US equities notched solid gains last week as investors doubled down on expectations of aggressive Federal Reserve rate cuts amid signs of cooling in the labour market. The S&P 500 rose 1.33% while the Nasdaq 100 climbed 1.40 percent, fuelled by a sharp slowdown in job growth, rising unemployment, and downward revisions to prior employment data. Inflation painted a mixed picture — CPI ticked higher while PPI fell — leaving markets grappling with uncertainty around tariffs and geopolitical risks, according to investment advisory platform Vested Finance.

Stock highlights

• Synopsys (SNPS, -29.20%): Tumbled after posting weaker-than-expected Q3 results. Revenue and EPS missed estimates, dragged by softness in the IP business. Guidance cuts and trimmed full-year outlook added to the pain, despite completing its acquisition of Ansys.
• Oracle (ORCL, +22.31%): Jumped on optimism around cloud and AI momentum, with reports of a potential OpenAI deal. While earnings slightly missed on revenue and EPS, investors shrugged off concerns about overdependence on OpenAI and focused on long-term AI tailwinds.
• Wearable Devices (WLDS, +814.56%): Skyrocketed after reporting $294,000 in revenue, narrowing losses, and securing a US patent. The firm raised $8 million through direct offerings of shares and warrants, priced at $4.00 and $6.00, respectively, to shore up working capital.
• Rubrik (RBRK, -20.74%): Despite strong revenue growth (+51% YoY) and subscription ARR up 36%, shares slid. The acquisition of Predibase and launch of Agent Rewind bolstered AI capabilities, but looming competition from Netskope’s upcoming IPO weighed on sentiment.
• Nebius Group (NBIS, +40.04%): Rallied after securing a multi-billion-dollar AI infrastructure deal with Microsoft. The agreement, expected to generate $3.5 billion annually, comes as the company gears up to raise $3 billion for expansion, including a New Jersey data center.

Key takeaways for investors

1. Macro matters: Markets are betting on Fed rate cuts, but volatility may stay elevated given geopolitical risks and mixed inflation data.
2. AI still dominates: Oracle and Nebius highlight how AI partnerships and infrastructure are driving valuations, though reliance on single players (like OpenAI) adds concentration risk.
3. Earnings season surprises: Big swings (Synopsys vs. Oracle) underscore the importance of looking beyond headlines to guidance and business mix.
4. Small-cap momentum: Wearable Devices shows how early-stage firms can see outsised moves, but investors should weigh dilution risks from share offerings.
5. Competitive pressure in cybersecurity: Rubrik’s drop despite strong numbers signals that investor sentiment is heavily tied to sector competition.