Market Beats | Alphabet Surge Sparks Talk of Challenge to Nvidia’s Dominance; US Wholesale Inflation Rebounds in September; US Consumer Confidence Falls Sharply in November; Bank of America Warns Prediction Markets, Sports Betting Pose New Credit Risk; Optimum Sues Creditors for Antitrust Violations Over Debt Negotiation Bloc; Apple Cuts Dozens of Sales Roles as It Streamlines Operations; US October Deficit Hits $284 Billion

—— Alphabet Surge Sparks Talk of Challenge to Nvidia’s Dominance; US Wholesale Inflation Rebounds in September; US Consumer Confidence Falls Sharply in November; Bank of America Warns Prediction Markets, Sports Betting Pose New Credit Risk; Optimum Sues Creditors for Antitrust Violations Over Debt Negotiation Bloc; Apple Cuts Dozens of Sales Roles as It Streamlines Operations; US October Deficit Hits $284 Billion

1. Alphabet Surge Sparks Talk of Challenge to Nvidia’s Dominance

Alphabet shares have surged sharply, prompting renewed debate over whether Google could challenge Nvidia’s dominance in the AI hardware ecosystem. Since mid-October, Alphabet stock has climbed about 35%, adding nearly $1 trillion in market value and narrowing the gap with Nvidia’s $4.4 trillion valuation to roughly $590 billion. The rally has been driven by strong reviews for Google’s new Gemini AI model and rising interest in its custom AI chips known as TPUs.

According to The Information, Meta is in discussions to deploy Google’s TPUs in its data centers starting in 2027, and may rent Google Cloud chips as early as next year. A deal would represent a major milestone for Google, positioning TPUs as a credible alternative to Nvidia’s industry-leading accelerators. Alexandra Morris, investment director at Skagen, said the long-held narrative that only Nvidia can supply chips for the world’s rapidly expanding AI data centers is beginning to shift.

Nvidia’s forward P/E multiple has dropped to 26, below its decade average of 35, while Alphabet’s has climbed to 27, above its long-term average of 20 — suggesting valuations among major tech firms are tightening.

Alphabet rose about 3.5% in premarket trading, while Nvidia fell 3.5% and AMD slipped 3%.

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2. US Wholesale Inflation Rebounds in September

US wholesale inflation picked up in September as rising energy and food costs outweighed softer increases in other consumer goods. The producer price index (PPI) rose 0.3% from the prior month, matching economists’ expectations, according to the Bureau of Labor Statistics. Core PPI — excluding food and energy — rose less than forecast and increased 2.6% from a year earlier, the smallest annual gain since July 2024. The report, originally scheduled for Oct. 16, was delayed due to the government shutdown, and the BLS has not yet provided a date for the October PPI release.

The data follows a softer-than-expected consumer price index for September, suggesting companies — wary that higher prices could weaken demand — are limiting their ability to pass on rising import-related costs. Separate government figures showed retail sales rose modestly in September, indicating that some consumers paused spending after several strong months. Sal Guatieri of BMO Capital Markets said the mild softness in both reports is “enough to keep market expectations primed for another Fed rate cut” next month.

The September PPI and PCE reports will be among the final inflation readings available before the Federal Reserve’s Dec. 9–10 meeting. Policymakers remain split on whether to cut rates further, as inflation remains above target and uncertainty persists around the labor market.

Wholesale goods prices rose 0.9%, with 60% of the increase driven by gasoline. Consumer goods excluding food and energy saw their smallest gain since March.

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3. US Consumer Confidence Falls Sharply in November

US consumer confidence dropped in November by the most in seven months as concerns about the labor market and the broader economy intensified. The Conference Board’s index fell 6.8 points to 88.7, according to data released Tuesday — weaker than every estimate in a Bloomberg economist survey. The expectations index slid to its lowest level since April, while the gauge of current conditions fell to a more-than-one-year low.

The steady deterioration in sentiment reflects persistent worries about elevated prices and a cooling job market. Recent hiring has been heavily concentrated in just two sectors — health care and hospitality — while the unemployment rate has been edging higher. A wave of layoffs announced in October further fueled anxiety over job security.

