U.S. Stocks Hit Records Despite AI-Led Tech Slide
U.S. stock markets pushed to fresh record highs this week, underscoring the resilience of the broader rally even as technology shares tied to artificial intelligence came under renewed pressure. Gains in industrials, financials and small-cap stocks helped lift major indexes, offsetting weakness in parts of the once-dominant tech sector.
The Dow Jones Industrial Average and the S&P 500 both closed at all-time highs, supported by optimism about economic growth and expectations that interest rates could ease in the year ahead. Investors showed growing confidence that the economy can continue expanding without a sharp slowdown, encouraging buying across a wider range of sectors. Smaller companies also outperformed, signaling broader participation in the market’s advance.
In contrast, the Nasdaq lagged as several high-profile AI-linked stocks slid. Semiconductor and software companies that had surged earlier on enthusiasm for artificial intelligence retreated as investors reassessed lofty valuations and near-term profit prospects. Earnings updates and cautious outlooks from some technology firms reignited concerns that expectations for AI-driven growth may have run ahead of reality.
The divergence highlights a shift in market leadership. Rather than relying on a narrow group of mega-cap technology stocks, recent gains have been powered by more traditional industries, including banks, manufacturers and consumer-focused companies. Many investors appear to be rotating out of high-growth, high-volatility names and into areas viewed as more reasonably priced and resilient.
Market participants say the contrast between record-setting indexes and a cooling tech sector reflects a healthier, more balanced rally. Still, uncertainty remains, with upcoming economic data and corporate earnings likely to shape sentiment. For now, Wall Street’s message is clear: even as the AI trade stumbles, the broader U.S. stock market continues to climb.
AI Order From Trump Might Be ‘Illegal,’ Democrats and Consumer Advocacy Groups Claim
Democrats and consumer advocacy groups are raising alarms over a new artificial intelligence–related order issued by former President Donald Trump, arguing that it may be illegal and vulnerable to court challenges. Critics say the order oversteps presidential authority and could undermine existing laws designed to protect consumers, workers, and civil rights.
The order seeks to speed up AI development while limiting regulatory constraints on companies building and deploying the technology. Opponents contend that, in doing so, it directs federal agencies to sidestep statutory requirements, including rules governing public input, transparency, and oversight. Consumer groups warn that weakening these safeguards could expose the public to serious risks, such as biased algorithms, misuse of personal data, and automated decision-making without adequate accountability.
Democratic lawmakers say that while Congress has yet to pass comprehensive AI legislation, existing laws still apply. They argue that an executive order cannot override statutes related to privacy, discrimination, or administrative procedure. Several lawmakers have described the directive as “legally dubious” and said it may invite lawsuits if agencies implement it in ways that conflict with congressional mandates.
Advocacy organizations also expressed concern that the order prioritizes industry speed over public safety. They argue that AI systems are already being used in sensitive areas like hiring, lending, healthcare, and law enforcement, and that reducing oversight could amplify harms that disproportionately affect vulnerable communities.
Supporters of the order counter that the United States risks falling behind global competitors if innovation is slowed by regulation. They argue that the directive is intended to streamline bureaucracy, not eliminate protections, and say economic growth and national security depend on rapid AI advancement.
Legal experts note that the ultimate impact of the order will depend on how agencies interpret and enforce it. If implementation clashes with existing law, courts may step in, setting up a broader legal and political battle over who controls the future of artificial intelligence in the United States.
Coinbase to Soon Unveil Prediction Markets Powered by Kalshi, Source Says
Coinbase is preparing to launch prediction markets in partnership with Kalshi, according to a person familiar with the plans, signaling the crypto exchange’s latest move to expand beyond traditional digital asset trading. The new feature would allow users to trade contracts based on the outcomes of real-world events, offering a different way to speculate or hedge using market-driven forecasts.
Prediction markets enable participants to buy and sell contracts tied to specific outcomes, such as economic data releases, policy decisions, or other measurable events. Prices fluctuate based on collective expectations, effectively turning market sentiment into probabilities. Kalshi, which operates as a regulated exchange in the United States, would provide the infrastructure and regulatory framework behind the offering.
For Coinbase, the initiative represents a strategic effort to diversify revenue and increase user engagement as cryptocurrency trading volumes remain sensitive to market swings. By integrating event-based markets, the company aims to broaden its appeal to users interested in alternative financial instruments while leveraging its large and established customer base.
