With the U.S. government shutdown still clouding official labor statistics, alternative data from private firms and banks is sending a clear message: the labor market is cooling, and markets are betting big that the Federal Reserve will respond with another rate cut at<a href="https://www.benzinga.com/topic/federal-reserve"> its Oct. 30 meeting.</a>



The absence of the September jobs report from the Bureau of Labor Statistics due to the shutdown has left investors and policymakers in the dark. 



The last official nonfarm payroll figure—just 22,000 jobs added in August—already signaled stagnation, with the three-month average stuck around 29,000.



<h2 class="wp-block-heading">Private Payrolls Show Job Losses In September</h2>



In lieu of public data, private sources are painting a troubling picture. 



The ADP payrolls report released last week showed private employers cut 32,000 jobs in September. That follows a downward revision for August to a 3,000 job loss and marks the sharpest decline since March 2023. Economists had expected a 50,000 gain.



It's also the first time since 2020 that the private sector has posted two consecutive months of job losses, a red flag for an economy that had seemed resilient just months ago.



Meanwhile, the Institute for Supply Management's Services Purchasing Managers Index (ISM Services PMI), a key forward-looking indicator, showed the employment sub-index contracting for the fourth straight month—and five of the last six.



&#8220;Data from sources outside the federal government are still coming out, and paint a downbeat picture of the economy at the end of the second quarter,&#8221; said Bill Adams, chief economist at Comerica Bank. 



<h2 class="wp-block-heading">Bank of America Data Supports A Labor Market Weakness</h2>



Internal data from the Bank of America Institute further confirms a cooling job market. In a report published Wednesday, the bank said employment growth slowed in September, while unemployment claims rose.



"Our payroll estimates—based on direct deposit data—suggest a continued slowdown," the bank said, noting that payroll growth rose just 0.5% year-over-year in September, the slowest pace in months.



Unemployment payments into BofA accounts also point to worsening conditions. 



In October, those payments rose 10% from the previous year, double the 5% year-over-year increase reported by the BLS in August. That divergence, the bank said, "suggests some upward momentum to unemployment."



Despite the weakness in hiring, pay growth did see some acceleration across income groups. After-tax wage and salary payments rose 4.0% year-over-year in September for higher-income households, 2.4% for middle-income and just 1.4% for lower-income families.



While the gap between cohorts did not widen further in September, the disparity remains stark, underlining persistent inequality in wage growth.



<h2 class="wp-block-heading">Markets Strongly Bet On Rate Cut</h2>



With no hard federal data to counter the downbeat private reports, markets are treating another rate cut from the Fed as a done deal.



According to CME FedWatch, futures imply a 95% probability of a 25-basis-point cut on Oct. 30, which would lower the fed funds target range to 3.75%-4.00%. 



That would follow the September cut, and markets are also pricing in a third cut in December with 80% odds.



"For the Fed, this fuzzier-than-usual read on the economy is negative enough to very likely prompt a cut to the federal funds target at their next decision," Adams said.



With Washington's shutdown halting official reports, private data is stepping in—and it's painting a clear picture: job growth is stalling, unemployment is ticking higher, and broader economic signals are flashing red just as the Federal Reserve prepares its next policy move.



Still, Wall Street is rallying on optimism that softer data will prompt the Fed to consider another rate cut. The Nasdaq 100, tracked by Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/QQQ">QQQ</a>), rose 0.6% Wednesday, trading within 0.2% of its record high from the day before and now up 50% since hitting bottom in April.



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Rigetti Computing Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/RGTI">RGTI</a>) is sitting on a war chest of roughly $571 million. Still, investors are left wondering: Is this enough to push the company to quantum advantage, or merely a pause before the next fundraising round? In an exclusive email interview, <a href="https://www.benzinga.com/sec/insider-trades/0001388191/subodh-k-kulkarni">CEO Subodh Kulkarni</a> told Benzinga that the company has "sufficient cash resources to meet our anticipated operating cash needs for at least the next 12 months, and most likely for a much longer period of time."



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<li>Track RGTI stock <a href="https://www.benzinga.com/quote/RGTI">here</a>.</li>
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That confidence offers some comfort — but in a capital-intensive race to scale 100+ qubits, the stakes remain high.



Read Also: <a href="https://www.benzinga.com/markets/hedge-funds/25/09/47917388/rigetti-stock-boom-ken-griffin-tudor-jones-land-163-windfall-in-88-days">Rigetti Stock Boom: Ken Griffin, Tudor Jones Land 163% Windfall In 88 Days</a>



<h2 class="wp-block-heading">Cash To Fuel Quantum Ambitions</h2>



The June 2025 at-the-market offering raised $350 million in gross proceeds, topping off Rigetti's balance sheet and leaving the company debt-free. With Fab-1 in full swing, Kulkarni emphasizes that the cash is strategically aligned with the roadmap: as qubit counts and fidelity numbers approach commercial thresholds, Rigetti can adjust volume expectations and expand fabrication capacity as needed. 



"We will continually adjust volume expectations and begin ramping up other fabrication capacity at other locations, commensurate with the growth rates and regional distribution of that demand," he notes.



Read Also: <a href="https://www.benzinga.com/markets/tech/25/07/46473075/exclusive-this-stocks-up-1300-but-ceo-says-the-real-payoffs-4-years-away" target="_blank" rel="noreferrer noopener">EXCLUSIVE: This Stock&#8217;s Up 1,300% — But CEO Says The Real Payoff&#8217;s 4 Years Away</a>



<h2 class="wp-block-heading">No Trigger In Sight, But Watch The Burn</h2>



Unlike some peers, Rigetti does not tie future fundraising to a specific milestone. Kulkarni underscores: "There are no specific triggers as to when or if we might ever raise additional funds. Our board and management monitor our ongoing capital and funding requirements on a regular basis." 



For investors, that's both reassuring and cautionary: the company has breathing room, but quantum scale-up is unpredictable, and capital needs could spike if government or commercial demand accelerates faster than expected.



Investor Takeaway: Rigetti's $571 million cash position provides room for execution, but the quantum race remains high-stakes and unpredictable. Investors will be watching burn rates and contract traction closely in this long-term play.



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EXCLUSIVE: Rigetti's $571M War Chest — Enough To Fuel Quantum Ambitions Or Just Buy Time?

"This time is different" may be the most dangerous phrase in investing—but Goldman Sachs is embracing it, claiming today's AI-driven tech boom doesn't fit the script <a href="https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/10/48025536/shiller-pe-ratio-2025-ai-boom-not-a-bubble">of past financial bubbles.</a>



Despite soaring tech valuations and fears of another dot-com-style collapse, Goldman Sachs' equity strategist, Peter Oppenheimer, pushed back on comparisons between the AI-fueled bull run and previous speculative manias, stating that there are key differences that make this cycle fundamentally healthier.



<h2 class="wp-block-heading">Stock Market Valuations Are Elevated, But Not Bubble-Level</h2>



Yes, valuations are climbing, but they are not as high as compared to the dot-com peak. 



Goldman Sachs indicated that the rise in technology stocks has been &#8220;driven by fundamental growth rather than irrational speculation about future growth.&#8221;



The Magnificent Seven—Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/NVDA">NVDA</a>), Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/AAPL">AAPL</a>), Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/MSFT">MSFT</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/GOOGL">GOOGL</a>), Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/AMZN">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/META">META</a>) and Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/TSLA">TSLA</a>)—trade at a median forward price-to-earnings ratio of 26.8.



That's steep, but just half of the 52x median seen among top tech names in 2000.



Nvidia, now valued at $4.5 trillion, trades at a 26.1x forward P/E.



Back in 2000, Cisco Systems Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/CSCO">CSCO</a>) traded at over 100 times earnings, and the top seven companies traded at a 52 times median forward P/E.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><thead><tr><th>Company</th><th>Market Cap ($B)</th><th>Market Weight (as % of S&amp;P 500)</th><th>12m Forward P/E</th></tr></thead><tbody><tr><td>Magnificent 7 (2025)</td><td></td><td></td><td></td></tr><tr><td>Nvidia Corp. </td><td>4,509</td><td>7.8%</td><td>26.1</td></tr><tr><td>Microsoft Corp.</td><td>3,929</td><td>6.8%</td><td>27.2</td></tr><tr><td>Apple Inc.</td><td>3,809</td><td>6.6%</td><td>29.1</td></tr><tr><td>Alphabet Inc. </td><td>2,822</td><td>4.9%</td><td>20.8</td></tr><tr><td>Amazon.com Inc. </td><td>2,356</td><td>4.1%</td><td>24.9</td></tr><tr><td>Meta Platforms Inc. </td><td>1,552</td><td>2.7%</td><td>21.2</td></tr><tr><td>Tesla Inc. </td><td>1,507</td><td>2.6%</td><td>135.2</td></tr><tr><td>Magnificent 7 Aggregate (2025)</td><td>20,485</td><td>35.6%</td><td>26.8</td></tr><tr><td></td><td></td><td></td><td></td></tr><tr><td>Tech Bubble Leaders (2000)</td><td></td><td></td><td></td></tr><tr><td>Microsoft Corp.</td><td>581</td><td>4.5%</td><td>53.2</td></tr><tr><td>Cisco Systems Inc. </td><td>543</td><td>4.2%</td><td>101.7</td></tr><tr><td>Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/INTC">INTC</a>)</td><td>465</td><td>3.6%</td><td>42.1</td></tr><tr><td>Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/ORCL">ORCL</a>)</td><td>245</td><td>1.9%</td><td>84.6</td></tr><tr><td>IBM (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/IBM">IBM</a>)</td><td>218</td><td>1.7%</td><td>23.5</td></tr><tr><td>Lucent Technologies</td><td>206</td><td>1.6%</td><td>37.9</td></tr><tr><td>Nortel Networks</td><td>199</td><td>1.5%</td><td>86.4</td></tr><tr><td>Tech Leaders Aggregate (2000)</td><td>2,457</td><td>19.0%</td><td>52.0</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">High Market Concentration Is a Concern—But Not a Bubble Trigger</h2>



The firm said that the 10 biggest U.S. companies now make up nearly a quarter of global public equity. While acknowledging this as "unsustainable," Goldman argued that high concentration is not the same as a bubble.



"Historically the biggest sector has remained dominant for long periods of time," the note said. 



Goldman said disruption is still a real risk. 



"Just over 10% of the Fortune 500 companies have remained on the list since 1955," the note said, adding that none of the top 10 companies in the S&amp;P 500 in 1985 remained in the top 10 by 2020—except Microsoft Corp.. 



Goldman cautions that disruption is inevitable, and diversification remains essential.



