Stocks closed October higher as AI momentum and strong tech earnings drove gains: S&P 500 posted a notable monthly advance, Nasdaq extended its hot streak and the Dow also finished up. Volatility eased but policy risks — the U.S. shutdown and divergent Fed views — remain key catalysts while big‑cap tech and cloud names led sector rotation.
Federal courts have intervened to keep SNAP funding flowing as the government shutdown continues, ordering the administration to continue payments. Legal rulings escalate pressure on the White House and Congress to resolve benefits for millions.
$381.7B – Berkshire Hathaway’s cash pile, a fresh record and market‑watch signal that Buffett is waiting for opportunities.
Air-traffic control staffing shortfalls are spreading across the U.S., forcing increased delays and operational strain at major airports. The shortage is tied directly to the ongoing government shutdown and unpaid front-line workers.
The shutdown threatens household finances and broader economic activity: lost SNAP benefits could drive up consumer credit use, while macro estimates put a multi‑billion hit on GDP. Businesses and lenders brace for secondary effects.
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Banks tapped the Fed’s new standing repo facility in record amounts at month‑end as repo rates spiked, highlighting strains in short‑term liquidity markets. The surge underscores reliance on Fed backstops amid market technicals.
Nvidia is expanding supply deals while its CEO continues to press for access to Chinese customers, keeping geopolitics at the center of the AI chip trade. Deals in Asia and export talks will shape global auto and data‑center supply chains.
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Amazon’s cloud business and Q3 results soothed investor fears about an AI spending bubble, powering a rally across tech. The reports lifted market sentiment and reinforced the centrality of cloud infrastructure to AI deployment.
Berkshire Hathaway posted rising profits while its cash pile hit a fresh record, as Buffett continues to reshuffle holdings ahead of a leadership transition. Investors watching for buybacks found none, keeping cash deployment questions open.
Courts ordered emergency SNAP funding during the shutdown; China signalled exemptions to Nexperia chip export controls; FDA expanded recalls on contaminated drugs and supplements; Fed standing‑repo usage marks a shift in liquidity backstops.
China signalled it would relax export controls tied to Nexperia, and U.S. officials prepared to announce a resumption of shipments — moves that could ease a chip shortage threatening auto production. The shifts reduce immediate supply‑chain risk.
Two separate food‑safety incidents widened: a lethal Listeria outbreak tied to ready‑to‑eat meals expanded, while powdered supplements sold at Sam’s Club were linked to Salmonella infections. Regulators stepped up recalls and warnings.
Foolish to underestimate.
— Jensen Huang, Nvidia CEO
APEC diplomacy put Xi center stage as China pitched itself as a defender of free trade, while bilateral talks with the U.S. aimed to steady a fraught relationship. Leaders sought to cool trade tensions amid global economic uncertainty.
U.S. policy toward Venezuela and reports of possible strikes split regional partners and drew denials from the White House. The episode raised geopolitical and energy‑security questions across the Americas.
Satellite imagery and reporting revealed mass killings in Sudan as the civil war escalates, prompting urgent international concern. The humanitarian crisis deepened, with risks of wider regional destabilization.
Markets closed October with solid gains as AI momentum and strong tech earnings powered risk appetite. Investors rotated into megacaps and sectors tied to AI infrastructure even as macro and policy risks linger.
Tether published an attestation showing excess reserves and reported bumper profits, underscoring stablecoins’ growing role in crypto market revenue. The issuer also moved to return capital via a buyback program.
NASA and SpaceX keep moon ambitions alive: SpaceX updated Starship plans for Artemis and NASA named private lander plan‑B partners. The moves highlight competition and contingency in the next lunar crewed mission.
Airlines urged Congress to end the shutdown before the holiday travel season, warning of broader economic and operational pain. At the same time, mortgage and insurance backlogs left homebuyers in limbo, showing the shutdown’s far‑reaching effects.
Major oil majors boosted production despite a weak price outlook, while a stalled $35B East‑Med gas pact underscored geopolitics in energy markets. Supply decisions and diplomatic setbacks are shaping near‑term oil and gas dynamics.
Fed officials remain split over the path of interest rates as inflation concerns clash with calls for cuts. Diverging views from regional Fed leaders and governors create uncertainty ahead of the next policy decisions.