Breakfast News: AI Drives Winning Week

Breakfast News: AI Drives Winning Week

1. Nasdaq Hits 5-Day Streak

The Nasdaq recorded a perfect week of record daily closing highs, ending 2% up over five days. The S&P 500 rose 1.6%. AI bullishness continues to dominate, as OpenAI chair Bret Taylor likens it to the 1999 dot com boom following CEO Sam Altman's earlier fear that "someone is going to lose a phenomenal amount of money in AI."

• "I think it is both true that AI will transform the economy, and ... create huge amounts of economic value in the future": In an interview with The Verve last week, Taylor also agreed we're in a bubble, adding "all the people in 1999 were kind of right."
• CME's Fedwatch tool says 100% probability: The expected interest rate cut at the Federal Reserve's September 16-17 meeting could ease the way for tech start-ups still in their cash-burn phase, and help keep the rally going.

2. U.S., U.K. in Tech Trade Talk

President Trump heads to the U.K. this week on a state visit, with its government talking up the likelihood of a "ground-breaking tech agreement" being signed – potentially covering AI, quantum computing, and nuclear power.

• "A golden age of nuclear that puts both countries at the forefront of global innovation and investment": Prime Minister Keir Starmer spoke of cooperation to fast-track safety assessments and speed up nuclear project development times, as the U.K. has nuclear deals valued at more than $68 billion in the pipeline.
• "We are trying to find existing assets that are underutilized but have power": BlackRock's (BLK -0.82%) real estate head Thomas Mueller-Borja said the company is looking for liquid assets, with CEO Larry Fink set to join the president as the company plans to invest around $680 million in the U.K.'s data center market.

3. China Trade Talks Resume

China launched two investigations Saturday, including an anti-dumping probe into classes of chips imported from the U.S., made by companies including Texas Instruments (TXN -2.50%), ahead of trade talks in Spain starting Sunday. Today China ruled Nvidia (NVDA -0.10%) broke anti-monopoly laws – pushing the stock down 2.5% in pre-market trading.

• "I don't think China is in any rush to do an agreement where they don't get substantial concessions on export controls and lower tariffs": Former USTR trade negotiator Wendy Cutler says significant progress might have to wait for a possible meeting between Presidents Trump and Xi Jinping later this year.
• "We may let it die, or we may – I don't know, it depends. Up to China": Trump, meanwhile, echoed the uncertainty still hanging over the fate of TikTok as commentators expect a further delay on any decision.

4. Key Earnings to Watch This Week

Dave & Buster's (PLAY 1.99%) kicks off a thin week of company earnings, with a second-quarter update due after today's closing bell. Watch out for progress on the upbeat outlook announced at Q1 time, though the company did miss revenue and earnings expectations.

• More than 20 times oversubscribed: Crypto exchange operator Bullish (BLSH -1.58%) will report Wednesday, its first quarterly update since August's successful IPO – when Cathie Wood's Ark Invest funds bought 2.5 million shares. General Mills (GIS -1.80%) will post Q1 earnings the same day.
• Superscores of 53 and 65 on our Moneyball database respectively: Thursday brings a Q1 update from Stock Advisor rec FedEx (FDX -1.47%), with Rule Breakers rec FactSet (FDS -4.68%) reporting its final 2025 quarter the same day.

5. Aluminum Hits 7-Day Rally

Aluminum prices are on course for their lengthiest run of gains for more than a year, after closing higher for a seventh session in a row. The London Metal Exchange benchmark peaked at $2,705 a ton, the highest level since March.

• Tariffs on 407 new product categories: The run comes after the U.S. hiked steel and aluminum tariffs on a range of finished products in August.
• Prices strengthened by supply worries: An interest rate cut this week could put pressure on the dollar and also lift metal prices further.

6. Two-Minute Drills

Before they buy a stock, Peter Lynch recommended investors be able to give two-minute monologues on 1) the reasons they're interested in it, 2) how the company can succeed, plus 3) potential pitfalls: "Once you're able to tell the story of a stock ... so that even a child could understand it, then you have a proper grasp of the situation."

Today, we're asking you to briefly tell the story to friends and family of a stock you already own, following these three criteria, or become a member to hear what your fellow Fools are saying!