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Stock Market Starts November Trade Mixed, With Palantir A Winner; Cash Pile Grows At Warren Buffett’s Berkshire

VIDYA RAMAKRISHNAN
06:15 PM ET 11/03/2025

Some indicators of mixed breadth emerged in the stock market Monday, with small caps lagging while the Nasdaq composite and the S&P 500 finished higher. The Dow industrials underperformed, with Merck (MRK) and Nike (NKE) among the losing issues. But gains for tech giants Amazon (AMZN) and Nvidia (NVDA) helped keep the blue-chip index from ending at session lows.

The Dow Jones Industrial Average fell 0.5% while the S&P 500 closed up 0.2% after choppy moves throughout the day. The Nasdaq headed higher to log a o.5% gain. The small-cap Russell 2000 index declined 0.3%. The Dow ended with 23 of its 30 stocks in the red.

Also, Dow transports fell 0.4% while utilities gained 0.1%. The S&P 400 MidCap Index fell 0.1%, but the S&P 600 SmallCap Index reversed higher in afternoon trade, locking in a 0.2% advance. Meanwhile, West Texas intermediate futures were flat at around $61 a barrel.

Fed To End Quantitative Tightening

While fed funds futures traders have slashed odds of a December cut in interest rates by the Federal Reserve, policymakers are set to end the central bank’s quantitative tightening cycle on Dec. 1. The end of QT could “translate into more liquidity for financial markets and more private investment funds going into risky assets over a period of time,” said Bill Adams, chief economist at Comerica Bank, according to MarketWatch.

In a speech on Monday, Fed Gov. Lisa Cook said she supported the October rate cut. But she didn’t weigh in on her view about the December meeting. The odds of a rate cut of 25 basis points in December sit at 67%, sliding from 94% a week ago, according to the CME FedWatch tool.

Volume on the New York Stock Exchange and the Nasdaq was lower compared with Friday. Decliners outnumbered advancers on both exchanges: by less than 3-to-2 on the NYSE and by more than that on the Nasdaq. In the bond market, the yield on the benchmark 10-year Treasury note rose to 4.1%.

Amid the continued government shutdown, data released from private sources takes on added importance. On Monday, the Institute for Supply Management’s Manufacturing Index was released. The survey checks in with purchasing managers at around 300 manufacturing companies. The index’s October reading of 48.7 was below economists’ expectations of 49.5.

On Wednesday, ADP’s October employment report may move markets. The University of Michigan’s preliminary Consumer Sentiment Index for November is due Friday. The government’s monthly jobs report is expected to be delayed from its usual Friday release.

Stock Market: Amazon’s OpenAI Deal, Palantir’s Earnings

In stocks, Amazon announced a $38 billion deal with OpenAI on Monday while Nvidia landed multiple price-target hikes ahead of its earnings on Nov. 19. Shares of Amazon rose 4% while Nvidia gained 2%.

Palantir (PLTR) closed above the 200 level on Monday after hitting an all-time high. In after-hours trading, the stock jumped after third-quarter results beat estimates, with earnings of 21 cents per share on $1.18 billion in revenue. Analysts had called for 17 cents in earnings per share on $1.1 billion in sales.

Among other companies giving quarterly updates, Berkshire Hathaway (BRKB) disclosed that it was a net seller of stocks in the third quarter. Cash, cash equivalents and short-term investments exceeded $381 billion, up from $344 billion in the second quarter. Shares slipped, remaining stuck below their 50-day moving average. The relative strength line has been drooping as well, while the Relative Strength Rating has fallen to 33 from 92 six months ago.

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