Market Summary
U.S. markets wobbled as AI and chip stocks fell, pulling the Nasdaq down while the S&P 500 and Dow showed mixed losses. The Nasdaq led declines amid a tech rotation; energy names jumped on oil supply fears after the Venezuela blockade. Volatility rose as traders re‑priced rate‑cut timing and rotated into defensive and commodity sectors.
President Trump ordered a blockade of sanctioned Venezuelan oil tankers, sharply escalating tensions with Caracas and raising immediate supply concerns. Markets reacted quickly as oil prices spiked and traders priced in potential disruptions to shipments.
Figure of the Day
4.6% – U.S. unemployment rate, the highest in four years.
Warner Bros. Discovery moved to fend off a hostile takeover bid from Paramount Skydance, urging shareholders to reject the offer and back a rival deal. The takeover fight has already prompted major financing shifts and political scrutiny.
Funding talks for Oracle’s $10 billion Michigan AI data centre have stalled after alternative investor Blue Owl walked away, leaving the project in limbo. The move exposed project financing risks and rattled AI-infrastructure sentiment across markets.
Bullish
SBI Shinsei Bank Soars on Tokyo Debut
SBI Shinsei Bank surged in its Tokyo trading debut, signaling strong investor demand for new financial listings in Japan and boosting confidence in the market’s IPO pipeline.
More on japantimes.co.jp
Amazon and OpenAI are in high-level talks over a multibillion-dollar investment and chip deal that could reshape the AI supply chain. Market players are watching whether the pact will shift compute demand away from incumbent chip leaders.
The White House expanded its travel ban to new countries, prompting immediate diplomatic pushback from affected nations. The policy shift intensifies tensions on immigration and foreign relations ahead of high-stakes geopolitical debates.
Bearish
Ford Writes Down $19.5B as EV Lightning Strategy Collapses
Ford announced a $19.5 billion charge tied to its electric‑vehicle strategy pivot, a sweeping write‑down that underscores execution risks and heavy losses from prior EV investments.
More on fortune.com
Christopher Waller positioned himself publicly as a defender of the Federal Reserve’s independence while outlining a path to lower rates as inflation eases. His comments matter as the White House advances its preferred candidates for Fed leadership.
A delayed jobs report and fresh data signalled cooling in the U.S. labor market, with unemployment ticking higher. Investors digested the softer hiring trends as they reassess the Fed’s timeline for rate cuts.
Regulatory Impact
Major policy moves: White House orders tanker blockade on Venezuela; California regulators target Tesla for Autopilot marketing; CDC updates hepatitis B guidance for infants. Expect fresh trade, transport and public‑health rules to follow.
Cryptocurrency markets whipsawed as bitcoin moved sharply and shorts scrambled, producing volatile moves across tokens and crypto-related stocks. Traders rushed to cover positions as bitcoin reclaimed then lost large intraday gains.
Industry insiders met senators to negotiate a crypto market-structure bill as Washington presses forward on regulation. The talks coincide with progress on Congressional initiatives to tighten crypto oversight and market rules.
Quote
“I absolutely would defend the Federal Reserve’s independence.”
— Christopher Waller
Databricks closed a massive funding round that pushes its private valuation higher and keeps IPO speculation alive. The deal underscores ongoing private-market appetite for high‑value AI platforms.
California regulators signalled they will clamp down on Tesla’s marketing of Autopilot, threatening sales restrictions and forcing scrutiny over product claims. The regulatory push adds friction to Tesla’s sales strategy in its largest U.S. market.
Ukraine warned that Russia is preparing for war in 2026 while striking deals to bolster its defenses with European partners. The developments ramp up pressure on NATO and EU members to accelerate military support.
A fresh AI-led selloff hit chip and infrastructure names, dragging major U.S. indices lower as investors rotated out of the hottest trades. The drop fed into broader concerns about valuation and the sustainability of the AI rally.
Hut 8 secured a major AI data‑centre lease and partnerships, sending its shares sharply higher as miners pivot into AI infrastructure. The deal signals a new wave of capital and leases flowing into specialised compute facilities.
JPMorgan moved hundreds of billions from the Fed to buy Treasuries as banks lock in yields ahead of expected cuts, highlighting a big re‑allocation of liquidity. The action underscores how big banks are positioning for a changing rate backdrop.
U.S. public‑health agencies announced shifts to vaccination guidance, triggering debate among clinicians and policymakers. The moves will affect infant immunization schedules and corporate health planning.
Medline’s blockbuster IPO and debut marked one of the largest listings of the year, underscoring strong investor appetite for healthcare supply chains. The company’s market entry will be closely watched for pricing and sector leadership signals.
Jack Smith prepared to testify in closed-door briefings on the department’s Trump investigations, drawing sharp political scrutiny and raising the stakes for House oversight. The testimony could shape impeachment-era narratives and legislative pressure on DOJ.
