I asked ChatGPT whether the artificial-intelligence trade is a house of cards, and it said while parts of the AI boom look increasingly fragile the entire investment story is not.
Well it would say that, wouldn't it? AI stocks fell sharply Thursday following a report that OpenAI's revenue may be $20 billion lower than expected.
Wall Street has cast doubt on the discrepancy, enabling tech stocks to rebound Friday -- helped by falling oil prices. But the panic underscores just how exposed the entire AI trade is to OpenAI, Anthropic and others. Imagine what it'll be like when they actually go public.
Whatever happens there will still be winners and losers -- SpaceX looks like the former, while AT&T, T-Mobile and Verizon may fall into the latter category.
Inflation may create just as many losers in the months ahead. Delta Air Lines cut its guidance as fuel costs have started to get ridiculous. Apple may also be running into trouble after hiking iPhone 18 Pro prices.
This stock market rally isn't a house of cards, but the foundations are starting to look a little shaky.
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📈 Here's what's happening in markets today:
Dow set to open up as markets rebound.
SpaceX, Verizon, Delta, Humana, and more stocks that explain today's market.
Nvidia stock gains but IPO worries are rocking the AI market.
Apple stock falls. Why iPhone prices are a big problem.
Why AT&T and telecom stocks' SpaceX slump is a buying opportunity.
Delta Air Lines falls after earnings. The impact of surging fuel prices laid bare.
Micron is range-bound in choppy AI trade. What could change that.
OpenAI confusion sends a warning to markets. Chip stocks are rebound.
Two reasons SpaceX stock is jumping today.
🛢? Oil reserves are dwindling, and the cushion is 'scarily thin'
A deadly attack on a tanker in the Persian Gulf pushed oil prices to their highest levels in weeks, but there's another issue that's causing worry. Globally, oil reserves are dwindling while demand from China is starting to rebound. Saudi Aramco CEO Amin Nasser said the supply resilience cushion is "scarily thin." For more read here.
🏦 American Express fined over anti-money-laundering weakness
Federal bank regulators fined American Express $350 million for failing to have adequate anti-money-laundering safeguards, a weakness they said caused it to process some $13 billion in suspicious transactions over a decade. American Express identified areas to improve, but noted the agreement didn't impose an asset cap, escaping a harsher punishment.
🌐 Administration takes aim at tech with visa crackdown
The Trump administration is suspending tech companies, including Microsoft, from a program that allows skilled foreign workers to obtain permanent residency. It's also bad news for tech companies like Infosys, which historically has served as a key talent bridge bringing Indian tech professionals to work in the U.S.
🌯 Does a Chipotle-Starbucks merger even make sense?
A big topic on Thursday was the idea that Starbucks and Chipotle Mexican Grill could merge, fueled by a report in the Financial Times. A potential deal would reunite Starbucks CEO Brian Niccol with the burrito chain that he helped transform, but many questions remain. Read more about it here.
🍿 Watch out Imax. Disney has big-screen theater ambitions.
Walt Disney is said to be pitching its own premium movie-theater format to rival Hollywood studios, in an effort to expand its reach beyond the company's own blockbusters. It has been approaching competing studios such as Paramount Pictures and Universal Pictures, Bloomberg reported. Read here for what that could mean for Imax.
🛜 SpaceX is crashing the wireless party
SpaceX's wireless spectrum deal with Grain Management has stoked fears of wireless telecom disruption for the major carriers, including AT&T and Verizon. Significantly, SpaceX isn't content to only offer broadband service. It appears to want to control the phone, too. Read more about the deal here.
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🧰 Humana boosted by new ratings for Medicare Advantage
New ratings data on Medicare Advantage plans show that Humana achieved a four-star rating on a key contract closely watched by Wall Street. That makes it eligible for quality bonus payments to insurers from the government, which are expected to total $13 billion in aggregate this year.
💬 Quote of the day:
Other headlines moving markets:
eBay's CEO keeps cashing in millions of shares.
The Chipotle effect: Jersey Mikes, Shake Shack boosted by takeover talk.
Massive AI spending is powering the economy. Productivity gains can wait.
Google workspace gets AI agents. What it means for Alphabet's stock.
A new list of the best investing quotes.
What a strong 30-year Treasury auction tells investors.
Quanta's AI-fueled earnings explosion is just getting started.
Oracle insider buys $3.5 million in stock amid OpenAI swings.
What analysts are saying about Royal Caribbean's deal for Sandals.
Amazon's ban on AI agents is the opening its rivals need.
Private credit funds have cratered. They still don't look like buys.
Palantir's stock has a secret weapon in the AI boom.
The AI trade is alive and well as bond yields keep rising.
Large-cap tech still leads as Apple and Amazon eye further gains.
Bond crises are brewing in Europe. Why it matters to the U.S.
Webull pushes back at House report alleging China security risks.
Why private-credit funds deserve a second look at 15% yields.
Caterpillar is the market in a single stock. That's not a bad thing.
Small-cap stocks could be ready to rebound
How portfolio managers are playing rising rates.
How pros are investing now in a world of higher interest rates.
The surprising case for investing in real estate now.
Closed-end bond funds are on sale. 10 to buy now.
Skydance faces a tough lift. Netflix and Disney are better bets.
The real challenge for Muse AI is making the math make sense.
The age of tokenized trading is dawning. How companies and customers could win.
-- Edited by Liz Moyer, Stacy Ozol, and Rupert Steiner