🚀 Gold hits $4,000

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Market Overview
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Year To Date Performances:

1. Gold prices surged past $4,000 an ounce for the first time on Tuesday as investors sought refuge in the metal amid a weaker dollar, heightened global tensions, and persistent inflation. Futures peaked at $4,014.60, up more than 50% this year, driven by central banks and retail investors shifting away from U.S. Treasurys toward gold. The rally follows the Federal Reserve’s September rate cut and expectations of further easing, which have made debt less attractive. The dollar has dropped 10% this year as President Trump’s trade policies and attacks on the Fed's independence have shaken markets. Ray Dalio urged investors to hold up to 15% of their portfolios in gold, calling it a rare asset that performs well when others falter, although the Bank of America warned that prices may face “uptrend exhaustion” and a potential correction ahead.

2. As the government shutdown drags on, pressure is mounting on Republicans to address Democrats’ demands for an extension of Affordable Care Act subsidies before agreeing to reopen the government. Sen. Susan Collins has circulated a “discussion draft” proposing that talks on enhanced Obamacare tax credits take place only after funding is restored, a stance Democrats reject as stripping them of leverage. While moderates like Collins and Lisa Murkowski support extending the subsidies, most GOP lawmakers remain opposed to tying them to the funding bill. Sen. Angus King, who has sided with Republicans in past votes, warned that he may withdraw his support unless the party engages more directly on healthcare, underscoring the fragile negotiations and deepening gridlock in Congress.

3. Thoma Bravo co-founder Orlando Bravo warned that AI company valuations are in a bubble, likening the current surge to the dot-com era, but noted a key difference: large, financially healthy companies are now financing these startups. He cautioned that investors are overvaluing early-stage companies, highlighting that a firm with $50 million in annual recurring revenue could not realistically justify a $10 billion valuation without producing massive future cash flow. Despite soaring valuations for firms like OpenAI, Palantir, and AppLovin, as well as seed-stage startups like Thinking Machines Lab, Bravo emphasized that the presence of well-capitalized backers today distinguishes the AI market from the risky conditions of the 2000s dot-com crash.

   Headlines

   1. Tesla has released a significant software update to its self-driving technology ahead of a planned announcement next week.

   2. Oracle's stock fell due to concerns about the margins on its deals with Nvidia.