Nvidia's strong earnings boost stocks; US approves chip exports to Saudi Arabia, UAE.

US and Saudi Arabia Establish AI Strategic Partnership

On November 19, the United States and Saudi Arabia announced a strategic partnership in artificial intelligence (AI), signing a massive $270 billion agreement. The partnership aims to leverage complementary strengths in energy resources and technology to drive innovation and economic prosperity.

Key Aspects of the Agreement

• The agreement includes advanced semiconductor supply, AI application development, infrastructure construction, national capability training, and increased bilateral high-value investments.
• This collaboration is expected to enhance productivity and innovation, leading to economic and social benefits for both nations.

Former President Trump highlighted that dozens of companies are signing contracts worth a total of $270 billion, emphasizing the job creation and opportunities this partnership brings.

US Labor Statistics Update

The U.S. Bureau of Labor Statistics announced that the November employment report will be released on December 16, and the October non-farm payroll report will not be published. This change has led traders to adjust their expectations regarding interest rate cuts by the Federal Reserve.

Implications for the Federal Reserve

• The lack of October employment data has reduced the likelihood of a rate cut at the December meeting.
• The Federal Reserve's October meeting minutes revealed significant internal disagreements among officials regarding interest rate policies.

Market Reactions

Stock Market Performance

After four consecutive days of decline, U.S. stocks rebounded, with the Nasdaq leading the way, up 0.6%. Notable tech stocks like Google and Nvidia saw gains, while AMD experienced a decline.

Nvidia's Q3 earnings exceeded expectations, alleviating concerns about an AI bubble in the market.

AI Developments and Collaborations

AMD and Cisco Partnership

AMD and Cisco have partnered with Saudi AI startup Humain to establish a joint venture for building data centers in the Middle East, starting with a 100 MW project.

Google's AI Advancements

Google's latest AI model, Gemini 3 Pro, has topped the LMArena leaderboard, showcasing significant advancements in AI capabilities.

Other Notable News

• MP Materials announced a joint venture with Saudi Arabia for rare earth refining, leading to an 8% stock increase.
• Meta is shutting down accounts for Australian teenagers in compliance with new regulations, while its AI chief is leaving to start a new venture.

Conclusion

The establishment of the AI partnership between the U.S. and Saudi Arabia marks a significant step in technological collaboration, with potential benefits for both economies. Meanwhile, the U.S. labor market's evolving data landscape continues to influence Federal Reserve policies and market expectations.