By Alex Financials

Markets at a glance: Tech-led but mixed

U.S. equities opened the week with a split performance: while the S&P 500 nudged higher and the Nasdaq Composite posted modest gains, the Dow Jones Industrial Average slipped slightly. 
The divergence underscores how growth/tech stocks are carrying the market, while more cyclical or older-economy names lag. The yield on the 10-year Treasury hovered around ~4.09% amid weak manufacturing data, adding pressure to interest-rate sensitive segments. 
Investor attention is focused on a big wave of upcoming earnings and macro data, especially private-sector job gauges and manufacturing indices.

Big tech and AI dominance: The rally engine

A major catalyst today was the Amazon .com Inc. ($AMZN) deal: Amazon announced a multiyear agreement with OpenAI valued at about $38 billion, aimed at providing hundreds of thousands of chips/cloud infrastructure for AI workloads.
This deal reignited investor enthusiasm for AI-centric names. For example, NVIDIA Corporation ($NVDA) climbed ~2 % after an analyst upgrade and target-lift, as its chips remain central to AI infrastructure build-out.
Meanwhile, tech’s share of the S&P now exceeds 35 % of the index, and some strategists are cautioning that valuations are stretched — though others argue fundamentals (cash flows, business models) support the rally.

M&A and other corporate headlines

Beyond tech, deal-flow also powered the market today. Consumer-health company Kenvue Inc. ($KVUE) jumped after its parent (Kimberly‑Clark Corporation) announced an acquisition valued in the ~$40-50 billion range. 
On the industrial/conglomerate side, Berkshire Hathaway Inc. ($BRK.B) posted a strong quarter (operating profit ~US$13.5 billion) yet its class B shares dipped—likely a reflection of investor concern over the retirement of Warren Buffett and capital allocation ahead.

Macro & global backdrop: Some headwinds emerging

On the macro front, manufacturing data in the U.K. rebounded slightly, but global growth remains uneven and cost pressures persist. 
In commodities, the OPEC Plus group signalled a pause to output hikes, which kept oil prices relatively steady but under pressure. 
The global rally was supported by strength in Asia: for example, the Kospi in South Korea jumped ~2 % amid AI-chip optimism. 
Yet, concerns remain that this tech/AI-driven rally may be more vulnerable than it looks: with valuations high, any negative surprise (e.g., weaker earnings, regulatory crackdowns) could trigger sharp reversals.

What to expect this week & key watch-points

• Earnings slate: Several tech and growth firms are due to report soon (e.g., Palantir Technologies Inc. ($PLTR) among them) — beats could further fuel the trend, while misses may trigger sentiment shifts.

• Jobs/manufacturing data: Private payroll / PMI data will offer clues on the pace of economic cooling or strength — important for how the Federal Reserve views policy going forward.

• Valuation risk: With tech valuations elevated and concentration high, investors may increasingly hedge or rotate into more defensive sectors if they sense risk.

• Geopolitical/regulatory: Any surprise on AI regulation, China exports (especially chips/rare earths), or trade tensions could act as a trigger for volatility.

Bottom line

The market is clearly riding a strong wave of AI and tech optimism — large deals (like Amazon’s with OpenAI) and rising chip demand are feeding a narrative of secular growth. At the same time, the broader economy and older-economy sectors are showing less dynamism, meaning the market is increasingly bifurcated.
As long as earnings remain strong and macro data tolerable, the rally may continue. But the margin of error is narrower: elevated valuations, high concentration, and limited breadth mean that a stumble in any of the key drivers could provoke a sharp correction. For investors, the current environment calls for selective exposure (favoring AI/tech if you believe the secular case) combined with risk management (watch out for rotation and valuation traps).
In short: momentum is today’s friend, but caution remains tomorrow’s virtue.