Updated 2 min read
US stocks traded mixed on Tuesday, as the blue-chip Dow index jumped to continue a rally fueled by optimism that Washington may soon end the record-breaking government shutdown. Tech stocks faltered in a bid to extend their own rally, dragged down largely by Nvidia (NVDA).
The S&P 500 (^GSPC) rose roughly 0.3%, and the Nasdaq Composite (^IXIC) dropped 0.1%. The Dow Jones Industrial Average (^DJI), which includes fewer tech stocks, added over 1.2%, or over 500 points. The moves follow a roaring start to the week for stocks.
In another test of the AI trade, SoftBank Group (SFTBY) said Tuesday it sold its entire stake in chipmaker Nvidia to fund its own investments in AI development. The move comes at a time that Wall Street is questioning whether the AI spending spree will pay off amid lofty valuations for related stocks. Shares of Nvidia dropped around 2.5%.
Elsewhere in tech, CoreWeave (CRWV) trimmed its full-year revenue forecast, taking the shine off its strong quarterly earnings. Its stock fell around 15% after the Nvidia-backed AI infrastructure provider flagged a delay by a data center partner.
But Wall Street’s optimism pervaded that the 41-day US shutdown could soon end. The push to reopen government took another step forward as the Senate on Monday evening passed a funding measure, advancing it to the House for a vote, which could happen as soon as Wednesday.
A reopening would lead to the release of economic data delayed by the stoppage, giving markets better insight into the likely path of interest rates. But fresh data could take a while to arrive, even if the shutdown ends this week.
US companies shed 11,250 jobs a week during October, ADP’s private-sector payrolls report out Tuesday showed — an example of the private data filling the public vacuum. Its figures suggest a slowing in the labor market.
On the trade front, doubts about the lasting power of the US-China tariff truce resurfaced around the crucial issue of rare-earth supplies. The Wall Street Journal reported that Beijing plans to keep its exports of the minerals out of US military hands, even as it speeds up flows to other American buyers.
LIVE 18 updates
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Nvidia leads chip stocks lower
Nvidia (NVDA) stock dropped more than 2% on Tuesday, leading semiconductor stocks lower after SoftBank sold its entire stake in the chipmaker for $5.83 billion to help fund AI investments.
The AI heavyweight also declined after results from data center provider CoreWeave (CRWV) and semiconductor manufacturer TSMC (TSM) raised doubts about the AI boom.
CoreWeave, backed by Nvidia and a major customer for its chips, lowered its 2025 revenue guidance and slashed its capital expenditure forecast.
TSMC, the main chipmaker to AI leader Nvidia Corp., posted a 16.9% rise in sales for October, the slowest pace since February 2024. The company’s revenue has also been impacted by the stronger US dollar.
Chip designer Arm Holdings (ARM) and semiconductor maker Micron (MU) fell, along with Advanced Micro Devices (AMD) and chip equipment manufacturer ASML (ASML).
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FedEx jumps on expected profit boost
FedEx (FDX) stock jumped 5% on Tuesday after the package carrier’s chief financial officer said it expects profit this quarter to improve from a year ago, calming investor fears of a lagging holiday season.
Chief financial officer John Dietrich told investors Tuesday at a conference that adjusted earnings for the company’s fiscal second quarter, goes to the end of November, will top last year’s $4.05 per share.
The package delivery industry has been facing uncertainties in recent months, including increased costs and the impact of President Trump’s tariff policy on goods.
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Rivian stock jumps 5%
EV maker Rivian (RIVN) saw shares climb 5% Tuesday, putting the stock up more than 38% over the past five trading sessions.
Rivian last week reported third quarter results that surpassed Wall Street’s expectations. Its revenue of $1.55 billion was above the $1.49 billion projected, per Bloomberg consensus estimates, and represented a 78% increase compared to the same period a year ago.
The company recently approved a new multibillion-dollar pay package for its CEO, seemingly modeled after Tesla’s for Elon Musk, just as it reportedly lays off more than 600 workers.
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The House will consider a stock trading ban once the government reopens — but the deadline keeps moving
Yahoo Finance’s Ben Werschkul reports:
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Airline stocks slip as flight cancellations to continue after shutdown ends
Major airlines saw their stocks slip on Tuesday as flight disruptions were expected to continue even after the US government shutdown ends.
Delta Air Lines (DAL) and American Airlines (AAL) shares dipped around 1%, while United Airlines (UAL) stock dropped nearly 2%. Southwest Airlines (LUV) stock sank more than 2%.
“Airlines’ reduced flight schedules cannot immediately bounce back to full capacity right after the government reopens,” Airlines for America said Monday, CNBC reported. Airlines for America is a lobbying group representing companies including Delta, American, United, and Southwest.
More than 20,000 flights were delayed or canceled across the US over the weekend after the FAA announced a reduction in flights that went into effect Friday.