Oppenheimer also indicated that unlike past bubbles—when overvaluation was paired with debt and weak fundamentals—today's giants have strong balance sheets, massive cash flows, and limited leverage.



Capital expenditures have "rapidly increased since the emergence of ChatGPT," as hyperscalers expand AI infrastructure. 



But unlike past cycles, most of this investment is being financed through strong free cash flows.



Goldman highlighted the differences between the current AI investment surge and historical episodes, such as the 1840s railway boom and the late-1990s telecom frenzy.



Back then, companies like WorldCom and Global Crossing collapsed under mountains of debt. In contrast, today's leaders have stronger fundamentals.



<h2 class="wp-block-heading">Are AI Valuations Justified?</h2>



Goldman analyzed valuations across price-to-earnings, price-to-book, return on equity and dividend discount models. 



The firm concluded that while valuations are "increasingly stretched," they are still below peak bubble levels.



The real risk, Goldman said, is an earnings disappointment. If growth falters, stretched valuations could compress quickly. However, a broad systemic collapse like 2000 or 2008 is unlikely, thanks to strong corporate and banking sector balance sheets.



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Fear Of An AI Bubble? This Time Is Different, Goldman Says

Apple Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/AAPL">AAPL</a>) and&nbsp;Meta Platforms Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/META">META</a>) are reportedly close to settling their respective&nbsp;antitrust cases with the European&nbsp;Commission.



<h2 class="wp-block-heading">Tech Giants Near Deal to Avoid Further EU Fines</h2>



The two U.S. tech giants are in the final stages of negotiations with European regulators to amend various business practices, The Financial Times <a href="https://www.ft.com/content/74a31a0f-d4d2-4681-9ce8-3a1b5a7632dc">reported</a> on Wednesday.



This comes after they were <a href="https://www.benzinga.com/news/global/25/04/44952117/apple-and-meta-fined-nearly-800-million-for-violating-european-unions-digital-markets-act">collectively fined €700 million ($772 million) in April</a> for violating the EU&#8217;s Digital Markets Act. 



The potential settlement is seen as a means for the companies to avoid further&nbsp;escalating fines from Brussels. The&nbsp;EU&#8217;s digital regulations have been a contentious issue between the bloc and the U.S., with President Donald Trump threatening retaliation against countries that &#8220;discriminate&#8221; against American firms.



European officials are hopeful for a feasible solution with Meta after the company&#8217;s initial proposed changes were deemed inadequate, the FT reported. The key unresolved issue is ensuring that consumers can effortlessly find and navigate Meta&#8217;s various options in the EU, the publication added. 



Apple, which had previously announced <a href="https://www.benzinga.com/markets/tech/25/06/46133145/apple-opens-eu-app-store-to-external-payments-to-avoid-fines-under-digital-markets-act-but-adds-new-fees">intentions to amend its App Store policies</a>, is also negotiating with the commission about new contractual terms for developers, according to the report.



Apple and Meta did not immediately respond to <a href="https://www.benzinga.com/">Benzinga&#8217;s</a> requests for comment. 



See Also: <a href="https://benzinga.com/trading-ideas/short-ideas/25/10/48072877/top-2-materials-stocks-that-could-sink-your-portfolio-this-quarter" target="_blank" rel="noreferrer noopener">Top 2 Materials Stocks That Could Sink Your Portfolio This Quarter &#8211; Benzinga</a>



<h2 class="wp-block-heading">Daily Fines Could Add Up To 5% Of Revenues, FT Says</h2>



The potential settlement follows a series of interactions between the <a href="https://www.benzinga.com/markets/tech/25/07/46290524/apple-fights-back-against-eus-586-million-fine-says-penalty-far-beyond-what-the-law-requires">tech giants </a>and the European Commission. In July 2025, Apple contested a €500 million ($586 million) fine imposed by the EU over alleged anti-competitive practices on its App Store, calling the penalty &#8220;unprecedented&#8221; and &#8220;far beyond what the law&nbsp;requires.&#8221;



Meanwhile, Meta had a more <a href="https://www.benzinga.com/markets/tech/25/09/47890032/meta-wins-eu-approval-for-ai-joint-venture-with-reliance">positive interaction</a> with the Commission in September 2025, when it received approval for a joint venture with India&#8217;s Reliance Industries Limited, focusing on enterprise artificial intelligence services.



A settlement would enable both Apple and Meta to avoid daily financial penalties, which could accumulate over time and amount to as much as 5% of their average global daily revenue, as per the Financial Times.



<figure class="wp-block-image alignright size-full is-resized"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="446" height="270" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08073619/image-197.png" alt="" class="wp-image-1104250" style="width:404px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08073619/image-197.png 446w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08073619/image-197-300x182.png 300w" sizes="(max-width: 446px) 100vw, 446px" /></a></figure>



<figure class="wp-block-image size-full is-resized"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="457" height="308" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08073725/image-199.png" alt="" class="wp-image-1104252" style="width:371px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08073725/image-199.png 457w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08073725/image-199-300x202.png 300w" sizes="(max-width: 457px) 100vw, 457px" /></a></figure>



Meta and Apple hold similar momentum ratings over 70%. However, Meta scores better in terms of growth with an 85.66% rating, while Apple&#8217;s is below 30% according to <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Benzinga's Proprietary Edge Rankings</a>. The Benzinga Growth metric evaluates a stock&#8217;s historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance.



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Meta And Apple Nearing Settlement With EU Lawmakers On Antitrust Cases: Report

The recent military exercises reportedly conducted by China near Taiwan have raised concerns about the island&#8217;s energy security and the chip industry, prompting Taipei and Washington to take immediate action.



<h2 class="wp-block-heading">Taiwan Rethinks Energy Strategy Amid Chinese Blockade Threats</h2>



Taiwan is heavily reliant on imported fuel, particularly liquefied natural gas (LNG), for its energy needs. Recent Chinese military drills have demonstrated how easily Taiwan could be isolated and crippled by cutting off its energy supply,&nbsp;<a href="https://www.wsj.com/world/asia/chinese-blockade-taiwan-d5b241c7?mod=hp_lead_pos11">reported</a>&nbsp;The Wall Street Journal. 



This has prompted Taiwan and the U.S. to take immediate action. Taiwan, which imports 97% of its energy by sea, is now looking to bolster its energy storage and reconsider its energy mix. The island is also considering a return to nuclear power, despite having shut down its last reactor just months ago. 



The U.S. is also stepping in, with two senators introducing legislation to support Taiwan&#8217;s access to American LNG, including providing insurance for shipments in the event of a blockade, according to the report. 



<h2 class="wp-block-heading">Energy Strains Could Impact Taiwan&#8217;s Chip Industry</h2>



The threat to Taiwan&#8217;s energy security comes at a time when the island is already facing geopolitical challenges. In September, President&nbsp;Donald Trump&nbsp;reportedly&nbsp;halted a <a href="https://www.benzinga.com/news/politics/25/09/47778118/trump-puts-taiwan-weapons-package-on-ice-amid-china-talks-report">major military </a>aid package&nbsp;for Taiwan, valued at over $400 million, in an effort to secure a trade deal with China.



Meanwhile, Taiwan&#8217;s semiconductor industry, a key player in the global tech supply chain, has been making significant strides.&nbsp;Taiwan recently rejected a U.S. proposal&nbsp;for a <a href="https://www.benzinga.com/markets/tech/25/10/48047556/taiwan-rejects-us-proposal-for-50-50-chip-production-deal-never-made-any-commitment">50-50 split </a>in semiconductor production, asserting its independence in this critical sector.&nbsp;



Taiwan&#8217;s tech industry continues to thrive, with&nbsp;Taiwan Semiconductor Manufacturing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/TSM">TSM</a>) experiencing a record <a href="https://www.benzinga.com/markets/tech/25/10/48047556/taiwan-semiconductor-surges-past-52-week-high-as-ai-boom-fuels-record-market-rally">market rally</a>, driven by the AI boom and a landmark agreement between OpenAI and Advanced Micro Devices (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/AMD">AMD</a>).



However, potential disruption of Taiwan&#8217;s energy supply could have far-reaching implications for the island&#8217;s economy and its crucial semiconductor industry, with TSMC in focus. 



<figure class="wp-block-image aligncenter size-full"><img loading="lazy" decoding="async" width="446" height="272" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08081126/image-202.png" alt="" class="wp-image-1104330" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08081126/image-202.png 446w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08081126/image-202-300x183.png 300w" sizes="(max-width: 446px) 100vw, 446px" /></figure>



Benzinga's Edge Rankings place TSMC in the 95th percentile for quality and the 33rd percentile for value, reflecting its mixed performance. Check the <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">detailed report here</a>.&nbsp;



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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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TSMC Faces Uncertainty As Taiwan's Energy Security Reportedly Comes Under Chinese Threat

A critical examination of the AI industry&#8217;s financial mechanics, dubbed the &#8220;AI Infinite Money Glitch,&#8221; is raising alarms among financial analysts and tech critics.



Gordon Johnson, CEO and Founder of GLJ Research, LLC, explicitly warns that the current AI boom is not only a potential &#8220;high-tech house of cards&#8221; but also an &#8220;excuse to eliminate millions of American jobs.&#8221;



<h2 class="wp-block-heading">AI&#8217;s Circular, High-Stakes Funding Loop</h2>



The &#8220;Infinite Money Glitch,&#8221; highlighted by Johnson in a recent analysis by Reef Insights, describes a circular flow of tens of billions of dollars between major players like OpenAI, Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/NVDA">NVDA</a>), and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/ORCL">ORCL</a>).



At its core, cloud computing giant Oracle <a href="https://www.benzinga.com/news/23/06/33054410/oracle-takes-on-aws-and-microsoft-with-nvidia-chip-investments-for-ai-cloud">purchases vast quantities</a> of high-end AI chips (GPUs) from Nvidia and Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/AMD">AMD</a>) to build massive data centers.



OpenAI then commits to <a href="https://www.benzinga.com/markets/tech/25/09/47836043/openai-oracle-softbank-unveil-500-billion-stargate-plan-with-5-new-us-ai-data-centers-as-nvidia-commits-100-billion-to-support-chatgpt-parent">long-term contracts with Oracle</a> to rent this computing power for its AI models. Simultaneously, OpenAI also strikes direct deals with <a href="https://www.benzinga.com/markets/tech/25/10/48039154/chatgpt-parent-openai-amd-partner-in-landmark-ai-deal">chip makers like AMD</a>, even securing stock warrants in exchange for future supply.



