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Vance faces tough questions on Iran war, immigration and more in CBS town hall

Sun, 18 Oct 2026 11:11:22 GMT

U.S. Vice President JD Vance speaks during a midterm campaign rally at the LevelUp Training Complex on Oct. 15, 2026 in Monroe, Michigan.

Pool | Getty Images News | Getty Images

Vice President JD Vance faced tough questions from voters about the Trump administration's policies on data centers, high costs, immigration and his own rhetoric in a town hall on CBS News that aired Saturday night.

The string of sharp questions, some from voters who said they had supported him and President Donald Trump, previewed the rocky path he may face if he runs for president in 2028 and has to answer for the administration's record.

Vance, who said during the town hall there's "of course" a chance he doesn't run for president, faced an especially pointed question about "a failure of leadership" posted by the widow of one of six U.S. soldiers killed by an Iranian drone strike in Kuwait, which occurred the day after Trump started the war with Iran.

"This literally is the first time I've heard of this," Vance said in response.

As he went on, he said, "This job is an amazing honor, but you live in a bit of a bubble and sometimes information doesn't filter up."

Iran war strategy and costs

After telling the vice president about his late wife, Master Sgt. Nicole Amor, who was killed on March 1, Joey Amor asked about mistakes and fundamental failures that led up to the deaths of those soldiers and how leaders would be held accountable.

Vance seemed taken aback by Amor's questions, saying, "This literally is the first time I've heard of this," and said he wanted to talk with Amor afterward to learn more.

But as Vance went on, he acknowledged mistakes were made and said, "There were issues with where troops were located that we realized was a huge mistake that we could do better on, and we have changed that."

A Michigan man who said he voted for Trump and Vance in 2024 but now plans to vote for Democratic Senate candidate Abdul El-Sayed pressed Vance about the high gasoline prices resulting from the war. In response, Vance said he recognized that gas prices were too high, and said, "I think it's important to be honest about why they're so elevated."

He said it was because of "what's happening in the Middle East" and that the administration was taking steps to lower prices.

"We've never had a situation like this where you have effectively the largest state sponsor of terrorism that's trying to choke off world energy supply," Vance said, without acknowledging that situation occurred because of the war Trump launched.

He also blamed former President Joe Biden, saying that during his tenure, America's refining capacity was diminished.

But when Vance was pressed on whether the Trump administration owned the current situation, the vice president suggested that looking backward for blame wasn't the way.

"Fundamentally, we are where we are, and you have to, in my view, I'd like to know what is Abdul El-Sayed's solution for the problem that we have right now," Vance said. "It's easy to criticize something that happened seven months ago."

Immigration enforcement tactics and rhetoric

A nun who spoke to Vance about their shared Catholic faith questioned the administration's hardline immigration enforcement tactics, including children who are separated from their parents when the adults are swept up in sweeps, and how that squared with their values.

"We're trying to strike the right balance," Vance said. When moderator Tony Dokoupil asked Vance if the administration is not striking that balance, Vance replied, "I think that is constantly a work in progress."

He admitted that, "Sometimes you have some people who made mistakes. Sometimes you have some people who really screw up."

When Dokoupil asked for specific examples, Vance said the administration has investigated several cases that resulted in further training or discipline for immigration enforcement officers, but they don't advertise them publicly to let investigations play out.

Another voter, who said she became an immigrant five years ago and voted for Vance after becoming a U.S. citizen, asked him pointedly about his recent remarks referring to H1-B visa holders as "foreign indentured servants," and accused him of "scapegoating immigrants for the issues you're supposed to be solving."

"To the extent that my rhetoric has been imperfect here, that's on me," Vance said, before explaining that he was trying to criticize the companies that bring in the workers, not the immigrant workers themselves.

Selling access to White House 'disgusting and despicable'

Dokoupil pressed Vance on whether Trump and others in his administration profited from the presidency, including the nearly $1.2 billion the president took in from his crypto businesses last year, according to a federal filing. When asked if he'd seen anything in the White House that made him squeamish, Vance said, "I've never seen anything like that from the president."

He said, though, that there is evidence of corruption in Washington, but he doesn't see evidence of it from the president or the administration.

Vance said he's read articles about allegations, but he investigates claims himself and finds they are not true.

Dokoupil asked Vance about the president's crypto profits, as well as the recent resignation of his ambassador to Greece, Kimberly Guilfoyle, over allegations she denies that she leveraged her position for benefits.

"If somebody's selling access to the White House, that's disgusting and despicable, and they should suffer consequences," Vance said.

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Semiconductor market to remain solid ‘at least through next year,’ South Korea finance minister says

Amelia Lucas, Lisa Kim — Sun, 18 Oct 2026 11:10:44 GMT

South Korean Finance Minister nominee Lee Hyoung-il speaks during his confirmation hearing at the National Assembly in Seoul, South Korea, Sept. 15, 2026.

Kim Hong-ji | Reuters

The semiconductor boom will last at least through 2027, South Korean finance minister Lee Hyoung-Il said on Saturday.

"For now, our view is that we can sustain this growth at least through next year," Lee told CNBC on the sidelines of the IMF-World Bank annual meetings in Bangkok. "That's because the gap between demand and supply for semiconductors is still very wide, and supply is still being expanded."

His comments come after semiconductor stocks fell sharply this week, hurt by investor concerns about interest rate hikes and rising competition from Chinese companies. South Korean chip stocks like SK Hynix and Seoul Semiconductor were part of the sell-off, along with U.S. giants like Nvidia.

Chip stocks' large weighting has fueled volatility in South Korea's stock market this year, Lee said. He attributed the market's wild swings to the semiconductor industry's larger share of the economy than in other countries. Despite the market swings, South Korea's economy is "solid," Lee said.

On Thursday, an opinion column in Maeil Business Newspaper, a prominent South Korean publication, urged the country's government to prepare for the coming slowdown in the artificial intelligence boom. The author said two experts expect a "flood of new supply" of semiconductors that will turn the memory market "into a red ocean" by 2029, according to a CNBC translation.

Trump's Russia diesel deal may offer Putin more than money — and spell trouble for Ukraine

Elsa Ohlen — Sun, 18 Oct 2026 07:22:07 GMT

In this article

SPCX

Ukraine is facing increasing uncertainty over its ability to sustain the war against Russia as a series of moves by U.S. President Donald Trump has raised fresh questions about Washington's reliability as Kyiv's most important military partner.

Trump's agreement with Putin to ease sanctions for Russia to provide global markets with diesel, as well as restrictions on U.S. intelligence sharing with Ukrainian forces, has put President Volodymyr Zelenskyy in a difficult position as winter looms.

On Saturday, Zelenskyy condemned the White House's waiver of key provisions of a recently enacted package of sanctions aimed at curbing Russia's ability to prosecute its war against Ukraine.

″... The decision to undo all of this, to block all of it, seems wrong to me," Zelenskyy said in a post on X. "And it definitely helps only the Russians. It only fuels their satisfaction and their desire to keep killing people."

Higher diesel prices – essential to transporting goods and agricultural production – tend to drive up costs across the wider economy and fuel inflation. With November's U.S. midterm elections approaching, Trump is under pressure to bring fuel costs down.

But experts told CNBC that the diesel deal would deliver only a marginal financial benefit to Russia, and not move the needle much on global energy prices. Its wider political implications may be more significant, potentially reinforcing the Kremlin's belief that it can secure concessions from Washington without making compromises over Ukraine.

"Russia's main gain is political: Trump's decision eases sanctions pressure and undermines Western unity," Sergey Aleksashenko, senior research fellow and head of economics at the NEST Centre, told CNBC.

Diesel deal

Trump's agreement with Putin was for Russia to supply the global market with 4.8 million metric tons of diesel, the equivalent of about ten days of U.S. domestic demand, or about a single day of global demand. Experts say it will do little to affect prices.

"It does not even touch the sides – it is very, very small," Neil Atkinson, former head of the IEA's oil industry and markets division, told CNBC's "Squawk Box Europe" on Monday.

VIDEO7:4507:45

‘Does not even touch the sides’: former IEA exec on Trump’s diesel deal

Squawk Box Europe

Aleksashenko estimated that the initial part of the phased agreement that covers 1.8 million metric tons of diesel could generate up to $1.25 billion in additional export revenue over three months, equivalent to around 1% of Russia's commodity export revenues during that period.

However, the benefit to Russia's federal budget would be substantially smaller, at less than $30 million per month, or under 0.07% of monthly federal revenues.

The deal was therefore unlikely to meaningfully strengthen Russia's war finances, Aleksashenko said. Instead, its main benefit to Moscow is political, because it eased sanctions pressure and undermined Western unity without requiring Putin to make concessions over Ukraine, he told CNBC.

The research fellow also argued that the additional Russian diesel entering global markets is not sufficient to produce a noticeable reduction in consumer fuel prices in the short term.

"Funding the war is currently Putin's priority, and he is prepared to increase that funding even if it means cutting all other expenditures," Aleksashenko added, pointing to Russia's draft budget for 2027.

The bigger problem for Ukraine

"Rather than encouraging compromise, the [diesel] deal likely boosts Moscow's belief that continued pressure will eventually yield further Western concessions," Maria Snegovaya, senior fellow at the Center for Strategic and International Studies, told CNBC.

Speaking to reporters in Brussels on Friday, Zelenskyy also warned that the diesel agreement could set a precedent for further sanctions relief, while highlighting Ukraine's continued reliance on U.S. military technology and intelligence despite efforts to develop alternatives.

"Sanctions will be lifted after gas," Zelenskyy said. "They will be lifted on something else. Then this will come to the banking system, certain individuals, chemical industry."

Earlier this week, reports emerged that SpaceX's Starlink military application Starshield has been restricted in Ukraine. SpaceX CEO Elon Musk said in a post on X that the U.S. government and president were ultimately responsible for any curbs on the network.

What to know about Starshield, SpaceX's military-focused Starlink service

The order to limit Starshield for Ukraine came from inside White House, according to a Reuters report citing three officials familiar with the matter. CNBC has contacted the White House for comment.

The consequences were felt sharply in Ukraine. As Starlink's speed limits were lowered, Ukraine became incapable of shooting down some Russian drones. This week, Ukraine also did not receive advanced warning from partners of incoming ballistic missiles, resulting in civilian deaths, according to Ukrainian officials.

According to Serhiy Derkach, Ukraine's first deputy minister for recovery, infrastructure and transport, Starlink restrictions emboldened Russia to intensify attacks on Ukraine.

"With U.S. limiting the use of Starlinks on the battlefield, Russia feels that this is their moment to try and inflict even more pain and suffering on Ukraine's civilian infrastructure," Derkach told CNBC on Friday.

Russian authorities didn't respond to multiple CNBC requests for comment.

A political blow

The diesel deal was a political and moral blow to Ukraine and the Western coalition, according to Snegovaya. The U.S. sanctions exemption, which runs until April 2027, could facilitate Russian diesel exports beyond the initially announced shipment, potentially increasing Moscow's economic gains, she warned.

"If [the] White House uses its military and intelligence support as leverage to constrain Ukraine's strikes, the implications could become far more significant," Snegovaya said, adding that Ukraine's attacks on Russian oil refineries have inflicted substantial economic costs on Moscow.

Such a move could have far greater consequences for Ukraine's efforts to weaken Russia's war economy, she added.

Why hedge funds could be making a bond market shock more likely

Hugh Leask — Sun, 18 Oct 2026 06:13:05 GMT

LONDON, ENGLAND - JULY 7: Deputy Governor for Financial Stability, Sarah Breeden, attends the Bank of England financial stability report press conference at Bank Of England on July 7, 2026 in London, England. (Photo by Doug Peters - WPA Pool/Getty Images)

Wpa Pool | Getty Images News | Getty Images

Hedge funds' increased presence in global bond markets makes the likelihood of a broader market shock "greater than what it was," Bank of England deputy governor Sarah Breeden told CNBC Thursday.

Breeden — the central bank's deputy governor for financial stability, and a member of its rates-setting Monetary Policy Committee — said the changing mix of bond market investors, and their increased use of leverage, raises the risk of localized market turbulence turning into broader financial stress.

