Markets and megacaps move as Nvidia hits $5 trillion and Apple reports Q4 results. The Federal Reserve cut rates by 25 basis points while Chair Jerome Powell warned a December cut is “far from” certain. In the short term, the cut lifted equity indices and helped Nvidia (NASDAQ:NVDA) surge to the $5 trillion milestone. Over the long term, AI-driven capital expenditure is reshaping demand for chips, memory and cloud services, while Apple (NASDAQ:AAPL) must show the iPhone 17 and Services growth can offset tariffs, costs and China uncertainty. This matters globally — US indices climbed, Asian memory suppliers rallied, and emerging markets saw hardware demand rise from a 3% YoY smartphone uptick in Q3.
Market backdrop: Fed moves, record indexes and the near-term trade
The Federal Reserve cut its policy rate by 25 basis points on the latest decision and signalled that future moves will be data dependent. Chair Jerome Powell said a December cut is “far from” certain. That caution trimmed some of the early optimism. Still, the S&P 500 reached about 6,900 in recent sessions, and Nasdaq momentum held as investors priced easier policy in the near term.
Interest-rate guidance matters now because it influences capital allocation to long-cycle projects such as AI data centers and chip fabs. Lower near-term rates ease funding costs for corporate capex. However, Powell’s comments inject uncertainty into the timing of further easing and thus into near-term valuations for high-growth names.
Nvidia at $5 trillion: the AI capex engine and ripple effects
Nvidia (NASDAQ:NVDA) became the first public company to surpass a $5 trillion market capitalization. The milestone came roughly three months after Nvidia crossed $4 trillion, underscoring the speed of re-rating for companies tied to generative AI infrastructure. Reports note Nvidia shares trading above $210 as the market cap climbed past the $5 trillion mark.
Management and analysts cited strong demand for next-generation Blackwell and Rubin line chips. Nvidia disclosed large bookings tied to AI infrastructure — figures in coverage point to hundreds of billions in multi-year demand, and one widely cited number referenced about $500 billion of bookings related to AI infrastructure through 2026. That scale explains why semiconductor suppliers and memory makers tightened capacity and lifted guidance.
The immediate market effects were broad. Memory and server component names saw rallies as clients scrambled for capacity. Micron (NASDAQ:MU) reacted to stronger DRAM demand; cloud providers and enterprise software makers also adjusted capacity plans. Meanwhile, partnerships announced at Nvidia’s developer events — spanning telecom and enterprise software — signal a structural step-up in AI spending that could persist for several years.
Apple’s Q4 test: iPhone 17, Services and geopolitical headwinds
Apple (NASDAQ:AAPL) heads into its fiscal Q4 report with the market watching two main items: iPhone 17 demand and Services momentum. Apple’s market cap recently touched $4 trillion, and analysts expect the company to update investors on holiday iPhone demand after the close on Wednesday. Collectively, headlines on Apple have been intense (42 separate items tracked this cycle), reflecting high investor focus.
Analysts are split but active. Baird reiterated an Outperform rating and raised its price target to $280 from $230, citing upgrade tailwinds. Bank of America lifted its target to $320. Media commentators like Jim Cramer highlighted the reception of the iPhone 17 in major markets as a potential catalyst if Apple reports acceleration in the U.S. and China.
Risks on the table include tariff pressure, higher component costs and China uncertainty. On the demand side, global smartphone shipments grew 3% year-on-year in Q3 to 320.1 million units (Omdia), a sign the handset cycle is recovering — a positive backdrop for Apple but one that also tightens competition. Investors will watch whether Services revenue growth and AI integration in Apple’s product line can offset cost and geopolitical headwinds.
Key takeaways
- Nvidia’s $5T milestone confirms a sustained AI capex wave that is already reshaping suppliers and cloud plans.
- The Fed’s 25-basis-point cut helped risk assets, but Powell’s warning about December keeps the timing of further easing uncertain.
- Apple’s (NASDAQ:AAPL) Q4 report — driven by iPhone 17 sales and Services — will be the near-term test of whether hardware demand and recurring revenue can balance tariffs and China exposure.
Markets are now balancing monetary policy signals with accelerating AI investment. Near-term moves will hinge on quarterly reports and central-bank guidance. Over the medium term, the ramp in AI infrastructure spending could reshape revenue pools across semiconductors, memory, cloud and enterprise software.
This article is informational only and does not constitute investment advice.