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SoFi rolls out crypto trading for retail customers
Yahoo Finance’s David Hollerith reports:
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Iron ore market set for influx of new supply as Guinea port opens access to major China-controlled mining project
The market is expected to see a large influx of new iron ore supply as the newly renovated Morebaya port in Guinea opens today, signaling the start of shipments from the largest-ever mining project in Africa.
The Morebaya port on the coast of West Africa will connect the global market to the Simandou mountain range in Guinea, where British-Australian mining conglomerate Rio Tinto Plc (RIO) and a series of Chinese companies have been mining one of the world’s largest iron ore deposits. First shipments are expected by the end of the year.
Shares in Rio Tinto held roughly flat after a five-day run-up of around 3.5%.
The $23 billion Simandou project is expected to hold at least three billion tons of iron ore, the second commodity in the world by value after only oil. Once the Morebaya port reaches full operation, it is expected to ship out 120 million tons per year of the steel feedstock, according to Bloomberg.
China is the world’s largest importer of iron ore. As Beijing has been jostling for more control over iron ore prices, Simandou — where Chinese companies control roughly three-quarters of the mining project — gives China a powerful new source of supply.
Not only does the mine break China’s dependence on foreign companies such as Rio Tinto and Australian mining giant BHP Group (BHP) for imports of the material. It also adds iron ore to the list of metals over which Beijing has a high level of supply and pricing control — like the rare earth minerals that were the central talking point of the recent October sit-down between President Trump and his Chinese counterpart Xi Jinping.
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Nvidia leads Mag 7 stocks lower
Nvidia (NVDA) led a decline in Big Tech stocks on Tuesday.
Shares in the AI chipmaker sank more than 3%. Tesla (TSLA) stock fell over 2%, while Broadcom (AVGO) and Meta (META) shares dropped more than 1%. Alphabet (GOOGL, GOOG) and Microsoft (MSFT) slipped fractionally, while Amazon (AMZN) hovered around the flat line.
Apple (AAPL) shares, meanwhile, rose nearly 2%.
Nvidia’s drop on Tuesday comes as financial updatesfrom CoreWeave (CRWV) and TSMC (TSM) cast doubt on the AI boom. AI data center and cloud provider CoreWeave is backed by Nvidia and a major customer for its chips, while semiconductor manufacturer TSMC (TSM) is a key partner for its flagship Blackwell product.
The biggest driver of the drop, however, appeared to be SoftBank’s (SFTBY, 9984.T) surprise move to divest its entire Nvidia stake.
Nvidia’s stock is still up more than 40% for the year to date.
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CoreWeave sinks as AI cloud firm trims revenue forecast
CoreWeave’s (CRWV) stock sank more than 9% after the Nvidia-backed (NVDA) company trimmed its full-year revenue forecast.
The AI data center and cloud provider lowered its 2025 revenue guidance to a range of $5.05 billion to $5.15 billion. Its prior range was $5.15 billion to $5.35 billion.
CoreWeave also slashed its capital expenditure forecast, as one of its third-party data center developers fell behind schedule, affecting its ability to bring computing capacity online.
Bank of America (BAC) analyst Brad Sills lowered his price outlook on CoreWeave shares to $140 from $168 apiece, following the results released after market close on Monday.
Meanwhile, the company’s adjusted operating income — a measure of how much profit CoreWeave makes from its core operations — was $217 million, below its interest expense of $311 million, noted DA Davidson analyst Gil Luria.
“We continue to believe this business is not worth scaling,” Luria wrote in a note to clients.
CoreWeave relies on debt borrowed at high interest rates against its massive store of Nvidia chips — a deteriorating asset — to buy more Nvidia chips to rent out to customers.
Its customers are also some of Nvidia’s biggest customers: Microsoft (MSFT) makes up the overwhelming majority of CoreWeave’s revenue, raising fears that CoreWeave could go bust once major hyperscalers finish building out AI data centers and as they could eventually rely on their own custom chips rather than Nvidia’s.
Nvidia’s entangled relationship with CoreWeave has raised eyebrows on Wall Street as analysts begin to question the circular dynamic in AI dealmaking. Nvidia is a major investor in CoreWeave, its biggest supplier, and its customer. The AI chipmaker also has a multibillion-dollar agreement to purchase unsold capacity from the cloud provider.
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Amazon Prime Video says its ad tier now reaches 315 million global viewers
Amazon (AMZN) Prime Video’s ad-supported streaming service now reaches more than 315 million viewers worldwide each month, the company said on Tuesday. That’s a jump from the 200 million figure the tech megacap shared in April.
Amazon entered the space in January 2024, when it began making all of its Prime Video subscriptions ad-supported by default. It’s seen as a key growth engine, as more viewers and streaming platforms from Netflix (NFLX) to Disney (DIS) embrace ad-supported tiers.