<h2 class="wp-block-heading">Symbiotic Deals Linking OpenAI, Oracle, And Nvidia</h2>



&#8220;The money flows in a circle,&#8221; Reef Insights explains, detailing how Oracle committed to <a href="https://www.benzinga.com/markets/equities/25/05/45599854/oracle-to-spend-40-billion-on-nvidia-gb200-chips-for-openais-texas-data-center-report">buying $40 billion in NVIDIA chips</a> for an OpenAI data center. This is reciprocated by Nvidia&#8217;s plan to invest up to <a href="https://www.benzinga.com/markets/tech/25/09/47807001/nvidia-pledges-100-billion-to-supercharge-openai-this-is-a-giant-project-huang-says">$100 billion in OpenAI</a>, tied to developing significant NVIDIA systems.



AMD similarly benefits, supplying OpenAI with chips totaling up to 6 gigawatts, in exchange for a warrant to purchase 160 million AMD shares—roughly 10% of the company.



Reef Insights argues this intricate web of mutual spending creates a system where &#8220;each one's revenue depends on another's spending,&#8221; with the entire edifice resting on the precarious assumption that &#8220;real users will pay enough for AI tools to support the whole system.&#8221;



See Also: <a href="https://www.benzinga.com/markets/equities/25/10/48070331/jeff-bezos-david-solomon-and-now-sam-altman-warns-of-a-brewing-ai-bubble-but-expert-says-they-wa">Jeff Bezos, David Solomon And Now Sam Altman Warns Of A Brewing AI Bubble, But Expert Says &#8216;They Want The Bubble To Pop:&#8217; Here&#8217;s Why</a>



<h2 class="wp-block-heading">Critics Warn AI Boom Is A Jobs-Killer</h2>



Gordon Johnson, expressing a starker view on X, stated, &#8220;You left out the part where &#8216;AI&#8217; is used as an excuse to eliminate millions of American jobs, while also exploding the cost those same Americans pay for electricity… Immigrants taking Americans jobs = bad. AI taking American jobs = good (somehow).&#8221;



Johnson&#8217;s comments underscore a growing concern about the economic and social implications of an AI-driven future where job displacement is a significant factor, potentially without a corresponding benefit to the wider populace.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">You left out the part where "AI" is used as an excuse to eliminate millions of American jobs, while also exploding the cost those same Americans pay for electricity (i.e., the people who are supposed to buy the AI apps). Immigrants taking Americans jobs = bad. AI taking American… <a href="https://t.co/oy0pcaxQAd">https://t.co/oy0pcaxQAd</a>&mdash; Gordon Johnson (@GordonJohnson19) <a href="https://twitter.com/GordonJohnson19/status/1975854010537062504?ref_src=twsrc%5Etfw">October 8, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h2 class="wp-block-heading">How Can This Circle Break?</h2>



The &#8220;circle could break,&#8221; according to Reef Insights, if &#8220;OpenAI doesn't make enough money from its users.&#8221; A lack of real demand would leave Oracle with underutilized, expensive data centers and halt new chip orders for Nvidia and AMD.



This scenario draws parallels to the fiber-optic network overbuilding of the early 2000s, where significant investments led to a bust when anticipated demand failed to materialize. &#8220;Companies could be stuck with expensive obligations even as usage drops,&#8221; the analysis concludes, suggesting a rapid decline in profits and stock prices, transforming the AI boom into an &#8220;overbuilt cycle.&#8221;



<h2 class="wp-block-heading">Price Action</h2>



Here is a list of some AI-linked exchange-traded funds that investors can consider.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>ETF Name</td><td>YTD Performance</td><td>One Year Performance</td></tr><tr><td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/IYW">IYW</a>)</td><td>23.97%</td><td>29.15%</td></tr><tr><td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/FTEC">FTEC</a>)</td><td>21.52%</td><td>27.84%</td></tr><tr><td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/FDN">FDN</a>)</td><td>14.52%</td><td>29.74%</td></tr><tr><td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/IGM">IGM</a>)</td><td>24.65%</td><td>31.29%</td></tr><tr><td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/IXN">IXN</a>)</td><td>24.14%</td><td>26.90%</td></tr><tr><td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/QTUM">QTUM</a>)</td><td>34.47%</td><td>77.14%</td></tr><tr><td>Roundhill Magnificent Seven ETF (BATS:<a class="ticker" href="https://www.benzinga.com/quote/MAGS">MAGS</a>)</td><td>19.35%</td><td>36.23%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/SPY">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/QQQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 0.13% at $669.97, while the QQQ advanced 0.16% to $605.45, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/hedge-funds/25/10/48092785/billionaires-ken-griffin-david-tepper-philippe-laffont-and-more-load-up-on-nvidia-stock-as-th">Billionaires Ken Griffin, David Tepper, Philippe Laffont And More Load Up On Nvidia Stock As This Tech Bull Sees NVDA ‘Going To $5 Trillion'</a></li>
</ul>



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Image via Shutterstock

Equities

Market Summary

Sector ETFs

Futures

General

FTEC

MAGS

QTUM

OpenAI, Nvidia And Oracle Building A High-Tech House Of Cards? Expert Warns 'Infinite Money Glitch' Could Trigger AI-Led Job Losses And Market Chaos

Editor&#8217;s Note: The future prices of benchmark tracking ETFs were updated in the story.



U.S. stock futures rose on Wednesday following Tuesday&#8217;s declines. Futures of major benchmark indices were higher.



Shares of Oracle Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/ORCL">ORCL</a>) fell 2.5% on Tuesday, dragging other tech stocks after the company said that it <a href="https://www.benzinga.com/trading-ideas/movers/25/10/48082768/oracle-stock-is-tumbling-tuesday-heres-why">faced financial struggles</a> related to renting out Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/NVDA">NVDA</a>) chips. 



Meanwhile, following his meeting with Prime Minister Mark Carney, President Donald Trump hinted at<a href="https://www.benzinga.com/markets/macro-economic-events/25/10/48091813/trump-calls-us-canada-relationship-complicated-but-hints-at-trade-breakthrough-after-meeting-mark-carney-theres-a-natural-conflict"> potential progress in trade negotiations</a> with Canada but gave no concrete assurances as tariffs continue to strain the neighboring economy. 



The 10-year Treasury bond yielded 4.11% and the two-year bond was at 3.56%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing a 95.1% likelihood of the Federal Reserve cutting the current interest rates in its October meeting. 



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>0.18%</td></tr><tr><td>S&amp;P 500</td><td>0.16%</td></tr><tr><td>Nasdaq 100</td><td>0.21%</td></tr><tr><td>Russell 2000</td><td>0.37%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/SPY">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/QQQ">QQQ</a>), which track the S&amp;P 500 index and the Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 0.19% at $670.37, while the QQQ advanced 0.18% to $605.62, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="S&amp;P 500 Futures Rise After Snapping A 7-Day Streak—Nuburu, AZZ, Joby Aviation In Focus" width="500" height="281" src="https://www.youtube.com/embed/prwFr2_eCR0?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



<h2 class="wp-block-heading">Stocks In Focus</h2>



<h3 class="wp-block-heading">Trilogy Metals</h3>



<ul class="wp-block-list">
<li>Trilogy Metals Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/TMQ">TMQ</a>) jumped 8% in premarket on Wednesday, continuing its move fueled by the Trump administration's investments in the metals sector, sparking interest in rare earths and battery metals.</li>
</ul>



<ul class="wp-block-list">
<li>TMQ maintained a stronger price trend over the short, medium, and long terms, as per Benzinga&#8217;s Edge Stock Rankings. Additional performance details are <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-3/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">available here.</a></li>
</ul>



<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-3/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="149" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051325/TMQ-EDGE-new-1024x149.png" alt="Benzinga's Edge Stock Rankings for TMQ." class="wp-image-1103984" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051325/TMQ-EDGE-new-1024x149.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051325/TMQ-EDGE-new-300x44.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051325/TMQ-EDGE-new-768x112.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051325/TMQ-EDGE-new.png 1155w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



<h3 class="wp-block-heading">Nuburu</h3>



<ul class="wp-block-list">
<li>Nuburu Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/BURU">BURU</a>) surged 34.84% after the announcement of its defense subsidiary's acquisition of Orbit S.r.l., an Italian software firm. This strategic move marks Nuburu's expansion into defense software, enhancing its mission assurance capabilities.</li>
</ul>



<ul class="wp-block-list">
<li>Benzinga&#8217;s Edge Stock Rankings indicate that BURU maintains a stronger price trend in the short, medium, and long terms. Additional performance details are <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-3/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">available here.</a></li>
</ul>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="149" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051246/BURU-EDGE-1024x149.png" alt="Benzinga's Edge Stock Rankings for BURU." class="wp-image-1103982" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051246/BURU-EDGE-1024x149.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051246/BURU-EDGE-300x44.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051246/BURU-EDGE-768x112.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051246/BURU-EDGE.png 1158w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">POET Technologies </h3>



<ul class="wp-block-list">
<li>POET Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/POET">POET</a>) gained 12.94% as it announced that it had closed a non-brokered private placement with a single institutional investor, raising $75 million through the sale of 13.6 million shares and accompanying warrants — the largest investment in the company&#8217;s history.</li>
</ul>



<ul class="wp-block-list">
<li>POET maintained a stronger price trend over the short, medium, and long terms, with a poor growth ranking. Additional performance details, as per Benzinga&#8217;s Edge Stock Rankings, are <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-3/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">available here.</a></li>
</ul>



<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-3/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="150" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051236/POET-EDGE-1024x150.png" alt="Benzinga's Edge Stock Rankings for POET." class="wp-image-1103981" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051236/POET-EDGE-1024x150.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051236/POET-EDGE-300x44.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051236/POET-EDGE-768x112.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051236/POET-EDGE.png 1156w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



<h3 class="wp-block-heading">AZZ</h3>



<ul class="wp-block-list">
<li>AZZ Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/AZZ">AZZ</a>) was down 0.10% ahead of its earnings scheduled to be released after the closing bell. Analysts expect earnings of $1.58 per share on revenue of $427.38 million.</li>
</ul>



<ul class="wp-block-list">
<li>Benzinga&#8217;s Edge Stock Rankings indicate that AZZ maintains a stronger price trend in the long and medium terms, but a poor price trend in the short term, with a poor value ranking. Additional performance details are <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-3/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">available here.</a></li>
</ul>



<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-3/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="147" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051140/AZZ-EDGE-1024x147.png" alt="Benzinga's Edge Stock Rankings for AZZ." class="wp-image-1103977" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051140/AZZ-EDGE-1024x147.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051140/AZZ-EDGE-300x43.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051140/AZZ-EDGE-768x111.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051140/AZZ-EDGE.png 1153w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



<h3 class="wp-block-heading">Joby Aviation</h3>



<ul class="wp-block-list">
<li>Joby Aviation Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/JOBY">JOBY</a>) dropped 9.47% as it announced plans to offer and sell $500 million of its common stock in a public offering.</li>
</ul>



<ul class="wp-block-list">
<li>JOBY maintained a stronger price trend over the short, medium, and long terms. Additional performance details, as per Benzinga&#8217;s Edge Stock Rankings, are <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-3/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">available here.</a></li>
</ul>



<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-3/#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="153" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051118/JOBY-EDGE--1024x153.png" alt="Benzinga's Edge Stock Rankings for JOBY." class="wp-image-1103976" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051118/JOBY-EDGE--1024x153.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051118/JOBY-EDGE--300x45.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051118/JOBY-EDGE--768x115.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08051118/JOBY-EDGE-.png 1149w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



<h2 class="wp-block-heading">Cues From Last Session</h2>



While consumer staples and utilities stocks bucked the trend to close higher, most sectors on the S&amp;P 500 ended negatively, with industrials, consumer discretionary, and communication services recording Tuesday's biggest losses.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.67%</td><td>22,788.36</td></tr><tr><td>S&amp;P 500</td><td>-0.38%</td><td>6,714.59</td></tr><tr><td>Dow Jones</td><td>-0.20%</td><td>46,602.98</td></tr><tr><td>Russell 2000</td><td>-1.12%</td><td>2,458.42</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">Insights From Analysts</h2>



Ed Yardeni of Yardeni Research said in his daily newsletter to investors that financials were in a &#8220;sweet spot&#8221; and the growth in commercial bank loans and leases indicated that the economy was in good shape.



