Blog

Article

Written by Curation

Tech Earnings Whiplash as Fed Cools December Cut Hopes

US stocks traded in record territory for most of the week before a late fade on Big Tech earnings and cautious Fed commentary. The S&P 500 and Nasdaq 100 touched new highs early on optimism over a US–China trade truce and blowout AI headlines, but profit-taking hit by Thursday as megacaps stumbled.

Tech Earnings Whiplash as Fed Cools December Cut Hopes

Source: Connect Weekly | Week ending 25 October 2025

US stocks traded in record territory for most of the week before a late fade on Big Tech earnings and cautious Fed commentary. The S&P 500 and Nasdaq 100 touched new highs early on optimism over a US–China trade truce and blowout AI headlines, but profit-taking hit by Thursday as megacaps stumbled. The week closed mixed, with Amazon’s post-earnings surge cushioning broader weakness in tech.

What drove markets this week

Stocks started strong on Monday as officials from Washington and Beijing signaled progress toward a new trade agreement. The S&P 500 jumped 1.2% and the Nasdaq 100 gained 1.8%, both closing at record highs. Semiconductor and AI-linked names led, boosted by optimism that the tariff détente would unlock chip demand. Qualcomm spiked after announcing Saudi Arabia’s HUMAIN as the first buyer of its new AI data center chips, while Palantir rose on news of a fresh European defense deal.

Momentum carried into Tuesday as tech stocks powered another round of records ahead of the Fed’s policy meeting. Nvidia stole the show after CEO Jensen Huang revealed $500 billion in orders for the company’s new Blackwell and Rubin chips through 2026, alongside new partnerships with Palantir, CrowdStrike, and Lucid. But smaller caps lagged, with the Russell 2000 down 0.6%.

Fed cuts rates, but signals patience

On Wednesday, the Fed cut rates by 25 basis points to a range of 3.75%–4%, matching expectations and ending quantitative tightening as of December 1. Stocks were little changed after the announcement, but dipped mid-press conference when Chair Jerome Powell said another cut in December was “far from” guaranteed. Tech once again provided support, pushing the Nasdaq 100 to another record. Nvidia became the first $5 trillion company, while Caterpillar and Seagate jumped on strong earnings.

Earnings jolt megacaps

Thursday saw the tide turn. Big Tech earnings drove a broad selloff as Meta plunged on a tax-related miss and cautious guidance, and Microsoft slid after reversing its prior capex stance. Chipotle, eBay, and Carvana also sank after weaker forecasts, while Boeing fell after Trump’s meeting with Xi produced no new deals. Alphabet bucked the trend with strong cloud results, and ServiceNow spiked on a stock split announcement.

Friday: Amazon steadies the ship

Markets stabilized Friday after Amazon’s blowout earnings sent the stock up more than 10%, helping the S&P 500 and Nasdaq 100 recoup part of the week’s losses. Apple opened flat after steady results, while smaller caps lagged again. Consumer-facing names regained some footing, though momentum remains fragile after the week’s volatility in tech.

Looking ahead

With earnings season in full swing and rate-cut expectations fading, investors now face a more nuanced backdrop. The Fed’s signal of caution leaves markets trading on data — not promises. Next week brings US GDP and PCE inflation updates, both potential catalysts for recalibrating the timing of the next move. After a week defined by megacap whiplash, the path of least resistance still runs through tech, but confidence is no longer unanimous.

  • THIS ARTICLE DOES NOT CONSTITUTE ANY FORM OF ADVICE OR RECOMMENDATION AND IS NOT INTENDED TO BE RELIED UPON IN MAKING ANY INVESTMENT DECISIONS. Curation Connect is an information service provided by Curation Corporation. Liability Your investments are your responsibility. No liability whatsoever is accepted by Curation Corporation Limited or any Curation Corporation company of their respective directors, officers, employees or analysts for any loss, whether direct, indirect, special, incidental or consequential, arising whether directly or indirectly as a result of the recipient acting or not acting on any information in any Curation Connect publication, including, without limitation, lost profits arising from the use of the Curation Connect service or any of its publications. We have no liability for any loss of profit, loss of revenue, loss of business, business interruption, loss of opportunity or any indirect, special or consequential loss; any losses which arise from any event beyond our reasonable control; any losses which could not reasonably have been anticipated; or your inability to access and/or use the Curation Connect service or the website. We do not exclude or limit in any way our liability to you where it would be unlawful to do so. Disclaimer Curation Connect publications are provided for general information purposes only and should not be regarded as an offer, solicitation, invitation, inducement or recommendation relating to the subscription, purchase or sale of any security or other financial instrument or investment. This report is intended only for investors who are 'professional clients' as defined by the FCA, and may not, therefore, be redistributed to other classes of investors. This document is provided for information purposes only and should not be regarded as an offer, solicitation, invitation, inducement or recommendation relating to the subscription, purchase or sale of any security or other financial instrument. This document does not constitute, and should not be interpreted as, investment advice. You must carry out your own independent research and obtain suitable professional advice before making any investment decision. The Curation Connect publications do not take the specific needs, investment objectives and financial situation of any particular individual into consideration and we cannot state whether any investment mentioned is suitable for you. You should not base any investment decision solely on the basis of the information we publish or provide to you. Always be aware of market risks – never invest money you cannot afford to lose. All investments can go down as well as up. Investing in securities entails risks. Potential Conflicts of Interest Curation Connect or its respective directors, officers, employees, contributors and clients may have or take positions in the securities, entities or investments mentioned in the Curation Connect publications. Any of these circumstances could create, or be perceived as creating, conflicts of interest. Privacy and Registration All information received from you and your use of the Curation Connect service and the website will be used by Curation Corporation Limited in accordance with our Privacy Policy. Please read this for details of how we may process your personal data. On registration for the Curation Connect service, you must provide us with accurate, complete registration information and it is your responsibility to update and maintain changes to your information. Curation Connect, a trading name of Curation Corporation Limited, is entitled to rely on any information you provide to us. Read our full T&Cs, disclaimers and privacy notice. Contact us at info@curationcorp.com Curation Corporation Limited, 58 Borough High Street, London, SE1 1XF, UK

Other

Articles you might like

Go to blog