US stocks struggled on Monday as tech and AI shares continued their volatile slide. The S&P 500 was nearly flat after erasing gains from the previous session, while the Nasdaq fell 0.4% and the Dow Jones dropped 0.2%. Analysts remain divided on whether the sector will recover, with concerns about the global economy and the rapid expansion of AI companies weighing on sentiment.
Foxconn confirmed a new partnership with OpenAI following a meeting between Chairman Young Liu and CEO Sam Altman. The collaboration builds on a 2023 agreement to develop data-center racks and AI hardware. Foxconn, the largest builder of AI servers for Nvidia, expects double-digit growth next year, with cloud and networking products making up 51% of its second-quarter revenue.
Investors are increasingly turning to financial instruments to hedge against AI stock losses. The Nasdaq recorded its largest monthly decline since March, falling 2.9% in a single day. Credit Default Swaps for Amazon, Alphabet, Microsoft, Meta, and Oracle rose to their highest level since 2021. Jump Trading is also designing derivatives to protect against falling GPU rents, with Nvidia B300 hourly rent up 56% this year to $7.56.
Environmental concerns are growing as data center expansion accelerates. A Sierra Club analysis found that nearly 15 years of greenhouse gas reductions in the US could be wiped out by data centers powered by gas plants. Projects like Elon Musk's 1.2 gigawatt facility near Memphis are already underway, with many developers building on-site fossil fuel power plants due to grid limitations.
In other developments, ZKH Group and Intel launched LingLong Insight 1.0, a multimodal AI model for industrial procurement that uses image recognition on Intel Core Ultra processors. Anthropic's AI discovered a critical Linux kernel vulnerability rated 9.8 on the CVSS scale, affecting kernels dating back to version 4.4. Separately, a Robert Half survey found 77% of law firms are raising pay for AI-skilled graduates, and CXMT is preparing HBM3E memory production for AI hardware.
Key Takeaways
- Foxconn and OpenAI are expanding their partnership to build AI hardware, building on a 2023 agreement for data-center racks.
- Foxconn is the largest builder of AI servers for Nvidia and expects double-digit growth next year.
- CDS costs for Amazon, Alphabet, Microsoft, Meta, and Oracle hit their highest level since 2021 amid AI stock sell-offs.
- The Nasdaq fell 2.9% in one day, recording its largest monthly decline since March.
- Nvidia B300 hourly GPU rent rose 56% this year to $7.56, prompting Jump Trading to design protective derivatives.
- A Sierra Club analysis warns that US data centers powered by gas plants could erase 15 years of greenhouse gas cuts.
- Anthropic's AI found a critical Linux kernel vulnerability rated 9.8 on the CVSS scale, with Ubuntu and RHEL still unpatched.
- ZKH Group and Intel launched LingLong Insight 1.0, an industrial AI model running on Intel Core Ultra processors.
- 77% of law firms are increasing pay for AI-skilled law graduates, according to a Robert Half survey.
- CXMT is preparing HBM3E memory production, currently matching older HBM3 performance levels rather than competitive HBM3E speeds.
US stocks lose morning gains as tech and AI shares stay volatile
US stocks had a morning rally that disappeared as tech and AI stocks stayed shaky. The S&P 500 was almost unchanged on Monday after gains from the day before were erased. The Nasdaq fell 0.4% and the Dow Jones dropped 0.2%. The tech sector has been under pressure due to worries about the COVID-19 pandemic and the fast growth of AI companies.
US stocks drop morning rally amid tech and AI sell-off
A morning rally for US stocks faded as tech and AI industries stayed weak after a sell-off the week before. The S&P 500 was virtually unchanged on Monday after erasing gains from the previous session. The tech sector has faced pressure from concerns about the global economy and the rapid growth of AI companies. Some analysts remain hopeful about future demand for technology and AI.
US stocks give up morning gains as tech and AI shares swing lower
US stocks erased their morning rally as tech and AI stocks continued to struggle. The S&P 500 fell 0.5% on Monday after gains were wiped out. The tech sector has been hit hard by worries about the COVID-19 pandemic and the fast expansion of AI companies. Analysts are split on whether the tech and AI industries will recover soon.
US stocks morning rally fades as tech and AI shares remain weak
A morning rally for US stocks disappeared as tech and AI industries stayed unstable after last week's sell-off. The S&P 500 was virtually unchanged on Monday after erasing morning gains. The tech-heavy Nasdaq ended the day flat while the Dow Jones industrial average fell 0.2%. The ongoing debate about the future of tech and AI continues as experts weigh in on potential risks and opportunities.
Foxconn hints at partnership with OpenAI for AI hardware production
Foxconn Chairman Young Liu met with OpenAI CEO Sam Altman and signaled a collaboration between the two companies. The deal could build on a 2023 agreement focused on developing data-center racks and other AI hardware. Foxconn is a key AI server maker for Nvidia and is relying on AI infrastructure for future growth. Cloud and networking products made up 51% of Foxconn's second quarter revenue, and the company expects double digit growth next year.
