U.S. stocks pulled back on Thursday as markets weighed a mix of Big Tech earnings results and the outcome of the Trump-Xi meeting, which suggested a modest easing in U.S.- China trade tensions. Meta Platforms’ shares dropped more than 11%, while Microsoft slid around 3%, as both companies projected higher spending than anticipated despite reporting solid revenue growth. Meanwhile, Alphabet gained 2.5% on the back of strong performance in its cloud and advertising divisions, partially offsetting the broader weakness across the tech sector.

Commentary from Industry Leaders

This week we met up with Andrew Essey, Chief Investment Officer from Centuria. He provided an outlook on the retail property sector, noting strong performance supported by Australia’s ongoing population growth and a shortage of available supply. He highlighted that these dynamics continue to provide meaningful tailwinds for retail assets, particularly those with solid fundamentals such as minimal flooding risk and a healthy mix of speciality tenants beyond grocery anchors. He also sees attractive yield opportunities in regional and sub-regional centres, where valuations remain compelling relative to metropolitan areas.

On the office front, Andrew acknowledged that new supply remains limited given the difficulty of developing fresh projects, especially in constrained urban areas. They continue to favour multi-tenant buildings to reduce concentration risk and see early signs that the market may be turning a corner, with select opportunities emerging in Sydney and Brisbane as demand gradually stabilises.

Economic News 

Donald Trump and Xi Jinping agreed to a one-year trade truce, with the U.S. cutting the fentanyl tariff and extending the pause on reciprocal tariffs, while China will resume soybean sales and rare-earth exports. The move is designed to stabilise relations rather than resolve deeper tensions, giving both sides time to reduce their reliance on one another in strategic sectors. However, the deal falls short of structural reform, such as rebalancing trade or addressing technology restrictions and markets largely shrugged, with U.S. futures little changed and China’s CSI 300 Index down 0.8%. For investors, the immediate impact appears limited, the truce may ease sentiment slightly but does not materially alter the long-term geopolitical or economic landscape.

Market Snapshot 

• Australia: ASX is climbing as miners rally.

• United States: Dow -0.43%, S&P 500 -0.99%, Nasdaq -1.57%. 

• Bonds: US 10-year yield at 4.09% and Australian 10-year yield at 4.30%.  

• Gold: Increased overnight.

Key Events Coming Up

• Monday, November 3, 2025: RBA Interest Rate Decision (Nov)

Investment Update

Nuclear energy stocks are gaining traction as surging AI-driven power demand pushes major tech giants like Amazon, Meta, and Alphabet to embrace nuclear as a reliable, low-carbon energy source.

The nuclear energy sector remains one of the most structurally important investment themes of 2025, supported by strong policy momentum and sustained private-sector demand. In May, the Trump Administration announced a series of executive orders aimed at quadrupling U.S. nuclear capacity to 400 GW by 2050, fast-tracking licensing processes, and revitalising the domestic uranium-enrichment industry to reduce reliance on foreign suppliers like Russia. These measures have re-energised investor confidence across the nuclear supply chain and catalysed capital inflows into uranium producers, enrichment firms, and advanced-reactor developers.

At the same time, tech giants are reinforcing long-term nuclear demand through large-scale power purchase agreements (PPAs) and direct investments in next-generation small modular reactor (SMR) projects to meet data-centre energy needs. Microsoft, Google, Amazon, and Meta have all expanded their nuclear commitments, including Meta’s recent 20-year PPA with Constellation Energy. Further upside has been driven by the U.S. military’s adoption of advanced nuclear at domestic bases, with Oklo’s Aurora SMR selected for Alaska’s Eielson Air Force Base under the Department of Defense’s pilot program. Meanwhile, AI-driven electricity demand remains elevated despite temporary market jitters earlier in the year, ensuring that nuclear power remains a key beneficiary of the ongoing data-infrastructure build-out. Collectively, these catalysts underscore a durable investment case for nuclear exposure within diversified portfolios, anchored by both government policy and private-sector demand.