Market Summary
Equities pushed toward record highs as the S&P 500 and Nasdaq rallied on softer inflation signals, while the Dow also gained modestly. Volatility rose in fixed income — Treasuries logged a sharp weekly rout — as investors weighed PCE data, Fed expectations and sector rotation into banks and AI-linked tech names.
Netflix stunned Hollywood with a blockbuster bid to buy Warner Bros., triggering financing moves and immediate regulatory scrutiny. The deal reshapes media ownership and forces banks and antitrust regulators into a high-stakes review.
Figure of the Day
82.7B – Value of Netflix’s proposed acquisition of Warner Bros. Discovery.
Europe enforces new digital rules with a landmark fine against X, prompting political blowback in the US. The case tests the EU’s Digital Services Act and raises cross-border regulatory tensions with American lawmakers.
SpaceX is lining up a massive secondary share sale and eyeing an IPO, valuations now chasing the top of private-market tech. The moves would vault SpaceX toward the largest private-company valuations ever recorded.
Bullish
Rubrik Crushes Estimates; Stock Soars 25%
Cloud-security firm Rubrik beat revenue and profit expectations, lifted guidance and saw shares surge as demand for cyber-resilience and AI tools accelerates.
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U.S. lawmakers are moving to curb advanced chip exports to China as national-security and industrial policy collide. The legislative push targets Nvidia and other chipmakers, raising new trade and supply-chain risks.
The Fed’s preferred inflation gauge remains stubbornly high even as markets flirt with record highs. Investors are parsing PCE data for signals on the timing of policy moves and the durability of the rally.
Bearish
SoFi Stock Tumbles on $1.5B Offering
Fintech SoFi announced a $1.5B equity offering, sending shares lower as investors fear dilution amid a cooling lending backdrop.
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Ukraine’s power and infrastructure remain under pressure as international monitors report outages and NATO nations respond to fresh Russian strikes. The security situation is driving emergency responses and diplomatic alarm.
French military sites were probed by drones in a major security breach near strategic nuclear assets. Authorities say soldiers engaged the intruders, sparking questions about airspace defenses at deterrence bases.
Regulatory Impact
EU enforcement of the Digital Services Act produced a €120M fine against X; U.S. senators advanced legislation to curb advanced chip exports to China; OCC and FDIC withdrew leveraged lending guidance; CDC advisory panel moved to narrow a longstanding newborn hepatitis B recommendation.
Apple is undergoing its most significant management overhaul in years while rivals and startups scoop up engineering talent. The twin risks of leadership churn and staff departures test the company’s product roadmap and investor thesis.
Meta shifts its hardware timetable while buying startups to accelerate wearables and AI features. The moves reflect a pivot from costly metaverse bets toward pragmatic consumer AI devices.
Quote
This merger is an anti-monopoly nightmare.
— Sen. Elizabeth Warren
Bank supervisors have rolled back post-crisis restraints on leveraged lending, easing rules that guided banks for a decade. The change could fuel corporate deal-making but raises concerns about higher-risk lending down the road.
The AI and data-center boom keeps drawing private capital as conglomerates reposition for infrastructure demand. SoftBank eyes a major data-center investor while specialized cloud GPU firms report improving economics.
U.S. vaccine advisers moved to narrow longstanding newborn vaccination guidance, triggering a public-health debate. The change reflects political shifts in advisory bodies and could alter hospital protocols nationwide.
Waymo is issuing a voluntary software recall after federal probes into its robotaxis’ behavior around school buses. Regulators are widening scrutiny as AV systems face safety questions in complex traffic scenarios.
Washington is moving to collect better data on AI’s labor impact even as global firms jockey for advantage. Policy and market analysis underscore the geopolitical stakes of the AI race between the U.S. and China.
Treasury markets sold off sharply this week, signaling tighter financing conditions even as stocks rallied on softer inflation prints. The divergence between bond and equity markets raises red flags for borrowers and policymakers.
Russian naval activity and claims of massive drone interceptions highlight growing maritime and aerial tensions. The developments complicate shipping routes and regional security calculations.
The U.S. Supreme Court agreed to decide a high-stakes challenge to the administration’s attempt to curtail birthright citizenship. The case could reshape constitutional interpretation and immigration policy for years.
Oil prices rose on supply concerns and shifting rate-cut expectations, while major energy diplomacy reinforced global trade ties. Heads of state publicly pledged to secure flows amid market volatility.
