GoAI Market Morning Wrap - 7th Nov
Stock Market
Last night into this morning, with signs of U.S. job market worsening, plus OpenAI exec comments sparking misunderstanding of "after throwing trillions in orders, AI giants need U.S. government guarantees," star tech stocks back to collective decline.
Though Altman and others urgently clarified, three major indices all closed down.
At close, S&P 500 down 1.12% to 6,720.32 points; Nasdaq Composite down 1.9% to 23,053.99 points; Dow Jones Industrial Average down 0.84% to 46,912.3 points.
(Nasdaq Composite daily chart, source: TradingView)
Reportedly, OpenAI CFO Sarah Friar at Wednesday event said company seeking to build ecosystem of banks, private equity, and federal government "backstop" or "guarantee" to help finance massive chip investments.
No doubt, these words put "AI bubble" back in market spotlight, painting picture of "U.S. government cleaning up mess."
As public opinion heated, Friar posted Thursday emphasizing OpenAI not currently seeking government backstop for infrastructure investments, use of "backstop" confused her intent.
OpenAI CEO Altman also posted long thread before Thursday close, responding to series of issues.
In summary, Altman stressed OpenAI does not want, will not seek government guarantees for data centers. Also OpenAI not seeking "too big to fail," if company ultimately messes up, then it fails.
He also responded to "how to pay $1.4 trillion investment," saying OpenAI annualized revenue expected over $20 billion, reach "hundreds of billions" by 2030. Company about to launch exciting "enterprise products," expects big play in consumer electronics and robotics.
But Altman further explained company CFO meant U.S. government should build "national strategic compute reserve," sign massive compute purchase agreements. But this should serve public interest, not help private company profit.
In post comments, netizens said this "no need U.S. government guarantee," but calling on U.S. government to spend big on compute buildout, looks a bit contradictory.
White House AI advisor David Sacks also said Thursday U.S. government will not provide federal bailouts for AI industry. Sacks said that said, White House does want to streamline permitting and promote power generation.
Meanwhile, Thursday Challenger layoff report shows affected by corporate cost cuts and AI adoption, U.S. employers cut over 150,000 jobs in October, most October layoffs in over two decades.
Vanguard senior economist Adam Schickling points out historically this report poor at predicting future labor market, but in current weak hiring labor market, this round corporate layoffs indeed bigger labor risk than 2022 tech layoffs, as laid-off workers then quickly absorbed by other sectors.
Global Hotspots
UK power regulator: Tech firms crazy grabbing power Demand total over twice national peak usage
UK Ofgem released shocking data Thursday. Since November 2024, contracted capacity in demand queue surged. As of June this year available data, grid connection demand from 41 GW exploded to 125 GW, transmission demand surged 80 GW. Total demand already over twice current UK peak power usage.
Copper, silver, uranium added to U.S. new critical minerals list
USGS released 2025 Critical Minerals List Thursday, with copper, silver, uranium added, list total now 60.
Affected by news, U.S. mining sector volatile. At Thursday close, silver concepts First Majestic Silver up 2.16%, New Pacific Metals up 2.45%; copper concepts Ero Copper up 4.94%, Freeport-McMoRan down 3.88%; uranium concepts mostly down, Centrus Energy down nearly 15%.
GTA6 delayed again to end-2026
U.S. game developer Take-Two Interactive announced after hours Thursday, Grand Theft Auto 6 release date further pushed to November 19, 2026. This highly anticipated game originally set for fall 2025, later delayed to May 26, 2026. After news, Take-Two Interactive down over 7% after hours.
Company News
Lilly, Novo Nordisk reach weight-loss drug price cut deal with U.S. government
President Trump with Lilly, Novo Nordisk execs attended White House press conference, announced U.S. government reached drug price control deal with "weight-loss duo," will list both companies' discounted drugs on so-called "Trump Pharmacy" direct sales channel.
After cuts, popular GLP-1 weight-loss drugs in U.S. market priced from at least $1,000 monthly down to $250-350.
This Oval Office press conference once interrupted by medical emergency. Reportedly, Novo Nordisk exec Gordon Findlay during event suspected unwell, lay on president office floor with help from others.
Google Cloud releases strongest self-developed TPU
Google Cloud officially released seventh-gen TPU "Ironwood" Thursday, performance over 4x previous gen.
Google says new Ironwood TPU can connect up to 9,216 chips in single cluster, eliminating "data bottlenecks in most complex models," allowing customers "to run and scale world's largest, most data-intensive models currently."
Copper, silver, uranium added to U.S. new critical minerals list
USGS released 2025 Critical Minerals List Thursday, with copper, silver, uranium added, list total now 60.
Affected by news, U.S. mining sector volatile. At Thursday close, silver concepts First Majestic Silver up 2.16%, New Pacific Metals up 2.45%; copper concepts Ero Copper up 4.94%, Freeport-McMoRan down 3.88%; uranium concepts mostly down, Centrus Energy down nearly 15%.
Metsera bidding heats up Novo Nordisk CEO publicly "provokes" Pfizer
Weight-loss drug developer Metsera acquisition war continues heating. Per Thursday news, after Pfizer matched Novo Nordisk previous offer Wednesday night, European pharma raised bid again, specific price currently unclear. Affected by news plus latest clinical trial results, Metsera up 14.25% Thursday.
Novo Nordisk CEO Dustda also shouted at White House Thursday: "As of today, our bid higher, our message to Pfizer is, if they want to buy this company, then put money out, raise bid."
Forex & Commodities
International oil prices down November 06.
At close that day, NYMEX WTI crude futures current month continuous contract settlement down $0.17 to $59.43 per barrel, decline 0.29%; London Brent crude futures current month continuous down $0.14 to $63.38 per barrel, decline 0.22%. COMEX gold futures current month continuous down $1.90, decline 0.05%, to $3,991.0 per ounce.
New York close, USD index down 0.45% to 99.70, most non-USD currencies up
Key Events
Crude: WTI down Traders weigh Saudi price cuts and supply worries
Saudi cuts December main crude grades to Asia to 11-month low. Though cuts met market expectations, traders see as bearish signal OPEC+ lacks confidence in market absorbing new supply. Market widely expects supply surplus starting next year.
Key price indicators show supply expectations worsening, WTI crude futures front-month premium to next month narrowed past weeks, near February lows. Brent similar.
Still, U.S. shale firms pushing production plans, Diamondback Energy, Coterra Energy, Ovintiv announced this week plan slight output increases this year or 2026, though oil prices near breakeven for many U.S. shale wells.
Forex & Commodities
Bitcoin 24h down 2.12% to $101,128.77.
Ethereum up 3.20% to $3,295.22.
XRP down 5.89%, BNB down 0.22%, Solana down 3.68%.
Dogecoin down 2.45%, Cardano down 1.55%.
Key Events
Risk appetite improves Bitcoin stabilizes
Deutsche Bank analysts point out Bitcoin stabilized after first breaking $100,000 since June, as U.S. stocks rose overnight, risk appetite improved. They say main drivers better-than-expected economic data, market speculation U.S. government shutdown may end soon.
This boosted investor optimism for short-term outlook, risk assets overall performed well, including Bitcoin. Wednesday ADP U.S. private employment report and ISM services PMI both better than expected.