Closing Bell: Expanding Market Breadth Powers Equity Gains Key Points

Key Points

• Markets logged another strong follow-through session, with the S&P 500 (SPX) climbing 0.78%, the Nasdaq-100 adding 0.58%, and the Russell 2000 (RUT) surging 2.14%.
• Meta is reportedly exploring the use of Google’s tensor processing units (TPUs) in its data centers starting in 2027 and may rent TPUs from Google Cloud as early as 2026.
• Alibaba reported a strong quarter this morning with revenue growth of 5% year-over-year, driven by rapid adoption of AI and cloud services.

Markets logged another strong follow-through session, with the S&P 500 (SPX) climbing 0.78%, the Nasdaq-100 adding 0.58%, and the Russell 2000 (RUT) surging 2.14%. Health Care, Consumer Discretionary, and Communication Services led the advance, while Energy and Utilities lagged behind.

Alphabet’s TPU vs Nvidia’s GPU Debate Gains Traction

Meta is reportedly exploring the use of Google’s tensor processing units (TPUs) in its data centers starting in 2027 and may rent TPUs from Google Cloud as early as 2026, according to The Information. If confirmed, the move would mark a significant endorsement of Google’s custom AI chip technology. The news pressured Nvidia (NVDA) shares, which fell 2.5% during the session, while Alphabet (GOOGL) shares climbed over 1%.

Alibaba Tops Earnings Forecast Amid AI Supply Chain Challenges

Alibaba reported a strong quarter this morning with revenue growth of 5% year-over-year, driven by rapid adoption of AI and cloud services. Its popular Cloud Intelligence Group saw revenue growth of 34% year-over-year, but the company noted that the rate of growth for its AI and cloud services may face challenges due to supply chain constraints, including the pace of server construction, which could impact revenue growth over the next several quarters.

Key Market Events for Tomorrow

• 08:30 AM ET: Unemployment Claims
• 08:30 AM ET: Core Durable Goods Orders m/m
• 08:30 AM ET: Durable Goods Orders m/m
• 09:45 AM ET: Chicago PMI
• 10:30 AM ET: Crude Oil Inventories
• 12:00 PM ET: Natural Gas Storage
• 02:00 PM ET: Beige Book                                       

Notable Earnings for Tomorrow

• Premarket: DE, LI
• Postmarket: N/A

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