Let’s go for 7,000 on the S&P 500
Last week clearly revealed where the fault line now runs in the stock market. Investors spent the week selling shares of companies tied to chip production and artificial intelligence. The sell-off was driven by growing doubts over whether leading tech giants are valued. As a result, the NASDAQ Composite suffered its worst week since April, falling more than 3%. The drop looks particularly striking and discouraging at the same time when compared with the relatively modest declines in other major U.S. indexes: the S&P 500, the main U.S. benchmark, slipped 1.63%, while the more conservative blue-chip Dow Jones lost just 1.21%.
The limited pullback (even a slight rebound late on Friday) was supported by optimism that Democrats and Republicans may finally reach a budget agreement in the coming days, ending the longest government shutdown in U.S. history.
The “battle of ideas” also spilled over into the ITS family of indexes. The global ITS World Index (ITSW), supported by broad geographical and sector diversification, slipped just 1.27% over the week. By contrast, the ITS Shariah Index (ITSS) more heavily exposed to the U.S. market and dominated by major big tech names fell nearly twice as much, down 2.61% for the same period.
Overall, the market seems to be at a turning point. The earnings season, the main driver of growth over the past month, is winding down, and its influence on investor sentiment is starting to fade. Something new will need to take its place. The end of the government shutdown could be that catalyst, lifting investor confidence and giving markets at least a short-term boost. And beyond that, Thanksgiving and the traditional Christmas rally are just around the corner. For now, investors remain upbeat, with few signs of real concern on the horizon.
Market expectation for November 10, 2025
The new week is starting on a positive note, which is certainly welcome news. Optimism was fueled by reports of significant progress toward ending the longest government shutdown in U.S. history. Over the weekend, lawmakers held a test vote in the Senate, and late on Sunday, supporters of the budget deal scored a decisive win – 60 votes to 40.
Against this backdrop, futures on major U.S. indexes jumped nearly 1%. The optimism quickly spilled over to global markets, with European indexes up around 1% on Monday morning and gains in Asia reaching as high as 1.5% – notably in Hong Kong.
It is certainly an encouraging start to the week and one that gives investors reason for optimism. Toward the end of the week, official macroeconomic data may begin to trickle in. On Thursday, the release of the consumer inflation report, the CPI, is scheduled, which, if published as planned, could have a meaningful impact on market sentiment.
The earnings season is gradually coming to an end. The flow of new reports has slowed noticeably, but a few key releases this week could still move the market. Among them are Cisco Systems, Inc. (CSCO), which is set to report after the close on Wednesday, and Applied Materials Inc. (AMAT), a leading supplier of semiconductor equipment, which will announce its results on Thursday after the final bell. Naturally, investors are hoping for solid figures from both companies.
It is also worth watching the quarterly results from several major Chinese companies, including Alibaba (BABA), JD.com (JD), Li Auto (LI) and others. All are scheduled to report later this week.
The week is off to a strong start, and with a bit of luck, that optimism will carry through to the end. If it does, we might just see the indexes back at record highs. Let’s go for 7,000 on the S&P 500!