MPC Morning Call 17th November 2025 – Stocks end mixed as Nvidia & Payrolls results loom large

Overnight – Tech stocks hit as Dec rate cuts looking less likely

Stocks closed mixed on Friday night, well off the lows of the session as investors bought the dip in AI-related stocks to spark a turnaround in tech and shrugged off concerns about waning odds of a December rate cut.

Tech stocks rebounded to end higher as investors took advantage of the recent selloff in major artificial intelligence names, including Nvidia, Oracle, and Palantir. This uptick in buying came just a week before Nvidia’s quarterly earnings, which are expected to serve as an important gauge of AI demand. Despite the positive close, caution remains in the market as Barclays highlighted a more reserved investor mood ahead of Nvidia’s report on November 19. In the semiconductor space, Applied Materials warned that tougher U.S. export controls on China could lower chip equipment spending in 2026, though the firm expects AI-driven demand to bolster sales later next year.

Broader corporate news reflected a mix of sentiment across other sectors. Walmart shares declined after it announced John Furner will replace longtime CEO Doug McMillon in early 2026. Conversely, Warner Bros Discovery gained after reports surfaced that streaming and media giants including Paramount, Comcast, and Netflix might bid for the company. Meanwhile, StubHub’s stock dropped as its CEO declined to give quarterly guidance — the first update since its September IPO.

In monetary policy developments, hawkish remarks from several Federal Reserve officials dimmed hopes for a December rate cut. Fed President Neel Kashkari said he remains unconvinced of the need to ease policy, while others, including Alberto Musalem and Beth Hammack, warned against cutting rates too soon amid persistent inflation. Market odds for a 25-basis-point cut in December fell to about 50%, from nearly 68% last week. Economic data added little clarity, as jobless claims slightly eased to around 227,000, according to estimates, but remained insufficient to strengthen the case for immediate rate easing amid ongoing uncertainty tied to the extended government shutdown.