The rise in US stocks in October was largely due to AI

Trader who sold short S&P500 — In short, we were betting the stock would go down — and last month we were in for a rude surprise. The composite index ended the month 2.3% higher, defying the term “October Scare,” which was coined by market crashes that occurred during that month in 1929 and 1987.

of Nasdaq Composite had an even better month than the S&P 500. The tech-heavy index rose 4.7%, suggesting what helped prevent the ominous omen from coming. It’s the technology sector.

on friday, Amazon Shares rose 9.6% on strong growth in the cloud computing sector and what CEO Andy Jassy cited as “strong demand for AI and core infrastructure.” The news boosted other artificial intelligence stocks. Palantir and oracle Too.

The rise of AI in the market was not a one-day event. In October, NvidiaThe AI ​​powerhouse became the first company to reach a $5 trillion valuation. CEO Jensen Huang explains that the technology has formed a “virtuous cycle” where increased usage leads to increased investment, which in turn improves AI, leading to increased usage.

Indeed, in last week’s earnings calls, Big Tech companies announced a dizzying increase in capital spending, much of which is likely to go toward AI infrastructure.

In other words, the enthusiasm for AI so far is more like the sustained energy boost from fiber-rich pumpkin than the instant sugar rush (and subsequent crash) of a candy bar.

China’s factory activity slows in October. S&P Global’s Rating Dog China Comprehensive Manufacturing PMI stood at 50.6 in the same month, down from 51.2 in September, the highest level in six months. Analyst estimates compiled by Reuters were 50.9.

Baidu’s weekly robotaxi rides have reached 250,000. A spokesperson for Apollo Go, Baidu’s robotaxi division, said the company exceeded that number as of Oct. 31. That’s about the same weekly number of driverless rides as Waymo, according to a late April report.

Berkshire Hathaway’s operating profit has recovered. In the third quarter, sales rose 34% year-on-year to $13.485 billion. Warren Buffett’s conglomerate currently has an all-time high of $381.6 billion in cash, but has not yet considered buying back stock.

US markets ended higher on Friday. Futures prices tracking major U.S. indexes were little changed Sunday night. Asia-Pacific markets rose on Monday. Japanese Nikkei Stock Average and korean Kospi It was up more than 2% as of 2pm Singapore time (1am ET).

(PRO) stock prices entered November at high prices. The S&P 500 is up more than 16% year-to-date since November. Investors should continue to keep an eye on Supreme Court cases this week regarding President Trump’s tariffs and corporate profits, including: advanced micro device And Palantir.