In his second inauguration, President Donald Trump showcased a new alliance with Silicon Valley’s elite, seating tech titans like Elon Musk and Jeff Bezos more prominently than governors. A golden era dawns, blurring lines between politics, innovation, and global power. All eyes watch closely now!!!
Mr Donald Trump was sworn in on January 20, 2025, as the 47th U.S. President amid talk of sweeping policy shifts. Global markets breathed a sigh of relief at his trade probes in lieu of immediate tariffs, while billionaire oligarchs stood front and center at the scaled-down ceremony.
Stunned creators and small businesses saw TikTok vanish from U.S. app stores, reeling from a Supreme Court’s ban order—until President-elect Donald Trump vowed to 'SAVE TIKTOK.' In a single day, the platform roared back, revealing just how powerful a viral app and a presidential promise can be. Wow.
Tech giants Meta, Google, Apple, Microsoft, and Tesla are propelling the S&P 500's bull market ahead of the U.S. elections. Robust earnings from these companies have boosted investor confidence, driving gains despite election uncertainties and global tensions impacting the outlook.
As the United States enters the final days of the presidential campaign, culminating on Tuesday, November 5, 2024, the economy is showing impressive strength, buoyed by significant investments in the tech sector. The stock market is experiencing a surge fueled by the exceptional performance of the tech industry's "Magnificent Seven."
Major players like Meta Platforms, Microsoft, Alphabet's Google, Apple, and Tesla have reported robust quarterly earnings, highlighting their pivotal role in accelerating economic growth and propping up the bull market in the S&P 500. This raises questions about how the election outcome will influence the bull run we've witnessed on Wall Street.
Wall Street's major indexes closed higher on Friday, rebounding from previous sell-offs, as strong earnings reports from these tech giants countered concerns about a slowdown in job growth. Amazon.com shares rose 6.2% after reporting earnings that surpassed Wall Street estimates, driven by strong retail sales that boosted profits.
Alphabet reported a remarkable 34% surge in third-quarter profits, propelled by strong growth in its cloud computing division. Google Cloud's revenue climbed 35% to $11.4 billion, with operating profit soaring sevenfold to $1.9 billion compared to the same period last year.
"Our long-term focus and investment in AI are paying off," said Sundar Pichai, CEO of Alphabet.
Meta Platforms and Microsoft delivered standout earnings that exceeded analysts' expectations, reinforcing their status as key contributors to both the tech industry and the broader U.S. economy. Microsoft's cloud computing revenue jumped by 22%, outpacing the previous quarter. Meta's advertising sales increased by 19%, with an 11% rise in revenue per ad compared to last year.
These companies are heavily investing in cutting-edge technologies like artificial intelligence (AI), poised to revolutionise industries and stimulate further economic expansion. Meta is planning a "significant acceleration" in capital expenditures next year, focusing on innovations such as augmented-reality holographic glasses. Over one million advertisers used Meta's generative AI tools in the past month, leading to a 7% increase in user click-through rates.
"Big ideas are driving big valuations and making an even bigger impact on the economy," noted an industry analyst.
Apple Inc. finds itself at a critical juncture as it navigates a complex landscape of technological innovation and market saturation. The company's recent iPhone 16 launch has yielded mixed signals, with some analysts noting weaker initial demand compared to previous models. Barclays analysts reported that the first week of iPhone 16 pre-orders showed muted demand for both pro and base models.
Despite this, Apple continues to invest heavily in artificial intelligence capabilities. Last week, it launched "Apple Intelligence," a suite of AI tools available on devices running iOS 18.1. These features offer enhanced capabilities in voice recognition, image processing, and personalised recommendations. Analysts view Apple's AI approach as distinctive due to its privacy focus and ecosystem integration, potentially transforming its business.
Tesla has significantly bolstered the bull market with its stronger-than-expected earnings last quarter. CEO Elon Musk announced that vehicle sales could grow by 30% over the next year, a statement that propelled Tesla's stock to jump 22% in a week, markedly contributing to overall market gains. Musk has strategically shifted the company's focus towards autonomous driving, artificial intelligence, and robotics, predicting these technologies will soon become Tesla's primary revenue sources and elevate its market valuation.
In October, Tesla continued to strengthen market momentum with its impressive performance. CEO Elon Musk emphasised the company's commitment to innovation, focusing on autonomous driving, artificial intelligence, and robotics—technologies he predicts will soon become Tesla's primary revenue sources and significantly boost its valuation. Musk unveiled ambitious plans for future vehicles, including prototypes that aim to revolutionise the automotive industry by 2027.
During a recent investor call, he highlighted Tesla's production milestones over the company's lifetime and expressed confidence that the automaker expects to sell more vehicles in 2024 than it did in the previous year. Achieving this goal would require Tesla to set record vehicle deliveries in the fourth quarter. Tesla's robust performance and ambitious future plans are clearly exciting investors, continuing to energise market momentum and boost investor confidence.
As the U.S. economy shows impressive strength, buoyed by significant investments in the tech sector, investors are cautiously optimistic that this momentum can continue beyond the elections. However, the upcoming election introduces a layer of uncertainty that could impact future economic policies and market performance.
"The U.S. economy is firing on all cylinders," said Joe Brusuelas, chief economist at RSM. "Full employment, price stability, and strong productivity gains are driving growth."
Yet, some analysts caution that this momentum might be influenced by the election cycle, temporarily overshadowing external tensions, particularly with China. Geopolitical tensions and potential policy shifts in a new government period could reshape the economic landscape.
Paul Ashworth, chief North America economist at Capital Economics, offered perspective:
“The U.S. is a relatively closed, service-based economy. Goods exports to the rest of the world account for only 7% of GDP, and exports to China are worth only 0.5% of GDP."
Sustaining this economic trajectory will require careful navigation of economic policies and international relations in the new government period. The tech sector's success not only fuels domestic prosperity but also enhances America's standing in the global tech race. The Magnificent Seven have played a pivotal role in propelling the bull market, and their continued innovation and performance will be critical in maintaining economic growth post-election.
Mr Donald Trump was sworn in on January 20, 2025, as the 47th U.S. President amid talk of sweeping policy shifts. Global markets breathed a sigh of relief at his trade probes in lieu of immediate tariffs, while billionaire oligarchs stood front and center at the scaled-down ceremony.
Broadcom joins Nvidia in the $1 trillion club, reshaping the AI chip race with a 51% revenue surge in Q4 2024 and VMware's $69B acquisition. As China invests $25B to boost semiconductor self-reliance, U.S.-China tensions escalate, redefining global innovation and geopolitical power dynamics.
Salesforce saw an 8.3% revenue rise to $9.44 billion, driven by its AI tool, Agentforce, while Intel’s CEO Patrick Gelsinger exited with a $10M package amid struggles to reclaim its chip-making dominance. Both companies reflect the pressures of competing in a rapidly evolving AI-driven market.
Nvidia’s stellar week featured $35B in Q3 earnings, a 195% YTD stock surge, and bold AI collaborations in Indonesia. With innovations like Blackwell chips and Sahabat-AI, Nvidia is driving the AI revolution into mid-decade, achieving a $3.6 trillion market cap and redefining global tech leadership.
