Tech Leads the Charge

Mixed Finish – Stocks ended higher as the Dow rose 185 points while the S&P 500 and Nasdaq climbed steadily on returning appetite for large cap tech.

Rate Focus – Traders increased the probability of a December rate cut to nearly 90 percent after another weak ISM manufacturing print reinforced cooling economic momentum.

Fed Shift – Markets monitored potential new Fed leadership as uncertainty around Powell’s successor added another layer to next week’s policy decision.

Leadership Watch – White House adviser Kevin Hassett emerged as the frontrunner for Fed Chair, heightening speculation about the first moves under possible new leadership.

Manufacturing Weakness – Soft production data pressured the dollar and strengthened the case for earlier easing as hiring and pricing measures continue to cool.

Defense Boost – Boeing jumped more than 10 percent after forecasting positive free cash flow for 2026 and winning a 104.4 million dollar Navy repair contract.

Chip Rebound – Marvell gained ahead of earnings while MongoDB surged more than 22 percent after lifting full year guidance above Wall Street expectations.

Acquisition Buzz – Reports said Marvell is in advanced talks to acquire Celestial AI in a multibillion dollar deal, boosting sentiment across custom chipmakers.

Corporate Spotlight – Dell climbed after President Trump praised the Dell family’s 6.25 billion dollar donation to seed investment accounts for 25 million American children.

Sharp Bounce – Bitcoin rebounded more than 7 percent to reclaim the $90,000 level after Monday’s steep drop triggered aggressive dip buying.

Sentiment Strain – Strategy suggested it could sell a portion of its holdings as a last resort, weighing on short term crypto sentiment.

Risk Signal – Analysts warned that a break below the recent 81,000 dollar floor could attract technical sellers and indicate tightening liquidity.

SMID Upside – Morgan Stanley said commercial stage SMID Cap biotech is primed for a growth spurt with a projected 14 percent revenue CAGR through 2030.

Cash Advantage – Analysts noted the sector holds roughly 325 billion dollars in net cash and is on track to approach 150 billion dollars by decade end.

Deal Cycle – A 176 billion dollar patent cliff for large cap biopharma is expected to drive a major wave of acquisitions as companies rebuild lost revenue.

Earnings Rebound – Bank of America projects 18 percent EPS growth for small caps in 2026, outpacing mid and large cap peers.

Policy Boost – Expected rate cuts through next year support refinancing conditions and reduce balance sheet stress across small cap names.

Positioning Gap – BofA said managers remain heavily underweight small caps, leaving substantial room for rotation as valuations stay the cheapest in the market.

Tech Rotation – Add selective exposure to chipmakers like $MRVL ( ▲ 7.87% ) and $AVGO ( ▼ 0.25% ) as custom silicon demand strengthens and earnings momentum improves.

Retail Strategy – Accumulate $DELL ( ▼ 1.71% ) on weakness as its philanthropic spotlight and stable fundamentals draw institutional buyers.

Crypto Patience – Build Bitcoin exposure gradually through dollar cost averaging until ETF flows firm and volatility cools.

Biotech Upside – Take starter positions in cash rich SMID Cap biotech names positioned for a potential multiyear M&A cycle.

Small Cap Watch – Keep a watchlist of discounted small caps as earnings revisions improve and rate cuts support refinancing needs.