|  | Nasdaq | 23,024.63 | |
| | S&P | 6,735.11 | |
| | Dow | 46,358.42 | |
|  | 10-Year | 4.148% | |
| | Bitcoin | $121,020.93 | |
| | Delta | $59.57 | |
| | Data is provided by |  |
*Stock data as of market close, cryptocurrency data as of 4:00pm ET. Here's what these numbers mean. | - Markets: The stock rally hit pause harder than a Madden player after their opponent scores on the first play of the game, shedding some of Wednesday's gains as investors continued to ruminate on the government shutdown. But Delta had a breezy day after beating Wall Street's profit expectations.
| |
|
|---|
AI The only thing more mainstream than trashing Taylor Swift's latest album is saying that AI is a bubble. The International Monetary Fund and the Bank of England joined a choir of financial institutions this week sounding a bearish alarm, warning that the global economy will suffer if optimism about AI fades and the markets currently carried by AI investments crash. Meanwhile, JPMorgan CEO Jamie Dimon said that even though he believes benefits from the tech are real, many investors will lose money, with the market underappreciating the risk of a downturn. But the anxieties are far from consensus opinion on Wall Street, with several banks releasing research this week suggesting that "bubble" might be a misnomer. Banks say: not quite a bubble Goldman Sachs said that, despite an outsize share of the global stock market's value coming from only a handful of companies pumping billions into AI (which it acknowledged is unsustainable), Big Tech's earnings are growing at a strong pace. The bank also noted that AI players are largely using their own massive cash piles to finance AI infrastructure, rather than relying on debt. Similarly: - Morgan Stanley pointed out that S&P 500 companies are generating three times the cash flow as a share of their valuations as they were in the lead-up to the dot-com bubble bursting in 2000.
- Bank of America said that so-called circular deals—like the one in which OpenAI recently received a $100 billion investment from Nvidia, which it'll use to buy Nvidia's chips—account for a fraction of AI funding
But even if it's revolutionary…AI can still lead to a market crash, with Bain and Company estimating that annual revenue from the technology would have to be $2 trillion by 2030 to justify all the investment. And skeptics point out that, unlike with overinvestment in railroads and fiber-optic cables that underpinned previous bubbles but still led to productivity growth down the road, the costly AI chips running data centers need to be replaced every few years.—SK | | |
|
|
Presented By Timeline Your skeletal muscles enable daily movements, helping you stay active as you age. But here's the problem: Maintaining muscle function is difficult over time because cellular functions start to decline with age. Ready to support your muscles? Meet Timeline Mitopure®. In clinical studies testing skeletal muscle in middle-aged and older adults, Mitopure helped increase strength by improving cellular energy output, all with no change in the participants' exercise routine.* Get a head start on protecting those skeletal muscles. Right now, Brew readers can get 40% off full-size Timeline supplements with code MORNINGBREWDEAL at checkout. Take charge of your health. |
|
WORLD  Trump says Israeli hostages will be returned early next week. A day after Israel and Hamas said they had agreed to the first phase of a US-brokered ceasefire in Gaza, President Trump said that Hamas will return the 20 surviving hostages on "Monday or Tuesday" in exchange for Israel releasing hundreds of Palestinian prisoners. Israel's Cabinet voted last night to formally approve the agreement, which will also see the Israeli military withdraw to a line that leaves it in control of 53% of the Gaza Strip, a spokesperson said. The agreement does not address what's to come of postwar Gaza and whether Hamas will disarm. Trump plans to travel to the Middle East this weekend to speak to Israel's Parliament and attend a signing of the agreement in Egypt.
🪨 Rare earth stocks soar after China further curbs exports. Several US rare earth mining companies surged by double digits yesterday after China announced it was tightening exports of the metals, which are crucial in the development of the computer chips powering AI and other technologies. Investors speculated that the increased scrutiny of rare earths leaving China would encourage the US to ramp up investment in its own supply chain. China's move comes ahead of an expected meeting between President Trump and Chinese President Xi Jinping later this month. China has been limiting exports of the important metals in response to Trump's tariffs. 🚙 Tesla is under investigation again. It's a day that ends in "y," and so that means Elon Musk's automaker must be under investigation. The National Highway Traffic Safety Administration is probing Tesla's Full Self-Driving (FSD) feature after 58 incidents of traffic violations, including cars running red lights and driving on the wrong side of the road while operating in the mode. Tesla says drivers still need to pay attention to the road when FSD is equipped. The investigation follows a slew of government inquiries this year looking at other Tesla features, as well as the company's crash reporting practices.—AE |
|
|
LUXURY The thing about precautions is that they're necessary on the racetrack but hair-raising at the investor event. Ferrari had its worst trading day ever yesterday, after the luxury carmaker announced long-term moneymaking goals that were more conservative than expected. The main disappointment: For 2030, Ferrari lifted its revenue projection to $10.4 billion, missing Wall Street's target of $11.3 billion, per a FactSet poll. - On top of this, the luxury auto company implied that its adjusted earnings will grow 6% annually through 2030, down from the 10% rate it projected three years ago for 2022 through 2026, according to RBC Capital.
- Ferrari's update dragged its stock down 15%, tipping its year-to-date market performance into the red.