He highlighted that the S&amp;P 500 Diversified Banks stock price index is at a record high, and it was up 4.7% year-on-year through the Sept. 24 week, &#8220;twice as fast as at the beginning of this year.&#8221;



&#8220;This confirms our view that the pace of economic activity isn&#8217;t slowing. It may actually be accelerating,&#8221; he said.



Meanwhile, Ryan Detrick, Chief Market Strategist at the Carson Group, said that the current bull market is approaching its third anniversary, a significant milestone that invites historical comparison.



Detrick presented a chart comparing the current rally, which started in October 2022, against the five previous bull markets of the last 50 years that also lasted this long. The data reveals a potentially optimistic outlook for investors: historically, once a bull market has made it this far, it has tended to continue for much longer.



Detrick notes that the shortest of these past five bull runs lasted five years, the average was eight years, and two extended into double-digit territory, suggesting that if history is any guide, the current market expansion may still have considerable room to run.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The bull market turns three this Sunday. Just a reminder that the five previous bull markets (going back the past 50 years) that made it this far kept going. Shortest was five years, the average was 8 years, and two made it to double digits. <a href="https://t.co/Z73r9Sg3d4">pic.twitter.com/Z73r9Sg3d4</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1975503565948088463?ref_src=twsrc%5Etfw">October 7, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>



<h2 class="wp-block-heading">Upcoming Economic Data</h2>



Here's what investors will be keeping an eye on Wednesday;



<ul class="wp-block-list">
<li>St. Louis Fed President Alberto Musalem will speak at 9:20 a.m., Federal Reserve Governor Michael Barr will speak at 9:30 a.m. and later at 5:45 p.m., Minneapolis Fed President Neel Kashkari will speak at 3:15 p.m., and Chicago Fed President Austan Goolsbee will speak at 7:15 p.m. ET.</li>



<li>The minutes of the Fed&#8217;s September FOMC meeting will be out by 2:00 p.m. ET.</li>
</ul>



<h2 class="wp-block-heading">Commodities, Gold, And Global Equity Markets</h2>



Crude oil futures were trading higher in the early New York session by 0.97% to hover around $62.33 per barrel.



Gold Spot US Dollar rose 1.33% to hover around $4,037.62 per ounce. Its last record high stood at $4,040.48 per ounce. The U.S. Dollar Index spot was 0.36% higher at the 98.9350 level.



Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was trading 1.13% lower at $122,548.91 per coin.



Asian markets closed lower on Wednesday, except South Korea's Kospi and China&#8217;s CSI 300 indices. Hong Kong's Hang Seng, Australia's ASX 200, Japan's Nikkei 225, and India&#8217;s NIFTY 50 indices fell. European markets were mostly higher in early trade.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/economic-data/25/10/48093425/fed-governor-stephen-miran-pours-cold-water-on-tariff-induced-inflation-fears-says-it-is-not-a-material-driver">Fed Governor Stephen Miran Pours Cold Water On Tariff-Induced Inflation Fears, Says It Is Not A &#8216;Material Driver&#8217;</a></li>
</ul>



Photo: Shutterstock

Earnings

Commodities

Treasuries

Pre-Market Outlook

$BTC

BURU

JOBY

POET

Stock Market Today: S&P 500, Nasdaq 100, Dow Jones Futures Rise—Nuburu, AZZ, Joby Aviation In Focus (UPDATED)

White House Press Secretary Karoline Leavitt confirmed on Tuesday that the Trump administration plans to use tariff revenues to support a key nutrition program for low-income mothers and babies amid the government shutdown.



<h2 class="wp-block-heading">Leavitt Lauds Trump's Fix For WIC Funding Crisis</h2>



Leavitt took to X on Wednesday to praise President Donald Trump for identifying a &#8220;creative solution&#8221; to the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) funding crisis, ensuring that the most vulnerable women and children would not go hungry.



She said the solution involved transferring &#8220;resources from Section 232 tariff revenue&#8221; to the WIC program.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The Democrats are so cruel in their continual votes to shut down the government that they forced the WIC program for the most vulnerable women and children to run out this week. Thankfully, President Trump and the White House have identified a creative solution to transfer… <a href="https://t.co/tj9Xt7f4yQ">https://t.co/tj9Xt7f4yQ</a>&mdash; Karoline Leavitt (@PressSec) <a href="https://twitter.com/PressSec/status/1975642840416780535?ref_src=twsrc%5Etfw">October 7, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Leavitt accused the Democrats of causing the government shutdown, which has led to the depletion of funds for the WIC program. 



Her response came in light of an Axios <a href="https://www.axios.com/2025/10/07/white-house-wic-funding-tarriffs-fix-shutdown">report</a>, which originally revealed that the White House had located funding to sustain the food aid program that was at risk due to the shutdown. 



The exact amount that the White House plans to spend and the disbursement timeline remain unclear. 



See Also:&nbsp;<a href="https://benzinga.com/markets/tech/25/10/48093204/north-korean-hackers-set-a-record-with-2-billion-crypto-heist-in-2025-report" target="_blank" rel="noreferrer noopener">North Korean Hackers Set A Record With $2 Billion Crypto Heist in 2025: Report &#8211; Benzinga</a>



<h2 class="wp-block-heading">Schumer Blames GOP for Shutdown; Workers Face Pay Uncertainty</h2>



Senate Minority Leader Chuck Schumer (D-N.Y.) <a href="https://www.benzinga.com/news/politics/25/10/48092398/chuck-schumer-blames-trump-for-government-shutdown-says-republicans-are-hellbent-on-taking-health-care-away-from-60-million-americans">accused</a> Trump and congressional Republicans of triggering the shutdown, calling it a &#8220;life or death&#8221; issue for millions of Americans.



Meanwhile, furloughed federal workers faced uncertainty regarding their <a href="https://www.benzinga.com/news/politics/25/10/48092450/furloughed-federal-workers-not-guaranteed-back-pay-after-government-shutdown-says-white-house-points-to-2019-law-signed-by-trump">back pay</a>, as a White House memo suggested that they might not be guaranteed compensation for their forced time off during the shutdown.



Trump has expressed his <a href="https://www.benzinga.com/news/politics/25/10/48060962/trump-happy-to-work-with-democrats-on-policies-amid-shutdown-but-theres-a-twist">willingness to work </a>with the Democrats on healthcare and other policies, but insisted that the government be reopened first.



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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Trump Administration To Use Tariff Revenues To Fund Nutrition Program For Mothers And Babies Amid Shutdown

On Tuesday, Jim Cramer reflected on his early conviction in Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/NVDA">NVDA</a>), calling CEO Jensen Huang one of the most visionary leaders in tech history as the chipmaker's meteoric rise continues.



<h2 class="wp-block-heading">Jim Cramer Says Jensen Huang Saw The Future Before Everyone Else</h2>



Appearing on CNBC's Closing Bell Overtime, Cramer revisited his first recommendation of Nvidia back in 2009 — when shares were trading for just a fraction of today's price.



He said Huang, whom he first interviewed in 2010, had a 20-year view of the world that investors initially failed to understand.



"I thought that Nvidia was a gaming chip company," Cramer said. Later, he realized it was powering some of the most advanced systems in the world — cars, robotics, AI.



He recalled visiting Nvidia's headquarters years ago, where Huang demonstrated early robotic experiments.&nbsp;



"He&#8217;s a Socratic teacher. And you started realizing, maybe I&#8217;m just in the presence of someone very different who&#8217;s got a view 20 years ahead," Cramer recalled.



See Also:&nbsp;<a href="https://www.benzinga.com/markets/tech/25/10/48091979/nvidia-reportedly-bets-2-billion-on-elon-musks-xai-and-its-own-gpus-will-fuel-colossus-2-gigawatt-scale-ai-supercluster" target="_blank" rel="noreferrer noopener">Nvidia Reportedly Bets $2 Billion On Elon Musk's xAI — And Its Own GPUs Will Fuel ‘Colossus 2' Gigawatt-Scale AI Supercluster</a>



<h2 class="wp-block-heading">From Gaming To AI Powerhouse: The Stock That Minted Millionaires</h2>



Since Cramer's 2009 call, Nvidia has surged tremendously. Just in the past five years, Nvidia's stock price has risen by 1,244.77%, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.



The company's market cap has ballooned to more than $4 trillion, making it the world's most valuable firm.



At a meeting of his CNBC Investing Club earlier in the day, Cramer said Huang personally thanked investors who held onto Nvidia for the long haul. "He&#8217;s a gracious, terrific person and he just wanted to thank people for owning it, not trading it."