VIDEO15:3615:36

BoE's Breeden: Surprised how well UK economy has absorbed the energy price shock

Squawk Box Europe

"One of the things that has become increasingly apparent over the last several years is that the investors in our core government bond markets globally have changed," Breeden told CNBC's Sri Jegarajah in an interview Thursday.

"It's not the real money investors, the insurance companies and pension funds, in the way it used to be. It's increasingly hedge funds, and those hedge funds are price-sensitive, leveraged, international. That, of course, means that the likelihood of a shock in one market transmitting to another is greater than what it was."

Breeden was speaking on the sidelines of the International Monetary Fund-World Bank annual meetings in Bangkok, Thailand.

U.S. 10-Year Treasurys.

Hedge fund assets swell

With gross assets now standing at about $13 trillion, hedge funds have become an increasingly important part of the global investor landscape, the IMF said on Tuesday.

In its latest Global Financial Stability Report, published Tuesday, the IMF acknowledged hedge funds' role in supporting market liquidity and efficiency.

But it also warned that the hedge fund industry's use of leverage to boost returns, and its tendency to pursue crowded trades, could turbo-charge market stress in times of turmoil.

That, in turn, could spill over into broader financial markets, and areas such as banks' prime brokerage businesses, according to the IMF.

"The source of the shocks are bond markets, and the likelihood of a spillover is higher than it was," Breeden said.

Hedge funds' presence in the global government bond market — particularly their use of so-called "basis trades" — has come under sharper scrutiny this year, following the sharp sell-off in sovereign debt.

Hedge funds held a record 7% of the $30 trillion Treasury market at the end of 2025, according to U.S. Office of Financial Research data published on Aug. 19.

Basis trades are an arbitrage bet in which hedge funds are positioned long in cash Treasurys while shorting their corresponding futures contracts, with the aim of profiting from the price gap. While the price differential between the two is relatively small, hedge funds often employ large amounts of leverage to further inflate returns.

France 10-Year OATs.

Earlier this month, 10-year and 30-year Treasury yields hit their highest levels since 2002. Across the Atlantic, yields on 10-year U.K. government bonds, known as gilts, also touched multi-decade highs.

Yields on France's government bonds, known as OATs, have moved sharply higher in recent weeks amid rising concerns about the country's fiscal outlook — fueling fears of a fresh sovereign debt crisis impacting the euro zone.

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Trump touts his power at Kentucky rally to energize voters ahead of midterm elections

Sun, 18 Oct 2026 05:56:03 GMT

HIGHLAND HEIGHTS, KENTUCKY - OCTOBER 17: U.S. President Donald Trump gestures as he departs after delivering remarks during a midterm rally at Truist Arena on the Northern Kentucky University campus on October 17, 2026 in Highland Heights, Kentucky. (Photo by Eric Lee/Getty Images)

Eric Lee | Getty Images News | Getty Images

President Donald Trump touted his power in his second go-around in the White House Saturday while rallying in Kentucky to bolster Republican turnout as his party struggles in the midterms, saying, "I can do stuff that is unbelievable."

Trump, who spoke in the city of Highland Heights to boost Republican candidates including Ed Gallrein for the U.S. House, was riffing on his decision to change how the U.S. government refers to the Gulf of Mexico to the Gulf of America.

"I don't think I could have done this in my first term. This is a much more powerful term," Trump said. "Google wouldn't have taken my call in the first. Now, they kiss my ass."

"Well, I also changed the name of a lake in Canada to the Lake America," he continued, referring to Lake Ontario.

Trump's self-proclaimed power clashes with voter frustration over how he's wielded it, with tariffs and the Iran war driving up prices and more Americans seeing the president as looking out for his own interests, not the country's.

With control of both chambers of Congress on the line, and with it the prospects of Democratic-led investigations of his administration should they win, Trump has put himself at the fore for voters even as Republicans privately worry he's a liability.

Trump nominated one of his personal lawyers to serve as attorney general, ordered military strikes on accused drug smuggling boats, is trying to put his name on the Kennedy Center, and has enriched himself and his family while he's been in office.

While meandering through topics onstage in Kentucky, Trump touched on gas prices, saying the war with Iran would end soon — an assertion he's made many times over the nearly eight-month conflict — and that gas prices would drop to lower than before. The crowd cheered.

Trump rehashed his dubious promise that if Republicans win the House and the Senate, then every adult American would get $5,000. That would most likely cost more than $1 trillion and require congressional approval, while exacerbating the country's nearly $1.8 trillion annual budget deficit.

At Saturday's rally, Trump added a new conditional promise for Kentucky. That if Republicans win, he said, the Department of Defense would invest in revitalizing a drug manufacturing facility in the state.

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AI rapidly improving, could vastly boost U.S. GDP, Anthropic's Clark tells policymakers

Sat, 17 Oct 2026 23:04:00 GMT

Jack Clark, co-founder of Anthropic, at the Semafor World Economy Summit during the International Monetary Fund (IMF) and World Bank Spring meetings in Washington, DC, US, on Monday, April 13, 2026.

Samuel Corum | Bloomberg | Getty Images

Rapidly improving artificial intelligence capabilities will drive much faster change across all fields, Anthropic co-founder Jack Clark said on Saturday, with one of the company's internal models forecasting that, under certain conditions, it could increase U.S. economic output by almost 50% by 2030.

Clark, speaking at the IMF and World Bank annual meetings in Bangkok, said international cooperation was needed to set "unusual and serious rules" for transformative technology, and that policymakers had a shrinking window to act.

Clark said the estimated potential U.S. GDP of $44 trillion, compared with the current level of just over $30 trillion, "sounds very outlandish, I know." But he added that AI was vastly increasing scientific discovery.

He said the forecast assumed "the technology continuing to get better. And if GDP were to grow this much, then economic doctrine suggests that new industries and inventions would need to have been created to power such a major economic expansion".

Clark's remarks come as the company prepares for an initial public offering expected in November that could value the firm at up to $2 trillion.

Humans in control, for now

Clark issued a wake-up call to policymakers about the speed of AI development, saying growing evidence points to a "singularity" in which AI development outpaces human control.

"We should expect that in the coming years, the whole pace of progress of not just AI but science as a whole will speed up, and this will feel confusing and disorienting, and will bring with it great wealth and potentially great peril," he said in a lecture to hundreds of government and finance officials.

AI was a major topic at IMF and World Bank meetings, both as a source of growth that could offset high energy prices and as a potential threat to stability if it falls short of its promise as a productivity game-changer and stock valuations crash.

Officials also expressed worries that AI could destroy certain jobs and leave some countries behind.

But Clark, a former journalist who serves as Anthropic's "head of public benefit," painted a picture of a rosy future where AI was a force multiplier for scientific discovery, solving mathematical, engineering and biological problems, including new drug discovery, as human researchers are supplemented by hundreds or thousands of AI assistants.

More countries can join the AI revolution by helping build the data center computing capacity needed to power AI, he said.

Strictest controls in biological research

Clark cautioned that global leaders need to understand how powerful AI will become and make urgent choices about how to regulate the technology.

"Being able to use AI for science opens us up to the misuses of science as well, biological and cyber weapons and things we cannot yet imagine, and we have many choices to make," he said.

Biological research, where AI has already created new viruses, is an area "where we want the strictest human oversight and transparency to maintain safety."

Despite recent high-profile incidents in which rogue AI systems escaped testing environments and hacked websites and databases, he said AI remained under human control. But the window to impose safeguards was shrinking as AI became more capable and was now "a small number of years."

Clark also acknowledged that AI was causing job losses in some fields with "high AI exposure," such as call centers and customer service. But in other fields, such as scientific research, he said AI was boosting employment, and a major unknown was its potential to create jobs in entirely new industries.

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Hurricane Trudy strengthens to Category 2 as it approaches Mexico coast

Sat, 17 Oct 2026 22:22:53 GMT

Fishing boats rest on the sand after being pulled from the sea as Hurricane Trudy moves parallel to Mexico's Pacific coast, threatening more rain and strong winds after recent deadly storms, in Acapulco, Mexico, October 15, 2026.

Javier Verdin | Reuters

Trudy strengthened to a Category 2 hurricane as it moved toward Mexico's southwestern and west-central Pacific coast on Saturday, the U.S. National Hurricane Center said.

A hurricane warning was in effect from Manzanillo, Colima, to Cabo Corrientes, Jalisco. The latest NHC data showed the Category 2 hurricane, with maximum sustained winds of 100 mph (155 kph), about 205 miles (330 kilometers) south-southeast of Cabo Corrientes in Jalisco state and 115 miles (180 kilometers) south-southwest of Manzanillo, moving northwest at 10 mph (17 kph).

Meanwhile, Typhoon Champi strengthened into a Category 4 weather system as it moved toward Guam.

Trudy's center was expected to approach the Mexican coast on Saturday and pass near it into Sunday. After the latest warning, Mexico's government issued a tropical storm warning for Las Islas Marias and discontinued a similar warning for its coast south of Lazaro Cardenas.

The Mexican Navy urged mariners and coastal residents to exercise extreme caution because of high waves, heavy rain, and the risk of rising rivers, flooding, and landslides in vulnerable areas.

Colima authorities said risks remained low but warned that heavy rainfall could cause damage because successive storms had already saturated the ground along the Pacific coast.

Trudy was expected to bring 4-8 inches (10-20 centimeters) of rain through the weekend, with isolated totals of around 15 inches (38 centimeters).

Also in the Pacific, Champi strengthened into a Category 4 storm as it moved west toward Guam at 15 mph (24 kph).

By Saturday night local time, Champi was about 25 miles (40 kilometers) southeast of Guam, with maximum sustained winds of 140 mph (225 kph), according to the U.S. National Weather Service.

The storm was forecast to pass south of Guam early Sunday local time and continue intensifying through the day. Guam and Rota remained under a typhoon warning, while Tinian and Saipan were under a tropical storm warning and typhoon watch.

The governors of Guam and the Northern Mariana Islands both requested emergency disaster declarations on Friday. President Donald Trump's approval would authorize federal support and funding for emergency protective measures.

Airports, harbors, and some health facilities in the territories were closed. Resources were unlikely to reach the islands for three to five days, according to Saturday updates from the Federal Emergency Management Agency.

The territories are still recovering from Super Typhoons Sinlaku and Bavi, which struck in April and July, respectively.

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Trump waives broad new Russia sanctions, Zelenskyy condemns it as 'wrong'

Azhar Sukri, Amelia Lucas — Sat, 17 Oct 2026 19:35:18 GMT

U.S. President Donald Trump welcomes Russian President Vladimir Putin to Joint Base Elmendorf-Richardson on Aug. 15, 2025, in Anchorage, Alaska.

Contributor | Getty Images News | Getty Images

Ukrainian President Volodymyr Zelenskyy on Saturday condemned the White House's waiver of key provisions of a recently enacted package of sanctions aimed at curbing Russia's ability to prosecute its war against Ukraine.

"... The decision to undo all of this, to block all of it, seems wrong to me," Zelenskyy said in a post on X. "And it definitely helps only the Russians. It only fuels their satisfaction and their desire to keep killing people."

President Donald Trump signed an executive order late Friday waiving key parts of the new U.S. sanctions on Russia.

"I have submitted to the Congress a certification that the issuance of such a waiver is in the national interests of the United States," Trump wrote in Friday's order.

The House passed the Russia sanctions bill on Sept. 16, and Trump signed it into law two days later. The bill was introduced over a year ago, and its primary backer was the late Lindsey Graham, a veteran Republican senator who represented South Carolina.

Titled the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, the legislation targeted Russia's economy, intending to penalize the country over its continued full-scale invasion of Ukraine.

The act required the president to increase duties on all Russian goods imported into the U.S. by up to 500% no later than 30 days after enactment. It also required Trump to impose tariffs of up to 100% on countries including China and India that are among the top five purchasers of Russian crude oil or gas.

Trump's latest order waives these two parts of the Graham Act and comes two days before the law's implementation deadline. However, the order preserves existing sanctions on Russia under earlier executive orders.

Zelenskyy said he expects Trump to waive other sanctions on Russia, too.

"Sanctions relief will continue," he posted on X. "I think the diesel deal and the move regarding the Lindsey Graham Act are not the end of it. Unfortunately."

The law could also sanction Russian leaders, officials, and financial institutions, and expand sanctions on Iran.

Oil sales revenue is critical to funding Russia's war effort.

