Stocks are rebounding while crude oil is pulling back. Gold and silver are up a bit along with Treasuries, while the dollar is easing back.
Last week was a brutal one for Big Tech and AI stocks. But today, we have a mega-merger in the sector to talk about. Marvell Technology Inc. (MRVL) is acquiring Lumentum Holdings Inc. (LITE) in an all-stock deal valued at approximately $115 billion. Marvell produces high-end AI chips and networking equipment, while Lumentum makes lasers and optical tech used in AI data centers.
Source: Yahoo Finance
Outside of the SpaceX (SPCX)/xAI combination, this is the largest tech merger ever. But it comes amid a radical repricing of AI stocks. Alphabet Inc. (GOOGL) shed more than $500 billion in market value last week after the search giant reported disappointing earnings. Meta Platforms Inc. (META) tanked after its earnings, too, while the Nasdaq 100 briefly slid into “correction” territory late last week. Yahoo Finance calculates that AI stocks collectively lost $5 trillion in value in the last month.
In the geopolitical and political arenas, investors are closely watching tomorrow’s midterm elections – and wondering if renewed strikes on Iran will follow. Multiple reports have suggested the Trump Administration will launch fresh attacks once the votes are in.
Still, oil futures are slipping about 6% today on separate reports that the president will give diplomacy more time to work and that talks about control of the Strait of Hormuz are underway in Qatar. Polls and prediction markets point to the Democrats taking control of the House, though the Senate remains a tossup.
