Dow, S&P 500, Nasdaq slip as AI angst overshadows hopes for end to US shutdown

🏛️ House to return after Senate passes government funding bill

The deal would restore funding for federal agencies that lawmakers allowed to expire on October 1 and would stall President Donald Trump's campaign to downsize the federal workforce, preventing any layoffs until January 30.

It next heads to the Republican-controlled House of Representatives, where Speaker Mike Johnson has said he would like to pass it as soon as Wednesday and send it on to Trump to sign into law. Trump has called the deal to reopen the government "very good."

The deal would extend funding through January 30, leaving the federal government for now on a path to keep adding about $1.8 trillion a year to its $38 trillion in debt. ABC News reports.


🥙 The bowl crisis indicator flashes red

You don't need to watch more than a few Chipotle "hack" videos to know something is off. The bowls are half full — figuratively speaking.

This earnings season has delivered a strong signal that times are tough for many food service companies.

But a major reason behind their flagging operations helps clarify a key storyline in the economy left open ended amid the government shutdown.

Young people are feeling greater financial pressure, squeezed by housing costs, a frozen jobs market, and slower wage growth. Chipotle, the fast-casual go-to, whose stock is down about 50% for the year, was the first of several chains to point to slowing sales tied to cash-strapped consumers.

As pricing pressures continue to weigh down wallets, eating out, even at more affordable price points, has become something of a weekly luxury, replacing what used to be a workday routine.

If tech companies with global reach can serve as a barometer of financial health, the onset of what could be described as a burrito malaise is an indicator of fresh price sensitivity. Yahoo Finance reports.


🎞️ Paramount ups post-merger savings goal to $3 billion, cuts jobs

Paramount Skydance Corp., reporting financial results for the first time since a new investor group took over the media company in August, raised its target for job cuts and cost-saving measures.

The company, which has been trying to buy rival Warner Bros. Discovery Inc., said in a letter to shareholders it plans an additional 1,600-person workforce reduction and a goal to achieve at least $3 billion in cost savings.

The shares rose as much as 5% in premarket trading on Tuesday. Yahoo Finance reports.


🌫️ AI cloud firm Nebius signs $3 billion deal with Meta, posts more than four-fold rise in revenue

Nebius Group has signed a deal worth about $3 billion with Meta to provide the Facebook owner with AI infrastructure over a five-year period, the company said on Tuesday, after it reported a more than fourfold rise in third-quarter revenue.

The agreement with Meta underscores the surging demand for high-performance computing power that is required to build and run artificial intelligence models.

It is Nebius' second contract with a hyperscaler, following its $17.4 billion deal with Microsoft in September.

Nebius said it would deploy the capacity needed for the Meta contract over the next three months, adding that the demand was so strong that the size of the contract had to be limited to the capacity that Nebius had available. MarketScreener reports.


📊 SoftBank profit more than doubles to $16.6 billion on OpenAI gains

SoftBank Group Chief Executive Masayoshi Son's "all in" bet on OpenAI appears to be paying dividends after the ChatGPT-maker's valuation soared this year, producing a surge in quarterly profit for the Japanese technology investor.

The results mean more money for SoftBank to employ in its artificial intelligence-related investment spree even as concerns mount of an "AI bubble" in which valuations overestimate the profits the technologies can generate.

SoftBank reported on Tuesday second-quarter net profit more than doubled to 2.5 trillion yen ($16.6 billion), driven by valuation gains in its OpenAI holdings.

It has also stepped up fundraising activities, selling equity holdings, such as the remainder of its shares in Nvidia for $5.83 billion, as well as issuing bonds and taking out bridging loans. MarketScreener reports.


🤖 Meta chief AI scientist Yann LeCun plans to exit to launch startup, FT reports

Meta's chief artificial intelligence scientist Yann LeCun is planning to leave the social media company to set up his own startup, the Financial Times reported on Tuesday, citing people familiar with the matter.

LeCun is also in early talks to raise funds for a new venture, according to the report.

The owner of Facebook and Instagram has significantly increased its investments in artificial intelligence, with CEO Mark Zuckerberg reorganizing the company's AI initiatives under Superintelligence Labs.

Zuckerberg hired Alexandr Wang, former CEO of data labeling startup Scale AI to lead the new AI effort. Yahoo Finance reports.

*Estimate and Actual numbers represent Earnings Per Share in US Dollars


SONY: Sony Group
Q2 2025
Before Market Open
Estimate: 0.330
Actual: 0.351

SFL: SFL Corp
Q3 2025
Before Market Open
Estimate: -0.010
Actual: N/A

SE: Sea
Q3 2025
Before Market Open
Estimate: 0.870
Actual: N/A

Time (ET)/ Report/ Period

10:25 AM - Fed governor Michael Barr speaks - N/A
6:00 AM - NFIB optimism index - Oct.

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