The move also comes a week after the Trump administration temporarily waived sanctions on Russian diesel exports through April 2027 to ease a supply crunch caused by the war in Iran.

High fuel prices are a sensitive issue for voters ahead of midterm elections on Nov. 3. Trump's Republican Party holds a narrow majority in both chambers of Congress.

A 'historic moment'

"The suspension of some of the provisions of the Graham Act marks an important and truly historic moment," Kirill Dmitriev, Russian President Vladimir Putin's economy envoy, said in a post on X.

"The U.S.-Russia economic dialogue and peacemaking efforts will continue," Dmitriev added.

But Trump's opponents have criticized the move.

Sen. Richard Blumenthal, a Connecticut Democrat who also drafted the Graham Act, condemned the latest waiver.

"Donald Trump confirms again that he stands on the side of a bloodthirsty thug & the enablers of Russia's war machine & against the majority of Americans, their representatives in both houses of Congress, & our European allies," Blumenthal said in an X post.

BRUSSELS, BELGIUM - OCTOBER 16: Ukrainian President Volodymyr Zelenskyy holds a press conference during the second day of the European Union leaders' summit in Brussels, Belgium, on October 16, 2026. (Photo by Dursun Aydemir/Anadolu via Getty Images)

Anadolu | Anadolu | Getty Images

Speaking to reporters in Brussels on Friday, Zelenskyy had warned that the U.S.-Russia diesel agreement could set a precedent for further sanctions relief, while highlighting Ukraine's continued reliance on U.S. military technology and intelligence despite efforts to develop alternatives.

"Sanctions will be lifted after gas," Zelenskyy said. "They will be lifted on something else. Then this will come to the banking system, certain individuals, chemical industry."

Earlier this week, reports emerged that Ukraine has restricted SpaceX's Starlink military application, Starshield. SpaceX CEO Elon Musk said in a post on X that the U.S. government and president were ultimately responsible for any curbs on the network.

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Investors are buying up vast tracts of timberland across U.S. in one of market's longest-term bets

Kevin Williams — Sat, 17 Oct 2026 16:31:06 GMT

In this article

WOOD

Jean-Christophe Verhaegen | Afp | Getty Images

When the economy and the market look shaky, gold and government bonds are the traditional places to park money. Lately, some investors have also been looking at something more rooted: timber.

The pitch is easy to like: a back-to-basics, natural asset that grows on its own, matures into a harvest and can be cashed in all while you use it to hunt, pitch a tent, or forage.

Institutions have been buying timberland at a rate of one million acres per year, according to Bank of America, and some financial advisors say individual investors, including younger Americans priced out of the housing market, are also taking a look at the asset class. But it is far from a rush, and investors who already own timberland caution that it may not be very profitable in the short term.

"Timber is a very low return investment. I have curtailed my investments," said Pat Dorn, founder of Anchor Investment Management, a fee-only advisory firm in Columbia, South Carolina, and a former chairman of the South Carolina Forestry Association. Dorn owns 2,500 acres of timberland in South Carolina's booming upstate region. Dorn said the problem is that right now more timber is being grown than is needed in a sluggish housing economy.

"Supply beats demand, and that causes flat prices. Timber is not an investment I would make currently," Dorn said.

Nationally, the Bureau of Labor Statistics' producer price index for logs, bolts, timber, pulpwood and wood chips ticked up in September, but prices have been mostly on the decline since summer 2022. This measures prices received by producers for those products, rather than timberland values or investment returns. Over the very long-term, prices have climbed substantially.

Financial institutions point to the asset class as one of interest specifically for the long-term investor.

Ken Shepard, head of specialty asset management at Bank of America Private Bank said that timberland is not a tactical asset class that can be easily entered or exited in response to short-term market conditions. "We view it as a strategic, long-term investment supported by several favorable secular trends, including the continued expansion of the timber industry in the U.S. South and growing demand for wood products beyond traditional construction uses," Shepard said.

For example, he said, demand for wood pellets used in bioenergy, while controversial, has increased significantly. In addition, timberland values are benefiting from strong demand from recreational and lifestyle buyers, providing support for land prices beyond the income generated from timber harvesting.

The National Council of Real Estate Investment Fiduciaries' Timberland Property Index, which tracks privately held U.S. timber properties owned at least partly on behalf of institutional investors, posted a total return of 0.95% in the second quarter of 2026, comprising 0.34% income and 0.61% appreciation.

Timberland managers dominate acquisitions

Bank of America's 2026 outlook reported that the one-million-acre annual pace of buying is a three-year streak of dealmaking it expects to continue.

According to Bank of America, timber managers acquired 55% of all acres that changed hands in 2025 against just 15% sold. Institutions are playing the long game. Large timberland managers buy for pension funds and endowments that can wait decades, and that can make bets on a longer-term recovery in a currently slumping U.S. housing market that will be good for lumber pricing. But a private owner living through today's market sees things differently.

Dorn pointed out that timber companies buy less mature trees for pulpwood, which goes into paper towels or notebook paper, and those trees can take 12-14 years to mature. The chip-and-saw variety of trees take a little bit longer, while the big prize, timber cut for houses, can take 25 years. "That is where the top value is," he said.

According to Dorn, what landowners are paid for standing timber varies depending on what the trees are used for. Pine pulpwood consists of trees ground into paper and packaging, while pine sawtimber is made up of larger trees cut into lumber for homebuilding. Meanwhile, hardwood sawtimber, consists of oak and other big trees used in flooring, furniture and pallets. Each product feeds a different set of buyers, so one can climb while others fall.

The performance of lumber futures on the CME.

South Carolina Forestry Commission data show statewide average pine pulpwood stumpage prices, what buyers pay landowners for standing timber, fell from $5.67 a ton in the third quarter of 2025 to $3.79 in the third quarter of 2026, a decline of about 33%. Pine sawtimber prices fell about 6% over the same period, from $22.78 to $21.47 a ton, while hardwood sawtimber prices rose about 40%, from $16.04 to $22.52.

Historically, pulpwood has been as high as $12 to $18 a ton, according to Dorn, and twenty years ago, soft timber was in the $35-$40 range. He said those prices could make a comeback if the housing market ever recovers, because pine sawtimber is cut into lumber for new homes, so its price tends to follow home building.

Strategically placed, timber may not be a bad investment, according to Dorn, though that would be because of the land itself more than the timber. "The return is in the land, not the timber," Dorn said.

He advises anyone thinking of investing in timberland to scout for prime parcels of land located outside growing metro areas that may be poised to pop as the local population keeps spreading. "If one hopes to buy land near growing metro areas and holds on to it, timber is a reasonable way to keep it earning something — a very low return — while you hold that land," he said.

Ownership risks are extensive

Michael Martin, a timber owner in western New York and vice president of market strategy at brokerage firm TradingBlock, says timberland can be a good long-term investment but the reality of being an owner belies the romantic image of acres of untouched timberland. It is not as passive an investment class as it may seem to be.

Direct ownership is highly illiquid and comes with management costs, property taxes, harvesting expenses, exposure to local timber markets, and risks including wildfire, pests, disease and trespassers hunting or cutting trees.

And when it is time to harvest timber, you need to make sure you are getting the best deal. "If you simply go with a small local outfit without getting competing bids, you don't always know if you're getting the best price," Martin said.

He also said timber prices are very local and can impact whether it's a solid investment.

"I am constantly checking stumpage reports because timber prices are extremely local. An oak tree in western New York may have a completely different value from one in the Adirondacks," Martin said.

In addition, partial timbering every ten years or so has barely covered the property taxes. "At the end of the day, I barely break even," he added.

Kevin Williams | CNBC

Some in local real estate and investing markets say younger buyers are curious, though firsthand evidence is hard to find.

"As a millennial and a realtor, I understand the appeal. I've thought about buying timberland myself," said Jake Kennedy, a Nashville-based realtor, noting that his generation has lived through the dot-com crash, the Great Recession, a pandemic, huge swings in housing and now inflation. "One lesson from all of that we have learned is that scarcity matters when it comes to places to park your money," Kennedy said, adding as examples that more IPOs can be announced or new crypto created.

"But you can't manufacture another 500 acres of land," Kennedy said. "Timber itself is a resource that takes decades to grow. And there is something reassuring about owning an asset that is tangible," he added. But he also cautioned that timber's durability doesn't mean profitability. Trees can be temperamental and subject to many variables.

The people Kennedy has spoken with see timberland as a relatively safe place to park money, he said, because demand for timber products isn't going away. "In the meantime, yes, hunting is a common activity while owners are waiting for the investment to grow and mature, literally," he said.

"I don't think my generation is suddenly giving up on houses and becoming timber barons. However, I do think we are a lot more interested in alternative places to store wealth than previous generations might have been," he added.

Timber ETFs offer access to the asset class

For many millennials, homeownership has become increasingly difficult due to elevated home prices, higher mortgage rates, and limited inventory in many markets. "As a result, some investors are looking for alternative ways to participate in real assets and potentially build equity without purchasing a home directly," said Nadeem Kassam, chief investment strategist at Marnoa Private Wealth Counsel.

Outside direct or institutional fund ownership, there are timber ETFs and timber-focused funds that provide exposure to a theme that is closely tied to long-term housing demand and construction activity, though they remain highly niche investments in an ETF market now valued in the trillions of dollars.

Kassam pointed to the iShares Global Timber & Forestry ETF (WOOD), with roughly $260 million in assets, and the Invesco MSCI Global Timber ETF (CUT), which has roughly $30 million in assets.

"The investment case is supported by persistent housing shortages across many parts of the U.S. and growing bipartisan support for policies aimed at increasing housing supply and improving affordability. If these efforts lead to increased homebuilding over time, demand for lumber and wood products could benefit," Kassam said.

But he noted that investors should understand that timber ETFs are not a direct investment in timberland. Neither ETF owns trees.

"Most own publicly traded companies involved in timber, forest products, wood manufacturing, and other parts of the housing value chain," Kassam said, explaining the advantage is liquidity and accessibility, but returns will be driven by more than just timber prices.

WOOD's largest holdings include Weyerhaeuser, a major timberland owner, alongside Brazilian pulp maker Suzano, Nine Dragons Paper and West Fraser Timber. CUT is weighted toward paper, packaging and materials makers such as Svenska Cellulosa, UPM, Stora Enso and Avery Dennison. WOOD has drawn about $73 million in net inflows over the past year, according to ETF Database.

"For investors who are priced out of the housing market, timber ETFs may offer a way to participate in the long-term housing and construction story through a diversified, liquid investment vehicle. The key is recognizing that you're buying exposure to businesses that benefit from housing-related demand, not a direct ownership stake in land or residential real estate," Kassam said.

Junyi Liu, professor of economics at Soka University of America, who studies international and development economics, said he is not seeing evidence of a boom, but that timberland does have some unusual characteristics as an alternative asset.

"Returns can come from biological growth, timber prices, and land appreciation, and owners sometimes have the option to delay harvesting when timber prices are unfavorable," Liu said. But for retail investors, Liu added, it is quite different from "the simple 'trees grow while you wait' investment story."

