Alibaba Cloud Beat Lifted Tech
Key Points
- Dovish Fed commentary has lowered short-term yield expectations and supported a broad risk-on move across US and European equities.
- Mixed US data, with producer prices up and retail sales below consensus, has increased near-term easing odds and pressured short-term Treasuries.
- Alibaba's (BABA) fiscal-quarter cloud revenue beat has reinforced the AI/cloud growth narrative and supported tech-led gains in Asian markets.
- Healthcare and consumer discretionary have led sector gains, while energy and utilities lagged; several single-name movers posted outsized wins and losses.
Global Market Summary
US equities rallied: the Dow Jones Industrial Average (DJIA) rose 1.40%, the S&P 500 (SPX) gained 0.82% and the Nasdaq Composite (^IXIC) added 0.48% as Federal Reserve commentary and mixed US data (PPI +0.3% MoM; retail sales +0.2% MoM, below consensus) increased expectations for near-term easing, pressuring short-term Treasury yields and supporting risk assets. European markets advanced on the same risk-on flow with the CAC 40 (FRA40) +0.83%, the FTSE 100 (UKX) +0.78% and the DAX (DAX) +0.97%. In Asia the Shanghai Composite (000001.SS) rose 0.87% and Hong Kong's Hang Seng (HSI) gained 0.69% while Tokyo's Nikkei (NKY) was essentially flat (+0.07%), with regional moves influenced by corporate results including Alibaba's AI-driven cloud revenue beat.
Top Movers
Healthcare led sector gains (XLV +2.20%) and Consumer Discretionary outperformed (XLY +2.08%); Energy (XLE -0.50%) and Utilities (XLU -0.49%) lagged. Notable winners included KSS (39.29%), SYM (37.73%) and ANF (36.94%). Heaviest decliners were MENS (-14.46%), BURL (-11.51%) and AMD (-6.76%).
Macro highlights
US producer prices rose 0.3% MoM and retail sales rose 0.2% MoM for September, with retail sales below the 0.4% consensus. Those releases, together with Fed commentary that opened the door to a possible December rate cut, pressured short-term Treasury yields and helped lift equities.
News that moved markets
Alibaba's (BABA) fiscal Q2 revenue beat and a 34% increase in Cloud Intelligence revenue reinforced the AI/cloud growth narrative; U.S. ADRs were mixed, with an early ~2% ADR slip even as some Asian venues showed gains. Fed officials' dovish commentary that raised odds of a December cut and Amazon's announcement to provide AI and high-performance computing to U.S. agencies were cited in market commentary and moved Treasury yields and tech-sector positioning. S&P Global completed its $1.8 billion acquisition of With Intelligence to bolster private-markets data and analytics capabilities. Agile Defense and Exyte also reported completed integrations, and VTG announced the acquisition of Miklos Systems.
What to Watch Tomorrow
- US GDP Growth Rate QoQ 2nd Est (Q3) — forecast 1.0%, Nov 26, 01:30 PM | Second estimate of Q3 growth, indicating output momentum and demand strength.
- US Durable Goods Orders MoM (SEP) — consensus 0.3% vs 2.9% prior, Nov 26, 01:30 PM | Signals equipment demand and manufacturing momentum, informing investment and factory output.
Key Takeaways
- US equities rallied as dovish Fed commentary and mixed US data lowered near-term rate expectations, helping lift major benchmarks across the US and Europe.
- Short-term Treasury yields were pressured after the data and Fed remarks, which reduced carry in short-dated bills and supported risk-on flows into equities.
- Alibaba's cloud revenue beat reinforced AI/cloud optimism and aligned with gains in regional tech, while U.S. ADRs showed mixed early moves during the session.
- S&P Global completed the With Intelligence acquisition, and other corporate integrations and acquisitions were reported, driving notable single-name moves.
References
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- 9. https://www.gurufocus.com/news/3224249/sp-cotality-case-shiller-index-reports-annual-gain-in-september-2025
- 10. https://boj.org.jm/summary-of-decisions-november-2025
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