US for opportunity.​

In macroeconomic developments, US labour market strength was confirmed by upbeat ADP employment data, even as further clarity awaits delayed government reporting due to a shutdown. Meanwhile, the Supreme Court began hearing arguments over the legality of President Trump’s use of the IEEPA to impose sweeping tariffs, with early indications suggesting scepticism from the justices about presidential authority on tariffs; the outcome could force the US to repay billions in tariff revenue and trigger major economic consequences

Corporate News & Earnings

• ARM Holdings +4% –  the chip architecture firm topped quarterly earnings expectations and offered upbeat guidance, buoyed by robust licensing activity and royalty gains.
• Pinterest -22% –stock tumbled after its quarterly revenue guidance fell short of expectations, stoking worries about a slowdown in digital advertising.
• McDonald’s +2.2% – stock gained after the burger giant’s U.S. restaurants reported better-than-expected same-store sales growth, even as quarterly earnings fell short of expectations.
• Novo Nordisk -1% – despite the drugmaker announced a better-than-expected Medicare pricing deal, even after it trimmed its full-year profit and sales forecasts as sales growth slows.
• Humana -6%- stock slumped after the insurer reported reported lower third-quarter profit and slashed its full-year earnings guidance as medical costs continue to rise.

* Trump’s IEEPA tariffs are sweeping import taxes imposed by President Trump in 2025 using emergency powers, applying a flat 10% tariff to most imported goods from nearly all countries, with higher rates for major trade deficit partners; this unprecedented move sparked global trade tensions, drove prices up, and is being challenged in US courts as possibly illegal.