VIDEO5:2605:26

Mark Zandi: Fixing the housing market will take a long time, but there is a way to speed up the recovery

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AI stocks plunge. Inflation heats up. Where we're still finding opportunities

Alexa LoMonaco — Sat, 17 Oct 2026 15:42:34 GMT

The sinking AI trade and hotter-than-expected inflation data rattled last week's stock market. But solid bank earnings and a rotation beyond tech gave us reasons for optimism. The Nasdaq's 4.5% weekly decline broke a four-week winning streak and marked the worst weekly decline for the tech-heavy index since June. The S & P 500 fell 2% last week. The Dow Jones Industrial Average bucked the trend — gaining 0.7% as investors rotated into healthcare, consumer staples, and other sectors less dependent on the artificial intelligence boom. The sell-off accelerated Wednesday after hotter-than-expected consumer inflation data raised concerns that the Federal Reserve could keep interest rates elevated for longer. September's consumer price index rose 3.7% from a year earlier, above the 3.6% expected, while core inflation also came in slightly hotter than anticipated. Thursday's producer price index offered little relief, jumping 1.3% for the month and 6.3% annually, the biggest annual and monthly gains since March 2022 and December 2022, respectively. Higher inflation, fueled partly by elevated oil prices, threatens to push up borrowing costs and complicate the massive AI infrastructure buildout. Broadcom CEO Hock Tan warned Monday that access to capital could become the industry's next major constraint. Our cybersecurity stocks were crushed last week, while Meta Platforms and Microsoft had some of the week's rare bright spots in tech. Against that backdrop, we continued diversifying beyond the AI trade — adding to Kimberly-Clark on Tuesday as its Kenvue acquisition moved closer to completion. We exited our remaining Honeywell Technologies position on Wednesday to replenish cash. We trimmed Cardinal Health Thursday to lock in profits after its recent rally and bought more Bank of New York following strong earnings Here's a closer look at the three developments that shaped the market week. AI's sell-off makes the case for diversification The AI trade took another hit last week as investors grew concerned about rising borrowing costs and mounting competition in the semiconductor industry. Memory stocks — including Micron , Sandisk , Western Digital , and Seagate — fell after Chinese rival CXMT announced progress on a more efficient chip structure , raising fears of increased competition and a potential supply glut. The iShares Semiconductor ETF extended its losing streak to nine straight sessions, its longest in more than a decade, while the VanEck Semiconductor ETF was down 10% for the week, its worst week since July. Concerns that tech companies are borrowing too much for the AI buildout sent neoclouds like CoreWeave , which has seen its total debt rise to more than $51 billion , plunging 25% last week. Perhaps even more concerning than the stock rout has been the jump in CoreWeave corporate bond yields and spike in credit default swaps , a kind of insurance policy on debt. Our cyber stocks Palo Alto Networks and CrowdStrike were our worst performers of the week, losing more than 18% and 17%, respectively. Reports that OpenAI is in early talks to buy Trail of Bits hurt the cyber sector. An acquisition of this sort would expand OpenAI's cybersecurity aspirations. The cyber stocks were also caught in the AI trade crossfire. As investors rotated out of AI and into defensive stocks, Kimberly-Clark and Eli Lilly emerged as some of our portfolio's best performers last week. The sell-off reinforced the importance of diversification . "We don't talk enough about diversification, in part because it's no fun when one group keeps outperforming the rest of the market," Jim said Thursday on "Mad Money." "But when that group crashed to earth over the last few weeks, only diversification could save your portfolio." It's unclear how long the rotation will last, but concentrating too heavily in one investing theme leaves investors vulnerable to steep losses and panic selling. Diversification helps cushion those swings and makes it easier to stay invested. Meta and Microsoft prove why patience pays off Not every tech stock got slammed last week. Club holdings Meta Platforms and Microsoft showed why patience with high-quality companies can pay off. The Facebook and Instagram parent rallied after Monday's release of its latest AI models , Muse Wonder and the more advanced Muse Wonder Full, which Wells Fargo said ranks among the industry's best, behind only Anthropic's Claude Opus 5.5. The launch could attract more paying users and create revenue opportunities beyond advertising, offering further evidence that Meta's massive AI investments are beginning to pay off. Microsoft closed at a record high Tuesday for the first time in nearly a year, completing a remarkable comeback after shares plunged more than a third on concerns about AI spending and Copilot's competitiveness. We stuck with the stock because we trusted CEO Satya Nadella and CFO Amy Hood to turn things around. It's a call Jim reinforced during Thursday's October Monthly Meeting . Microsoft's efforts to expand Azure capacity, rein in spending growth, and revamp Copilot helped restore investor confidence. Both recoveries reinforce Jim's longstanding investing rules: own best-of-breed companies, do the homework and avoid panicking when a quality stock falls out of favor. Meta and Microsoft did finish the week down more than 1% each, but that was a far cry better than most of our tech holdings. Salesforce , our big tech standout for the week, gained 5%. It is another stock that Jim believed in when it was getting killed earlier this year. While still down 9% year to date, Salesforce is up 65% since its 52-week low of $146 in June. Bank earnings impress, but Wall Street isn't buying Third-quarter bank earnings gave us reasons for optimism, even as largely solid results failed to translate into stock gains. Jim said on Wednesday that investors appear more concerned about what lies ahead for the economy than what the banks just reported, given persistent inflation, rising interest rates, and pressure on capital markets. Goldman Sachs delivered a standout quarter Tuesday, with equities trading revenue surging 72%, investment banking fees rising 21% and asset and wealth management exceeding expectations. Despite the strong showing, shares surrendered an early rally. We viewed the weakness as a buying opportunity, upgrading Goldman to our buy-equivalent 1 rating while maintaining our $1,200 price target. Wells Fargo reported mixed results Tuesday, beating earnings estimates but missing on revenue. Encouragingly, net interest margin stabilized at 2.43% after four consecutive quarterly declines. We upgraded shares to our buy-equivalent 1 rating and maintained our $95 price target. Bank of New York also impressed Thursday, beating revenue and earnings expectations and raising its full-year outlook. Strong fee-based revenue reinforced our confidence in its custody-focused business model, which generates recurring income and is less dependent on traditional lending. And as mentioned earlier, we got bigger in the position on earnings day. (Jim Cramer's Charitable Trust is long KMB, BNY, CAH, MU, LLY, META, MSFT, GS, WFC. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Software’s new consolidator gets big vote of confidence from Berkshire

CJ Haddad — Sat, 17 Oct 2026 15:11:30 GMT

In this article

Guests during the Bending Spoons initial public offering (IPO) at the Nasdaq MarketSite in New York, US, on Wednesday, July 1, 2026.

Michael Nagle | Bloomberg | Getty Images

At the time of its Nasdaq debut in July, Bending Spoons was a little-known holding company out of Italy that owned older internet names like AOL, Vimeo, Eventbrite and Evernote.

Less than four months later, the Milan-based firm has emerged as a surprising home for former high-flying software startups that have been thrust aside by the artificial intelligence boom. Its M&A plan got a major boost this week from the most famous holding company on the planet: Berkshire Hathaway.

Berkshire, which Bending Spoons describes as a "longstanding inspiration" for its strategy, has now invested over $900 million in the company, including a $330 million stake disclosed on Wednesday. Wall Street loved the deal, sending Bending Spoons' stock up 41%, though some of those gains were lost later in the week, leaving the company with a market cap of about $30 billion.

"Berkshire's decision to add to its position just a few months after the IPO and at these levels provides another vote of confidence in the Bending Spoons model from one of the world's most respected long-term investors," wrote analysts at Mizuho, in a report after the announcement.

The other big news out of Bending Spoons this week underscores the flipside of the business: job cuts. In August, Bending Spoons announced it was buying workflow software provider Airtable for about $1.3 billion, or almost 90% below the company's peak valuation from late 2021. Bending Spoons said Monday that a "large portion of the pre-acquisition team" from Airtable would be leaving with "substantial separation packages." Layoffs were previously implemented at Evernote, Vimeo, WeTransfer and others in the portfolio.

VIDEO8:0008:00

Watch CNBC's full interview with Bending Spoons CEO Luca Ferrari

For the technology industry, Bending Spoons' moves represent the latest example of how quickly fortunes are turning in the AI era, as new agents powered by large language models displace software developers and the products they built. With Anthropic and OpenAI marching toward trillion-dollar valuations, businesses are putting more valuable work in their hands at the expense of a host of software-as-a-service names, creating a phenomenon that's become known as the "SaaSpocalypse."

Shares of Intuit, HubSpot and Adobe are all down at least 30% this year, and a long list of private SaaS companies that were once venture darlings are now struggling to find capital, with the public market showing no appetite for IPOs. Last month, Bending Spoons agreed to buy collaboration software vendor Miro, once valued at $17.5 billion, for $1.36 billion.

"You're either like a hot thing or you're nothing," said Ethan Kurzweil, founder and managing partner at Chemistry VC and a veteran software investor. Kurzweil said he uses Airtable, and said there are plenty of good SaaS products on the market led by solid teams, "but they're not on the frontier anymore."

An app turned acquirer

Bending Spoons was launched in 2013 by friends Luca Ferrari, the CEO, Matteo Danieli and Francesco Patarnello. A mobile app they'd created called Evertale failed to take off, and they used the $40,000 they had left to build an operating company instead of "products nobody wanted," according to the IPO prospectus.

Bending Spoons has announced all of its biggest deals in the last few years, beginning with Evernote in 2022, followed by Brightcove in 2024, and Vimeo, AOL and Eventbrite in 2025.

The company held its IPO on June 30, raising about $1.7 billion at $29 a share, and hit the Nasdaq the next day. The stock closed Friday at $47.07.

Stock chart of Bending Spoons since its July 1st initial public offering date.

Prior to Bending Spoons' recent jump into enterprise software, some of the leading acquirers in the space over the past decade were private equity behemoths Thoma Bravo and Vista Equity Partners. Those firms were aiming to buy what they viewed as undervalued SaaS companies and, through a combination of cost cuts, efficiency improvements and rollups, turn them into assets that could be sold or taken public at a higher price.

Bending Spoons is using a different playbook. The company isn't looking for eventual exits but rather wants to generate profits from the businesses it buys, similar to the Warren Buffett model. But unlike Berkshire, Bending Spoons' focus is technology, and it's taking a hands-on approach with its own software, operations and personnel decisions.

Nick Mehta, former CEO of cloud software vendor Gainsight, said private equity firms are limited now because "they got their nose bloodied."

"They paid much higher prices and have so many troubled companies that it's difficult for them to take swings now," said Mehta, who sold Gainsight to Vista in 2020.

Thoma Bravo and Vista didn't respond to requests for interviews. Bending Spoons told CNBC in a statement that it hadn't been outbid for a target in "several years."

As the company started jumping into SaaS, Mehta said "Bending Spooned" became a verb in Silicon Valley, referring to companies getting scooped up for pennies on the dollar.

"Unfortunately, a lot of my friends in that game are stuck," Mehta said. "Investors want out but there are no buyers. Anything pre-ChatGPT is legacy now."

Lloyd Walmsley, an analyst at Mizuho, said Bending Spoons' model is distinct from the older buyout approach.

"I think there aren't a lot of people that do what these guys do in terms of the depth of operations and the willingness to make substantial product changes," Walmsley said in an interview. "It's not typical of traditional private equity firms to make anywhere near this level of change."

Matteo Danieli, co-founder of Bending Spoons, center, during the company's initial public offering (IPO) at the Nasdaq MarketSite in New York, US, on Wednesday, July 1, 2026.

Michael Nagle | Bloomberg | Getty Images

For customers of the companies that Bending Spoons buys, sudden price hikes can follow.

In April 2023, months after the Evernote acquisition, Bending Spoons lifted the annual personal subscription price to $130 from $70. Later, the company changed its offerings, charging $100 for its so-called starter plan and $250 for "Evernote Advanced," compared to the $170 it had been charging for the pro plan.

"My first reaction was like, Oh man, I guess I have to switch to OneNote," said Walmsley, referring to Microsoft's notetaking app. But he said he stuck with Evernote.

"They're really savvy at finding these things that they provide a lot of value, and the switching costs are really high," Walmsley said. "The price isn't that high relative to the switching cost."

Bending Spoons uses the profits from its portfolio companies for future growth, the "overwhelming majority" of which comes from doing more deals, Ferrari told CNBC in an interview on Thursday.

"There are certain opportunities for improvement we can unlock over the first few years, and then the business will have whatever organic growth is intrinsic in that market," Ferrari said.

'Dead money’ for a decade: Why this hedge fund approach may deliver an advantage over bonds

Julian Torres — Sat, 17 Oct 2026 15:00:01 GMT

In this article

DBMF

VIDEO25:4025:40

Managed futures: working when other things are not?

ETF Edge

Investors may want to rethink their bond allocation and opt for managed futures exposure.

DBi's Andrew Beer suggests the popular hedge fund strategy could deliver a modern twist to traditional 60/40 portfolios.

"[Bonds have] been dead money for the entire decade," the firm's co-founder and managing member told CNBC's "ETF Edge" this week. "I fell in love with a strategy called managed futures because tactical is really good. Be nimble when other people's [portfolios] aren't."

Beer contends the managed futures strategy, historically only available to hedge funds, could counterbalance stocks better than bonds during periods of volatility, which has been moving higher due to recent worries surrounding debt and the artificial intelligence trade.

