Nasdaq 100: Nvidia-Microsoft UAE Chip Deal Powers Gains Across US Indices

Tech Leads Futures Higher as AI Momentum Carries Into November

Stock futures edged up early Monday, with traders leaning into tech names to kick off November trading. S&P 500 futures rose 0.4%, Nasdaq-100 futures gained 0.7%, while Dow futures hovered near flat. The move follows a solid October and strong earnings from major players, with AI-related optimism still in the driver’s seat.

Are traders doubling down on the AI trade?

Micron jumped 3% premarket, leading chip stocks higher. Nvidia added nearly 2% after news broke that Microsoft secured U.S. approval to ship advanced Nvidia GPUs to the UAE, a deal tied to a $15.2 billion regional investment.

AMD climbed 1%, and the VanEck Semiconductor ETF (SMH) was up 1%. Other AI names, including Palantir and Meta, also saw early bids.

The Microsoft-Nvidia deal gives markets another AI tailwind. Microsoft’s export licenses allow it to ship the equivalent of 60,000+ A100 chips, specifically Nvidia’s new GB300 GPUs, to fuel AI and cloud infrastructure in the Gulf. That’s not a small deal — and traders know it.

Did October’s bounce put a floor under stocks?

The major indexes all closed higher last month: S&P 500 gained 2.3%, Dow 2.5%, and the Nasdaq outpaced with a 4.7% rally. That rebound was powered by easing U.S.-China tensions and continued AI enthusiasm — themes that remain intact.

Now, bulls are eyeing seasonality. November tends to be kind to stocks, historically the S&P 500’s strongest month with an average 1.8% gain, according to the Stock Trader’s Almanac.

What’s driving earnings optimism?

Over 300 S&P 500 companies have reported so far, with more than 80% beating estimates, per FactSet. This week, another 100+ names are on deck — including AMD and Palantir.

Fundstrat’s Tom Lee highlighted three earnings tailwinds: strong AI spend visibility, innovation from financials via blockchain, and a dovish Fed that’s backing away from rate hikes. He also pointed to the Fed’s quantitative tightening scheduled to end Dec. 1.

What else is moving?

Berkshire Hathaway rose 1% premarket after reporting a 34% jump in Q3 operating earnings, led by a 200% surge in insurance underwriting. Notably, it didn’t buy back stock — and cash on hand swelled to a record $381.6 billion.

Elsewhere, M&A buzz lifted Kenvue shares 20% after agreeing to a $48.7 billion buyout from Kimberly-Clark.

Iren soared 22% on a $9.7 billion GPU supply deal with Microsoft, another notch in the AI infrastructure belt.

What’s next for the market?

Traders are watching to see if the bounce has staying power. Seasonals are favorable, earnings are strong, and AI remains hot. But the government shutdown is delaying key data — including jobs — and that could keep a lid on conviction. For now, tech’s still driving the action.

More Information in our Economic Calendar.