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Markets display jittery risk appetite as AI mega‑caps prop up the S&P 500 and Nasdaq while the Dow lags. Volatility rose on profit‑taking in smaller names, Treasury yields fell after a lower borrowing estimate, and catalysts include the OpenAI‑AWS deal, mixed earnings in Europe, and ongoing political risk from the US government shutdown.
OpenAI struck a blockbuster multi-year compute deal with Amazon Web Services to secure massive Nvidia-powered capacity, reshaping cloud economics and vendor competition. The pact accelerates AI deployment as rivals and regulators weigh strategic and market implications.
38bn – Value of OpenAI’s seven‑year cloud compute deal with Amazon Web Services.
Markets wobbled as investors hit pause on sky-high AI valuations, sending futures and majors into a risk-off session. The selloff underscores fragile breadth despite mega-cap concentration supporting indices.
The US pushed to keep top-tier Nvidia chips onshore while Microsoft won approval to ship advanced GPUs to strategic partners abroad. Policy and commercial moves are redrawing the global AI hardware map.
Nintendo raises Switch 2 sales forecast — momentum intact
Nintendo hiked Switch 2 sales guidance after another quarter of strong demand, lifting revenue and profit outlook as the console continues to surprise across global markets.
More on wsj.com
Cloud capacity deals are reshaping the vendor battlefield: Microsoft secured a multibillion-dollar pact for Nvidia compute while the AI infrastructure provider IREN surged on new contracts. The moves highlight fierce demand for GPUs and cloud slots.
Palantir posted another blockbuster quarter as government and commercial AI demand lifts revenue and guidance. The stock’s rally masks investor questions over valuation even as management doubles down on sales targets.
Sarepta crashes after confirmatory trials fail
Sarepta shares plunged after two Duchenne muscular dystrophy studies missed primary endpoints, wiping billions off market value and jeopardising its clinical roadmap.
More on investors.com
Kimberly‑Clark moved to acquire Kenvue in a near‑$49bn deal that reunites household staples and OTC drugs under one roof. The takeover tests regulatory, political and reputational headwinds after recent public scrutiny of Tylenol.
Starbucks sealed a long‑rumoured deal to cede control of its China unit to Boyu Capital, ending months of strategic uncertainty in its largest non‑US market. The JV reshapes Starbucks’ China playbook amid slowing growth and geopolitical risk.
US Treasury trimmed borrowing needs and the administration tapped contingency funds to partially fund SNAP; China rolled out power subsidies for data centres to prioritise domestic chip use.
The US government shutdown forced the administration to tap contingency funds and promise partial SNAP funding, but implementation will be slow and uneven across states. The move reduces immediate hunger risks while political brinkmanship continues.
Controversy around Elon Musk’s proposed $1tn Tesla pay package deepened as major investors — including Norway’s sovereign fund — signalled opposition. The vote could reshape control dynamics at Tesla and pressure corporate governance norms.
“AI‑induced growth offers a path out of America’s $38 trillion debt crisis.”
— David Solomon, Goldman Sachs CEO
Crypto markets were rocked by forced liquidations and a high‑profile DeFi exploit, underscoring persistent security and leverage risks. The selloff erased over $1bn of long bets and renewed scrutiny of protocol safety.
Shein faced political and legal pressure after probes found sex dolls with a childlike appearance on its platform, prompting bans and referrals to prosecutors. The controversy risks consumer backlash and regulatory action in Europe.
The Binance pardon saga and questions over influence intensified as executives denied preferential treatment while Washington and markets digested political fallout. The episode keeps crypto regulation and presidential pardons in the spotlight.
Ukraine reported heavy night‑time air attacks and rising power imports amid Russian strikes, highlighting the toll on infrastructure and logistics. The battlefield continues to evolve with intense drone use and energy strains.
Moscow unveiled a new nuclear‑capable torpedo submarine as part of a broader naval modernisation push, even as Russia reaffirms ties with China after diplomatic thawing with the US. The moves signal deepening strategic coordination in Eurasia.
OPEC+ nudged production policy to avert a looming oil glut while Saudi Aramco posted strong quarterly profits despite softer prices. The group’s subtle shift aims to steady markets amid mixed demand signals.
Beijing is sweetening the domestic AI chip push with power subsidies that could halve data‑centre energy costs, aiming to build a local compute stack and reduce reliance on foreign chips. The incentives heighten geopolitically driven tech competition.
European equities slid as investors rotated away from cyclical names and parsed mixed corporate earnings, deepening a global risk‑off tone. Earnings beats failed to offset macro worries and regional trade exposure concerns.
Benchmark yields eased after the Treasury trimmed its borrowing forecast, while the dollar held gains as traders dialled back near‑term rate‑cut bets. The move supported gilts and altered risk pricing across fixed income.
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