Foxconn partners with OpenAI on new AI hardware as server demand grows
Foxconn chairman Liu confirmed a new partnership with OpenAI at the company's annual technology event after meeting CEO Sam Altman. The deal builds on last year's collaboration designing data center racks and AI hardware. Foxconn is the largest builder of AI servers for Nvidia and runs six factory buildings in Houston, Texas. Its cloud and networking division generated 51% of second-quarter revenue. Liu dismissed AI bubble fears and predicted double-digit growth for next year.
Bitcoin's $76,000 threshold could end Galaxy's bull case, Claude AI says
Galaxy Digital's head of research Alex Thorn identified $76,000 as the critical price level that would invalidate his bullish Bitcoin case. Bitcoin currently trades at $77,324, down 8.1% over the past month and 38.7% below its all-time high of $126,080. Claude AI estimates a 55% chance Bitcoin will close a week below $76,000 by year-end. If that level breaks, Bitcoin could fall to $68,000 before recovering to around $72,000 by December 31. Strategy Inc. owns 849,327 BTC with an average cost of $75,451.
AI can change the world but still crash the market, Value Options says
The Value Options Podcast discussed whether big tech companies are taking on too much debt amid the AI spending boom. Hosts Travis and Carlisle explored if AI stocks could crash even as the technology succeeds. They also covered how AI could transform the economy through the singularity and why traditional businesses may still thrive. The episode additionally examined whether Netflix is undervalued compared to YouTube.
New US data centers could erase 15 years of greenhouse gas cuts
A Sierra Club analysis found that nearly 15 years of pollution reduction efforts in the US could be wiped out by a wave of data centers powered by gas plants. Many data center developers are building on-site power plants due to electrical grid bottlenecks, and these are overwhelmingly fueled by fossil fuels. Projects like Elon Musk's 1.2 gigawatt data center near Memphis are already underway. The number of data center projects at risk of cancellation is rising as concerns grow.
Investors turn to options and CDS as AI stock losses mount
Investors and tech executives are seeking financial products to reduce losses as AI company stocks plunge. The Nasdaq index fell 2.9% in one day and recorded its largest monthly decline since March. Put options and Credit Default Swaps have become popular protection tools. CDS costs for Amazon, Alphabet, Microsoft, Meta, and Oracle rose to their highest level since 2021. Jump Trading is designing derivatives to protect against falling GPU rents, with Nvidia B300 hourly rent up 56% this year to $7.56.
ZKH and Intel launch LingLong Insight 1.0 industrial AI model
ZKH Group and Intel introduced LingLong Insight 1.0, a multimodal AI model for industrial procurement. The system uses image recognition and local processing on Intel Core Ultra processors to verify incoming materials. It draws on ZKH's database of over 27 million product records. The model runs on LingLong Agent Box hardware to reduce reliance on cloud connectivity.
AI model finds remote root exploit in Linux kernel TCP flaw
Anthropic's AI discovered a critical Linux kernel vulnerability rated 9.8 on the CVSS scale. The flaw allows unauthenticated attackers to gain root access remotely without user interaction. While some Linux distributions have issued patches, Ubuntu and RHEL remain unpatched as of late October. The vulnerability affects kernels dating back to version 4.4.
Law firms raise pay for AI-skilled law graduates
A Robert Half survey found 77% of law firms are increasing pay for candidates with AI expertise. Starting salaries for attorneys with two to three years of experience are projected to rise 3.6% in 2027. San Francisco, Denver and Seattle lead cities offering higher-than-planned starting salaries. Law students are encouraged to build AI skills and consider mentorship and benefits alongside salary.
CXMT readies HBM3E memory production for AI hardware
Chinese memory maker CXMT is preparing volume production of HBM3E memory for AI hardware. Early CXMT chips currently match older HBM3 performance levels rather than competitive HBM3E speeds. In Q2 2026, SK hynix held about 50% of global HBM revenue, Samsung 33%, and Micron 18%. CXMT captured 10% of the conventional DRAM market during that period.
Sources
- US stocks erase their rally from the morning as tech and AI stocks keep swinging
- US stocks erase their rally from the morning as tech and AI stocks keep swinging
- US stocks erase their rally from the morning as tech and AI stocks keep swinging
- US stocks erase their rally from the morning as tech and AI stocks keep swinging
- Foxconn Hints At Tie-up With OpenAI For AI Hardware Manufacturing
- Foxconn eyes fresh AI hardware partnership with OpenAI as server demand lifts growth outlook
- Galaxy's Alex Thorn Says a Break Below $76,000 Would End His Bitcoin Bull Case. Claude AI Says How Likely That Is
- Value Options: AI Can Change the World—and Still Crash the Market
- New Data Centers in the US Set to Wipe Out 15 Years of Greenhouse Gas Reductions
- As concerns over the artificial intelligence (AI) investment bubble grow, more and more people are l..
- ZKH and Intel Introduce Industrial AI Model to Improve Supply Verification
- Linux Kernel TCP Flaw Rated 9.8 Gets a Remote-Root Exploit From an AI Model
- Law firms paying more for AI skills, creating opportunities for law graduates
- CXMT Prepares Volume Production of HBM3E Memory for AI Hardware
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