MPC Morning Call 12th November 2025 – Investors switch out of Tech on record valuations, depreciation red flags
Tech fell as the DOW rallied as investors weighed up record valuations, AI Chip depreciation & the long-running government shutdown.
Overnight – Investors switch out of Tech on record valuations, depreciation red flags vidia shares led a decline in AI stocks after SoftBank sold its entire $5.83 billion stake to pivot its investments toward OpenAI. Nvidia-backed CoreWeave also saw its stock drop due to delays with a third-party data center partner, overshadowing strong quarterly results and major deals with OpenAI and Meta. Meanwhile, Paramount Skydance rose on new cost-cutting plans, Rocket Lab gained after reporting a narrower loss, and TheRealReal surged after raising revenue guidance. In Washington, the U.S. Senate passed a spending bill to end the record-long federal government shutdown, with bipartisan support paving the way for passage in the House and approval by President Donald Trump. Analysts said the resolution could spark a year-end rally, and Wall Street closed higher previously, led by AI stocks including Nvidia and Palantir. UBS projected the S&P 500 could reach 7,500 next year from 5,830, driven by 14% earnings growth—around half from technology companies. The bank expects the global economy to accelerate in 2026 but cautioned that advanced economies face short-term challenges due to lingering tariff effects. UBS forecasts U.S. equities will outperform globally with roughly 10% returns in the next year, fueled mainly by earnings strength rather than valuation expansion. Corporate Earnings Paramount Skydance +9.93% – stock rose after the entertainment company said it is looking to cut an additional $1 billion in savings after first outlining $2 billion when it completed its merger in August. Rocket Lab -1.25% – stock jumped higher after the space company reported a smaller third-quarter loss than expected. ASX Overnight: SPI 8868 (+0.24%) The Day Ahead: Results are expected on Wednesday from Aristocrat Leisure and Mainfreight. Annual meetings on the schedule include Beach Energy, Flight Centre, Domino’s Pizza, Humm, Inghams and Netwealth. At 9.15am AEDT, Reserve Bank of Australia assistant governor (financial system) Brad Jones will participate in a fireside chat at the Association of Superannuation Funds of Australia Conference in Broadbeach. The RBA will release a discussion paper on ageing and economic growth in China at 11.30am AEDT. Third-quarter home loans value will be released at 11.30am AEDT.
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