However, mixed results from major companies have cast doubt on future interest rate cuts after the Fed eased rates by a quarter point on Wednesday. Fed Chair Jerome Powell signalled that a cut at December’s meeting is uncertain, contrary to investor expectations.

Third-quarter earnings have exceeded expectations, with S&P 500 profits projected to rise by 13.8% year-over-year. Over 130 companies are set to report results in the coming week.

Market Valuation

The S&P 500’s forward price-to-earnings ratio has exceeded 23, raising concerns about high market valuations reminiscent of the dot-com era. Analysts suggest earnings must support future stock returns given current valuation levels.

Historically, November is a strong month for stocks, averaging a gain of 1.87%. Future performance trends may indicate continued upward movement, as past instances show stocks often rise after substantial year-to-date gains.

With 44% of S&P 500 companies reporting, 83% have surpassed earnings expectations, signalling strong corporate performance despite challenges. Companies such as Meta Platforms and Microsoft saw share declines post-earnings due to increased spending on AI, while Alphabet’s stock rose amid positive sentiment regarding its cash flow management.

Investors maintain caution due to rising workforce reductions, particularly after Amazon announced a significant global workforce decrease. The ongoing U.S. government shutdown, now the second longest in history, adds uncertainty as critical economic data releases are delayed.

The potential for worldwide radioactive fallout remains high, even for underground tests. The Comprehensive Nuclear Test Ban Treaty, signed by 187 states, prohibits such testing, yet the US remains a signatory without ratification, bound not to violate the treaty’s intent.

Nuclear weapon testing, once crucial for understanding weapon effects and military planning, has diminished. Since World War II, nuclear tests have largely focused on developing new designs. Significant environmental and health concerns led to a moratorium on atmospheric testing in the early 1960s and the Partial Test Ban Treaty in 1963.

Many countries, including the US, stopped explosive testing in the 1990s. Technological advancements allowed nations to develop nuclear weapons without the need for actual explosions.

Proliferation Risks

Nuclear proliferation continues, with all nine nuclear-armed states investing heavily in modernising their arsenals. This raises concerns about lowered thresholds for using such weapons.

Recent conflicts involving nuclear threats have escalated, and the number of nuclear weapons operationally available has begun to rise again. Russia has tested advanced nuclear weapons, while China is rapidly expanding its military capabilities.

The New START Treaty, which confines the nuclear capabilities of the US and Russia, is set to expire soon, with no successor treaty negotiations underway.

The Doomsday Clock has moved closer to midnight this year, highlighting the heightened dangers facing the world today.