His reason: Managed futures exchange-traded funds can go long and short across global markets to position early against turbulent market events.

"You want something that has low correlation to both stocks and bonds, and something that will do well in crises," Beer said. "It's very, very hard to find a better hedge fund strategy than managed futures to accomplish that."

He helps manage the iMGP DBi Managed Futures Strategy ETF (DBMF). The fund replicates the performance of leading managed futures hedge funds inside a low-cost, liquid ETF, according to the firm's website.

"There's an existential crisis right now in strategic asset allocation and the model portfolio world," Beer said about the 60/40 approach. "I love my bonds … [but] I'm not making it a 40% allocation for something that is not adding to the rest of my portfolio."

As of Thursday's close, Beer's ETF is up almost 19% so far this year, according to FactSet data.

However, managed futures may not be a replacement for bonds.

According to NovaDius Wealth Management's Nate Geraci, bonds still have a place for diversifying a portfolio.

"I call fixed income the most challenging area in investing right now," the firm's president said in the same interview. "[Alternatives] fit in the sleeve of a well-diversified portfolio that includes stocks and bonds. But I don't think you just give up on the bond side of the equation."

Geraci added that investors should understand how alternative investment strategies like managed futures ETFs could interact with the rest of a portfolio.

These funds can outperform during volatile markets, but they may also have periods of underperformance.

"You have to let that work out over the long-term," said Geraci, who is also an ETF Institute co-founder. "To me it's just a balance. It's all about diversification."

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Trump's student loan overhaul could lead to more bankruptcy filings, former judge says

Annie Nova — Sat, 17 Oct 2026 13:30:01 GMT

A sign points to the U.S. Bankruptcy Court in Lower Manhattan, New York City.

400tmax | Istock Unreleased | Getty Images

In Judge Sarah Sharer Curley's nearly three decades presiding over bankruptcy cases, some were especially painful to witness, she said — such as the 73-year-old woman who stood before her in 2012 with a student loan balance of more than $584,000.

The debt dated back to the 1970s and had grown throughout the woman's public sector career, Curley writes in her new book, "The Price of Forgiveness: Debt, Bankruptcy, and the Future of Fairness in America." She had "never made a lot of money," Curley said, and by the time she sought debt relief, the woman was living in poverty, with Social Security as her only income. Even so, strict bankruptcy laws can make it nearly impossible to discharge student loans.

Curley, the first woman appointed to the U.S. Bankruptcy Court for the District of Arizona, said it was a familiar story.

"We allow the financial markets to take innumerable risks, yet we refuse to allow an individual to be forgiven for choosing to pursue an advanced degree," Curley wrote.

'People are subject to many unexpected events'

Annie Nova: What do people get most wrong about those who file for bankruptcy?

Sarah Sharer Curley: People assume that individuals who file for bankruptcy are committing fraud, trying to hide assets and cheating creditors. Nothing could be further from the truth.

AN: And so why did people end up in your court?

SSC: People are subject to many unexpected events. People can't always plan adequately for the next earthquake, hurricane or natural disaster. But usually, it's someone losing a job. It could also be an illness that becomes chronic with medical costs that increase dramatically over a short period.

Student loans is another area of concern. Universities are charging more for basic degrees, as well as graduate programs. The cost of medical school over four years can be more than $400,000.

Sarah Sharer Curley

Everardo Keeme, Photo Fusion Studio

AN: You write that many people who file for bankruptcy are not unemployed; they're just living paycheck to paycheck. What does this tell us about our economy and labor market?

SSC: Despite the increase in wages that most economists tout, many people are working as independent contractors. They receive few benefits and have few rights. The company is not responsible to them.

Other individuals may be working for a company but find the wages or benefits are insufficient. Many people are forced to work for several employers to meet their needs on a weekly basis.

Although unemployment may be low, the quality of the employment is also low.

'I found her credible'

AN: The story in your book about the woman in her 70s with the six-figure federal student loan balance really stood out to me. What happened in her case?

SSC: The federal government would not agree to any settlement. I was the one who would have to decide whether her debt would be discharged or not. But the case law I had to follow was not in favor of discharging student loan debts. So, I didn't have a lot of flexibility in granting her relief.

However, I gave her credit for seven years of public service helping out troubled teens in San Diego County, since people who are in certain types of public service only have a 10-year repayment period. That meant that she'd need to repay the debt for just three more years.

AN: Wow. Why wouldn't the federal government agree to any settlement with her?

SSC: The federal government retains law firms to represent it in bankruptcy court, allowing the law firms to have a certain amount of discretion as to how to proceed. As a result, some law firms are aggressive in the positions that they take.

In the case of the woman in her 70s, the law firm attorneys didn't believe her when she said she had no assets and was on Social Security. But the law firm did not do an adequate investigation. I found her credible.

'Harder to reach a settlement' on student loans

AN: Under President Joe Biden's administration, it reportedly became easier for federal student loan holders to get their debt discharged in bankruptcy. What's the current situation like?

SSC: There were attempts by the U.S. Department of Education to work out repayment plans for student loan borrowers who could not repay their debts. There was also the possibility that the Education Department would agree to forgive at least a portion of the student loans.

However, once the Education Department was gutted in 2025, there were few, if any, employees who could approve the debt modifications through one of the offered programs. As a result, it has become harder to reach a settlement with the Department of Education.

Lauren Harms, Intrepid Literary

AN: In your book, you describe President Donald Trump's "big beautiful bill," which passed in July 2025, as an "attack" on student loan borrowers. How so? Do you expect the new law to drive up bankruptcy filings?

SSC: The bill created unrealistic federal loan caps for students. As a result, if a student takes out a loan from a private financial institution that's not federally guaranteed, that loan will often be provided at a higher interest rate.

Let's say the student needs a $300,000 loan to go to medical school. If the individual has a lower credit score, their interest rate may jump to 16%, leading to a payment of $5,017 per month over 10 years, or $302,040 in interest.

These expenses are not sustainable for most individuals. The rate of bankruptcy filings will most likely increase.

Many bankruptcy filers 'feel they have failed'

AN: You write that medical debt is another major reason people need to file for bankruptcy. Can you say a little more about this?

SSC: There were many individuals who appeared before me who had chronic illnesses. Chronic diseases are a problem because the person can only discharge the debt they owe at the beginning of the bankruptcy case. As with any chronic illness, the debt continues to mount day by day for years to come.

Many individuals are traumatized when they file a bankruptcy case.
Sarah Sharer Curley
Former U.S. Bankruptcy Court judge

AN: You write that the bankruptcy process is "tortuous" for most individuals. How so?

SSC: Dramatic changes were made to the bankruptcy law in 2005. People are required to jump through many hoops to get relief now.

There was no evidence to support certain beliefs that individuals were engaged in fraud or filing bankruptcy cases every few months. But the creditor lobby pushed to make the bankruptcy law more pro-creditor. The many forms that need to be filled out and the hearings that need to be attended usually keep the individual in a perpetual state of stress.

AN: How does filing for bankruptcy affect people emotionally?

SSC: Many individuals are traumatized when they file a bankruptcy case. They had believed if they just work harder, they could solve their debt problems. However, when they're about to lose their homes, their cars or their businesses, they turn to bankruptcy.

Many see their inability to solve their financial problems as a moral failure. They feel they have failed.

AN: What was it like for you, day after day, seeing people under the pressure of insurmountable debt?

SSC: At times, at the end of the hearing, after I had rendered my decision, I would let the individual know that under the current law, I couldn't provide them with what they really needed. I told them that the law needed to be changed. We give a break to large financial institutions and corporations, and it's time that we do so for individuals, too.

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'Everyone laughed' when he started a pumpkin farm—now it brings in $2 million a year

Sophie Caldwell — Sat, 17 Oct 2026 13:00:01 GMT

These tech stocks are a buy ahead of their earnings reports, Bank of America says

Michael Bloom — Sat, 17 Oct 2026 12:49:53 GMT

Bank of America says there are several technology stocks that have more room to run heading into their next quarterly results. The investment bank sees companies like Spotify Technology offering plenty of upside. Other buy-rated stocks that Bank of America recommends and that were screened by CNBC Pro include: Amphenol, Box, Camtek and Coupang. Box Don't sleep on this undervalued AI winner, according to analyst Matt Bullock. "We think Box is one of the most underappreciated AI beneficiaries in application software," he wrote recently, calling the stock a top pick. The bank also raised its price target on Box shares by 19%, to $50 from $42, and said the company is too attractive to ignore ahead of its next scheduled earnings later this quarter. "It's in the early stages of a multi-year growth acceleration, and trading at a significant discount to peers," he said. Box shares are up 32% this year, and 66% in six months. Amphenol Another robust quarter ahead, analyst Wamsi Mohan, wrote earlier this week ahead of the electronic connector manufacturer's quarterly report. "We continue to see APH as a beneficiary of AI infra investments across both GPU- and custom-accelerator-based architectures," he wrote. Mohan also says IT data demand remains robust, which benefits Amphenol. "Beyond AI, we expect most end markets to remain healthy & see continued room for upward estimates revision," he said. Shares are up 17% this year. The company will report its results on October 28. Spotify Technology Analyst Jessica Reif Ehrlich said tune out the "noise" and buy Spofitfy now. "We firmly believe that Spotify has a long runway for growth, including ramping advertising, subscriber growth, pricing and new products," she recently wrote. The stock is down almost 9% this year, but the bank says AI fears are overdone. "In addition, while AI-related narratives may be difficult to disprove, we continue to view Spotify's scale, engagement, and ecosystem advantages as enviable and difficult to replicate," she went on. Spotify will report quarterly earnings on October 22. Camtek "Reiterate Buy, $200 PO, now on 29x CY28E PE given CAMT's leverage to multi-year AI advanced packaging growth where it is gaining share, and diversifying product/market drivers ... We like Camtek's strong product portfolio, share gains, and exposure to key growth markets across advanced packaging for AI-driven high performance logic and memory." Box "We think Box is one of the most underappreciated AI beneficiaries in application software ... It's in the early stages of a multi-year growth acceleration, and trading at a significant discount to peers ... Box's AI capabilities transform enterprise content from a passive asset into a critical input for enterprise AI systems, agents, and tooling." Coupang "We expect Coupang's 3Q revenue to be slightly better than consensus estimates, at US$10.18bn, mainly as we marked to market the sharply strengthening KRW in Aug Sept. We estimate adj EBITDA of US$151mn, slightly softer than consensus estimates of US$157mn." Spotify ""Tuning out the noise ... In addition, while AI-related narratives may be difficult to disprove, we continue to view Spotify's scale, engagement, and ecosystem advantages as enviable and difficult to replicate ... We firmly believe that Spotify has a long runway for growth, including ramping advertising, subscriber growth, pricing and new products." Amphenol "We continue to see APH as a beneficiary of AI infra investments across both GPU- and custom-accelerator-based architectures ... Beyond AI, we expect most end mkts to remain healthy & see continued room for upward estimates revision."

Berkshire shares buck market sell-off, rally to highest since Buffett said he would step down as CEO

Alex Crippen — Sat, 17 Oct 2026 12:46:21 GMT

In this article

(This is the Warren Buffett Watch newsletter, news and analysis on all things Warren Buffett and Berkshire Hathaway. You can sign up here to receive it every Friday evening in your inbox.)

Berkshire Hathaway shares closed Friday at their highest level since Warren Buffett told shareholders at the May 2025 annual meeting he planned to step down as CEO at the end of that year.

The day before that Saturday surprise, both the Class A and Class B shares had closed at all-time highs.

Over the next three months, they lost more than 14% of their value as investors worried a "Buffett premium" was dissolving.

It's been more than a year since their post-meeting low in August of 2025, and the recovery has not been a straight line, but BRK.A ended Friday at $798,000, just 1.4% below its all-time closing high of $809,350.

The B shares finished at $532.02, also 1.4% under their all-time closing high of $539.80.

A loss Thursday broke a 10-session winning streak that added 5% to Berkshire's stock prices but they rebounded with gains of more than 1% Friday.

CNBC Pro thinks investors may be happy Berkshire is spending some of its big cash pile under CEO Greg Abel, with $4.5 billion of buybacks in Q2, investments in Alphabet, Taylor Morrison Home, Lennar, (although there haven't been any buys of that stock since October 2), and now, Bending Spoons. (More on that below).

