Brendan Jones @bajabus: "𝙈𝙖𝙧𝙠𝙚𝙩 𝙐𝙥𝙙𝙖𝙩𝙚 | 𝟲-𝟭𝟬 𝙊𝙘𝙩𝙤𝙗𝙚𝙧..."

Australia

𝙈𝙖𝙧𝙠𝙚𝙩 𝙐𝙥𝙙𝙖𝙩𝙚 | 𝟲-𝟭𝟬 𝙊𝙘𝙩𝙤𝙗𝙚𝙧 𝟮𝟬𝟮𝟱 🟢The S&P 500 and Nasdaq $NSDQ100 both climbed this week, with the Nasdaq hitting fresh highs, lifted by AI-driven hype and optimism in the big chip manufactures. Major movers included $AMD (Advanced Micro Devices Inc) which surged almost 12% after announcing a new AI deal, and $NVDA (NVIDIA Corporation) which rallied amid robust demand signals. Forward P/E multiples in the tech space now sit at around 23×, well above the 10-year average of 18.7× and stirring concerns that investor expectations may already be priced in. From a portfolio perspective, the rally offers reward but also risk: overexposure to overly valued names could lead to sharp reversals, however given that demand is only expected to increase, the long term view is bright. 🟢Analysts now expect Q3 earnings growth across S&P 500 firms to be around 8.8% year over year, down from the 13%+ highs earlier this year. Elevated AI investments, rising tariffs, and macro uncertainty are flagged as drag factors. Even the tech giants like $GOOG (Alphabet) and Microsoft may struggle to sustain growth if margins compress from cost pressure or if AI spend fails to convert into incremental profits. The moderation in earnings momentum raises the bar for positive surprises and companies that can deliver strong forward guidance are likely to command share gains. 🟢European stocks slipped off record highs as banking names weighed on sentiment, especially HSBC $HSBA.L (HSBC Holdings) which dropped 6.5% after announcing plans to take full control of Hang Seng Bank via a US$13.6 billion takeover deal. The move signals HSBC’s bet on Hong Kong/China as a strategic connector, but it also reduces its capital cushion, forcing a pause on share buybacks for three quarters. This kind of bold restructuring can trigger market volatility when investors begin to question the company's funding strategy or regional exposure. 𝘽𝙧𝙚𝙣𝙙𝙖𝙣 𝙏𝙧𝙖𝙙𝙚 𝙎𝙖𝙛𝙚 | 𝙇𝙞𝙫𝙚 𝙒𝙚𝙡𝙡 [ref: Reuters, WSJ, Guardian] www.etoro.com/people/bajabus