5 Things to Know Before the Stock Market Opens Tuesday

Here are five key things investors need to know to start the trading day:

U.S. equities extended their gains Tuesday morning, fueled by optimism surrounding a potential agreement that could avert a government shutdown. The major indexes are building on Monday’s surge, recouping losses from a volatile prior week, with the resolution of fiscal uncertainty providing a tailwind.

Key takeaways:

• The Nasdaq Composite enjoyed its most significant single-day advance since May, a move largely interpreted as a rotation back into high-growth technology stocks, particularly those related to artificial intelligence. Microsoft, a bellwether for the sector, halted its longest losing streak in over a decade. This shift is indicative of investors regaining risk appetite and confidence in the long-term potential of AI despite short-term volatility.
• Bitcoin surged past the $105,000 level, reflecting broader market optimism and a renewed interest in risk assets. The cryptocurrency’s performance often serves as a barometer for investor sentiment, with its recent rally mirroring the positive momentum in traditional markets.
• The Senate’s has officially passed the bill, sending it to the House of Representatives for consideration. The swift progression indicates a bipartisan commitment to resolving the funding impasse.
• Despite the Senate passage, uncertainty remains. House Speaker Mike Johnson has yet to commit to a December vote on extending enhanced Affordable Care Act subsidies, a key component sought by Democrats in the deal. This potential sticking point could introduce renewed volatility into the market.
• Johnson indicated that House members are expected to return to Washington, D.C., for a vote on the agreement, potentially beginning as early as tomorrow afternoon. The timing and outcome of this vote will be crucial in determining the market’s near-term trajectory.
• President Trump signaled his support for the agreement, stating, “I would say so.” His endorsement is seen as crucial in garnering support from within the Republican party and ensuring the bill’s passage through the House.

SoftBank Group announced it has divested its entire stake in Nvidia, realizing $5.83 billion. Nvidia shares reacted negatively to the news, dipping nearly 2% in premarket trading. The decision represents a significant strategic shift for the Japanese conglomerate.

The move comes as SoftBank intensifies its focus on OpenAI, the company behind the groundbreaking ChatGPT technology. While this sale might appear to signal a retreat from the chip sector, SoftBank maintains indirect exposure to Nvidia through other AI-related ventures, including the Stargate project, which leverages Nvidia’s hardware. This suggests a more nuanced approach, prioritizing investments in AI applications over chip manufacturing directly.

Additionally, SoftBank has reduced its holdings in T-Mobile, selling a portion of its position for $9.17 billion. These strategic divestitures likely aim to free up capital for new investments and streamline SoftBank’s portfolio.

Paramount Skydance unveiled new cost-cutting initiatives, including employee layoffs and price increases for its Paramount+ streaming service. The announcement sent shares higher in overnight trading, jumping as much as 5%, reflecting investor optimism regarding the company’s efforts to improve profitability.

The entertainment conglomerate plans to cut an additional $1 billion in expenses, building upon the $2 billion in savings previously announced following the August merger. These measures are essential for streamlining operations and enhancing the company’s financial performance in an increasingly competitive media landscape.

In conjunction with the cost-reduction efforts, Paramount is implementing another round of layoffs, impacting roughly 1,600 employees related to the divestiture of segments of its South American business. This restructuring highlights the company’s commitment to focusing on core markets and streamlining its operations.

Looking ahead, Paramount aims to increase the price of its Paramount+ streaming service in the first quarter of 2026. This move aligns with industry trends and reflects the rising costs associated with content creation and distribution. The company will need to carefully balance price increases with subscriber retention to maintain its competitive edge.

The ongoing government shutdown continues to exert pressure on the air travel sector, leading to flight cancellations and delays due to strained airport infrastructure and staffing shortages. According to aviation data firm Cirium, over 6% of U.S. flights were canceled yesterday, underscoring the significant impact of the shutdown.

Adding to the challenges, air traffic controllers, deemed essential personnel and required to work during the shutdown, missed their second consecutive paycheck, further impacting morale and increasing potential safety risks. President Trump has proposed a $10,000 bonus for controllers who maintain their work schedules during the shutdown, while also threatening to penalize those who do not report for duty. The effectiveness and potential consequences of this approach remain uncertain.

Notably, Flexjet’s global CEO Andrew Collins indicated a sharp increase in demand for private jet flights due to the ongoing disruptions in commercial air travel. However, the Federal Aviation Administration has implemented limitations on private flights at a dozen major U.S. airports due to staffing challenges, potentially dampening this increased demand. The situation is a clear example disruption ripple effect as it moves through various types of air travels.

Warren Buffett, CEO of Berkshire Hathaway, intends to accelerate the distribution of his $149 billion fortune to his children’s foundations, according to a recent letter. This move aligns with Buffett’s long-standing commitment to philanthropy and reflects his desire to create a lasting impact beyond his business endeavors.

Despite this increased charitable giving, Buffett emphasized his intention to retain a “significant amount” of Class A shares to bolster investor confidence in his designated successor, Greg Abel. Abel is slated to assume the role of chief executive next year, and Buffett anticipates that shareholders will quickly embrace him, given his proven track record and leadership capabilities. This strategic approach ensures a smooth transition and reinforces Berkshire Hathaway’s long-term stability.

Buffett declared that his annual letter will evolve into a Thanksgiving tradition, and Greg Abel will eventually take on the responsibility of authoring Berkshire Hathaway’s annual shareholder letters. In his latest letter, the Oracle of Omaha also shared some insights related to life, adding a personal touch to the business update.