Since that time, Amazon has launched advertising for the streaming service in 16 countries, which now include the US, UK, Germany, Japan, and India.
According to Amazon, the 315 million figure represents an unduplicated average monthly active ad-supported audience across its originals; licensed films and series; live sports and events; and free ad-supported channels. The estimate is based on internal data collected from September 2024 to August 2025, with some regional variations due to launch dates.
The milestone “demonstrates our customer-obsessed approach to enhancing the viewing experience while delivering powerful opportunities for brands,” said Jeremy Helfand, vice president of Prime Video advertising.
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Tech leads stocks down at the open
Tech dragged US stocks down on Tuesday at the open amid renewed fears of an AI bubble.
The Nasdaq Composite (^IXIC) dropped roughly 0.5%, and the S&P 500 (^GSPC) fell below the flat line. The Dow Jones Industrial Average (^DJI), which includes fewer tech stocks, inched up 0.2%.
The market action comes after SoftBank Group (SFTBY) sold its Nvidia (NVDA) stake, and as financial updates from AI chip manufacturer TSMC (TSM) and data center provider CoreWeave (CRWV) disappointed investors.
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AI fueled the stock market rally. Earnings are now giving it staying power.
Yahoo Finance’s Allie Canal reports:
After a year dominated by artificial intelligence headlines, Wall Street’s bull case is shifting toward something more fundamental to stocks: earnings power that’s beginning to broaden beyond Big Tech.
Morgan Stanley, UBS, and other major firms are pointing to a clear throughline this earnings season: Profits are strong, margins are stabilizing, and growth, while still concentrated in AI-heavy tech, is beginning to spread.
“There are clear signs that the earnings recovery is underway and pricing power is firming,” Morgan Stanley equity strategist Mike Wilson wrote in a client note on Monday. …
FactSet’s latest data backs that up. With more than 90% of S&P 500 (^GSPC) companies reporting, 82% have beaten earnings estimates, while overall profits rose 13.1% year over year. That marks the fourth straight quarter of double-digit growth. …
Still, some strategists warn that the trend will need to continue from here.
“Earnings sentiment staged a partial comeback,” RBC Capital Markets strategist Lori Calvasina wrote in a note to clients, adding that while revisions have improved for two straight weeks, they remain “well below” summer highs.
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The bowl crisis indicator flashes red
Yahoo Finance’s Hamza Shaban reports:
Read more here in the takeaway from today’s Morning Brief.
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Good morning. Here’s what’s happening today.
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Premarket trending tickers: Meta, Beyond Meat and Sony
Meta (META) stock fell 1% before the bell on Tuesday. The drop in share price follows the news that Meta’s chief artificial intelligence scientist Yann LeCun is planning to leave the social media giant to found his own startup.
Beyond Meat (BYND) stock fell 5% in premarket trading on Tuesday after releasing its delayed earnings report Monday’s closing bell.
Sony (SONY) shares rose 5% before the bell after raising its earnings forecast after a stronger-than-expected second quarter.
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Paramount Skydance stock pops as investors weigh its cost-cut plans
Paramount Skydance (PSKY) shares rose about 5% in premarket trading on Tuesday as investors digested its third quarter earnings.
Quarterly revenue came in just below Wall Street expectations in the results, released in after hours on Monday. But the company struck an upbeat tone for what lies ahead, raising its cost-savings target, projecting stronger streaming profits, and signaling upcoming price hikes for Paramount+.
Revenue totaled $6.7 billion for the quarter ended in September, slightly shy of analysts’ $7 billion estimate, in the company’s first earnings release since completing its merger with Skydance in August.
Paramount Skydance CEO David Ellison said the company now expects $30 billion in total revenue and $3.5 billion in adjusted OIBDA for 2026, driven by a “healthy acceleration” in streaming. The company also expects Paramount+ to be profitable this year and to grow that profitability in 2026.
Direct-to-consumer revenue jumped 17% year over year, while weakness in TV Media offset those gains. Paramount+ revenue climbed 24%, with total subscribers reaching 79.1 million.
Across the full quarter, Paramount reported $324 million in operating income and a net loss of about $257 million, though pre- and post-merger results aren’t directly comparable.
Ellison said the newly combined company has taken “meaningful steps” to streamline operations, including a reduction of 1,000 employees from its workforce and plans to cut an additional 1,600 employees.
Paramount also raised its efficiency-savings target to $3 billion, up from $2 billion previously.
On top of its efficiency goals, the company also plans to raise prices for Paramount+ early next year in the US, part of a broader push to boost profitability and fund new content and technology investments.
The company recently announced upcoming price increases in both Canada and Australia.
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TSMC growth slows in warning sign of AI bubble
Bloomberg reports:
