Wall Street appears to be tempering its enthusiasm for artificial intelligence as it braces for Nvidia’s third-quarter earnings report, due to be released later today. Investors’ wariness is reflected in Nvidia’s stock, which has experienced a drop of over 4% this week, though shares are currently showing an uptick of more than 1% in premarket trading. In a notable development, Nvidia has partnered with AI startup Anthropic, significantly boosting the startup’s valuation to approximately $350 billion from $183 billion just a month prior. Meanwhile, Microsoft has announced its own product aimed at monitoring AI agent usage within its technology, and Google has rolled out its enhanced Gemini 3 model in a bid to compete with OpenAI’s ChatGPT. In another partnership, Intuit is set to pay OpenAI over $100 million to incorporate ChatGPT into its financial software, including TurboTax. This decline in Nvidia and other AI-focused firms has negatively impacted the broader market, marking the S&P 500’s longest losing streak since August.
In retail news, Target Corp. reported third-quarter revenues that fell short of Wall Street predictions, prompting a decrease in its full-year profit outlook. Consequently, shares dipped around 2% in premarket trading. The incoming CEO, Michael Fiddelke, expressed a commitment to swift investments aimed at regaining growth, although he did not specify a timeline for recovery. Similarly, Lowe’s has lowered its profit forecast for the year, yet the home improvement retailer managed to exceed earnings expectations for the third quarter, resulting in a premarket stock increase of more than 6%.
On a political note, Congress has passed a bill mandating the release of Justice Department files related to the sex offender Jeffrey Epstein, a measure that President Donald Trump has indicated he will sign into law. This news coincides with former Treasury Secretary Larry Summers’ announcement that he is resigning from OpenAI’s board following the release of his emails connected to Epstein.
In the legal realm, Meta has achieved a victory against the Federal Trade Commission in an antitrust case, with Judge James Boasberg ruling that the company does not hold a monopoly in the social media space, noting competitors like TikTok and YouTube. This ruling is a significant outcome of a case that has been in progress for over five years, centering on Meta’s acquisitions of Instagram and WhatsApp.
Finally, Netflix is diversifying its business model by exploring the toy market and in-person experiences, as it seeks to capitalize on its successful original content. The streaming giant has entered into partnerships with companies such as Hasbro and Mattel to create merchandise tied to its popular programming and has opened new event spaces, including the Netflix House in Philadelphia. This pivot represents a strategic move for Netflix, as it aims to leverage its expanding library of beloved shows to drive retail investments.
