Bonds & Stocks
Technology stocks drove global indexes to fresh highs after an OpenAI share sale catapulted the firm to the world’s most valuable startup, bolstering optimism for artificial intelligence. Nasdaq 100 futures climbed 0.3%, putting the gauge on track for a fifth straight gain. Europe’s Stoxx 600 rose 0.7%, led by an advance of more than 2% in technology shares. OpenAI’s valuation soared to $500 billion after current and former employees sold about $6.6 billion of stock, boosting the company’s price tag well above its previous $300 billion level.
Economy
The US government shutdown has entered its second day, with the Trump administration raising the stakes by halting $18 billion in infrastructure funding and signaling a willingness to fire thousands of federal workers. The shutdown could have significant economic impacts, with the Congressional Budget Office estimating a cost of $400 million per day in lost compensation, and some economists warning that mass firings could sap corporate confidence and reduce capital investments.
World
The US, as well as the UK, France, Germany, Italy, Japan and Canada, are are closing in on an agreement to significantly increase sanctions on Russia over its continued war in Ukraine. This Group of Seven nations is working on a range of options, which include new measures on key economic sectors such as energy, finance and the military industry. Separately, European Union leaders met in Denmark as momentum gathers over a plan to use funds immobilized in the bloc to provide Ukraine with $164 billion in fresh aid. The EU is also working on a new sanctions package, that would see it ban Russian liquefied natural gas by 2027 and impose more restrictions on Moscow’s energy and financial sectors.