Market Summary
Markets turned cautious ahead of US payrolls: the S&P 500 and Nasdaq drifted lower while the Dow showed relative stability. Tech and AI names led declines, boosting volatility; energy softened on Ukraine peace hopes; defense names swung on security‑guarantee headlines. Traders await data and central‑bank signals for next directional cues.
Ford is dramatically scaling back its electric-vehicle ambitions after weak demand and shifting policy, triggering a multibillion‑dollar charge and a major strategic reset. The moves signal a broader industry rethink on large EV investments and production plans.
Figure of the Day
19.5 billion – Ford’s one‑time charge to unwind and reshape its EV investments.
Ford is ending flagship electric programs and retooling products as part of the EV retreat, moving to hybrid and range‑extender designs. The product changes and recalls underline execution risks as the company repurposes factories.
iRobot has filed for Chapter 11 and will be acquired by its contract manufacturer as tariffs and inflation squeeze margins. The bankruptcy highlights pressure on legacy consumer-robotics firms amid rising costs and competition.
Bullish
Holcim to buy Peruvian builder Cementos Pacasmayo — $1.5bn deal
Holcim agreed to buy a majority stake in Cementos Pacasmayo in a deal valuing the target at $1.5 billion, expanding its footprint in Latin America and boosting near‑term growth prospects.
More on wsj.com
Lidar maker Luminar has filed for bankruptcy and is selling assets, underscoring strain in autonomous‑vehicle supply chains. The sale of its chip arm is part of a restructuring to preserve core business value.
Nvidia is expanding its open‑source footprint with new models while buying software to tighten its hold on AI infrastructure. The moves aim to lock in developers and enterprise workloads around Nvidia stack.
Bearish
Korea Zinc plunges as shareholder clash threatens US smelter plan
Korea Zinc sank after reports its largest shareholder group opposed U.S. joint‑venture plans for a Tennessee smelter, risking dilution and delaying a strategic expansion tied to critical minerals.
More on cnbc.com
AI infrastructure cracks are widening: a major AI‑compute provider plunged in value after construction delays, and short sellers warn of chip depreciation risks. The episode raises questions about balance‑sheet exposure in the AI build‑out.
Markets are on edge ahead of delayed US payrolls data, with futures and equity moves reflecting uncertainty over labor and Fed policy. Investors are trimming risk into the release and positioning for potential volatility.
Regulatory Impact
US paused a tech trade pact with the UK and is tightening rules on proxy advisers; the EU is set to water down a 2035 combustion‑engine sales ban. Countries are recalibrating trade and industrial policy amid geopolitics and industry pushback.
News of US security guarantees for Ukraine has rattled defense markets, triggering a selloff in European defense stocks even as officials say talks are progressing. The developments could reshape defense spending and market positioning.
As peace discussions advance, regional security dynamics shift: Finland warns Russia would redeploy forces if a deal alters borders, while Kyiv insists any settlement cannot validate Russian deception. The statements frame next steps in diplomacy.
Quote
We must make Russia accept that there are rules in the world.
— Volodymyr Zelensky
Oil prices are sliding on hopes for a Russia‑Ukraine settlement and fears of oversupply, pushing Brent toward multi‑month lows. Energy markets are reacting to diplomatic signals and inventory dynamics.
Japan’s central bank is moving toward higher rates as policy normalizes, and plans to gradually offload large ETF holdings to avoid market disruption. The BOJ’s approach signals a pivot after years of ultra‑easy policy.
The ECB’s probe found material flaws in Baltic risk models at SEB and Swedbank, prompting regulatory scrutiny across Scandinavian banks. Banks must overhaul risk frameworks amid rising supervisory pressure.
China has approved the first level‑3 autonomous cars and green‑lit tests for leading EV makers, accelerating hands‑off driving trials. Regulators are quietly enabling a new phase for China’s auto tech leaders.
Tesla is testing driverless robotaxis without safety drivers and eyeing new model launches approved for foreign markets, underscoring its push into autonomy and global product expansion. The tests intensify regulatory and competitive scrutiny.
Crypto flows show mixed signals: bitcoin and ether ETFs saw outflows as prices softened, while new spot XRP funds have drawn meaningful inflows since launch. The data highlight segmentation within digital‑asset demand.
PayPal is pursuing a US banking licence and expanding PYUSD deposit products as fintechs move to own more of the payments stack. The push would let PayPal increase lending and stablecoin deposit scale.
Hollywood M&A is heating up as Netflix and other suitors circle Warner Bros, sparking labour and regulatory questions. Executives are trying to calm staff as deal uncertainty grows.
Consulting and corporate distress stories point to cost cutting and rising bankruptcies: McKinsey plans broad layoffs while investors bet on a wave of corporate failures. The trend highlights mounting restructuring demand in 2026.