It also notes Keefe, Bruyette & Woods analyst Meyer Shields believes higher short-term interest rates are helping to lift the shares.

Berkshire still has roughly $360 billion in cash, "a good symbol of continued patience under the new CEO," and those higher rates mean "they'll be making more money" on that money.

In addition, its insurance operations have benefited from a quiet hurricane season so far.

Higher oil prices are good for its $19 billion stake in Chevron, which closed Friday at an all-time high after gaining almost 36% since the start of July. Berkshire's energy-related subsidiaries are also getting a tailwind.

And recently, Berkshire may be getting a boost as investors shift away from high-flying AI and tech stocks and turn to "old" economy names.

For example, Coca-Cola, a long-time Buffett favorite and now a $37.6 billion holding, also closed Friday at an all-time high, perhaps with some extra help from KFC's switch from Pepsi to Coke. It's up 34% year-to-date.

Berkshire's position has gained $2.4 billion since last Friday, overtaking Alphabet to become the third largest stake in its portfolio. (See the full top 10 below.)

Berkshire's B shares have cut their June 1 deficit of 17.5 percentage points versus the S&P 500 by almost two-thirds.

They are now 6.0 percentage points behind the benchmark for the year.

Atypical bet on 'buzzy' Italian tech company is big win ... so far

Berkshire Hathaway's surprising bet of close to $1 billion on Bending Spoons is paying off big, at least in the short term.

The Italian company, which began trading on Nasdaq in the U.S. in July, buys cast-off internet names like AOL, Evernote, and Vimeo, uses AI to cut costs, and deploys the savings to make more acquisitions.

In late July, CNBC Pro said, "Wall Street is buzzing," and "analysts ... see big gains ahead."

The tech stock is decidedly not a typical Berkshire value play, trading at a large multiple to its earnings.

Matteo Danieli, co-founder of Bending Spoons, center, during the company's initial public offering (IPO) at the Nasdaq MarketSite in New York, US, on Wednesday, July 1, 2026.

Michael Nagle | Bloomberg | Getty Images

But before Wall Street's open Wednesday morning, a Bending Spoons news release revealed Berkshire is investing a "further" $330 million in the company by purchasing 10 million newly issued shares at $33 per share in a private placement.

That was already an almost 12% discount from Tuesday's closing price of $37.86 and the news sent Bending Spoons shares even higher.

They hit an intraday high of $58.56 before closing up 41% at $53.46 on Wednesday.

Bending Spoons shares are up 24.3% over the three trading days since the revelation, after giving up a chunk of their earlier gains in Friday's tech sell-off to end at $47.07.

That's a solid 42.6% higher than Berkshire's $33 purchase price for a profit, on paper, of nearly $141 million.

But what's that "further" in Bending Spoon's statement?

The release also disclosed, apparently for the first time, that Berkshire invested $600 million at Bending Spoon's IPO more than three months ago.

The release doesn't specify how many shares Berkshire bought in July, and Bending Spoons wouldn't confirm my math, but assuming Berkshire paid the $29 per share IPO price, that initial purchase would have been almost 20.7 million shares.

That puts Berkshire's holding now at close to 30.7 million shares, which would be worth more than $1.4 billion at Friday's close, a gain of 55.3% for its overall investment of $930 million.

VIDEO2:3502:35

Bending Spoons shares soar after Berkshire reveals $330M investment, taking a 4% stake

Squawk Box

Bending Spoon's release also says the "new investment brings Berkshire Hathaway's ownership to 4%."

The company told me in an email it hasn't "specifically disclosed" how many outstanding shares it has now, "but we had 635 million fully diluted weighted average shares outstanding in Q2, we issued 34 million shares as part of the IPO, and we will be issuing an additional 10 million as part of this transaction."

Using those numbers, Berkshire's presumed 30.7 million shares are a 4.5% stake, and that's what I've put in the Berkshire Portfolio Tracker for now.

We may learn more next month about exactly how many shares Berkshire bought in the IPO when its portfolio snapshot as of September 30 is due to be disclosed.

Another unknown: who at Berkshire made the call to take a stake in Bending Spoons.

VIDEO4:5804:58

Bending Spoons CEO Luca Ferrari: We'll buy any company as long as we think we can make it better

Squawk on the Street

Bending Spoons CEO and Co-Founder Luca Ferrari shares Wall Street's enthusiasm about Berkshire's investments, saying in the news release the Omaha company "has been among the finest and most respected capital allocators in the world, and is a longstanding inspiration for Bending Spoons."

Morningstar's Greggory Warren (who was one of the designated analyst questioners at Berkshire shareholders meetings from 2014 to 2019) writes the Bending Spoons buy, along with Berkshire's now $36 billion stake in Alphabet, show "the firm is finally moving out of its comfort zone to find places to put capital to work, which should be viewed as a positive for long-term investors."

At Barron's, Andrew Bary says, "Many Berkshire holders would like to see the company invest more heavily in stocks given the company's $350 billion-plus in cash, but Bending Spoons was a surprise" given its high valuation.

BUFFETT & BERKSHIRE AROUND THE INTERNET

Some links may require a subscription:

Bloomberg on Yahoo Finance: JPMorgan's Combs Directs $5 Billion in Spending Since Joining

The Motley Fool on Yahoo Finance: Berkshire Hathaway Outperformed the S&P 500 Over a 60-Year Period Under Warren Buffett. Here's the Stock That Could Help Continue the Streak Under Greg Abel.

HIGHLIGHTS FROM CNBC'S BUFFETT ARCHIVE

'I am one-quarter Coca-Cola' (2015)

Warren Buffett defends Coca-Cola, a big and long-time Berkshire Hathaway holding, against health concerns over sugary beverages.

WARREN BUFFETT: Yeah well — people have been drinking Coca-Cola since 1886, so I imagine that there's been some —

I don't know of any study that's been made on the lifetime of heavy users of Coca-Cola versus people who drink nothing but water.

But speaking for myself, I'm 84, literally one-quarter of all the calories I've consumed in the last 30 years have been Coca-Cola. And I don't see how anybody can feel any better than I feel.

I am one-quarter Coca-Cola, and I can tell you, I haven't missed a day of work, you know — since I had the prostate cancer — radiation — three years ago. And I don't think the prostate cancer was caused (laughs) by Coca-Cola.

So — I — and all my friends drink it like crazy.

So there's 1.9 billion eight-ounce servings of Coca-Cola products sold around the world today, and there will be more than 1.9 billion a year from now, and more than that five years from now, and more than that ten years from now.

And that's been true. And some people will like other things, and — and if they like broccoli and Brussels sprouts, God bless them, you know, but don't invite me for dinner. (Laughter)

BERKSHIRE STOCK WATCH

Four weeks

Twelve months

BRK.A stock price: $798,000.00

BRK.B stock price: $532.02

BRK.B P/E (TTM): 13.38

Berkshire market capitalization: $1,138,885,966,355

Berkshire Cash as of June 30: $365.5 billion (Down 8.0% from March 31)

Excluding Rail Cash and Subtracting T-Bills Payable: $359.2 billion (Down 3.8% from March 31)

Berkshire repurchased $4.5 billion of its shares in Q2 2026.

BERKSHIRE'S TOP EQUITY HOLDINGS - Oct. 16, 2026

Berkshire's top holdings of disclosed publicly traded stocks in the U.S. and Japan, by market value, based on the latest closing prices.

Holdings are as of June 30, 2026, as reported in Berkshire Hathaway's 13F filing on August 14, 2026, except for:

Mitsubishi, which is as of April 30, 2026

The full list of holdings and current market values is available from CNBC.com's Berkshire Hathaway Portfolio Tracker.

QUESTIONS OR COMMENTS

Please send any questions or comments about the newsletter to me at alex.crippen@cnbc.com. (Sorry, but we don't forward questions or comments to Buffett himself.)

If you aren't already subscribed to this newsletter, you can sign up here.

Also, Buffett's annual letters to shareholders are highly recommended reading. There are collected here on Berkshire's website.

-- Alex Crippen, Editor, Warren Buffett Watch

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IMFC chair says global economy resilient; delegates walk out on Russian official

Sat, 17 Oct 2026 11:41:06 GMT

(L-R) IMF Communications Director Julie Kozack, Saudi Arabian Finance Minister and IMFC Chairman Mohammed al-Jadaan and IMF Managing Director Kristalina Georgieva attend the IMFC press briefing at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 17, 2026. (Photo by Lillian SUWANRUMPHA / AFP via Getty Images)

Lillian Suwanrumpha | Afp | Getty Images

The global economy is showing remarkable resilience but there is no room for complacency, the head of the International Monetary Fund's steering committee said on Saturday, while divisions over Russia's ongoing war against Ukraine sparked a walkout of delegates.

Saudi Finance Minister Mohammed Al-Jadaan, who heads the IMF's steering committee, acknowledged the walkout by nearly half of delegates during remarks by Russia's finance minister at a meeting on Saturday, but said the important thing was that members ultimately agreed to the chair's statement.

"We came here for a reason, and we achieved it. Look at this chair statement, it clearly says that all members agreed to the statement, so that's what matters," the chair of the International Monetary and Financial Committee told Reuters.

Al-Jadaan told a news conference that the global economy was demonstrating "remarkable resilience" in the face of profound ongoing challenges, including wars, threats to energy and food security, high public debt levels, and risks linked to the rapid development of artificial intelligence, while warning finance officials against letting down their guard.

"The message from the IMFC members is clear: there is no room for complacency," Al-Jadaan said in the final news conference of a week of IMF and World Bank annual meetings that brought more than 18,000 people to Bangkok.

"Escalating conflicts and trade tensions could further disrupt critical trade routes, exacerbate commodity price pressures, including in refined energy products, and worsen energy and food security," the chair's statement said.

Fiscal authorities should work to rebuild buffers while protecting vulnerable populations and growth-enhancing investments, Al-Jadaan told reporters, underscoring the need for continued central bank independence and policies that supported private sector-led growth and investment.

"International cooperation remains critical to addressing excessive global imbalances and trade tensions," he said.

IMF Managing Director Kristalina Georgieva called the meetings productive but said there was clearly heightened anxiety among members about increasing divergence.

Many lower-income countries that were not part of the AI value chain feared they were falling behind, she said.

"These meetings also have shown that in a world of repetitive shocks and geopolitical fragmentation, still there is desire for multilateral dialogue and cooperation," she said. "It is there."

Walkout amid tensions

Those comments came shortly after many IMFC delegates left the room when Russian Finance Minister Anton Siluanov addressed the group in Russian.

Bundesbank President Joachim Nagel told a bank event on the sidelines of the meetings that nearly 50% of delegates took part in the walkout, sending a clear message to Russia.

"This is a very strong signal about solidarity and values. It would be the best for the world economy if this unprovoked war of aggression against Ukraine would end," Nagel said. "I was really proud so many left this plenary."

The Bank of England confirmed that Governor Andrew Bailey was among the delegates who joined the walkout, which comes ahead of Britain hosting the G20 next year.

Russia's invasion of Ukraine in February 2022 has roiled the IMFC, preventing it from reaching consensus statements in the years since. There were deep divisions again at this week's meetings as fresh tensions flared between the US and Ukraine.

Sources said those who left while Siluanov spoke included delegates from Britain, Germany, France, Denmark, Sweden, Finland, Norway, Lithuania, Latvia and Estonia, among others.

"The Ukraine war is existential for us in Europe," one European diplomat said. "We cannot normalize relations with Russia."

Germany on Thursday warned against efforts to bring Russia back on to the international stage after Siluanov attended a meeting of G20 finance ministers and central bankers, just over a month after the US hosted his first in-person G20 appearance since Russia invaded Ukraine, at a meeting in Asheville, North Carolina.

US Treasury Undersecretary Erin Browne told Reuters the same day that Washington, the current leader of the G20 nations, supported Russia's presence despite European concerns.

"We think it's really important if you're going to solve a crisis, you need to have open dialogue and open conversation," she told Reuters. "And you can't have ... dialogue, and you can't have resolution to conflict if no one's talking to one another."

Ukraine's finance minister participated virtually in the meetings, in order to focus on budget priorities at home.