<h2 class="wp-block-heading">Cramer Warns Against Hot Stock Mentality Amid AI Boom</h2>



Despite Nvidia's rise, Cramer cautioned investors against chasing the stock blindly during what some call an AI bubble.&nbsp;



He urged investors to focus on conviction rather than hype, saying if investors believe in what Huang's building — a $4 trillion company that no one thought could be worth $1 trillion — then they'll sleep well at night.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Jim Cramer on Nvidia: CEO Jensen Huang has a view 20 years ahead, not two quarters ahead" width="500" height="281" src="https://www.youtube.com/embed/8FUViSLJKr4?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Earlier in the day, during a conversation with Cramer, Huang said that longtime competitor Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/INTC">INTC</a>) spent <a href="https://www.benzinga.com/markets/tech/25/10/48092929/nvidia-ceo-jensen-huang-says-intel-spent-33-years-trying-to-kill-us-but-now-calls-the-chip-rival-a-partner-were-lovers-not-fighters">over 30 years &#8220;trying to kill&#8221;</a> his company — yet the two chip giants have now joined <a href="https://www.benzinga.com/markets/tech/25/09/47737575/nvidia-breathes-new-life-in-intel-stock-with-5-billion-deal">forces in a $5 billion partnership</a>.



During the conversation, he also spoke about the current semiconductor and artificial intelligence landscape, OpenAI and more.



In August, Nvidia posted <a href="https://www.benzinga.com/markets/earnings/25/08/47371649/nvidia-q2-earnings-highlights-double-beat-60b-share-buyback-huang-says-ai-race-is-on">second-quarter revenue</a> of $46.74 billion, marking a 56% increase year-over-year and surpassing Wall Street's consensus estimate of $46.02 billion.



Nvidia shares have risen 33.77% year-to-date. Benzinga's Edge Stock Rankings place its Growth in the 97th percentile and Quality in the 93rd, highlighting <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">the company's strong standing versus competitors</a> like AMD.



<figure class="wp-block-image aligncenter size-full"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/08043913/Screenshot-2025-10-08-at-7.30.05%E2%80%AFAM-2.png" alt="" class="wp-image-1103898"/></a></figure>



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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo courtesy: Shutterstock

Jim Cramer Recalls First Betting On Nvidia In 2009 — Says Jensen Huang Was '20 Years Ahead' Of His Time As Stock Soars Over 1,244% In Past 5 Years

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index moved to the &#8220;Neutral&#8221; zone on Tuesday.



U.S. stocks settled lower on Tuesday, with the Nasdaq Composite falling more than 150 points during the session. The S&amp;P 500 also snapped a seven-day winning streak during the session.



Shares of Oracle Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/ORCL">ORCL</a>) fell 2.5% on Tuesday after The Information reported that the company is facing financial struggles related to renting out Nvidia chips. Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/AMD">AMD</a>)&#8217;s rally continues, rising another 3.8% after Monday&#8217;s explosive 23.7% surge following its deal with OpenAI, as both Bank of America and Goldman Sachs raised their 12-month price targets to $250 and $210, respectively.



The blackout in economic data due to the U.S. government shutdown hasn&#8217;t dented expectations that the Federal Reserve will continue to cut interest rates. Markets continue to price in a 95% chance of a 25-basis-point rate cut at the October 30 meeting.



Most sectors on the S&amp;P 500 closed on a negative note, with industrials, consumer discretionary and communication services stocks recording the biggest losses on Tuesday. However, consumer staples and utilities stocks bucked the overall market trend, closing the session higher.



The Dow Jones closed lower by around 92 points to 46,602.98 on Tuesday. The S&amp;P 500 fell 0.38% to 6,714.59, while the Nasdaq Composite dipped 0.67% to 22,788.36 during Tuesday's session.



Investors are awaiting earnings results from AZZ Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/AZZ">AZZ</a>), Richardson Electronics Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/RELL">RELL</a>) and Bassett Furniture Industries Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/BSET">BSET</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 52.7, the index moved to the &#8220;Neutral&#8221; zone on Tuesday, versus a prior reading of 56.7.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



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Photo via Shutterstock

BSET

RELL

S&P 500 Ends Seven-Session Winning Streak: Investor Sentiment Declines, Fear & Greed Index Moves To 'Neutral' Zone

Leading cryptocurrencies slumped alongside markets on Tuesday, while gold surged to fresh highs, as the U.S. government shutdown entered its seventh day.



<figure class="wp-block-table"><table class="has-fixed-layout"><thead><tr><th>Cryptocurrency</th><th>Gains +/-</th><th>Price (Recorded at 9:30 p.m. ET)</th></tr></thead><tbody><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>-2.17%</td><td>$122,010.53</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-4.13%</td><td>$4,486.78</td></tr><tr><td>XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-3.73%</td><td>$2.87</td></tr><tr><td>Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-4.09%</td><td>$222.04</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-5.65%</td><td>$0.2498</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">Market Cools Down</h2>



Bitcoin fell below $121,000, ending a week-long rally that had sent it to record highs. Trading volume surged 15% in the last 24 hours, suggesting high selling pressure.



Similarly, Ethereum retreated from the mid $4,700s to below $4,500, while volumes jumped 60%. XRP and Solana also recorded sharp declines.



In the past 24 hours, 167,851 traders were liquidated, with total cryptocurrency liquidations at $621.29 million, <a href="https://www.coinglass.com/LongShortRatio">according </a>to Coinglass. Nearly $470 million in bullish longs were wiped out.



Bitcoin&#8217;s open interest fell 3.33% to $90.81 billion, while more than 50% of Binance futures traders remained bearish on the asset, according to the Long/Short ratio.



The market&#8217;s "Greed" sentiment weakened, according to the Crypto Fear &amp; Greed Index.



Top Gainers (24 Hours)&nbsp;



<figure class="wp-block-table"><table class="has-fixed-layout"><thead><tr><th>Cryptocurrency (Market Cap&gt;$1 B)</th><th>Gains +/-</th><th>Price (Recorded at 9:30 p.m. ET)</th></tr></thead><tbody><tr><td>PancakeSwap (CAKE)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+14.15%</td><td>$4.29</td></tr><tr><td>DeXe (DEXE)&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+10.92%</td><td>$13.01</td></tr><tr><td>slisBNBx (slisBNBx )&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+8.66%</td><td>$1,314.36 </td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $4.16 trillion, contracting 2.58% in the last 24 hours.



<h2 class="wp-block-heading">Stocks Fall, Gold Hits Record High</h2>



Stocks retreated from record highs on Tuesday. The S&amp;P 500 slid 0.38% to close at 6,714.59, snapping a 7-day winning streak. The tech-heavy Nasdaq Composite dipped 0.67% to end at 22,788.36. The Dow Jones Industrial Average dropped 91.99 points, or 0.2%, to end at 46,602.98.



The tech stocks were pressured as shares of Oracle Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/ORCL">ORCL</a>) fell following reports suggesting that the <a href="https://www.benzinga.com/trading-ideas/movers/25/10/48082768/oracle-stock-is-tumbling-tuesday-heres-why">company is facing financial challenges</a> in renting out Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/NVDA">NVDA</a>) chips.



Meanwhile, gold prices rose to a new high of $4,000 per ounce on Tuesday. The federal government shutdown entered its seventh day.



<h2 class="wp-block-heading">Risk-On Switch Incoming?</h2>



Widely followed cryptocurrency analyst and trader Michaël van de Poppe was optimistic about new all-time highs for Ethereum, noting a potential reversal in the ETH/BTC ratio after a normal correction.



Van De Poppe also linked it to gold's "insanely parabolic" trajectory, predicting a "big risk-on switch" once the precious metal falls.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The reason that I think that we&#39;re about to see a new all-time high on <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> is two-fold. 1 &#8211; The BTC pair looks bottomed out and ready for a new leg upwards, after a relatively normal correction. 2 &#8211; Gold is insanely parabolic, which means that, I don&#39;t know at what level, it… <a href="https://t.co/hjpNsmEPAM">pic.twitter.com/hjpNsmEPAM</a>&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1975607055000973626?ref_src=twsrc%5Etfw">October 7, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Ali Martinez, another well-known trader, said that $4,000–$4,800 has been a "danger zone" for ETH since 2021, with each touch resulting in a correction.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">$4,000–$4,800 has been Ethereum <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> danger zone since 2021. Every touch led to a correction. <a href="https://t.co/YeIV4TXKYR">pic.twitter.com/YeIV4TXKYR</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1975670970578022802?ref_src=twsrc%5Etfw">October 7, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo Courtesy: OMG_Studio on Shutterstock.com



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Bitcoin, Ethereum, XRP, Dogecoin Snap Winning Run; Analyst Sees New ETH Highs Once Gold's 'Insanely Parabolic' Trajectory Ends

President Donald Trump suggested that progress could be made on trade talks with Canada, after meeting with Prime Minister Mark Carney, but stopped short of offering any concrete assurances as tariffs continue to weigh on the neighboring economy. 



<h2 class="wp-block-heading">No Concessions On Trade</h2>



Speaking to reporters in the Oval Office on Tuesday, alongside Carney, Trump said he expected his Canadian counterpart to &#8220;walk away very happy,&#8221; amid the ongoing tariffs imposed by his administration, which threaten the $1.3 trillion trading relationship, according to a <a href="https://www.ft.com/content/6a87b608-bd59-4ed5-b7fd-90fc7df30f4f">report</a> by The Financial Times.



See Also: <a href="https://www.benzinga.com/news/politics/25/10/48070924/brazilian-president-lula-urges-trump-to-slash-tariffs-as-leaders-hold-friendly-call">Brazilian President Lula Urges Trump To Slash Tariffs As Leaders Hold &#8216;Friendly&#8217; Call</a>



Despite praising Carney as a &#8220;great prime minister&#8221; and a &#8220;very strong, very good leader,&#8221; Trump failed to specify how the two nations can work out their differences on trade. 



Instead, Trump said that &#8220;there's natural conflict&#8221; between the U.S. and Canada, while describing the relationship as &#8220;complicated.&#8221;



Trump said that he wanted Canada &#8220;to do great, but there's a point at which we want the same business,&#8221; citing competition from Canadian farmers, automakers and steel producers. Carney, meanwhile, said Canada planned to invest &#8220;a trillion in the next five years&#8221; in the U.S., emphasizing that the two nations are &#8220;stronger together.&#8221;



<h2 class="wp-block-heading">Canada&#8217;s Economy Shrinks</h2>



Canadian exports dropped 7.5% during the second quarter, primarily due to the <a href="https://www.benzinga.com/markets/macro-economic-events/25/07/46781583/trump-slaps-35-tariff-on-canadian-goods-hits-68-other-nations-with-new-trade-war-amid-fentanyl-security-china-tensions">punitive 35% tariffs</a> imposed on the country by the Trump administration, citing Ottawa&#8217;s &#8220;failure to cooperate&#8221; on combating fentanyl flows into the U.S.



Late last month, Trump unveiled a new set of tariffs <a href="https://www.benzinga.com/markets/macro-economic-events/25/09/47882000/trumps-new-tariff-barrage-targets-drugs-trucks-cabinets-president-says-move-will-protect-manufacturers-from-unfair-outside-competition">targeting heavy-duty trucks</a>, drugs, and kitchen cabinets, among other things. Canada is one of the countries hit particularly hard by this move, as it is a significant source of truck imports to the United States.



