S&P 500 – 6,714.59 (-0.38%)

Dow Jones – 46,602.98 (-0.02%)

NASDAQ – 22,788.36 (-0.67%)

• U.S. Stocks Slip as Shutdown Weighs: U.S. stocks edged lower Tuesday as investors monitored developments in Washington with the federal government shutdown now in its second week.
• Government Shutdown Extends into Second Week: The U.S. government shutdown entered its second week, creating modest short-term headwinds for growth. Each week of closure could shave an estimated 0.1%–0.2% off quarterly GDP growth. The longer the shutdown persists, the greater the potential economic and political fallout.
• Global Markets Show Resilience: Despite political turbulence in Europe, global markets held firm — Japan’s Nikkei 225 closed at another record high, while European shares advanced even after the surprise resignation of France’s Prime Minister, Sébastien Lecornu.
• Dollar Strengthens; Oil Slips: The U.S. dollar firmed against major currencies this week, while WTI crude oil declined following OPEC+’s decision to raise output beginning in November.
• Gold Hits New Record High: Gold futures (GC=F) surged above $4,000 per ounce — a historic milestone — as investors flocked to safety amid political gridlock in Washington and growing expectations for additional Federal Reserve rate cuts. The metal is now up more than 50% year to date, its strongest annual performance since 1979.
• S&P 500 Continues to Break Records: The S&P 500 has logged three new all-time highs in recent weeks, underscoring persistent optimism in U.S. equities.
• AMD and OpenAI Strike Major AI Chip Deal: Advanced Micro Devices (AMD) soared after announcing a six-gigawatt agreement with OpenAI to power the company’s AI infrastructure. The partnership positions AMD as a key strategic collaborator and gives OpenAI the option to acquire a 10% stake in the chipmaker.
• Amgen Cuts Repatha Price Amid Pressure: Amgen (AMGN) launched direct-to-consumer U.S. sales of its cholesterol drug Repatha at $239 a month — nearly 60% below list price — as political scrutiny mounts over high prescription costs. The offer applies only to cash-paying customers, not those using insurance.
• AppLovin Under SEC Investigation: AppLovin (APP) shares plunged after Bloomberg reported that the SEC is investigating its data collection practices. The stock rebounded about 3% in early trading as investors gauged the potential impact.
• Constellation Brands Tops Earnings Estimates: Constellation Brands (STZ) rose after beating Wall Street expectations on earnings and revenue. While sales fell 15% year-over-year due to tariffs and weaker demand, the company reaffirmed full-year guidance, signaling confidence in its outlook.
• Dell Raises Long-Term Forecasts: Dell Technologies (DELL) gained after boosting its revenue and profit outlook, citing surging demand for AI servers as the primary growth driver, according to Reuters.
• Trilogy Metals Soars on U.S. Investment: Trilogy Metals (TMQ) rocketed more than 225% after the White House announced plans for the U.S. government to acquire a 10% stake in the Canadian mining firm, CNBC reported.
• IBM Expands AI Push with Anthropic: IBM (IBM) advanced after unveiling a new partnership with AI firm Anthropic, marking another major collaboration in the rapidly expanding artificial intelligence sector.
• Homebuilders Downgraded by Evercore ISI: Shares of D.R. Horton (DHI), KB Home (KBH), and Toll Brothers (TOL) dropped 1%–2% after Evercore ISI downgraded the group to In Line from Outperform, citing weaker demand despite improving affordability conditions.
• Fifth Third to Acquire Comerica: Fifth Third Bancorp (FITB) fell while Comerica (CMA) surged after Bloomberg reported Fifth Third will acquire Comerica in an all-stock deal valued at about $10.9 billion. The combined entity would rank as the ninth-largest U.S. bank.
• UiPath Jumps on New AI Partnerships: UiPath (PATH) rose 10% in premarket trading after announcing new partnerships with Nvidia, Alphabet, Snowflake, and OpenAI — expanding its footprint across major AI ecosystems.
• Tesla Teases New Vehicle Announcement: Tesla (TSLA) gained after posting teaser videos that hinted at a possible new vehicle reveal. Investors speculate it could be a lower-cost EV model or the long-awaited next-generation Roadster.
• Automakers Rise on Potential Tariff Relief: Ford (F), GM (GM), and Stellantis (STLA) advanced after Reuters reported that the Trump administration is considering “significant tariff relief” for automakers assembling vehicles in the U.S.
• Palantir Rebounds After Reported System Flaws: Palantir (PLTR) slipped after a Reuters report alleged flaws in its battlefield communications system. The company dismissed the claims as outdated and said the issue had been resolved, helping shares recover 2.7% in early trading.
• Markets Expect October Fed Rate Cut: According to the CME FedWatch Tool, investors continue to price in a 95% chance of a Federal Reserve rate cut in October.
• Energy Department Eyes Cutting EV Funding: The U.S. Energy Department is reportedly considering cutting billions in funding for GM, Ford, and several electric vehicle startups, potentially reshaping the industry’s clean energy ambitions.
• Oracle and Salesforce Face Challenges: Oracle (ORCL) shares dropped after reports of weaker-than-expected cloud margins. Separately, Salesforce (CRM) told clients it would not pay hackers’ extortion demands following a recent cyber threat.
• AST SpaceMobile Gets Rare Sell Rating: Satellite company AST SpaceMobile (ASTS) received a rare sell rating from analysts despite gaining 254% this year, suggesting potential overvaluation concerns.
• Obamacare Subsidies in Political Focus: As the government shutdown drags on, Obamacare subsidies have become a key point of contention in Washington’s ongoing budget stalemate.
• Bitcoin Surges to Record High: Bitcoin briefly surpassed $127,000 before pulling back, driven by strong institutional demand, a softer U.S. dollar, and more crypto-friendly policies under President Donald Trump.

