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Market Summary

Despite the ongoing U.S. government shutdown, major indices like the S&P 500 and Nasdaq continue to rally, fueled by tech gains and AI sector enthusiasm. Volatility persists amid political logjams, but strong earnings reports and robust venture capital investments in AI and quantum computing stocks keep investor sentiment buoyant.

Rite Aid exits retail after decades with full store closures marking the end of an era in U.S. pharmacy chains.

Figure of the Day

$193B – Venture capital investment funneled into AI startups in 2025, surpassing half of total VC funding for the first time.

Costco expands healthcare access by offering popular weight-loss drugs at discounted rates to uninsured customers amid rising costs and shortages.

U.S. government shutdown extends as Senate votes fail, deepening political deadlock and pressuring federal agencies and the economy.

Bullish

Costco Slashes Prices on Ozempic and Wegovy to Aid Uninsured

Costco partners with Novo Nordisk to offer expensive weight-loss medications at half-price, expanding access for uninsured U.S. consumers amid soaring drug costs.
More on ktvb.com

Trump administration shakes up immigration and trade policies with new $100K H-1B visa fee and tariff expansion plans sparking legal and business pushback.

Japan’s ruling Liberal Democratic Party elects Sanae Takaichi as first female leader, signaling potential shifts in economic and security policy for the nation.

Bearish

Rite Aid Closes All Stores After Decades in Business

Pharmacy giant Rite Aid shutters its last 89 stores following bankruptcy, marking the end of an era and significant contraction in U.S. drugstore retail.
More on edition.cnn.com

Hamas responds cautiously to Trump’s Gaza peace plan with partial acceptance and commitment to hostage release, while Israel pauses strikes amid negotiations.

Quantum computing firms secure significant contracts and investments, highlighting rapid industry growth and increased market confidence.

Regulatory Impact

California Gov. Newsom signs bill enabling 800,000 Uber and Lyft drivers to unionize, granting collective bargaining rights for gig workers.

Tech giants expand AI infrastructure and digital applications, investing heavily in AI hardware, software, and consumer engagement platforms.

Federal workers and essential services strained by ongoing government shutdown, raising concerns on public safety and essential system operations.

Quote

The U.S. economy has been remarkably resilient despite some bumps — but the shutdown tests that resilience more than ever.

— Christina Minnis, Goldman Sachs

Asset managers and financial groups buoyed by strong fundraising rounds and upgrades, signaling optimism despite market uncertainties.

Continued conflict in Gaza underlines complex peace efforts, with leaders hopeful yet wary as calm negotiations take tentative steps forward.

AI technology surges with record venture capital inflows, sparking debate on investment bubbles and sustaining innovation momentum.

Prominent U.S. investors warn of volatility as Bitcoin and cryptocurrencies near record highs supported by robust ETF inflows and economic uncertainty.

California labor reforms advance as gig economy drivers secure rights to unionize, reshaping employment models in leading ride-share markets.

Volatile geopolitical landscape intensifies with U.S. military actions near Venezuela and sanctions impacting Russian and Chinese activities.

Major U.S. retailers restructure amid economic headwinds with closures and store performance evaluations impacting market strategies.

Key tech players face legal and regulatory hurdles as cybersecurity threats and intellectual property issues emerge around major AI platforms.

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