Ukrainian President Volodymyr Zelenskyy, speaking at a European Union summit on Friday, blasted US President Donald Trump's diesel deal with Russia and welcomed the prospect of European allies stepping up their role in peace talks.

EU leaders have rallied around Zelenskyy after Trump again criticized Ukraine, calling its strikes on Russian refineries a "disgrace." Trump on Friday waived a new congressional requirement to impose harsh sanctions on Russia.

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Some companies give AI to everyone. This CEO is doing the opposite

Sat, 17 Oct 2026 05:00:01 GMT

Laurence Dutton | E+ | Getty Images

At London-headquartered payments technology company Paysend, access to artificial intelligence tools has to be earned.

CEO Ben Chisell told CNBC he is a “very cynical man” about the hype around the technology, though he still sees value in it.

Chisell, who previously worked at Amazon, eBay and Starling Bank, estimates that Paysend can now deliver around 25% more engineering work with the same-sized team, but argues that getting results isn’t as simple as handing everyone the latest tech.

I know it sounds very unglamorous and unsexy as an approach given the world of tokenmaxxing and AI, but I think it’s really, really important
Ben Chisell
Paysend

Instead, he limits AI tools to his highest-performing employees, often only after they’ve proved what they can do with them. In the wrong hands, he said, AI can magnify bad habits such as laziness and poor judgment.

His broader rule is to resist the “fear of missing out” and focus on customer problems.

“I know it sounds very unglamorous and unsexy as an approach given the world of tokenmaxxing and AI, but I think it’s really, really important,” Chisell said.

Companywide AI rollouts

The pressure to demonstrate AI’s value is growing, from the legal sector to software engineering and finance, and many companies are responding by putting the technology in as many hands as possible.

London-based Lloyds Banking Group has rolled out 40,000 Microsoft 365 Copilot licenses, with 97% of employees who have one actively using it, the bank said. Newcastle-headquartered software company Sage said its AI coding tools had saved hundreds of thousands of work hours, while London-based professional services firm Grant Thornton UK has encouraged all of its staff to use Anthropic’s Claude as part of a £500 million ($660 million) investment in AI.

These figures do not necessarily translate into gains on the bottom line, however. U.K. government research published in January found that three-quarters of businesses using AI said it had improved workforce productivity, but 77% said revenue had not changed.

Measuring AI value

At Paysend, Chisell wants employees to demonstrate what a tool actually contributes. New hires get a month to experiment with AI tools and explain what they have achieved.

He recently put that policy to the test with a new search engine optimization lead who requested access to Claude. A month later, the employee told Chisell he no longer needed it. All he found it useful for, he said, was producing briefs more quickly. So instead of a general-purpose AI tool, the employee suggested building a dedicated content-brief agent, which he is now working on.

At software company CoreView, the approach has been different. London-based CEO Simon Azzopardi told CNBC the company was initially “very gung-ho” on AI, initiating a widespread rollout for its software engineers. They first used AI to investigate problems by correlating logs, events and data, as well as to produce technical documentation and onboard new engineers faster.

You feel more efficient, but you actually aren’t
Simon Azzopardi
CoreView

Now, he said, developers increasingly coordinate teams of AI agents handling tasks including back-end and front-end coding, quality assurance and documentation. Azzopardi said work that previously took weeks could now take days.

However, AI-generated work isn’t necessarily productive if employees use it to build things outside their expertise, Azzopardi warned. “You feel more efficient, but you actually aren’t,” he said.

Still, when onboarding a major customer in the U.K.’s National Health Service, CoreView only needed to add one engineer while continuing to deliver its other projects, he said. The company has been hiring rather than cutting staff, using the extra capacity to take on more work.

Jobs after automation

As AI takes on more of people’s existing responsibilities, the question is what happens to the employees who used to do these tasks. Chisell believes companies will thrive if they help employees move into new roles, rather than replace them once their work is automated.

Customer-service workers, for example, have spent years resolving complex issues — a skill that’s valuable across a business, he said. For Chisell, technology should never replace human responsibility.

“Having a human in the loop shouldn’t mean human CC’d,” he said. “It should mean human ownership.”

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U.S. budget deficit swells to almost $2 trillion for fiscal 2026, up 12% in a single year

Alex Harring — Fri, 16 Oct 2026 22:34:29 GMT

An electronic display shows the national debt in Washington, Aug. 19, 2026.

Mandel Ngan | AFP | Getty Images

The U.S. finished the 2026 fiscal year with a budget deficit of nearly $2 trillion, the latest measurement to underscore the extent of the country's financial stress.

The $1.992 trillion figure was about 12% higher than the $1.775 trillion deficit in the prior fiscal year, the Treasury Department reported Friday.

It's the third-highest annual deficit in U.S. history, behind only 2020 and 2021, when the federal government was doling out trillions of dollars in financial stimulus amid the Covid-19 pandemic. The 2026 fiscal year saw record sums for both receipts and outlays, according to a Treasury Department official.

With Friday's release, the U.S. officially recorded its 25th straight fiscal year operating at a deficit. The government last recorded a surplus — meaning its revenues were larger than debts — in 2001.

Friday's report offers fresh evidence of how the U.S.'s fast-growing debt pile has dragged on the nation's overall financial health. The rising debt bill has helped exacerbate angst among bond traders, who sent the 10-year and 30-year U.S. Treasury yields to 24-year highs last week.

Where the debt comes from

Social Security amounted to the biggest slice of government spending at nearly $1.7 trillion for the full fiscal year, up modestly from the roughly $1.6 trillion spent in 2025.

Medicare was the second biggest contributor, costing almost $1.1 trillion for the fiscal year. By comparison, the government-run healthcare program required slightly under $1 trillion in fiscal 2025.

Net interest – a calculation of the Treasury's gross interest minus the interest it receives – also topped $1 trillion for the fiscal year. In the 2025 fiscal year, net interest totaled $970 billion.

Individual incomes taxes helped lessen the total deficit by bringing in more than $2.8 trillion, an increase of about 7% year over year. Corporate income tax provided $381 billion in receipts during the 2026 fiscal year. That was a decrease of about $70 billion from fiscal 2025 stemming from the tax cuts included in the One Big Beautiful Bill act passed by Congress last year.

In the 2026 fiscal year, the U.S. shelled out more than $1.3 trillion in interest on the national public debt. The total owed exceeded $40 trillion earlier this year and has more than doubled over the last decade.

Treasury Secretary Scott Bessent told CNBC in August that the U.S. can "grow our way out of" its increasing debt pile.

"Our message to our allies, our trading partners, is that global growth is the way to take care of this mountain of debt," Bessent said in August.

President Donald Trump pitched his plans for broad and steep tariffs as a way to drive up revenue and shrink the government's debt. The White House has pushed forward with its strategy of increasing levies on trading partners despite the Supreme Court ruling earlier this year that many of those instituted by Trump were unconstitutional.

The Treasury saw a record high for gross customs duties in the 2026 fiscal year, according to a department official. But the total revenue from customs took a hit due to refunds required following the Supreme Court ruling, which sent billions of dollars back to retailers.

The Treasury also reported Friday that September's monthly deficit came in at $27 billion, a reversal from the prior year, when the department saw a surplus of $198 billion in the month.

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Apple’s $1,999 iPhone Duo puts the company's status-symbol power to the test

MacKenzie Sigalos, Kif Leswing — Fri, 16 Oct 2026 22:31:26 GMT

In this article

AAPL

VIDEO2:1902:19

First impressions of the iPhone Duo — Apple's biggest iPhone redesign ever

News Videos

Apple's iPhone Duo, its most expensive iPhone ever, went up for preorder Friday, with launch-day pickup inventory selling out and some online delivery estimates already slipping into late January.

The company said in a statement that the preorder demand was "nothing short of extraordinary."

"We are working hard to get this revolutionary new product into customers' hands as quickly as possible, and we will continue accepting orders online," Apple said.

Apple's first foldable phone starts at $1,999 and passes $3,000 at the 2TB storage tier. It is the biggest change to the physical design of the iPhone in years and establishes an entirely new price point above the Pro and Pro Max.

The early rush offers a first glimpse at the demand behind Apple's bet: Whether a dramatic new design can persuade customers to spend more and push the iPhone even further as a status symbol.

But analysts who spoke with CNBC said Apple's bet is not that foldables suddenly become a mass-market product. It is that a relatively small group of its highest-spending customers can become significantly more valuable.

Foldables are expected to make up just over 2% of global smartphone units this year but nearly 7% of industry revenue, according to IDC. By 2030, IDC expects the category to account for 10% of smartphone revenue while still representing only about 3% of units.

That gap between volume and value is central to Apple's opportunity.

"Duo is fast becoming an aspirational foldable," IDC's Nabila Popal told CNBC, comparing its appeal with Apple's broader position as an aspirational smartphone brand.

Apple CEO John Ternus, alongside vice president of industrial design Molly Anderson, shows off the new iPhone Duo during an Apple event at the Steve Jobs Theater in Apple Park in Cupertino, California, Sept. 9, 2026.

Karl Mondon | Afp | Getty Images

Popal, global senior research director for the Consumer Device Team at IDC, said the technology itself is not necessarily the breakthrough. Foldable Android phones have existed for years. What's new is Apple bringing that form factor to the enormous base of consumers already invested in the iPhone ecosystem.

Apple itself has been exploring the form factor for more than a decade. In 2011, Ternus and five other Apple engineers filed a patent application for foldable electronic devices, according to a recent Time profile.

"It's not that it's a breakthrough or new technology, but it's from Apple," Popal said.

The Duo could also prove more accessible than some industry watchers had anticipated.

Anshel Sag, an analyst at Moor Insights who attended Apple's launch event, said many expected the foldable iPhone to start between $2,400 and $2,500.

Apple coming in at $1,999, Sag said, suggests the company "wants a lot of share."

Sag expects the Duo to become "very much a status symbol" during the holiday season and potentially into next year.

That status appeal could be reinforced by scarcity.

Low volume, high value

IDC expects Apple to ship roughly 7 million units this year, or roughly 3% of Apple's total shipments in 2026.

Popal, the IDC analyst, forecasts Duo shipments could grow another 70% next year. That would give Apple roughly 40% of the global foldable market and would make it the category's largest player, surpassing Samsung and Huawei.

According to her forecast, Apple could ship as many Duos in the next six months as the previous category leaders did in all of 2025.

But the more important number for Apple may not be units.

A large share of Duo customers are expected to be existing iPhone owners, analysts said, including consumers who otherwise might have purchased a Pro Max and are now trading up to a device costing hundreds of dollars more.

Others could add the Duo as a second smartphone, with Apple's ecosystem allowing users to move relatively seamlessly between it and their primary iPhone.

Popal said that migration from roughly $1,200 premium iPhones to a device starting at nearly $2,000 should provide a "healthy boost" to Apple's revenue even if overall volumes remain relatively small.

VIDEO2:0202:02

Apple's iPhone Duo goes on sale: Here's what you need to know

TechCheck

JPMorgan reached a similar conclusion.

The bank expects the Duo to have a disproportionate impact on iPhone revenue because of its much higher average selling price, even as overall iPhone shipments are expected to remain roughly flat next year.

JPMorgan said the iPhone 18 cycle is increasingly likely to be driven by price and product mix rather than unit growth.

D.A. Davidson analyst Gil Luria said Apple needs the Duo to succeed as it comes up against a difficult set of earnings comps with its strongest upgrade cycle in years.

"Without an uplift from Duo, they may experience some pretty pedestrian revenue growth," Luria told CNBC.

The device gives Apple several ways to generate that uplift, he added.

It raises the company's average selling price by capturing die-hard Apple customers who might otherwise have bought a Pro Max. It could bring in some consumers who previously bought folding Android phones because Apple did not offer one. And it could create a halo around the rest of the iPhone lineup.

Luria said some consumers will visit Apple stores specifically to see the Duo, "but probably walk out with an iPhone or iPhone Pro at half the price."

That means the Duo can potentially help Apple even when someone decides not to buy it.

Lead times for the iPhone 18 Pro have softened in several markets compared with the prior cycle, while the more expensive Pro Max has held up better, according to JPMorgan's tracking.

Morgan Stanley has separately said its supply-chain checks are consistent with unusually early component order reductions for the Pro and Pro Max, though the firm has not yet seen evidence that those adjustments have translated into cuts to finished iPhone production.

