Stocks rallied on hopes the U.S. government shutdown will end: the Dow led gains, the S&P 500 closed modestly higher while the Nasdaq lagged as AI chip names cooled. Volatility eased but sector rotation is evident — energy and financials outperform while high‑growth tech and datacentre plays digest recent news. Bond yields slipped on weaker labor signals and gold rose on risk hedging.
Congress moves to end the record federal shutdown as senators pass a stopgap funding measure and the House prepares to vote. Markets and airlines watch closely for operational and benefit-restoration timelines.
5.8bn – Amount SoftBank raised by selling its Nvidia stake to fund AI investments.
FAA flight cuts and widespread cancellations ripple through U.S. aviation as the shutdown strains air-traffic operations. Airlines warn disruptions will persist even after a funding deal.
SoftBank’s surprise exit from Nvidia shocks markets and fuels debate over AI funding strategies. The Tokyo group sold its stake to bankroll a bigger bet on AI and OpenAI-related investments.
Sony Beats Q2 Estimates — Revenue and Profit Rise
Sony reported stronger‑than‑expected Q2 revenue and raised its full‑year profit forecast, a bright spot for media and hardware markets amid tech volatility.
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OpenAI faces legal and regulatory pressure in Europe and from US advocacy groups over safety and copyright. A German court ruling and civil society calls intensify scrutiny of how AI models use content.
Big tech doubles down on European AI infrastructure with multibillion-dollar data‑centre plans. The investments aim to anchor compute capacity and regulatory goodwill in key EU markets.
Amazon Cuts Nearly 700 NYC Jobs as Global Layoffs Continue
Amazon is eliminating about 700 corporate roles in New York as part of a broader 30,000‑job reduction, a fresh sign of tech sector retrenchment.
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CoreWeave reports blockbuster revenue but worries on guidance and interest costs spook investors. The datacentre specialist’s earnings highlight the strain between growth and profitability in AI infrastructure.
Foxconn signals optimism about AI server demand while flagging partnerships with major AI players. Strong quarterly profits underscore the shift in its product mix toward cloud and AI hardware.
Senate passed a stopgap spending bill to reopen the government; UK introduced the Cyber Security and Resilience Bill; New York requires algorithmic price disclosure for ride‑hailing firms; proposals for tariff dividend checks and a 50‑year mortgage are under White House discussion.
AMD projects explosive AI-driven growth and raises market-size forecasts for data‑centre chips. CEO guidance signals confidence in multi-year demand for GPUs and accelerators.
Chevron pivots toward profit-first strategy and power projects to service AI data centers. Management targets higher cash-flow growth and cost discipline through 2030.
“You don’t have certain talents”
— President Donald Trump
Bitcoin ETFs and spot products see renewed inflows as traders chase reopening optimism. Crypto prices react to US government news while volatility remains elevated.
A national baby‑formula recall grows amid an infant botulism outbreak, forcing recalls and regulatory action. Health and supply-chain implications ripple through pediatric care and makers.
Visa tests stablecoin payouts to speed payments for creators and gig workers while expanding pilots to USDC. The move signals incumbents embracing tokenized rails for instant settlements.
Private equity and media groups are using AI to cut roles; deal-driven efficiency replaces manual tasks. Stagwell’s Palantir pact and Vista’s announced cuts highlight the labour impact of automation.
The White House floats tariff rebates and a 50‑year mortgage as policy tools to ease affordability—experts question feasibility and cost. Markets and housing analysts flag distributional and fiscal risks.
IEA and energy reports warn fossil‑fuel demand will remain high absent policy shifts, complicating the net‑zero transition. The outlook raises investment and geopolitical questions for energy markets.
China central planning extends to chips and AI: Beijing steers SMIC output and accelerates AI adoption. Analysts see policy nudges shaping global semiconductor supply chains and talent flows.
European utilities and grids raise investment to capture data‑centre demand and electrification trends. Large cap energy groups lift long‑term spending to back digital and renewable growth.
UK tightens cyber rules after a heavy year of breaches; lawmakers present new security and resilience legislation. The bills target private providers serving public infrastructure and critical services.