This overshadowed what was supposed to be an exciting moment for Ferrari: the partial unveiling of its first all-electric car, the Elettrica, which iPhone designer Jony Ive helped out on. Ferrari showed off some of the 2026 model's parts this week, but it also tapped the brakes on broader EV plans. It's now aiming to have a 20% fully electric lineup in 2030, down from its previous goal of 40%. The change comes as luxury automakers have struggled to sell wealthy drivers on EVs. Zoom out: Ferrari is still Europe's most valuable car company, leaving competitors like Lamborghini and Porsche in the dust.—ML | | |
|
|
Together With EnergyX Meet America's newest $1b unicorn. This US startup just surpassed a $1b valuation, joining private companies like SpaceX and OpenAI. Unlike them, you can invest in EnergyX today. Industry giants like General Motors, Eni, and POSCO already have. Why? EnergyX's patented tech can recover 300% more lithium than traditional methods. Now, they're readying 100k+ acres of lithium-rich Chilean land for commercial production. Invest at $10/share by Oct. 30. |
|
FOOD & BEV Lay's wants you to remember that it came from humble, homegrown beginnings. PepsiCo, which owns the chip giant, is giving the brand a makeover worthy of a movie montage: stripping its artificial dyes, updating the logo, and putting a potato right there on the packaging. Remember the potatoes. New bags—matte-ified and designed to look like wood planks (like a potato crate)—will hold the chips with revamped ingredient lists. Lay's promises that the baked, kettle-cooked, and original chips won't taste different, they just won't have any synthetic colors or flavors: - The redesign will also incorporate a new logo that looks like the sun, photos of potatoes on the bag, and the phrase "Made with real potatoes."
- A 2021 survey found that 42% of consumers didn't know Lay's were made out of the spuds.
- The changes come as Health Secretary Robert F. Kennedy Jr. pushes companies to ditch artificial ingredients.
Big picture: Lay's generates about 60% of PepsiCo's annual sales but has seen sales slip every quarter for the last three years. Consumers in every income bracket have been ditching classic snack brands amid rising prices.—MM | | |
|
|
STAT The middle-school teacher who told you to stop writing run-on sentences may have thought they were improving your writing, but they were really just stopping you from winning a Nobel Prize in Literature. This year's winner is Hungarian scribe László Krasznahorkai, whom traditionalist grammarians must hate to see coming: - In his debut novel, Satantango, each chapter is a single paragraph with no line breaks.
- His most recent novel to appear in English, Herscht 07769, is a single sentence that unfolds over 400 pages.
Along with the prize, Krasznahorkai will receive $1.2 million, which equates to $1.2 million for every period in Herscht 07769.—AE |
|
|
Together With The New Money |
QUIZ The feeling of getting a 5/5 on the Brew's Weekly News Quiz has been compared to remembering why you walked into a room. It's that satisfying. Ace the quiz. |
|
|
NEWS - New York Attorney General Letitia James was indicted by a Virginia grand jury on one count of bank fraud after President Trump called for the Justice Department to bring charges against her.
- President Trump threatened to use the ongoing government shutdown to permanently cut "popular Democrat programs," without specifying which ones.
- Wendy's is launching a turnaround plan dubbed "Project Fresh" to restart growth as the fast-food chain's sales wane.
- Disney is hiking ticket prices at Disney World and Disneyland by about 5% and 8.7%, respectively.
- Netflix is making co-op games—including Pictionary, Tetris, and Lego Party—available to play on TV screens for the first time.
- The 2026 income tax brackets were revealed by the IRS yesterday.
|
|
|
RECS  Boo: Give a bit of Halloween to your pets.**
Discuss: Rolling Stone's 250 greatest songs of the 21st century. Study: A fully digitized collection of Leonardo da Vinci's writings and drawings. Try out: A pickleball shoe from the Brew's Toby Howell that's comfortable, stable, and stylish. No tricks, all treats: Sip the ultimate Halloween potion with LMNT's zero-sugar electrolyte drink mixes. No sugar or dodgy ingredients—just balanced hydration in flavors like Chocolate Caramel and Watermelon Salt. Drink up.* *A message from our sponsor. **This is a product recommendation from our writers. When you buy through this link, Morning Brew may earn a commission. |
|
|
PLAY Jigsaw: The US government might be shut down, but DC still looks lovely in today's puzzle. Piece it together here. Friday puzzle On a 12-hour digital clock, what is the smallest interval between two times that are palindromic (can be read forward and backward as the same number)? For example, a palindromic time is 3:53. Note: The clock doesn't show seconds. |
|
|
ANSWER Two minutes, between 9:59 and 10:01. Source Word of the Day Today's Word of the Day is: spuds, meaning "potatoes." Thanks to Christian from Olney, MD, for the suggestion. Submit another Word of the Day here. |
|
|
✢ A Note From Timeline *500mg Mitopure® has been shown to (1) induce gene expression related to mitochondrial function and metabolism and (2) increase the strength of the hamstring leg muscle in measures of knee extension and flexion after four months in overweight 40–65-year-olds. ✳︎ A Note From EnergyX This is a paid advertisement for EnergyX's Regulation A+ offering. Please read the offering circular at invest.energyx.com/. Under Regulation A+, a company has the ability to change its share price by up to 20% without requalifying the offering with the SEC. |
|
|---|
|
ADVERTISE // CAREERS // SHOP // FAQ
Update your email preferences or unsubscribe .
View our privacy policy .
Copyright © 2025 Morning Brew Inc. All rights reserved.
22 W 19th St, 4th Floor, New York, NY 10011 |
|
Comments
Post a Comment