Photo Courtesy: Lightspring on Shutterstock.com



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Global

Trump Calls US-Canada Relationship 'Complicated' But Hints At Trade Breakthrough After Meeting Mark Carney: 'There's A Natural Conflict'

Jensen Huang-led Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/NVDA">NVDA</a>) is reportedly investing as much as $2 billion in Elon Musk's AI company and Grok-parent xAI.



<h2 class="wp-block-heading">Jensen Huang Deepens Partnership With Elon Musk's AI Venture</h2>



Nvidia's investment is part of xAI's ongoing funding efforts, which have grown beyond initial plans to reach $20 billion, <a href="https://www.bloomberg.com/news/articles/2025-10-07/musk-s-xai-nears-20-billion-capital-raise-tied-to-nvidia-chips">according</a> to Bloomberg, citing people with knowledge of the matter.



xAI's funding is divided between $7.5 billion in equity and $12.5 billion in debt, the report said. This is structured through a special purpose vehicle.



The funding will be used to purchase Nvidia's GPUs, which xAI plans to deploy at &#8220;Colossus 2,&#8221; its AI data center in Memphis, Tennessee.



Musk previously <a href="https://www.benzinga.com/government/regulations/25/05/45511489/elon-musk-touts-xais-colossus-2-as-first-gigawatt-ai-supercluster-powered-by-168-tesla-megapacks-amid-agi-push">said that Colossus 2</a> will become the world&#8217;s first Gigawatt AI training cluster.



The funding also includes participation from Apollo Global Management (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/APO">APO</a>), Diameter Capital Partners and Valor Capital, the report noted.



xAI did not immediately respond to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga's</a> request for comments. Nvidia declined to comment.



See Also:&nbsp;<a href="https://www.benzinga.com/markets/tech/25/09/47516653/tesla-robotaxi-downloads-outpace-uber-by-40-on-apples-app-store-amid-ease-of-self-driving-regulations" target="_blank" rel="noreferrer noopener">Tesla Robotaxi Downloads Outpace Uber By 40% On Apple's App Store Amid Ease Of Self-Driving Regulations</a>



<h2 class="wp-block-heading">Musk-Led xAI's Rapid Growth And Heavy Spending</h2>



In July earlier this year, xAI secured <a href="https://www.benzinga.com/markets/tech/25/07/46187301/elon-musks-xai-secures-10-billion-in-debt-and-equity-amid-soaring-burn-rate-as-ai-arms-race-intensifies">$10 billion in debt and equity</a> financing. In September, Musk denied reports that the startup was raising another $10 billion in funding at a <a href="https://www.benzinga.com/markets/tech/25/09/47779757/elon-musk-refutes-claims-of-xais-10-billion-funding-round-says-xai-is-not-raising-any-capital-right-now">valuation of $200 billion</a>.



However, as per the report, xAI burns through $1 billion per month, indicating that it requires funds to continue.



Later this year, Musk's EV giant Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/TSLA">TSLA</a>) shareholders will also vote on whether the automaker should <a href="https://www.benzinga.com/markets/tech/25/07/46646932/elon-musks-tesla-to-include-shareholder-proposal-on-xai-investment-in-proxy-after-receiving-multiple-requests">invest directly in xAI</a>.



Price Action: Nvidia shares dropped 0.25% on Tuesday, reaching $184.04. In after-hours trading, it continues to drop, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro</a>.



Benzinga's Edge Stock Rankings place Nvidia's Growth in the 97th percentile and Quality in the 93rd percentile, <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">highlighting its strong standing compared</a> to leading AI peers such as TSMC and AMD.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07220508/Screenshot-2025-10-08-at-7.30.05%E2%80%AFAM.png" alt="" class="wp-image-1103216"/></a></figure>



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<li><a href="https://www.benzinga.com/markets/tech/25/07/46259534/elon-musks-xai-hires-trump-aide-stephen-millers-wife-katie-amid-controversial-memphis-data-center-permit-win" target="_blank" rel="noreferrer noopener">Elon Musk's xAI Hires Trump Aide Stephen Miller's Wife Katie Amid Controversial Memphis Data Center Permit Win</a></li>
</ul>



Photo: gguy/ Shutterstock

Nvidia Reportedly Bets $2 Billion On Elon Musk's xAI — And Its Own GPUs Will Fuel 'Colossus 2' Gigawatt-Scale AI Supercluster

The IPO market is coming back to life in 2025, fueled by a favorable business climate under President Donald Trump&#8217;s second term and a burst in investor demand for new equity stories as risk sentiment runs at full <a href="https://www.benzinga.com/markets">throttle on Wall Street. </a>



So far in 2025, 163 companies have gone public in the U.S., marking a 49.5% increase over the 109 IPOs of 2024. Total proceeds collected this year have reached $31 billion, a 17.1% rise from last year, and there's still a full quarter left to go.



The revival stands in stark contrast to the post-2021 cooldown, when high borrowing costs and rampant inflation had all but frozen new listings. 



While still far from the frothy heights of 2021 — when 397 IPOs raised a staggering $142.4 billion — the IPO market is showing its strongest momentum in four years.



<h2 class="wp-block-heading">Biggest Quarter For IPO Market Since 2021</h2>



According to Renaissance Capital, the third quarter of 2025 marked a turning point. The U.S. IPO market saw 64 deals that raised $15.3 billion, making it the most active quarter since 2021.



"Renewed interest in growth stocks allowed many of these names to price above the midpoint," Renaissance said, noting a steady ramp-up in issuance from July through September. 



Twenty-four IPOs raised over $100 million, led by headline names like Etoiles Capital Group Co. Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/EFTY">EFTY</a>) with $5.6 billion, Klarna Group plc (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/KLAR">KLAR</a>) with $1.3 billion and Figma Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/FIG">FIG</a>) with $1.2 billion. Figma, in particular, electrified Wall Street with a stunning 250% surge on its trading debut.



The shift in sentiment is also being reflected in market performance. 



The Renaissance IPO ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/IPO">IPO</a>), which tracks the performance of newly listed companies, is now outperforming the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/SPY">SPY</a>) by roughly 1% in 2025, after lagging the benchmark by more than 6 percentage points last year.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="556" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07153410/image-171-1024x556.png" alt="" class="wp-image-1102951" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07153410/image-171-1024x556.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07153410/image-171-300x163.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07153410/image-171-768x417.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07153410/image-171-1536x834.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07153410/image-171-2048x1112.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h2 class="wp-block-heading">Five IPOs Have Already Gained Over 400%—Did You Miss the Rally?</h2>



IPO returns have been staggering for a select few. Below are five standout performers that have surged more than 400% since debuting this year.



5) Anbio Biotechnology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/NNNN">NNNN</a>) Specializing in diagnostic and point-of-care biotech solutions, Anbio's February IPO priced at $5.00. Shares have soared to $28.27, a 470.34% gain despite recent volatility.



4) Diginex Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/DGNX">DGNX</a>) A fast-growing software company specializing in decentralized digital identity and compliance tools, Diginex raised $9 million in January. The stock has risen 492.88% since its $4.00 IPO.



3) Rich Sparkle Holdings Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/ANPA">ANPA</a>) A provider of commercial support services in Southeast Asia, Rich Sparkle listed in July at $4.00 per share. Its current price of $27.40 marks a 585% surge.



2) Jyong Biotech Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/MENS">MENS</a>) This biotech firm, which focuses on hormone-related therapies, has exploded since its June debut. From an IPO price of $7.00, the stock now trades at $52.23, up 647.27%, giving it a market cap of over $4 billion.



1) Epsium Enterprise Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/EPSM">EPSM</a>) A distributor operating in niche industrial sectors, Epsium debuted in March at $4.00. Shares now trade at $32.30, up 707.63%. The company raised just $5 million through a modest 1.25 million share offering.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/tech/25/10/48081970/ai-investing-us-china-tech-cqqq-qqq">Going All-In On US AI Stocks? You&#8217;re Missing The China Trade, Alpine Macro Says</a></li>
</ul>



Image created using photos from Shutterstock.

Specialty ETFs

Small Cap

IPOs

Startups

ANPA

DGNX

EFTY

EPSM

KLAR

MENS

NNNN

STUB

Trump Sparks A 2025 IPO Boom: 5 New Stocks Have Rallied Over 400%

Once convicted of fraud for misleading investors, Nikola Corporation founder and former CEO Trevor Milton is ready to make his comeback after being pardoned by President Donald Trump and <a href="https://www.benzinga.com/markets/equities/25/03/44528332/trump-pardons-nikola-founder-trevor-milton-short-seller-jim-chanos-reacts-please-tell-me-this-is-a-hoax">released from jail.</a>



<h2 class="wp-block-heading">Milton Targets New Sector</h2>



While at Nikola, Milton targeted the electric vehicle sector with a focus on hydrogen. On Tuesday, Milton announced he is now hoping to transform <a href="https://www.benzinga.com/topic/aerospace">the aerospace sector.</a>



"Finally. I get to tell you what I have been working on! I'm so excited to tell you about my new project: SyberJet," Milton said in a <a href="https://x.com/nikolatrevor/status/1975617031644062157">post </a>on X.



Milton said the SJ30 from SyberJet is the "farthest-flying light jet" to ever get certified by the FAA. He said the company will make the SJ36 next, pushing boundaries for speed, range, altitude and comfort.



"This is my comeback and it starts now with SyberJet."



In the video post, Milton shares what he's been up to, which includes being pardoned by Trump and recently having the SEC drop a case against him.



"I purchased this company with a group of people called SyberJet."



Milton said that the company was sitting dormant and he was able to scoop it up.



The former Nikola CEO is serving as CEO of the company as they push to get new planes in the sky.



"I get to transform the aviation industry, like I got to do for the transportation industry."



As CEO, Milton will help the company develop the SJ36, which is being designed as the first light jet capable of flying from Los Angeles to Hawaii or New York City to Los Angeles non-stop. The airplane will be designed for 10 people, one pilot, one crew member and eight passengers.



Milton said that everyone is doing electric and hydrogen-powered semi-trucks now because of what he started at Nikola.



"The world followed us."



Milton said he brought over several former Nikola employees, including engineers, to help him push SyberJet forward.



