AI Spend Worries Drag Stocks, ICE to Dial Back in Minn., More

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Unknown 0:00
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Nathan Hager 0:28
News when you want it with Bloomberg News Now. I'm Nathan Hager. Big tech spending on artificial intelligence is showing no sign of letting up. And it's sparking a sell-off on Wall Street this morning. Led by the Nasdaq composite, it is down 2% right now. The S&P 500 is sinking by 1%. The Dow Jones Industrial Average is lower by three-tenths of 1%. Microsoft is leading the declines down 12%. After the software giant reported $37.5 billion in AI spend, but slowing growth in its Azure cloud, Mandeep Singh covers tech for Bloomberg Intelligence.
Mandeep Singh 1:02
Everyone is, you know, compute constrained right now. So that's where memory prices are having an impact and all the things that are going on in terms of the chip. Prices are having an impact.
Nathan Hager 1:16
Mandeep Singh with Bloomberg Intelligence. Now, Meta Platforms is predicting even more AI spend, up to $135 billion this year. That stock is getting rewarded to the tune of more than 7.5%. Bloomberg Tech host Ed Ludlow.
Ed Ludlow 1:31
That's a ginormous figure. But in the current period, at least in the forward-looking commentary that they gave, ad sales growth is very strong.
Nathan Hager 1:40
Yeah. Ed Ludlow is host of Bloomberg Tech. That is the setup as Apple gets ready to open its earnings books later today. Anurag Rana covers the iPhone maker for Bloomberg Intelligence.
Anurag Rana 1:50
These guys are going to do okay in terms of total revenue growth for the first time for the iPhone. I think it's going to be in double digits.
Nathan Hager 1:57
Anurag Rana with Bloomberg Intelligence says the question is whether rising memory costs force Apple to raise its prices for those iPhones. Ahead of the earnings, Apple shares are down about two-tenths of one percent.
Tom Holman 2:08
In Minneapolis, I came here to seek solutions and that's what we're going to do.
Nathan Hager 2:13
White House border czar Tom Holman says federal immigration enforcement is moving to targeted operations away from wider sweeps after discussions with state and local officials.

What is the significance of AI spending in the current market?

Tom Holman 2:23
The drawdown is going to happen. based on these agreements, where the drawdown can happen even more if the hateful rhetoric and the impediment and interference will stop.
Nathan Hager 2:33
That's Barad House Border Czar Tom Holman. We get more from Bloomberg's David Gurra.
David Gurra 2:37
It sounds like, from what Tom Holman said, we are going to see a change in tactic here, but certainly, and I'll emphasize this as well, nothing in those remarks makes it sound like that federal presence, yes, it might be diminished, is going away. anytime soon.
Nathan Hager 2:49
Bloomberg's David Gurr reporting. Meantime, Maine Senator Susan Collins says enhanced immigration enforcement is going away in her state. The Republican had called on Homeland Security Secretary Kristi Noem to end what she had called Operation Catch of the Day. Maine, like Minnesota, has a sizable Somali population. On Capitol Hill, Senate Majority Leader John Thune says President Trump and Senate Democrats are close to a deal on averting a government shutdown over the Minneapolis turmoil. Bloomberg's Tyler Kendall is following that.
Tyler Kendall 3:17
It's not clear what the White House will agree to. And the real issue is even if there is an agreement, this plan is going to require it to be kicked back down to the House no matter what. And lawmakers in that chamber are out of session and out of Washington until next week. And the funding deadline is this Friday at midnight, which means that we are likely looking at a lapse in funding at least over the weekend.
Nathan Hager 3:40
Bloomberg's Tyler Kendall reports Democrats are pushing for warrant requirements, body cameras, and no masks for ICE agents. Senator Thune says he is optimistic about a deal, but in his words, let's hope it lands. The founder of bankrupt auto parts company First Brands, Patrick James, is facing federal charges.

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