Dana Peterson, chief economist at the Conference Board, said consumers’ written responses continued to focus on prices and inflation, tariffs and trade, politics, and increased mentions of the federal government shutdown. The shutdown ended in mid-November after the longest closure in US history. The report also showed a still-elevated share of consumers saying jobs were hard to get, while those reporting plentiful jobs declined.

The gap between the two — a key labor market signal — dropped to one of its lowest levels since the pandemic.

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4. Bank of America Warns Prediction Markets, Sports Betting Pose New Credit Risk

Bank of America is sounding alarms over the explosive rise of prediction markets and online sports gambling, warning that they may push consumers into excessive debt and trigger higher loan defaults. Since the Supreme Court lifted the federal ban on sports betting, participation has surged. More recently, platforms like Kalshi and Polymarket have popularized speculative contracts tied to sports and real-world events. BofA strategists caution that the financial fallout from such bets will hit low-income consumers and young men hardest, driven by “easy access and gamified interfaces” that encourage impulsive wagering.

Academic research shows online-betting states see average credit scores fall nearly 1% within four years, bankruptcies jump 28%, and debts sent to collections rise 8%. BofA adds that aggressive marketing of gambling products is pushing credit balances higher and worsening loan-loss severity. Firms most exposed include Bread Financial, Upstart and OneMain, which serve more credit-stressed borrowers. The bank warns lenders must update underwriting models to reflect this emerging risk.

Early stress indicators are already visible: a US News survey found one in four bettors miss bill payments, and 45% lack enough funds to cover three to six months of expenses.

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5. Optimum Sues Creditors for Antitrust Violations Over Debt Negotiation Bloc

Optimum Communications, formerly Altice USA, has filed an antitrust lawsuit against a group of major creditors — including Apollo Capital, Ares Management and BlackRock — accusing them of forming an illegal coalition that blocks the company from accessing the US credit market.

The federal lawsuit claims the creditors’ cooperation agreement binds “nearly every creditor holding Optimum’s debt” and prevents any individual lender from negotiating with the company unless two-thirds of the group approves. Optimum argues this structure amounts to a classic “illegal cartel” and “group boycott” under the Sherman Act, forcing the firm to accept only those financing terms collectively dictated by the creditor bloc.

The dispute comes after a failed restructuring effort earlier this year and Optimum’s recent hiring of Kirkland & Ellis and Evercore to revisit its capital structure.

Notably, the lawsuit was filed just one day after the company shocked lenders by announcing it would repay a $1.9 billion term loan more than two years early.

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6. Apple Cuts Dozens of Sales Roles as It Streamlines Operations

Apple Inc. has eliminated dozens of sales positions as part of a restructuring aimed at simplifying how the company serves business, education and government clients, marking an uncommon round of layoffs for the tech giant.

Employees across the sales organization — including account managers for major corporate, school and government customers, as well as briefing-center staff — were notified in recent weeks. Apple confirmed it is reshuffling the division but did not specify the number of roles affected.

The layoffs surprised many internally, especially as Apple is on pace for a record-breaking December quarter with nearly $140 billion in revenue. Some employees believe the cuts reflect a broader strategy to shift more sales activity to third-party resellers to reduce internal costs.

Affected employees have until Jan. 20 to secure another role within Apple or will be terminated with severance. The company continues to advertise sales roles and told displaced staff they are eligible to apply.

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7. US October Deficit Hits $284 Billion

The US began fiscal year 2026 with a $284 billion budget deficit in October, underscoring the challenge facing the Trump administration as it aims to sharply reduce federal borrowing needs.

After adjusting for calendar differences, the deficit contracted 29% from a year earlier, Treasury data showed Tuesday. Revenues rose 22%, boosted by another record month for customs duties.

Spending was flat on an adjusted basis. While Medicare outlays surged, several federal agencies saw declines — likely reflecting Congress’s failure to pass annual appropriations before the Oct. 1 start of the fiscal year. Lawmakers approved a stopgap bill on Nov. 12, meaning much of that spending will only appear in November’s report.

Tariff hikes under President Donald Trump continued to help curb borrowing needs. Customs duties totaled a net $31 billion in October, compared with an average of about $29 billion over the prior three months.

Treasury Secretary Scott Bessent has predicted tariff revenues will accelerate significantly, saying the government may ultimately collect as much as $500 billion annually.

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