Read Also:<a href="https://www.benzinga.com/news/topics/25/07/46598941/tucker-carlsons-milton-interview-sparks-outrage-bill-ackman-backs-hindenburg-founder-against-former-nikola-ceo-calls-him-convicted-corporate-stock-market-fraudster"> Tucker Carlson&#8217;s Milton Interview Sparks Outrage: Bill Ackman Backs Hindenburg Founder Against Former Nikola CEO, Calls Him &#8216;Convicted Corporate Stock Market Fraudster&#8217;</a>



<h2 class="wp-block-heading">Milton's Comeback To Be Recorded</h2>



Trevor Milton was previously convicted of fraud for misleading investors, a conviction that resulted in a <a href="https://www.benzinga.com/news/23/12/36289800/nikola-founder-trevor-milton-sentenced-to-4-years-in-prison-for-fraud">four-year prison sentence</a>. Milton was pardoned by Trump in March 2025. 



"Talk about a comeback. It's like the American dream. Everyone falls down, everyone gets their butts kicked in life," Milton said in the video.



He said that everyone has to be willing to be okay with this and move on, something he is now ready to do. The former Nikola CEO said he feels 10 times stronger than when he was at the EV company.



Part of Milton's comeback includes creating a YouTube series that will follow SyberJet through production. The first episodes are expected to be released in fall 2026, according to the company.



With the company already securing FAA certification on a previous airplane model, Milton said the hope is to modify and change that model, bringing the latest automotive technology to the sector. This includes having SyberJet be the first airplane with over-the-air updating.



Milton's hope is to have production of airplanes in five to six years.



"Follow along with the journey. I'm so excited to bring you guys along."



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/24/06/39239670/nikola-founder-and-convicted-felon-trevor-milton-files-lawsuit-against-present-chief-legal-officer-d">Nikola Founder And Convicted Felon Trevor Milton Files Lawsuit Against Present Chief Legal Officer, Directors Alleging Malpractice</a></li>
</ul>



Photo: SJ30 courtesy SyberJet

Short Sellers

Management

Nikola Founder Trevor Milton Is Out Of Jail: His 'Comeback Story' Targets This Sector

IBM (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/IBM">IBM</a>) and Alphabet Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/GOOGL">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/GOOG">GOOG</a>) Google are chasing error correction with superconducting qubits. Still, Rigetti Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/RGTI">RGTI</a>) CEO Subodh Kulkarni says the company's proprietary chiplet architecture gives it a measurable edge.



<ul class="wp-block-list">
<li>Track RGTI stock <a href="https://www.benzinga.com/quote/RGTI">here</a>.</li>
</ul>



"Having already validated our chiplet-based approach, we are confident that our 100+ qubit system planned for the end of 2025 will achieve the same fidelity," Kulkarni told Benzinga in an exclusive email interview, highlighting the company's 2025 roadmap toward quantum advantage.



Read Also: <a href="https://www.benzinga.com/markets/tech/25/07/46473075/exclusive-this-stocks-up-1300-but-ceo-says-the-real-payoffs-4-years-away" target="_blank" rel="noreferrer noopener">EXCLUSIVE: This Stock&#8217;s Up 1,300% — But CEO Says The Real Payoff&#8217;s 4 Years Away</a>



<h2 class="wp-block-heading">Cepheus-1-36Q: Scaling With Precision</h2>



The Cepheus-1-36Q system, Rigetti's latest multi-chip quantum computer, combines four 9-qubit chiplets into the largest system on the market. "Cepheus-1-36Q…achieved a 99.5% median 2-qubit gate fidelity. This is half the error rate of our single-chip 84-qubit Ankaa-3 system," Kulkarni noted. 



He also pointed to other critical IP for scaling, including "3D signaling and inter-module connectivity technology, and a novel chip fabrication process for more precise frequency tuning of our qubits (Alternating-Bias Assisted Annealing)," underscoring the company's focus on reducing errors while expanding qubit counts.



<h2 class="wp-block-heading">Partnerships And Modular Advantage</h2>



Rigetti's architecture allows partnerships that further strengthen its position in the quantum ecosystem. "We have an open, modular architecture that allows us to partner with companies like Riverlane for error correction, Quanta for control systems, NVIDIA for CUDA-q, etc.," Kulkarni said. By integrating Nvidia Corp's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/NVDA">NVDA</a>) CUDA-q and other specialized partners, Rigetti is positioning itself to execute faster than competitors while maintaining flexibility across hardware and software layers.



<h2 class="wp-block-heading">Why It Matters</h2>



Rigetti's combination of proven chiplet architecture, high-fidelity multi-chip systems, and strategic partnerships with Nvidia and other technology providers provides investors with tangible milestones to monitor.



As IBM and Google race to scale error-corrected qubits, Rigetti's roadmap — validated by Cepheus-1-36Q — provides measurable progress and a clear path toward its 2025 100+ qubit target.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/hedge-funds/25/09/47917388/rigetti-stock-boom-ken-griffin-tudor-jones-land-163-windfall-in-88-days">Rigetti Stock Boom: Ken Griffin, Tudor Jones Land 163% Windfall In 88 Days</a></li>
</ul>



Photo: Shutterstock

GOOG

EXCLUSIVE: Rigetti Leverages Nvidia, Chiplets To Outpace IBM And Google In Quantum Race

Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/TSLA">TSLA</a>) on Tuesday unveiled that the price of its new Model Y would be set below $40,000, sparking interest among <a href="https://www.benzinga.com/trading-ideas/long-ideas/25/10/48058934/cathie-wood-tom-lee-align-on-these-10-stock-picks-some-might-surprise-you">investors and consumers. </a>



<h2 class="wp-block-heading">Model Y</h2>



The company&#8217;s announcement coincides with the release of a new version of its supervised self-driving technology, further fueling anticipation in the electric vehicle market, <a href="https://www.cnbc.com/2025/10/07/tesla-stock-roadster-budget-model-y.html">according </a>to CNBC.



Read Next: <a href="https://www.benzinga.com/trading-ideas/movers/25/10/48079990/trump-ignites-metal-stock-frenzy-these-names-could-be-next">Trump Ignites Metal Stock Frenzy—These Names Could Be Next</a>



Excitement reached a fever pitch over the weekend when Tesla teased a <a href="https://www.benzinga.com/markets/tech/25/10/48035768/elon-musk-led-tesla-releases-cryptic-teasers-could-this-finally-be-affordable-model-y-or-roadster">mysterious spinning part</a> emblazoned with its logo, leaving followers guessing whether it was a fan, wheel cover, or something entirely unexpected. 



The cryptic video concluded with "10/7," pointing to a reveal date. Another teaser followed, showing the silhouette of headlights glowing in the dark, boosting online speculation.



Investor attention quickly translated into financial momentum. Tesla's stock surged by 5% on Monday, reflecting hopes for a budget version of the Model Y and curiosity about updates on the next-generation Roadster—a model CEO Elon Musk has discussed for years, but has yet to deliver.



The new Model Y, priced at $39,990, marks the first new addition to Tesla&#8217;s lineup since the introduction of the Cybertruck, the brand's distinctive steel pickup truck, which launched in late 2023.



Despite much marketing fanfare, the Cybertruck stumbled at its unveiling event in 2019 due to a broken window demonstration and failed to capture the mass appeal of the Model 3 or Model Y. It has also faced several voluntary recalls in the U.S.



<h2 class="wp-block-heading">Optimus</h2>



Tesla's ambitions also extend to <a href="https://www.benzinga.com/markets/tech/25/10/48035011/elon-musk-releases-video-showcasing-optimus-robot-performing-martial-arts-moves-says-not-teleoperated-amid-ai-push">humanoid robots</a>, with Musk touting future factory helpers and household assistants. 



Still, the Optimus robot has yet to go on sale, while competitors have already launched their bipedal robots.



The company's stock, after slumping 36% in the year's first quarter, rebounded sharply and climbed 40% in the third quarter, partly thanks to Musk purchasing $1 billion in Tesla shares. 



Tesla stock is now up 9% in 2025. 



Read Next:&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/trading-ideas/movers/25/10/48082767/datavault-ai-stocks-face-melting-720-rally-what-to-know">Datavault AI Stock&#8217;s Face-Melting 720% Rally—What To Know</a></li>
</ul>



Photo: Shutterstock

Tesla Model Y Debuts At $39,990 On Heels Of Cryptic Video

The Trump administration's direct investments in the metals sector has triggered a sweeping rally, with rare earths and battery metal stocks rocketing on prospects of federal backing and <a href="https://www.benzinga.com/trading-ideas/movers/25/10/48058066/trilogy-metals-stock-soars-after-us-government-announces-10-stake">strategic policy changes.&nbsp;</a>



<ul class="wp-block-list">
<li>TMQ stock is soaring.<a href="https://www.benzinga.com/quote/TMQ"> See the real-time price action here. </a></li>
</ul>



The White House has already <a href="https://www.benzinga.com/markets/equities/25/10/48061018/trump-administration-now-holds-stakes-in-5-public-companies-heres-a-list-intc-mp-lac-and-more">taken stakes</a> in MP Materials Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/MP">MP</a>), Lithium Americas Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/LAC">LAC</a>) and most recently, Trilogy Metals, Inc. (AMEX:<a class="ticker" href="https://www.benzinga.com/quote/TMQ">TMQ</a>).&nbsp;



Investors are scouting other companies that could draw interest and support from the Trump administration.&nbsp;



Read Next: <a href="https://www.benzinga.com/markets/large-cap/25/10/47996067/tesla-rivals-brace-for-ev-market-collapse-thanks-to-trump">Tesla, Rivals Brace For EV Market &#8216;Collapse&#8217;—Thanks To Trump</a>



"Investors have to ask ‘who's next?' because the stocks are moving fantastically on this news no matter what the actual details are of these announcements," David Deckelbaum, analyst with TD Cowen,<a href="https://www.bloomberg.com/news/articles/2025-10-07/investors-place-bets-on-trump-team-s-next-investment-target"> told </a>Bloomberg.



