Tonight’s Highlights | Nvidia Officially Announces Investment in Musk’s xAI! Fed Minutes Loom
During the U.S. government shutdown, with markets lacking key data guidance, corporate earnings could have an even bigger impact than usual.
The congressional deadlock on the funding bill shows no signs of resolution. President Trump hinted that if the government reopens, he could negotiate with Democrats on extending healthcare subsidies, but if the shutdown drags on, he might cancel back pay for federal workers.
Under these conditions, the three major U.S. index futures all edged higher pre-market on Wednesday (October 8), with S&P 500 futures up 0.12%, Dow Jones futures up 0.28%, and Nasdaq futures up 0.10%.
AI sector news is expected to continue dominating U.S. market trading. On Tuesday, Oracle’s cloud business margins fell short of expectations, causing its stock to drop as much as 7% and weighing on the broader market.
Later, sources revealed Nvidia plans to invest up to $2 billion in equity in Musk’s xAI. Nvidia CEO Jensen Huang confirmed the news.
xAI is expected to raise $20 billion in this round, with $7.5 billion from equity and $12.5 billion from debt, creating a special purpose vehicle (SPV) to buy Nvidia GPUs and lease them to xAI for five years.
This type of deal highlights how the U.S. AI market is evolving into a more complex web of cooperation and competition, with giants taking stakes in upstream and downstream firms to create trillions in transaction value—but potentially brewing massive systemic risks.
Bernstein analyst Stacy Rasgon wrote in a report this week that OpenAI CEO Sam Altman has the power to crash the global economy for a decade or lead U.S. stocks to glory. Right now, no one knows which it will be.
Amid the unease, spot gold broke $4,000 per ounce during Wednesday’s Asia session. Analysts pointed to the U.S. government shutdown, expected Fed rate cuts, and concerns over U.S. fiscal health weakening the dollar and other safe-haven assets like U.S. Treasuries, all pushing gold higher.
Investors are also awaiting the Fed’s September policy meeting minutes on Wednesday. At that meeting, the Fed cut rates by 25 basis points, and officials widely predicted two more cuts in October and December.
European markets in session were quite optimistic, as the French budget impasse may be resolved this year, lifting European stocks collectively.
Company News
Nvidia CEO Huang Confirms Investment in Musk’s Startup xAI
Nvidia CEO Jensen Huang confirmed an investment in Elon Musk’s startup xAI. Huang said he’s “super excited” about xAI’s funding and wants to be involved in almost everything Musk does, with his “only regret” being not investing more in xAI.
TSMC’s 2nm Process Pricing 10%-20% Above 3nm
Reports say TSMC’s 2nm chip process pricing is much lower than the rumored 50% hike, only 10% to 20% above 3nm. However, TSMC also plans to raise prices for its existing 3nm technology.
Bank of America Cancels End-of-Year Vacation for European Rates Traders to Brace for Dutch Pension Reform Impact
Bank of America will ensure its European rates trading team is fully staffed during year-end to handle potential market turbulence from the regulatory overhaul of the Netherlands’ €1.9 trillion pension system. Analysts say the reform is already pushing up longer-term bond yields.
With over half the funds expected to switch by year-end, the reform is entering a critical phase, and thinner liquidity around the holidays could amplify volatility.
SoftBank Acquires Swiss ABB Group’s Robotics Business for $5.475 Billion
Swiss engineering firm ABB announced on Wednesday an agreement with Japan’s SoftBank to sell its robotics division for $5.475 billion, scrapping prior plans to spin it off as a standalone listed entity. The deal requires regulatory approval and other conditions, expected to close in mid-to-late 2026.
Meta and Apple Close to Antitrust Settlement with EU Commission
Reports say Meta and Apple are trying to avoid escalating EU antitrust fines. Officials indicate the two companies are in the final stages of reaching agreements with European regulators to change a series of business practices.