Nvidia's Record $150B Buyback, Meta Poaches MongoDB's CEO

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What is the main topic discussed in this episode?

Zaid Admani 0:00
Public dot com presents the rundown. Your daily market update in 10 minutes. My name is Zayd Mani, and today is Monday, September 28th. In today's episode, we'll tell you about NVIDIA's plan to stop AI agents from going rogue and why they just announced the biggest stock buyback in history. We'll also tell you about the new AI division that Meta just launched and who they poached to run it. Then stick around to the end of This show to find out what SpaceX's massive starship rocket just did for the first time ever. We got a great show for you today. Let's go.

Why are stocks holding up despite rising Treasury yields?

Zaid Admani 0:42
Stocks are coming off a winning week despite all the chaos. Last week the SP 500 gained 1.2%, while the Nasdaq added more than 2%. So stocks keep moving higher despite elevated oil prices and the bond market getting smoked. The 10-year Treasury yield finished Friday at 5.18%, which is its highest close since 2007, while the 30-year finished around 5.5%. Now, what's interesting. Is that historically surging yields haven't always been bad for stocks? It really depends on why yields are going up. If you look back to 1994, a surprise Fed hiking cycle sent yields flying and the SP 500 fell as much as 8%. And then in 2022, the Fed started aggressively hiking and the SP fell nearly 20%. But if you look at 2016, both stocks and yields went up together because.
Zaid Admani 1:32
Because the economy was finally getting healthier. Now, in 2016, yields didn't go all the way up to five percent. So we'll have to see how the market responds this time. You know, so far, strong economic growth and corporate profits have been enough to offset the pains from higher rates.

How could rising oil prices and upcoming Fed data affect markets?

Zaid Admani 1:46
In fact, the SP 500 and Nasdaq closed within 1% of record highs last week. The wild card here is going to be oil prices. There was some optimism last week about a potential deal with Iran that would Have opened up the Strait of Hormuz, but over the weekend, President Trump rejected Iran's latest proposal. So oil prices are ripping this morning. Brand crude is up around 4% to around $108 a barrel at the time of this recording. And as I record this in the pre-market stocks, futures of the NASDAQ and SP are also in the red. Now, as you guys know, higher oil prices makes everything more expensive, which keeps the pressure on inflation, which strengthens the case for more rate hikes. By the Fed. In fact, traders are already pricing in a 70% chance of a rate hike at the October Fed meeting.
Zaid Admani 2:28
Now, looking ahead to this week, we are getting some data that could impact the Fed's decision. The PCE inflation report comes out on Wednesday. The PCE inflation report is the Fed's preferred inflation gauge. They like it more than the CPI. So this report matters, although this report covers the month of August, so it's a little bit dated at this point. On Friday, we get the September jobs report, which will tell us how the labor market is holding up. If the labor market continues to be strong like it has, I think the Fed will keep hiking rates. So we'll continue to stay on top of that, along with everything else happening in the market. So definitely get subscribed to the podcast if you haven't already, especially with everything going on right now.
Zaid Admani 3:05
And tune in every day to stay in the loop. Let's run through some headlines.

How does Nvidia’s Open Agent Safety Platform aim to control AI agents?

Zaid Admani 3:13
And we're talking NVIDIA because they just made two pretty big announcements this morning. NVIDIA just launched something called the Open Agent Safety Platform, which is designed to stop autonomous AI agents from going rogue. You know, AI safety has become a major talking point these days, especially after anthropic CEO Dario Amade and other AI CEOs. Like Sam Altman and Elon Musk called for an industry-wide slowdown in AI development. Mm. Not to mention, there's been a few AI researchers that have even said that there's a 10% chance that humans would get wiped out by AI. A lot of these researchers and executives point to the Hugging Face incident earlier this year. A few months ago, OpenAI's agents escaped containment and got on the open internet and hacked the AI company Hugging Face.
Zaid Admani 3:57
That freaked out a lot of people that AI agents

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