Good Afternoon. Wall Street’s confidence is colliding with the real-world. Tesla heads into a $1 trillion vote, Buffett makes another bold bet in Japan, and Nvidia’s CEO is sounding alarms about China’s AI lead. Meanwhile, the FAA is grounding flights as the shutdown drags on and investors have their seats back and tray tables up as they brace for a bumpy descent. Let’s get into it.

—Rosie, Wyatt, Evan & Conor

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1. Nasdaq Leads Stocks Lower as Tesla Vote Looms

The News: Stocks slumped Thursday, with the Nasdaq composite falling over 1% as investors pulled back from AI-fueled tech giants ahead of Tesla’s pivotal shareholder vote on Elon Musk’s trillion dollar pay package. Shares of Tesla, Amazon, and Nvidia each fell more, while Palantir extended its weeklong slide to nearly 12%. Meanwhile, the ongoing government shutdown, now in its 37th day, prompted the FAA to cut air traffic by 10% at 40 airports, heightening economic concerns.

Why It Matters: The market’s AI leaders have powered much of 2025’s rally, but sentiment is turning cautious amid valuations that look increasingly stretched. Add in the shutdown’s drag on growth (estimated at 0.1–0.2 percentage points per week), and traders are bracing for turbulence across both tech and transportation sectors.

What to Watch: Eyes are on the Tesla shareholder vote, which could reignite debate over executive pay and governance in the AI era. Also watch for weekend negotiations in Washington, if the shutdown drags past 40 days, even Wall Street’s patience may hit a hard stop.
Source: wsj.com

2. FAA Orders 10% Flight Cut at 40 Major Airports Amid Record Shutdown

The News: The Federal Aviation Administration confirmed it will reduce flight traffic by 10% at 40 of the nation’s busiest airports starting Friday, as the record-breaking 37-day government shutdown continues to strain the air travel system. The move impacts hubs like Atlanta, Chicago O’Hare, LAX, Dallas/Fort Worth, and New York’s JFK and LaGuardia. Roughly 13,000 air traffic controllers and 50,000 TSA agents are now working without pay, prompting the FAA to limit flight volumes to preserve safety. Airlines report 3.2 million travelers have already faced disruptions since the shutdown began, with more delays expected as Thanksgiving travel nears.

Why It Matters: The traffic cuts mark the most sweeping disruption to U.S. air travel since the early pandemic. With major holiday travel less than three weeks away, the order could ripple through an already fragile aviation network, raising fears of packed terminals, cascading delays, and airline refund chaos. As if traveling for the holidays wasn’t hard enough.

What to Watch: Transportation Secretary Sean Duffy said the cuts could be reversed if Congress ends the shutdown. But if not, Thanksgiving week could turn into “Turbulence Thursday” for millions of travelers and the political fallout could be just as bumpy as the flight path.
Source: foxbusiness.com

3. October Layoffs Hit 22-Year High as AI and Cost Cuts Take a Toll

The News: Layoffs surged to their highest October level since 2003, with 153,074 job cuts announced last month, according to a new report from Challenger, Gray & Christmas. That’s nearly triple September’s total and marks the worst fourth-quarter month for layoffs since the 2008 financial crisis. Cost-cutting drove roughly a third of the layoffs, while AI-related automation accounted for another 20%. The tech and warehousing sectors led the reductions, with nearly half of all cuts tied to overcapacity and efficiency-driven downsizing. In total, 450 companies announced layoffs, the most this year.

Why It Matters: After many months of “no-hire, no-fire” stability, the U.S. labor market looks to be cracking. Companies that ramped up hiring during the pandemic are now pulling back amid slower growth, rising costs, and rapid adoption of AI tools that are displacing both white-collar and logistics jobs.

What to Watch: Year-to-date layoffs have now topped 1.1 million, up 65% from last year, a sign that the Fed’s soft-landing narrative may be losing altitude. If pink slips keep piling up through the holidays, the only thing more fragile than consumer sentiment could be corporate reputations trying to dodge “Scrooge season” headlines.
Source: axios.com

4. ESPN Drops PENN, Bets on DraftKings in Major Sportsbook Shake-Up

The News: ESPN is officially cutting ties with PENN Entertainment and its struggling ESPN Bet app, announcing a new multi-year partnership with DraftKings that will make the company ESPN’s exclusive Official Sportsbook and Odds Provider starting December 1. Under the deal, DraftKings’ betting products — including its sportsbook, daily fantasy, and Pick6 platform — will be fully integrated into ESPN’s app and streaming ecosystem, with a full rollout expected in 2026. DraftKings will also power the betting tab within the ESPN app and offer special promotions tied to ESPN Unlimited, the network’s new direct-to-consumer subscription service.

Why It Matters: The move cements DraftKings’ dominance in the U.S. betting landscape and represents a major course correction for ESPN after its partnership with PENN failed to gain traction. It also underscores how sports media giants are doubling down on in-app betting as a key revenue driver — blending fandom, content, and wagering in a single ecosystem.

What to Watch: As the integration unfolds, all eyes will be on how ESPN balances growth with responsibility, especially amid rising concerns over problem gambling. The rollout will feature “responsible gaming” prompts and content under ESPN BET Live, the network’s betting show. If you or someone you know has a gambling problem, help is available. Call or text the National Problem Gambling Helpline at 1-800-522-4700 or visit www.ncpgambling.org/chat for confidential support.
Source: thewrap.com

5. Google Finance Enlists Gemini AI for Deep Search Reports

The News: Google is bringing its Gemini AI technology deeper into the world of investing with a new Deep Search feature inside Google Finance, designed to deliver real-time, AI-generated financial research reports. The tool allows users to ask complex questions, like how certain events or policies might impact specific companies or markets, and have Gemini compile detailed, citation-backed analyses within minutes. The feature builds on Google’s broader “AI reimagining” of Finance announced in August, and will also integrate prediction market data from Kalshi and Polymarket, allowing users to query probabilities on topics such as GDP growth or inflation.

