Stock Markets Wobble as AI Deals Battle Government Shutdown Fears

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•  03 Oct 2025
 

•   AAPL  
   
  -0.10%
•   BA  
   
  -0.10%
•   COIN  
   
  +0.31%
•   FICO  
   
  -0.53%
•   OXY  
   
  0.00%

The stock markets retreated slightly from their historic peaks on Thursday as excitement over fresh artificial intelligence partnerships collided with mounting geopolitical concerns and the ongoing government shutdown. The Nasdaq Composite slipped 0.3%, while the S&P 500 briefly dipped into negative territory before recovering to finish essentially flat. The Dow Jones Industrial Average bucked the trend, gaining 0.5% as blue-chip stocks attracted investor attention.

The federal government shutdown entered its third day, adding another layer of uncertainty to an already complex investment landscape. White House officials, including Press Secretary Karoline Leavitt, raised the possibility of federal employee layoffs and funding cuts to Democrat-controlled cities like Portland. Investors are beginning to recognize that this impasse could drag on considerably longer than initially anticipated, with Morgan Stanley analysts estimating the crisis could persist anywhere from 10 to 29 days.

Among individual stocks, Quantum Computing posted a spectacular 25% surge as Wall Street analysts project a potential 67% upside from current levels. The Hoboken-based quantum computing company, which surprisingly began its corporate journey selling ink cartridges online, has skyrocketed more than 3,200% over the past year. The latest rally came after an analyst boosted the price target by 82%, reflecting growing enthusiasm for quantum technology applications.

$AAPL faced headwinds after Jefferies downgraded the stock, warning of potential 20% downside. The investment firm cautioned that expectations for the upcoming iPhone model and a future foldable device are inflated beyond realistic projections. According to the analysis, Apple's upgrade strategy built around price reductions is eroding profitability margins at a time when the company confronts slowing growth in China and intensifying competition across the smartphone market.

Export restrictions targeting China hammered semiconductor equipment manufacturers, with Applied Materials expected to lose hundreds of millions in revenue. Shares across the chip equipment sector declined as concerns grew that these limitations could accelerate the growth of Chinese competitors and intensify threats to American companies in this critical technology segment.

$TSLA dropped 1.4% following a more than 5% decline the previous session, despite the company reporting record deliveries of 497,099 vehicles in the third quarter. The pullback interrupted a four-day winning streak, though Tesla shares remain up 8% year-to-date. Separately, a shareholder group led by New York City employee pension funds submitted a letter to the SEC opposing a trillion-dollar compensation package for Elon Musk.

$RIVN gained 0.9% after plummeting 7.4% in the prior session. The electric vehicle maker reported nearly 32% growth in third-quarter deliveries, exceeding analyst forecasts, yet simultaneously lowered its full-year delivery guidance. The stock has now declined for six consecutive trading days despite the better-than-expected quarterly performance.

$BA edged down 0.5% despite reports that the 777x launch has been postponed to 2027 instead of next year. According to Bloomberg, the first commercial flight is now scheduled for early 2027. Boeing declined to comment, citing the quiet period ahead of earnings announcements.

$FICO surged 4% following an 18% explosion the previous day. The company unveiled new pricing models allowing credit reporting agencies direct access to FICO scores, effectively bypassing traditional credit rating companies. Equifax, TransUnion, and Experian shares recovered modestly after steep losses in the prior session as markets digested the competitive implications.

$COIN climbed 2% after five consecutive days of gains and a 7.5% jump Wednesday. Investment bank Rothschild & Co Redburn upgraded the stock to "buy" and raised its price target to $417. MicroStrategy, the largest corporate Bitcoin holder, declined slightly after gaining 4.1% previously, while Bitcoin itself climbed to $120,418.

$OXY rose 1.3% after tumbling 7.3% in the previous session. Occidental Petroleum announced the sale of its petrochemical operations to Berkshire Hathaway for $9.7 billion, a transaction that reshapes the company's strategic focus and provides substantial capital for debt reduction or other investments.

$RUM rocketed 16% higher after announcing a collaboration with Perplexity to integrate artificial intelligence-powered tools that enhance video discovery on the platform. The partnership represents Rumble's latest effort to compete with established video platforms by leveraging cutting-edge AI technology to improve user experience and content recommendation systems.

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