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“Bitcoin is the hurdle rate — if you can’t beat it, you have to buy it.” 

- Anthony Pompliano

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Notable Stocks

• AMD (AMD)
• Tesla (TSLA)
• AppLovin (APP)
• Dell Technologies (DELL)
• Intel (INTC)

Weekly Notables

Verizon Names Former PayPal Chief Dan Schulman as CEO to Lead Turnaround Push

Verizon (VZ) has appointed former PayPal (PYPL) CEO Dan Schulman as its new chief executive, effective immediately, marking a major leadership shift as the telecom giant faces slowing growth and rising competition. Schulman succeeds Hans Vestberg, who will transition into a special adviser role through 2026 while Verizon finalizes its $20 billion acquisition of Frontier Communications (FYBR). Vestberg will also retain his board seat until the company’s 2026 annual meeting.

AMD Stock Soars on Massive Multi-Billion Dollar Deal with OpenAI

Shares of Advanced Micro Devices (AMD) surged this week after the chipmaker unveiled a multibillion-dollar partnership with OpenAI. The agreement calls for AMD to supply more than six gigawatts of GPUs to power OpenAI’s artificial intelligence infrastructure over multiple generations, beginning with its MI450 chips in the second half of 2026. As part of the arrangement, OpenAI will take a stake of up to 160 million AMD shares—roughly 10% of the company—vesting in stages as AMD meets deployment milestones. The first tranche will vest when AMD delivers its initial one gigawatt of chips.

Earnings Spotlight: PepsiCo (PEP)

PepsiCo is expected to report third-quarter 2025 earnings of around $2.27 per share, reflecting a slight year-over-year decrease, while revenue is forecast to decline slightly to $23.9 billion. For fiscal year 2025, analysts project a 1.6% drop in adjusted EPS to $8.03, with a rebound expected in fiscal year 2026 to $8.49. 

What to Watch Ahead:

On the Federal Reserve front, President Trump-backed governor Stephen Miran is set to speak today, followed by Chair Jerome Powell on Thursday. 

Wednesday (Oct. 8): FOMC minutes

Thursday (Oct. 9): Non-GAAP earnings from PepsiCo (PEP), Delta (DAL), Levi Strauss (LEVI), and Applied Digital (APLD)

Friday (Oct. 10): October University of Michigan Consumer Sentiment-preliminary