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.