Market Summary
U.S. and global markets traded cautiously as investors awaited U.S. CPI and a raft of central-bank decisions. S&P 500 and Nasdaq drifted under AI-stock selling pressure while the Dow held up on energy gains. Volatility rose as Micron beat forecasts but Oracle and other AI-related names weighed on sentiment; energy and defense outperformed.
The U.S. has moved forward with a major arms package for Taiwan as tensions with China rise; Taipei and Washington frame the sale as a deterrent amid regional pressure. Officials confirm approval and public steps to start the transfer process.
Figure of the Day
11.15 billion – Size of the U.S. arms package approved for Taiwan.
The White House ordered an oil-tanker blockade on Venezuela, escalating geopolitical risk and prompting vessel diversions. Markets and trading routes are reacting as sanctions and naval moves raise oil-supply uncertainty.
Micron posted blowout sales and raised guidance as AI memory demand outstrips supply, sending the stock sharply higher. The company said shortages will persist, underpinning elevated pricing for server memory.
Bullish
Hut 8 Soars 25% — Anthropic Deal Fuels Data-Center Pivot
Hut 8 jumped after sealing a long-term AI data-center deal with Anthropic and signing a $7bn lease, marking a sharp strategic pivot from mining to cloud infrastructure.
More on theblock.co
BP abruptly replaced its CEO, appointing Woodside Energy’s Meg O’Neill as the new leader amid investor pressure to refocus the company. The leadership shake-up aims to steady strategy and restore shareholder confidence.
Warner Bros. Discovery’s board rejected a hostile takeover approach and urged shareholders to back an alternative bid, escalating a high-stakes bidding war. Rival suitors and financing questions have lit up a tense takeover fight in Hollywood.
Bearish
Tricolor Founder Indicted — $1bn Subprime Fraud Unraveled
Federal prosecutors charged Tricolor’s founder in a sweeping fraud that defrauded lenders out of nearly $1bn, deepening fallout from the subprime auto lender’s collapse.
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The European Commission softened plans to ban new petrol and diesel car sales by 2035, prompting industry and climate-policy rows. Carmakers say the changes clarify rules, critics warn the move undermines the EV transition.
Markets brace for a wave of central-bank decisions with the Bank of England widely expected to cut rates while the ECB remains cautious. Traders are parsing inflation and growth data for clues on policy divergence across Europe.
Regulatory Impact
Fed withdraws a 2023 restriction on banks experimenting with crypto and issues fresh guidance to encourage bank innovation; California regulators move to enforce truthful Autopilot marketing, threatening Tesla sales until claims are changed.
EU leaders are negotiating how to use frozen Russian assets to fund Ukraine, with Belgium’s position central to any deal. Political tensions within the bloc risk delaying critical financing amid wartime urgency.
President Trump used a prime-time White House address to tout economic gains and unveiled a $1,776 ‘warrior dividend’ for troops, attempting to blunt public discontent. Critics and fact-checkers pushed back on claims in real time.
Quote
“We’re absolutely pushing for the frontier — but it will cost hundreds of billions to keep up.”
— Mustafa Suleyman, Microsoft AI CEO
Worries about funding for data centers and rising AI costs hit major tech names; Oracle and others are under scrutiny over debt and project financing. The AI-capex debate is shifting investor attention from growth to balance-sheet risk.
Banks and regulators are updating guidance on crypto and experimenting with tokenization, signaling mainstream adoption coupled with new oversight. Major banks pilot blockchain solutions even as compliance rules evolve.
Reports show China advancing independent high-end chipmaking efforts, raising strategic concerns as the West tightens export controls. Evidence of EUV prototyping and reverse-engineering intensifies technology rivalry.
U.S. markets watch inflation data closely as futures tick up ahead of the CPI release; traders brace for renewed volatility. Economic prints will shape Fed expectations and the direction of equities into year-end.
Medline’s IPO became the largest US listing of the year, with shares jumping on debut and signaling investor appetite for defensive healthcare assets. The offering reshapes expectations for IPO windows into 2026.
California regulators threaten a sales ban on Tesla over alleged false advertising of ‘Autopilot’ features, escalating regulatory risk for EV leader. The DMV has set deadlines for changes that could hit U.S. sales if not addressed.
The Fed invited banks to innovate while withdrawing a restrictive 2023 crypto policy, signaling a warmer stance toward bank experimentation with novel digital assets. Regulators balance safety and modernization in policy updates.
Major energy deals and financing moved this week as Israel approved a massive gas export deal to Egypt and ADNOC secured large financing for future gas output. Energy markets are reacting to geopolitical and investment flows.
Ukraine reported heavy Russian drone and missile activity overnight, leaving major outages and civilian impacts; Kyiv warns of sustained strikes. The attacks underscore the ongoing intensity of the conflict and pressure on European security.
