Equities slumped as tech and AI names led a broad pullback: S&P 500 and Dow both fell while the Nasdaq underperformed, hitting short‑term lows. Volatility spiked on weak private jobs data, mass layoffs and FAA travel cuts; defensive sectors outperformed, while select software and cloud names (Datadog) bucked the trend on upbeat results.
The FAA will cut flight capacity at dozens of the nation’s busiest airports to manage staffing shortages amid the long-running government shutdown. The move threatens holiday travel and could force widespread cancellations and price shocks across carriers and hubs.
18.6T – U.S. household debt hits a record $18.6 trillion, underscoring consumer strain.
Airlines are scrambling to rework schedules and customer-service policies after the FAA announced flight reductions tied to the shutdown. Carriers are offering refunds and rebookings but warn of persistent cancellations and operational churn.
Congress edged toward a shutdown-ending vote as senators signaled progress on a limited package, but hurdles remain. Lawmakers warned that political maneuvering and election fallout could still derail a deal.
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Layoff announcements surged in October to levels not seen in over two decades, highlighting cost cuts and AI-driven restructuring. Labor-market weakness is feeding investor worries about growth and accelerating calls for policy relief.
Tech and AI stocks led a broad market selloff as investors digested weak labor data and rich valuations. The Nasdaq underperformed, hitting new short-term lows and weighing on index-linked strategies.
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OpenAI executives continued to trumpet massive long-term commitments while forecasting rapid revenue growth, underscoring the scale of the AI build‑out. Altman outlined multi‑year funding plans that spotlight the capital demands of AI infrastructure.
OpenAI’s finance chiefs sought to calm markets, insisting the company is not seeking a government bailout. Executives clarified language around federal backstops even as debate grows over whether AI firms need public guarantees.
FAA to cut flight capacity by 10% at 40 airports as a temporary safety measure tied to the federal shutdown; White House deals expand Medicare and Medicaid coverage for select GLP‑1 weight‑loss drugs, lowering patient costs and raising budget questions.
Federal prosecutors agreed to drop criminal conspiracy charges related to the 737 Max crashes, prompting legal closure for Boeing but renewed grief from victims’ families. Courts said dismissal followed the government’s request despite public interest concerns.
Investigators combed wreckage and newly released video as the probe into a deadly UPS cargo plane crash continued. Authorities confirmed the tragic loss of life while agencies examine engine and wing failures before impact.
We have an issue
— Jamie Dimon
Nancy Pelosi announced she will retire at the end of her term, ending a four‑decade political career that shaped House Democratic strategy. Her departure redraws leadership dynamics and will trigger a scramble for veteran posts.
The White House struck deals with Eli Lilly and Novo Nordisk to lower prices and expand coverage of GLP‑1 weight‑loss drugs, reshaping the market and Medicare exposure. The pacts could cut consumer costs sharply while prompting debate over federal spending.
The Supreme Court sounded skeptical of the Trump administration’s claim that emergency powers allow unilateral global tariffs. Justices’ tough questioning left the fate of the president’s signature trade tool in doubt.
Tesla shareholders prepared to vote on Elon Musk’s unprecedented $1 trillion compensation package amid warnings the outcome could reshape the CEO’s future with the company. The meeting put the spotlight on governance, milestones and valuation benchmarks.
Duolingo’s shares plunged after management prioritized user growth over short‑term revenue, sending the stock sharply lower. The rout highlights investor sensitivity to guidance and the AI-driven monetization debate in consumer apps.
Enterprise software Datadog reported a beat and guidance that sent its shares higher, offering a counterpoint to the broader tech selloff. Strong cloud and AI monitoring demand powered the upside and restored some investor confidence in SaaS names.
The European Commission opened an antitrust probe into possible collusion between Deutsche Börse and Nasdaq over derivatives trading and post‑trade services. Regulators warned the deal could reduce competition in critical financial infrastructure.
Crypto and equities both felt the strain as risk assets sold off; Bitcoin slid alongside a tech‑led market decline even as some banks argued for higher fair‑value models. Volatility returned to digital assets amid weak risk appetite.
U.S. household debt climbed to a fresh record as borrowing rose across mortgages, credit cards and student loans, straining consumer finances. Rising long‑term mortgage rates add pressure to affordability even as rates eased earlier in the month.