Real US GDP growth surprised with 3.4% in Q3, driven by household consumption and inventory rebuild. Tech earnings show cash flow is king: Meta, Alphabet and Amazon fell on heavy spending, while Microsoft's fiscal prudence and $19bn free cash flow buoyed shares. Oracle's pledge to limit funding to $20bn until 2030 sparked a rally.
Alphabet's $500bn market loss highlighted that legacy concerns outweigh AI growth, despite Cloud surging over 100%. With ad revenue at $330bn annually versus Cloud's $125bn, investors prioritize cash flow over AI initiatives. ECB's Christine Lagarde departure ahead of term end livened a routine rates decision.
Markets await clearer direction on monetary policy amid political shifts in France.
Source: Financial Times Companies · Summarized by HeadlinesBriefing