Government shutdown

This report covers several key market trends: Amazon’s stock surge driven by AWS growth and increased capital expenditure in AI, Apple’s steady performance with moderate AI investment and strong iPhone 17 sales, and Netflix’s stock split aimed at boosting retail investor participation. The U.S. government shutdown is impacting airlines and costing billions. Chevron outperformed expectations, while Exxon Mobil’s revenue fell short. Automakers are bracing for a semiconductor shortage due to geopolitical tensions. Finally, chocolate prices have surged, impacting Halloween candy sales.

Key takeaways for investors: AWS suffered a major outage impacting numerous websites. Apple’s stock hit record highs due to strong iPhone 17 sales and AI advancements. Corporate earnings exceeded expectations, though Coca-Cola cited sluggish demand. A potential end to the government shutdown is in sight. The US and Australia deepened cooperation on rare earth materials, boosting related stocks like Cleveland-Cliffs.

The market faced pressure due to regional bank concerns tied to loan quality highlighted by JPMorgan CEO’s comments. Zions and Western Alliance saw sharp declines. U.S.-China trade tensions and Bolton’s indictment added to uncertainty. Tariffs are projected to cost businesses $1.2 trillion. Apple is reportedly pursuing Formula 1 streaming rights. EssilorLuxottica credits Meta’s smart glasses for revenue growth, while Oracle benefited from a cloud deal with Meta.

Five key developments are summarized: escalating US-China trade tensions with a potential cooking oil embargo; the financial sector preparing for earnings season; the ongoing government shutdown’s impact, including Treasury Department layoffs and airport disruptions; Boeing’s anticipated strongest delivery numbers since 2018; and the DOJ’s seizure of $15 billion in Bitcoin linked to a “pig butchering” scam, representing its largest forfeiture action. Additionally, JPMorgan survey results reveal differing economic perceptions based on income.

Despite the U.S. government shutdown, NASA is prioritizing its Artemis program, directing personnel working with SpaceX and Blue Origin to continue operations. Internal memos confirm that Artemis, along with the ISS and satellite missions, are considered essential. While NASA faces significant furloughs, roughly 3,000 employees will continue working, ensuring key projects like the Artemis lunar missions, including SpaceX’s Starship and Blue Origin’s lunar lander development, proceed despite the funding lapse. Artemis aims to send astronauts to the Moon, paving the way for future Mars missions.