<h2 class="wp-block-heading">Next in Line? Northern Dynasty Minerals (NAK)</h2>



Northern Dynasty Minerals Ltd. (AMEX:<a class="ticker" href="https://www.benzinga.com/quote/NAK">NAK</a>) could also be targeted by the Trump administration for investment, given its Pebble Project in Alaska—one of the largest undeveloped copper-gold-molybdenum deposits in the world.&nbsp;



<h2 class="wp-block-heading">USA Rare Earth (USAR): White House Talks Ignite Rally</h2>



USA Rare Earth, Inc. (USAR) has drawn attention from investors after the CEO's confirmation of ongoing "close communication" with the Trump administration<a href="https://www.benzinga.com/trading-ideas/movers/25/10/48015198/usa-rare-earth-stock-jumps-on-white-house-talks-will-trump-take-a-stake"> amplified speculation</a> that a federal investment could be coming.&nbsp;



The company is currently working on a rare earth mining project in Sierra Blanca, Texas, and a magnet manufacturing site in Stillwater, Oklahoma.&nbsp;



Read Next: <a href="https://www.benzinga.com/trading-ideas/movers/25/10/48023764/tesla-set-to-hit-3-trillion-in-2026-dan-ives">Tesla Set To Hit $3 Trillion in 2026—Dan Ives</a>



<h2 class="wp-block-heading">TMC The Metals Company (TMC): Deep-Sea Surge</h2>



TMC The Metals Company, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/TMC">TMC</a>), focused on deep-sea mining of cobalt and nickel, has surged more than 650% year-to-date on signals of White House support and added uncertainty from U.S.-China trade tensions.&nbsp;



TMC's innovative approach to resource development has drawn heightened interest from both investors and policy makers as the U.S. aims to bolster domestic production.&nbsp;



<h2 class="wp-block-heading">Critical Metals (CRML): Strategic Greenland Bet</h2>



Critical Metals Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/CRML">CRML</a>) spiked on Monday following reports the Trump administration is actively considering an equity stake in the company, reflecting its alignment with national security objectives surrounding the supply of rare earths.&nbsp;



However, the stock pulled back after a White House official <a href="https://www.benzinga.com/trading-ideas/long-ideas/25/10/48050981/critical-metals-crml-stock-pulls-back-after-white-house-denies-investment">said the administration</a> is not actively pursuing an agreement with Critical Metals for its rare earths project in Greenland.



<h2 class="wp-block-heading">Outlook</h2>



Critical mineral stocks, companies tied to rare earths, lithium and battery metals could continue to see increased volatility as investors jockey to find the next White House darling to receive federal backing.&nbsp;



However, investors should be cautious as the future can be hard to predict.&nbsp;



"This is more speculation than anything else at this point," Deckelbaum told Bloomberg.&nbsp;



"The retail crowd, especially, is going to follow flows and momentum. And once the momentum stalls, you know, you can obviously see an opposite reaction," he said.



Read Next:&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/trading-ideas/movers/25/10/48019438/trending-quantum-stocks-rigetti-and-d-wave-are-popping">Trending Quantum Stocks—Rigetti And D-Wave Are Popping</a></li>
</ul>



Photo: Shutterstock

CRML

USAR

Trump Ignites Metal Stock Frenzy—These Names Could Be Next

Risk sentiment is taking a breather after days of a relentless rally, with all major Wall Street indexes trading in negative territory and sharper declines hitting the most speculative <a href="https://www.benzinga.com/markets">assets, such as cryptocurrencies.</a>



Investors are showing early signs of profit-taking after the Nasdaq 100 and S&amp;P 500 surged roughly 50% and 40%, respectively, from their lows in April.



The blackout in economic data due to the U.S. government shutdown hasn't dented expectations that the Federal Reserve will continue to cut interest rates. Markets continue to price in a 95% chance of a 25-basis-point rate cut at the October 30 meeting.



Volatility is also on the rise, with the VIX up approximately 5%, while only defensive sectors—namely, consumer staples, utilities and healthcare—are avoiding losses.



Small caps are underperforming large caps, with the Russell 2000 down 1.1% in what could be its worst session since mid-August.



Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/AMD">AMD</a>)'s rally continues, rising another 4% after Monday's explosive 23.7% surge following its deal with OpenAI, as both Bank of America and Goldman Sachs raised their 12-month price targets to $250 and $210, respectively.



Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/F">F</a>) stands out among the laggards, plunging 6.5% in its worst day since February after a fire at Novelis, a key aluminum supplier, which is expected to disrupt production until early 2026. General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/GM">GM</a>) also slipped 2.2%.



Gold futures smashed through the $4,000 mark in another historic session for the yellow metal, which has been setting record highs almost daily. It marks gold's eleventh gain in the past thirteen sessions. Silver, however, fell nearly 2%, dropping below $48 per ounce.



The crypto rally also took a pause. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) slid to $121,500, down 2.5%, snapping a six-day winning streak. Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) lost 4% to $4,500, Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>) fell 4.2% to $223, and Strategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/MSTR">MSTR</a>) tumbled 7%.



<h2 class="wp-block-heading">Tuesday&#8217;s Performance In Major US Indices, ETFs</h2>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day % chg</td></tr><tr><td>• Dow Jones</td><td>46,587.54</td><td>-0.2%</td></tr><tr><td>• S&amp;P 500</td><td>6,718.92</td><td>-0.3%</td></tr><tr><td>• Nasdaq 100</td><td>24,851.29</td><td>-0.5%</td></tr><tr><td>• Russell 2000</td><td>2,458.67</td><td>-1.0%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 1:15 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul class="wp-block-list">
<li>The&nbsp;Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/VOO">VOO</a>) slipped 0.4% to $614.90.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/quote/DIA">DIA</a>) slipped 0.2% to $465.74.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/QQQ">QQQ</a>)&nbsp;eased 0.5% to $604.64.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/IWM">IWM</a>) dropped 1% $244.26.</li>



<li>The&nbsp;Utilities&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/XLU">XLU</a>) outperformed, up 0.9%; the&nbsp;Consumer Discretionary&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/quote/XLY">XLY</a>) lagged, down 1.1%.</li>
</ul>



S&amp;P 500&#8217;s Top 5 Gainers On Tuesday



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><thead><tr><th>Name </th><th>% Change</th></tr></thead><tbody><tr><td>AppLovin Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/APP">APP</a>)</td><td>+7.26%</td></tr><tr><td>The Estée Lauder Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/EL">EL</a>)</td><td>+4.24%</td></tr><tr><td>PayPal Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/PYPL">PYPL</a>)</td><td>+3.46%</td></tr><tr><td>Advanced Micro Devices, Inc. </td><td>+3.34%</td></tr><tr><td>Kenvue Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/KVUE">KVUE</a>)</td><td>+2.84%</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">S&amp;P 500&#8217;s Top 5 Losers On Tuesday</h2>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><thead><tr><th>Name (Exchange: Ticker)</th><th>% Change</th></tr></thead><tbody><tr><td>Seagate Technology Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/STX">STX</a>)</td><td>-7.20%</td></tr><tr><td>Ford Motor Company </td><td>-6.26%</td></tr><tr><td>D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/DHI">DHI</a>)</td><td>-5.36%</td></tr><tr><td>Western Digital Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/WDC">WDC</a>)</td><td>-4.87%</td></tr><tr><td>Teradyne, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/TER">TER</a>)</td><td>-4.35%</td></tr></tbody></table></figure>



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Stocks, Bitcoin Slip, Gold Hits $4,000: What's Moving Markets Tuesday?

The hangover from the First Brands bankruptcy may be far from over for<a href="https://www.benzinga.com/money/what-is-private-equity-investing"> the private equity industry. </a>



While Wall Street's rally continues to break records, private equity stocks remain under pressure. Analysts now say the pressure may not ease soon.



In a note shared Tuesday, 22V Research's analyst Bill Hebel said private equity firms remain particularly exposed to the weakest parts of the consumer credit spectrum. 



<h2 class="wp-block-heading">Private Equity Still Under Pressure After First Brands Fallout, 22V Research Warns</h2>



In a research note shared on Tuesday, Bill Hebel of 22V Research stated that private equity firms are more exposed than banks to the weakest segments of consumer credit.



That vulnerability, he noted, ties them closely to the same structural pressures that helped topple First Brands—slowing income growth, the rollback of Affordable Care Act (ACA) benefits, rising tariffs and tighter immigration policies.



"Given the headwinds facing the low-end consumer—slowing labor income growth, the One Big Beautiful Bill&#8217;s ACA rollbacks, tariffs and immigration policy—going long high-end credit and short low-end credit is interesting right now," Hebel said.



<h2 class="wp-block-heading">Regional Banks vs. Private Equity Firms</h2>



The latest 22V analysis builds on a trend that's been emerging since First Brands' $10 billion bankruptcy last month. 



Despite the rate cut from the Federal Reserve and record equity valuations, private equity giants such as Blackstone Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/BX">BX</a>), Apollo Global Management Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/APO">APO</a>) and KKR &amp; Co. Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/KKR">KKR</a>) have dropped more than 10% in less than two weeks.



The slide began after First Brands' $10 billion bankruptcy, which exposed how complex debt structures, off-balance-sheet financing and overlapping claims can mask instability in private credit. While the collapse doesn't appear to pose systemic risk, 22V says it highlights structural weaknesses that investors can't ignore.



"We have high conviction that the low-end will not negatively impact the economic cycle," the firm said. "But it will have an impact on equity internals."



In other words, the economy may hold up—but not every sector will.



<h2 class="wp-block-heading">Chart: Two Weeks of Pain For Private Equity Stocks</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="556" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07095944/image-166-1024x556.png" alt="" class="wp-image-1102360" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07095944/image-166-1024x556.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07095944/image-166-300x163.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07095944/image-166-768x417.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07095944/image-166-1536x834.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/10/07095944/image-166-2048x1112.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h2 class="wp-block-heading">A Macro Divide: High-End vs. Low-End Credit</h2>



Hebel said the current environment "favors high-end over low-end consumer credit," reflecting the widening gap between financially secure households and those more vulnerable to inflation and policy shifts.



22V's trade idea mirrors that divide. The firm recommends going long SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/KRE">KRE</a>)—seen as a proxy for stronger credit quality—and shorting an equally weighted basket of private equity stocks: Apollo Global Management Inc., Ares Management Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/ARES">ARES</a>), Brookfield Corp., (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/BN">BN</a>) Blackstone Inc., KKR &amp; Co. Inc. and Blue Owl Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/OWL">OWL</a>).



Hebel added that if 22V's forecast for higher 10-year Treasury yields materializes—driven by rising deficits and elevated term premiums—macro headwinds for private equity firms will likely persist.



<h2 class="wp-block-heading">Cracks Beneath The Surface</h2>



The collapse of First Brands may have stemmed from company-specific issues, including allegations of fraud and poor due diligence, but its broader implications have rippled across the credit landscape.



For now, investors continue to chase yield in a market still priced for perfection. 



Wall Street's main indexes sit at record highs, credit spreads remain tight and risk appetite shows few signs of fading. But the First Brands fallout suggests that in parts of the credit market—especially private equity—beneath the shine, the foundation may be shifting.



Read now: 



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<li><a href="https://www.benzinga.com/markets/large-cap/25/10/48055643/private-equity-stocks-selloff-first-brands-jefferies-tricolor-holdings">Private Equity Stocks Burn While Wall Street Parties—Is A Credit Crunch Brewing?</a></li>
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Why Analysts Are Bearish On Private Equity Stocks After First Brands' Collapse

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