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Markets traded cautiously as AI-related deals boosted mega-cap tech while broader indices softened. The S&P 500 and Nasdaq showed mixed gains led by chip and cloud names, while the Dow lagged on energy weakness. Volatility ticked up as investors digested big infrastructure deals, earnings and geopolitical risks.
OpenAI struck a multiyear cloud deal with Amazon that reshapes AI compute supply and breaks the company’s near-exclusivity with Microsoft. The agreement promises massive Nvidia GPU capacity and immediately reverberated through cloud and chip markets.
38bn – Value of OpenAI’s seven-year cloud deal with Amazon (USD).
Microsoft moved aggressively to secure AI compute, closing big deals for cloud capacity and Nvidia chips. The agreements reinforce Microsoft’s position in global AI infrastructure and signal intensifying competition among hyperscalers.
Investor Michael Burry is again betting against AI darlings, taking large put positions on Nvidia and Palantir. His moves sparked fresh volatility and investor debate over lofty AI valuations.
Microsoft lands three major AI deals — boosts cloud dominance
Microsoft secured multiple AI contracts in a single day, expanding cloud capacity and reinforcing its role as a top provider of enterprise AI services.
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Palantir posted strong quarterly revenue but the stock slid in early trading as investors parsed valuation and guidance. Management touted government and commercial wins while markets weighed hold-ups in sentiment.
Top bankers warn that AI capex is outpacing revenue benefits, raising concerns about a funding-driven bubble. Analysts flagged mounting risk that heavy infrastructure spending could dent returns and unsettle markets.
Sarepta plunges 40% after confirmatory trial failures
Shares cratered after two Duchenne muscular dystrophy drugs failed confirmatory studies, sparking steep selloffs and raising questions about the company’s pipeline.
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Amazon’s ties to OpenAI sparked a sharp market reaction, lifting AWS expectations and sending the stock higher. The move spotlighted how single large AI contracts can re-rate cloud providers and their suppliers.
The US government shutdown stretched into a record-setting standoff, forcing the administration to partially fund SNAP and rattling travel plans and markets. Restaurants, airports and households face growing disruption if the impasse persists.
U.S. will partially fund SNAP during the shutdown; the Supreme Court is set to review presidential tariff authority which could cement long-term tariff policy; EU disbursed a new €1.8B aid tranche to Ukraine.
Wall Street chiefs cautioned investors that the relentless rally could snap, warning of a substantial correction risk. Their comments prompted risk-off moves and renewed talk of valuation excess in tech-heavy indices.
Crypto plunged as liquidations wiped out billions, amplifying volatility across tokens and ETFs. Rapid price drops triggered margin calls and raised questions about leverage in the crypto ecosystem.
‘Some parts of the economy are already in recession.’
— Scott Bessent, U.S. Treasury Secretary
Kimberly-Clark agreed to buy Kenvue in a near-$49 billion deal that reunites household health and hygiene brands. Management defended the acquisition amid political scrutiny over Tylenol and expectations of cost synergies.
Starbucks agreed to sell a controlling stake in its China arm to Boyu, a major strategic retreat from direct control of its second-largest market. The deal reshapes Starbucks’ China strategy and raises questions about growth prospects there.
Nvidia continues to sign major AI infrastructure deals while its market value hit unprecedented heights. The chipmaker’s commercial momentum is central to an industry-wide scramble for GPUs and cloud capacity.
Ukraine pushed forward on its EU accession path as European institutions approved new aid tranches to sustain defense and reconstruction. The twin diplomatic and financial moves underscore growing Western commitment amid the war.
The UN raised alarm as conflict and siege conditions in Sudan pushed parts of Darfur into famine. Global agencies warned of a humanitarian catastrophe needing urgent aid access and ceasefire progress.
Oil producers reported mixed results as OPEC+ nudged output higher, briefly pressuring prices. Big exporters posted strong profits but signaled continued sensitivity to global demand and seasonal factors.
Key investors and Norway’s sovereign fund moved to block Elon Musk’s mammoth Tesla pay package, signaling governance backlash. The rebuke from major holders raises the odds of a revolt at the shareholder meeting.
Beijing and The Hague traded barbs as a Nexperia standoff highlighted friction over chip supply and export controls. The dispute underscores how semiconductor politics remain a flashpoint in China-Europe-U.S. relations.
The U.S. Supreme Court prepared to hear a major test of presidential tariff authority as Treasury leadership planned high-profile attendance. The case could determine the durability of tariff policy and affect trade strategy.
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