Next Week’s US Stock Market Outlook: Power Demand Surge (11.03~11.07, 2025)

This week saw a slight pullback in major US indices, with the tech-heavy NASDAQ experiencing a more pronounced decline. The Dow Jones Industrial Average showed resilience, highlighting a divergence in market performance. Next week, keep an eye on surging global power demand, Berkshire Hathaway’s recent earnings report, and historical lessons from the 1929 Great Depression. How will these elements shape the market’s trajectory?

Rystad Energy projects a significant surge in global power demand by 2035. This increase could create opportunities in the energy sector, particularly for companies involved in renewable energy and grid infrastructure. Investors should assess how companies are positioned to capitalize on this growing demand.

🔗 Global power demand seen surging nearly a third by 2035 – Rystad

Berkshire Hathaway reported a substantial increase in operating profits. The absence of stock buybacks suggests a potentially cautious approach to valuation. Analyzing Berkshire’s investment decisions can provide insights into Warren Buffett’s market perspective.

🔗 Berkshire Operating Profits Rose 33% in Third Quarter. There Were No Stock Buybacks.

Concerns about potential economic downturns often lead to comparisons with historical events like the 1929 Great Depression. Understanding the Federal Reserve’s actions and missteps during that period can offer valuable context for navigating current economic challenges. However, it’s crucial to remember that each economic situation is unique.

🔗 How the Fed’s Missteps Sparked the Great Depression in 1929

Technical Summary:

• S&P 500 (SPY): Holding above 680 but showing signs of weakness.
• NASDAQ (QQQ): Underperforming, watch for support around 620.
• Dow Jones (DIA): Relatively stable, potential for continued outperformance.
• Investment Posture: Cautiously optimistic, favoring value over growth.

Conclusion:

Forecasts:

• S&P 500: 675 – 695
• NASDAQ: 615 – 635
• Dow Jones: 470 – 480

Key Risks Next Week:

• Unexpected inflation data
• Geopolitical instability
• Disappointing earnings reports

Overall Sentiment:

A slightly positive outlook, but with awareness of potential risks.