The move also reflects a growing convergence between crypto platforms and traditional financial products. Prediction markets have gained attention for their potential to aggregate information efficiently, but they also face scrutiny over legal boundaries, particularly when contracts touch on political events or sensitive social issues. Partnering with a regulated provider could help Coinbase navigate these challenges while staying aligned with U.S. rules.
Regulatory attention is still expected, as policymakers continue to debate how prediction markets should be classified and supervised. Coinbase, which has faced regulatory pressure in the past, is likely to roll out the feature cautiously, potentially starting with a limited number of contracts and expanding over time.
If successful, the launch could position Coinbase as a broader financial marketplace rather than a crypto-only platform, highlighting how major digital asset firms are evolving to stay competitive in a rapidly changing financial landscape.
Rivian’s AI, Autonomy Impress Wall Street, but EV and Capital Concerns Remain
Rivian is earning praise from Wall Street for its advances in artificial intelligence and autonomous driving, with analysts pointing to the company’s growing software expertise as a meaningful long-term asset. Rivian’s ability to develop much of its autonomy and vehicle software in-house has strengthened its reputation as a technology-driven automaker rather than simply an electric vehicle manufacturer.
The company has highlighted its use of AI to support advanced driver-assistance systems, improve vehicle performance through over-the-air updates, and enhance manufacturing efficiency. Analysts say Rivian’s expanding data capabilities and vertically integrated software approach could allow it to refine features more quickly and reduce reliance on outside suppliers over time. These strengths have helped reinforce confidence in Rivian’s technological roadmap.
Still, enthusiasm around AI and autonomy is being weighed down by broader challenges facing the EV sector. Demand for electric vehicles has slowed as high interest rates, price sensitivity, and increased competition affect consumer buying decisions. Rivian’s focus on higher-priced trucks and SUVs leaves it exposed to shifts in discretionary spending, while legacy automakers and newer rivals continue to pressure margins through aggressive pricing.
Capital needs remain a central concern for investors. Rivian continues to spend heavily on production, research, and future models, resulting in ongoing cash burn. Although the company has made progress in cutting costs and improving manufacturing efficiency, analysts question whether its current cash position will be sufficient to reach sustained profitability without raising additional funds.
The mixed outlook reflects a broader investor dilemma. Rivian’s AI and autonomy capabilities suggest strong long-term potential, but near-term success depends on stabilizing demand, controlling expenses, and preserving capital. Until clearer signs of profitability emerge, Wall Street’s view of Rivian is likely to remain cautiously optimistic rather than fully confident.
Altman and Musk Launched OpenAI as a Nonprofit 10 Years Ago. Now They’re Rivals in a Trillion-Dollar Market
A decade ago, Sam Altman and Elon Musk co-founded OpenAI as a nonprofit with a mission to advance artificial intelligence responsibly and for the benefit of society. The organization prioritized research, safety, and collaboration over commercial gain, aiming to ensure that AI development would be transparent and aligned with broad ethical principles. At the time, both founders envisioned AI as a tool to augment human potential while avoiding competitive pressures that could compromise safety.
Since then, the AI landscape has changed dramatically. OpenAI shifted to a capped-profit model, allowing it to attract large-scale investment while continuing its research. The organization has developed highly influential AI products, including advanced language and image models, demonstrating both the commercial and technological potential of AI. Under Altman’s leadership, OpenAI has become a central player in AI innovation, focusing on cutting-edge capabilities, partnerships, and responsible deployment strategies.
Elon Musk, meanwhile, has pursued his own AI ventures, including companies focused on building competitive and integrated AI solutions. What started as collaboration has evolved into a rivalry, reflecting the rapid commercialization of AI. The field is now a multitrillion-dollar market, where dominance in technology and adoption translates directly into strategic and financial power.
The competition between Altman and Musk highlights the tension between OpenAI’s original mission-driven ideals and the realities of a high-stakes, profit-driven industry. While OpenAI emphasizes advanced capabilities and ethical deployment, Musk’s ventures prioritize innovation, speed, and market influence.
The evolution of their relationship mirrors the broader trajectory of the AI industry: a shift from cooperative research to intense competition, where technological breakthroughs intersect with enormous financial and strategic incentives. Once partners united by a shared vision, Altman and Musk now represent two different paths in the race to define the future of artificial intelligence.
