Stocks rose as traders reacted to signs the Supreme Court may curb the president’s tariff authority and as AI chipmakers rallied after positive earnings. The S&P 500 and Nasdaq led gains while the Dow lagged; volatility eased but energy and defensive sectors pulled back. Key catalysts: tariff uncertainty, AI capex, and the record U.S. shutdown.
The Supreme Court signaled serious doubts about President Trump’s legal authority to impose sweeping global tariffs under a 1977 emergency law. The hearing puts the administration’s trade program — and billions in tariff revenue — at risk, with big implications for importers and markets.
36 days – Length of the U.S. government shutdown, now the longest on record.
The FAA will reduce flight capacity at major U.S. airports if the government shutdown continues, citing staffing and safety concerns. The move threatens travel schedules and adds pressure to resolve the funding impasse quickly.
A UPS cargo plane crashed after an engine detached before takeoff, triggering an NTSB probe and a tragic death toll. The accident is expected to disrupt UPS operations and create temporary supply-chain delays across key routes.
Snap Soars on Perplexity Deal, Buyback
Snap jumped after a $400M Perplexity partnership and a $500M buyback, underscoring ad recovery and a stronger outlook for social ad demand.
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Asia-Pacific markets rallied as AI-linked stocks rebounded after strong semiconductor earnings led by AMD. The move reflects renewed investor appetite for chip and AI names, lifting regional benchmarks.
Nvidia’s CEO warned publicly that China may overtake the U.S. in the AI race, underscoring intensifying global tech competition. The comments heighten geopolitical stakes for chip policy and supply chains.
IBM Lays Off Thousands as AI Reorg Accelerates
IBM will cut thousands of jobs amid a shift toward AI software and services, a painful move that underscores industry-wide workforce churn.
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OpenAI is exploring nontraditional financing and has pushed back on a near-term IPO as it seeks support to fund massive data-center spending. The company is courting private and public backstops as capital needs balloon with AI expansion.
A legal and commercial clash around AI agents escalated: Amazon sued Perplexity over autonomous purchasing, even as Perplexity struck a major distribution deal with Snap. The disputes could shape how agentic AI is allowed to act on e-commerce platforms.
Beijing ordered state-funded data centres to use domestic chips and imposed new export controls on key minerals; France moved to suspend Shein’s online access over illegal listings; the UK and Canada are advancing consultations on stablecoin rules.
Markets rallied as investors reacted to signs the Supreme Court might reject the president’s tariff authority. Stocks climbed on hopes the legal risk to tariffs will reduce policy-driven cost pressure on companies.
The U.S. government shutdown reached record length, deepening economic strain and political risk. Analysts warn the fiscal standoff is already exacting a heavy weekly cost on the economy and could have lasting downstream effects.
China is going to win the AI race.
— Jensen Huang, Nvidia CEO
Robinhood reported a dramatic revenue jump driven by crypto and new businesses, confirming a shift in its revenue mix. The results underscore how new products like prediction markets are reshaping the brokerage’s top line.
Arm posted strong results and is plowing higher revenue into R&D as demand for AI compute accelerates. The chip designer’s beat-and-raise underscores the booming market for AI IP and royalties.
Qualcomm posted a tax-related loss even as revenue rose, highlighting one-off items masking solid operational momentum. The chipmaker still expects a strong smartphone-driven rebound in the coming quarters.
Obesity drugs remain a flashpoint: manufacturers are negotiating pricing with the U.S. administration as competition and policy pressure rises. Meanwhile, Pfizer sweetened its bid in a takeover fight for a biotech with promising weight‑loss assets.
The AI data‑centre boom is reshaping corporate capex and regional economies, but power and supply constraints are creating real bottlenecks. Engineers and planners warn that grid and cooling limits could slow or raise costs for new projects.
Beijing tightened tech controls, ordering state-funded data centres to drop foreign AI chips and adding export curbs on key minerals. The moves accelerate China’s push for tech self-reliance and reshape global supply chains.
Two Chinese robotaxi pioneers listed in Hong Kong amid fierce competition and investor skepticism. Both IPOs faced selling pressure as analysts questioned near-term profitability in the capital-intensive autonomous driving sector.
France moved to suspend access to Shein’s online marketplace after regulators found illegal listings, even as the retailer opened a Paris store amid protests. The action signals tighter enforcement of online marketplace content in Europe.
Ripple raised $500m in a major funding round as Wall Street players back regulated stablecoins and crypto infrastructure. The company is also piloting RLUSD with Mastercard to settle card transactions on the XRP ledger.