Markets open upbeat on earnings, AI and calmer trade ties. Global equities rose at the start of November as strong company results, signs of easing trade frictions and steady oil ruled the headlines. In the short term this lifts risk appetite and supports stocks in the United States and Europe. Over the longer term the market is watching whether corporate AI spending will compete with government borrowing and push up yields. Asia faces the drag of soft manufacturing. The timing matters because the U.S. Supreme Court tariff hearing and fresh corporate bond issuance are set to influence flows and rates this week.

Earnings and sentiment lift markets

Corporate profits drive immediate risk appetite

Equities began the month on a positive note after a string of upbeat company earnings. Third quarter profit growth for the S&P 500 is now estimated at almost 14 percent on an annual basis. That figure is roughly five percentage points stronger than analysts expected a month ago and it contrasts with a weaker start to the year. The stronger profits have helped futures point higher and kept volatility in check going into the new trading week.

Short term, better-than-expected earnings are supporting riskier assets and encouraging buying across sectors. Over the medium term, investors will watch whether this earnings momentum broadens beyond a handful of high growth names to sustain broader market gains.

Monetary policy, yields and a new source of borrowing pressure

Fed messaging, Treasury yields and corporate debt interact

Treasury yields eased slightly from Friday peaks while the dollar ticked up to three month highs. Fed officials have voiced discomfort with rapid policy easing, and market odds for a December cut now stand below certainty. The Fed tone matters this week because it will influence yields, borrowing costs and risk sentiment across regions.

One fresh dynamic that could affect the Treasury market is rising corporate bond issuance tied to a tech capex cycle. Meta Platforms NASDAQ:META drew attention with a roughly $30 billion bond sale last week to help finance AI investments. That move highlights that some AI spending is being funded through leverage rather than cash on hand. If other large firms follow, corporate demand for fixed income may start to compete with the government for investor capital. That competition could put upward pressure on yields and change the balance of supply and demand in credit markets.

Trade policy, legal calendar and the government backdrop

A tariff hearing and government standoff add near term political risk

The U.S. Supreme Court will hear arguments this week on the legality of broad tariffs put in place under emergency authority. A ruling that limits those powers could force adjustments in how tariffs are implemented, and it may create temporary uncertainty for companies exposed to global trade flows. Even if the court rules against the current legal theory, administration officials say tariffs will remain under other authorities.

At the same time the U.S. government shutdown is extending beyond a month and federal data releases are patchy. That interruption reduces visibility on the current state of the economy and could heighten market sensitivity to the limited economic signals that do arrive. The expiration of certain food aid programs could increase pressure on lawmakers to resolve the impasse, which in turn could affect near term fiscal outlooks.

Sector themes to watch

AI spending, semiconductors, manufacturing growth and energy margins

Tech and AI are central to the market narrative. Nvidia NASDAQ:NVDA remains a focal point after statements that its most advanced chips will be kept for domestic users. That policy nuance matters for chip makers and cloud providers with exposure to China.

At the same time, manufacturing surveys from Asia showed weakness for October. Factory activity in big Asian hubs slowed, reflecting softer U.S. demand and the impact of tariffs under the current administration. That weak data contrasts with robust corporate earnings in other pockets and suggests uneven global growth dynamics.

In energy, major Western oil producers are benefiting from expanded attacks on Russian oil infrastructure. Those disruptions have lifted refining margins and helped offset concerns about a potential supply glut. OPEC+ agreed to a small rise in December output followed by a pause next quarter. The decision produced little net shock for crude prices, which held steady into Monday.

What to watch during the trading session

Key data and earnings could move sentiment

Market participants will parse U.S. October manufacturing surveys from S&P Global and ISM for clues on demand. Those readings carry extra weight because official releases are spotty during the shutdown. Fed speakers on the calendar include a Board Governor and a regional bank president, and their comments could influence rate expectations.

Today also brings a slate of corporate results that may guide sector flows. Look for updates from Palantir NYSE:PLTR and Eastman Chemical NYSE:EMN early in the session. Other names reporting include Clorox NYSE:CLX, IDEXX NASDAQ:IDXX, Progressive NYSE:PGR, ON Semiconductor NASDAQ:ON, Coterra Energy NYSE:CTRA, Diamondback Energy NYSE:FANG, Williams Companies NYSE:WMB, Loews NYSE:L, Vertex Pharmaceuticals NASDAQ:VRTX, Hologic NASDAQ:HOLX, Pinnacle West NYSE:PNW, SBA Communications NASDAQ:SBAC, Public Service Enterprise Group NYSE:PEG, Simon Property Group NYSE:SPG and Realty Income NYSE:O.

Market reaction will likely be driven by guidance and capex commentary as much as by headline earnings. Investors will watch whether firms confirm AI related investment plans and how they propose to fund those projects. Bond markets may respond if corporate issuance accelerates or if the supply of Treasury paper is met with weaker demand.

In sum, the session opens on a positive note. Earnings and trade developments are offering immediate support. However, the balance of risks from policy, legal rulings and funding needs will be decisive for rates and risk assets over the coming days. Traders and investors will be focused on fresh data, Fed remarks and corporate funding signals that can reshape flows and pricing.