Why It Matters: Don’t gamble, invest instead. The update marks Google’s biggest leap yet toward AI-assisted investing, blending traditional market data with conversational search. Deep Search could turn Google Finance into a hybrid of Bloomberg Terminal and ChatGPT, offering both the narrative and the numbers in one place.

What to Watch: Deep Search reports roll out to U.S. users in the coming weeks, with Google AI Pro and AI Ultra subscribers getting expanded access. Real-time earnings transcripts and AI “At a Glance” summaries are also on deck, signaling that the next earnings season might be analyzed by more machines than humans.
Source: bgr.com

1. Reddit and Kick Added to Australia’s Under-16 Social Media Ban

The News: Australia’s world-first social media ban for children under 16 will now include Reddit and Kick, the government confirmed Wednesday. The two platforms join Snapchat, TikTok, YouTube, X (Twitter), Facebook, Instagram, and Threads on the list of “age-restricted” services under new rules taking effect December 10. Platforms that fail to take “reasonable steps” to block underage users face fines of up to $49.5 million. The decision follows months of consultation with tech companies, including Reddit, which unsuccessfully argued it shouldn’t be included. Australia’s eSafety Commissioner Julie Inman Grant said the list is “dynamic” and could expand as regulators monitor how children try to circumvent restrictions.

Why It Matters: The move positions Australia as a global test case for regulating youth social media access. Supporters say it’s a long-overdue step to curb exposure to harmful content and algorithmic manipulation, while critics warn it could drive young users to unregulated corners of the internet. Platforms like TikTok and Meta have already pledged to comply but say the rollout timeline is “tight and unprecedented.”

What to Watch: The ban will be closely watched by policymakers in the U.S. and U.K., where similar proposals are gaining traction. Regulators are also eyeing gaming and chat apps like Roblox, Discord, and WhatsApp as potential next targets if minors migrate there. For now, parents can find resources and live Q&As on the eSafety website and perhaps a little less worry come December.
Source: abc.net.au

2. Buffett’s Yen Bond Move Sparks Fresh Japan Bet Speculation

The News: Berkshire Hathaway is reportedly preparing another yen-denominated bond sale, its second this year and part of nearly ¥2 trillion ($13 billion) in yen bonds issued since 2019. The new offering would make Berkshire one of the largest foreign borrowers in Japan’s credit market. With a double-A credit rating, Berkshire’s bonds continue to attract strong demand from Japanese investors seeking higher yields than those offered by local corporates. The timing has markets buzzing. Shares of Berkshire-backed trading houses — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — all rallied Thursday, with Sumitomo up nearly 4% and Itochu announcing a dividend hike and stock split.

Why It Matters: Analysts see the bond sale as a signal of renewed confidence in Japan, where Warren Buffett has quietly built a multibillion-dollar empire of industrial and trading-house stakes. The move fits Buffett’s trademark strategy: borrow cheaply, invest patiently, and let compounding do the heavy lifting. It also comes as global bond issuance tops $6 trillion for 2025, underscoring investors’ appetite for high-quality debt amid lingering volatility.

What to Watch: Investors will be looking for the final bond size as a gauge of Buffett’s conviction and Japan’s broader credit market tone. Any sign of a larger-than-expected issue could hint that Berkshire is eyeing new or expanded positions across Japan’s powerhouse trading conglomerates. In other words: Buffett may be doubling down on his favorite overseas bet.
Source: finance.yahoo.com

3. Nvidia CEO Warns: “China Is Going to Win the AI Race”

The News: Nvidia CEO Jensen Huang sounded the alarm this week, warning that China could soon overtake the U.S. in artificial intelligence, citing fewer regulatory hurdles, cheaper energy, and stronger industrial coordination as key advantages. Speaking at the Financial Times Future of AI Summit, Huang said the West’s growing “cynicism and overregulation” are slowing innovation just as China accelerates its national AI buildout. Huang emphasized that while “China is nanoseconds behind America in AI,” restrictive U.S. export rules — including President Trump’s continued ban on Nvidia’s most advanced Blackwell chips — could hand Beijing a long-term edge. Nvidia’s shares fell over 3% Thursday following his remarks.

Why It Matters: As the world’s most valuable chipmaker and a $5 trillion company, Nvidia sits at the center of the global AI race. Huang’s warning underscores a deepening split between AI innovation and AI regulation with the U.S. tightening access to critical hardware while China invests heavily in scaling its domestic ecosystem. The geopolitical implications extend far beyond tech: whoever dominates AI infrastructure could control the next era of economic power.

What to Watch: Expect continued debate over whether America’s export bans are safeguarding national security or sacrificing global competitiveness. Meanwhile, Huang’s comments could intensify calls for balanced regulation and broader access to AI hardware, even as Washington doubles down on containment.
Source: foxbusiness.com

Vanguard just projected public markets may return only 5% annually over the next decade. In a 2024 report, Goldman Sachs forecasted the S&P 500 may return just 3% annually for the same time frame—stats that put current valuations in the 7th percentile of history.

Translation? The gains we’ve seen over the past few years might not continue for quite a while.

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_{*Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.}

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