That puts more pressure on the Duo to pull buyers toward the very top of Apple's lineup.

VIDEO3:4803:48

iPhone co-creator Fadell on Duo: There are both business and entertainment uses for these devices

Squawk on the Street

Pushing the iPhone upmarket

Apple's move toward a more expensive iPhone comes as the economics of the broader smartphone market become increasingly difficult.

Consumers are already holding on to phones for longer, and global smartphone growth is slowing.

Wayne Lam, an analyst at TechInsights, said moving the iPhone further upmarket gives Apple another way to protect the revenue generated by its most important product.

"Given that the iPhone is almost 20 years old, there really isn't anywhere else to head to, given Apple's market position," Lam told CNBC.

With smartphone sales expected to slow, he said, "moving upmarket allows Apple to maintain the all-important iPhone revenues they report every quarter."

Lam described the Duo as an aspirational or luxury product rather than something designed for the average consumer.

But unlike Apple's Vision products, he believes the foldable phone has a path toward becoming a larger category over time, particularly as artificial intelligence changes how consumers interact with their devices.

The trade-off is that pushing prices higher could also make consumers wait longer to upgrade.

Higher iPhone prices could stretch already-long upgrade cycles even further, Lam said, creating what he described as a potential negative feedback loop: devices become more expensive, consumers hold on to them longer and overall demand falls.

Still, Lam expects demand for the Duo to be high relative to its initially limited supply and said the device could "set the bar for premium iPhones moving forward."

WATCH: Apple's iPhone 18 Pro demand in question: Here's what you need to know

VIDEO3:4903:49

Apple's iPhone 18 Pro demand in question: Here's what you need to know

Halftime Report

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5 midterm money takeaways: Democrats have candidate cash. Republicans have Elon Musk

Luke Fountain — Fri, 16 Oct 2026 21:49:13 GMT

A voter casts his ballot during early voting at the Polk County Election Office on Oct.14, 2026 in Des Moines, Iowa.

Charlie Neibergall | Getty Images

One of the last big campaign-finance snapshots before the Nov. 3 Election Day is now available, and both political parties found something to like. But campaign cash is flowing in very different ways — and, on balance, points to an environment more favorable for Democrats.

On one side, Democratic candidates have turned into absolute cash cows, raising oodles more than their Republican rivals across Senate and House battlegrounds.

Republicans, however, still have a leg to stand on from an unprecedented flood of outside super PAC cash, bankrolled by a tiny circle of billionaires led by Tesla and SpaceX CEO Elon Musk. The deluge of capital could be enough to stave off the worst of what has otherwise been a treacherous political environment for the GOP amid stubbornly high inflation and drooping approval ratings for President Donald Trump.

A flurry of Federal Election Commission filings Thursday at a key deadline detailed what candidates raised and spent from July through September and give insight into many of the outside groups backing them. More of the outside-money picture comes next week with another deadline for additional filings.

Here are CNBC's five takeaways:

Democratic grassroots strength

If Democrats want a financial case for a blue wave, start with the candidates themselves.

Democratic Senate nominees put up gaudy third-quarter totals. James Talarico raised $60.2 million in Texas, Jon Ossoff brought in $33.1 million in Georgia and Abdul El-Sayed raised $30.7 million in Michigan. Sherrod Brown brought in $23.1 million in Ohio, while Troy Jackson raised $20.4 million in Maine, Mary Peltola $14.1 million in Alaska and Roy Cooper $12.2 million in North Carolina.

Even in reliably red Kansas, Democrat Adam Hamilton raised $9.4 million.

In several of those races, the Republican numbers were not even close. Ken Paxton raised about $10.2 million in Texas, Mike Rogers $9.7 million in Michigan, Susan Collins $5.2 million in Maine and Jon Husted $4.8 million in Ohio.

Candidate dollars are especially potent in the final stretch because campaigns control where they go and qualify for lower television advertising rates than super PACs do. In other words, Republicans may be able to make up a $1 fundraising gap with outside money — but it can cost them more than $1 to do it.

The same fundraising edge stretches into the House.

Democratic candidates outraised their Republican opponents through September in 13 of the 21 House races currently rated Toss Up by Cook, according to a CNBC analysis of FEC filings. In North Carolina's 11th District, for example, Democrat Jamie Ager raised $2.1 million in the third quarter, compared with roughly $313,000 for Republican Jennifer Balkcom.

The fundraising surge coincides with a shifting map: the Cook Political Report with Amy Walter projected last week that Democrats could gain two to six Senate seats — enough to put the four-seat majority threshold within reach — and nine to 19 House seats, which would flip the chamber.

Republicans' ace in the hole

While Democratic candidates dominate direct donations, Republicans are countering with overwhelming outside spending.

The Senate Leadership Fund, the GOP's main Senate super PAC, raised a record $272.9 million from July through September, roughly $122 million more than its Democratic counterpart, according to FEC filings. On the House side, the Congressional Leadership Fund raised a record $94.4 million during the quarter and entered October with $156 million in cash, according to its FEC filing.

That outside money is functioning as a financial backstop for GOP candidates who trail badly in direct fundraising. Texas is the most extreme example: the SLF funneled $158 million into Texas PAC, the super PAC backing Paxton, according to FEC filings.

Elsewhere, Republicans have committed $15 million through the SLF to defend Sen. Pete Ricketts in Nebraska, The Wall Street Journal reported this week. Outside groups account for roughly 80% of all ad buys in Alaska, where the SLF has spent $14 million backing Sen. Dan Sullivan, according to a CNBC analysis of AdImpact data.

The blitz allowed Republicans to hold an aired-ad advantage in seven of eight top Senate battles and 25 of 42 contested House seats rated "Toss Up" or "Lean" Republican or Democrat by the Cook Report as of Oct. 9, according to AdImpact.

But polls have shown little movement in recent weeks, despite the advantage.

Elon Musk, chief executive officer of Tesla Inc., during the launch of America.gov in Washington, DC, US, on Tuesday, Sept. 29, 2026.

Daniel Heuer | Bloomberg | Getty Images

Musk fights for Texas

No donor better captures the scale — or the leverage — of that outside-money advantage than the world's richest person, Musk.

He pumped more than $276 million into federal political groups during the third quarter, making him the biggest known individual donor of the midterms. His disclosed giving included $158 million to Senate Leadership Fund and another $89 million to his America PAC, according to FEC filings.

Most of that capital was earmarked for a single rescue mission: Texas, the state that's his primary residence and headquarters of his businesses.

Musk gave the SLF $75 million on Sept. 9 and another $83 million on Sept. 23. Both times, the SLF transferred the exact same amount to Texas PAC the following day. The group, which is backing Paxton, reported no other donors through the end of September.

Until now, many national Republicans had been reluctant to sink resources into the Lone Star state's expensive media market while fighting across an already expanded Senate map. Musk effectively erased that trade-off, supplying enough money to build a dedicated financial firewall around Paxton without forcing the party to pull resources from other battlegrounds.

Texas Attorney General Ken Paxton, a Republican candidate for the U.S. Senate, speaks to attendees during a campaign rally at Matt's Rancho Martinez on Tuesday, May 19, 2026, in Allen.

Elías Valverde II | The Dallas Morning News | Getty Images

Democratic megadonors get off the sidelines

For months, Democrats worried over the reluctance of traditional megadonors to write checks following the 2024 election cycle with presidential contest drama at the top of the ticket. The latest filings suggest that freeze is thawing — though much money is still bypassing the Democratic National Committee.

Facebook co-founder Dustin Moskovitz and his wife, Cari Tuna, put about $16 million into the midterm fight this summer, according to FEC filings, while LinkedIn co-founder Reid Hoffman, who had also withheld money from the DNC this cycle, poured $11.5 million into the super PAC backing Talarico earlier this year.

The renewed megadonor money gives Democrats another source of firepower for the final weeks that can be quickly redirected if needed.

Already, Democrats' Senate Majority PAC raised a record $151 million in the third quarter and ended September with $112 million in cash, even as its Republican counterpart raised substantially more.

Record-breaking money

All the spending is feeding an election on track to shatter spending records.

AdImpact projects $11.6 billion in political advertising during the 2025-26 election cycle, which would make 2026 the most expensive cycle on record — surpassing both the $8.9 billion spent during the 2022 midterms and the $11.2 billion spent during the 2024 presidential cycle.

The congressional fight alone has already put $3.8 billion in advertising on the air, more than $870 million ahead of the comparable point in 2024, according to AdImpact. Senate races are helping drive the surge: the firm projects $3.4 billion in Senate advertising by the end of the cycle, up 48% from 2022.

But as the amount of money rises, some of it is becoming harder for voters to trace back to its original source.

Thursday's filings showed millions flowing into super PACs from nonprofits and other entities that are not required to disclose their own donors, leaving the original source of some of the cycle's biggest checks hidden.

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Nasdaq slides 2% Friday to post worst week since June, pressured by AI sell-off and oil prices: Live updates

Sean Conlon — Fri, 16 Oct 2026 20:27:46 GMT

Traders work on the floor of the New York Stock Exchange during morning trading on Oct. 14, 2026 in New York City.

Michael M. Santiago | Getty Images

Stocks slid on Friday as traders notched a mostly losing week amid a shift away from tech and artificial intelligence-related names as well as a rise in oil prices.

The S&P 500 lost 1.09% and ended at 7,659.44, while the Nasdaq Composite shed 2.14% to close at 26,140.03. Both indexes ended the session below their 50-day moving averages. The Dow Jones Industrial Average fell 175.28 points, or 0.34%, to 52,002.41. The sell-off sent the Cboe Volatility Index (VIX) above 22 for the first time in four months.

Chipmakers were lower again. The VanEck Semiconductor ETF (SMH) lost 3%, led by declines in Micron Technology, Advanced Micro Devices and Sandisk. Semiconductors have struggled this week amid jitters about competition from China. The SMH slid 10% week to date for its biggest weekly decline since April 2025.

Those declines, coupled with drops in other stocks linked to AI, dragged the S&P 500 to a losing week. The benchmark index fell about 2% this week, while the Nasdaq shed more than 4% for its worst week since June. The Dow, on the other hand, advanced 0.7% on the week.

Investors have also grown concerned that tech companies are borrowing too much for the AI buildout. Shares of neoclouds like CoreWeave, which has seen its total debt rise to more than $51 billion, were down nearly 12%, bringing the stock's week-to-date losses to 25%.

"The question is: Is this a systemic issue?" said Michael Rosen, Angeles' chief investment officer. "Obviously, increased debt issuance is something to observe and continue to watch and be concerned about if it continues to get to levels of excessiveness. But we're not remotely close to that right now."

Other areas of the market such as energy saw gains Friday, with stocks like Chevron helping to keep the Dow's losses in check. Oil prices moved higher amid rising tensions between the U.S. and Iran as well as between Russian and Ukraine. West Texas Intermediate crude futures increased 3.51% to settle at $101.41 per barrel, while Brent crude futures advanced 3.72% to $109.86.

Simultaneously, investors have been grappling with hotter-than-expected inflation data, which has been exacerbated by elevated energy prices in the wake of the U.S.-Iran war. Wholesale inflation this week saw its biggest gain since 2022, while consumer inflation remained well above the Federal Reserve's target of 2%.

Fed Chairman Kevin Warsh spoke at an IMF event in Bangkok overnight. And while he didn't comment on whether the Fed would raise rates before year-end, traders took that as a sign that the central bank will hold policy steady later this month. The CME Group's FedWatch tool points to an 82% chance the Fed keeps its overnight rate unchanged at its Oct. 27-28 meeting.

Fri, Oct 16 20264:23 PM EDT

Stocks finish lower

The three leading U.S. indexes ended Friday's session with losses.

The S&P 500 dropped 1.09% to finish at 7,659.44, while the Nasdaq Composite lost 2.14% to 26,140.03. The Dow Jones Industrial Average shed 175.28 points, or 0.34%, to 52,002.41.

— Sean Conlon

Fri, Oct 16 20263:16 PM EDT

Volatility index rises to highest level since June

As the market sell-off intensified Friday afternoon, the Cboe Volatility Index (VIX) rose to levels it last closed at four months ago.

The VIX rose to 21.32, as of 3:10 p.m., rising more than 4.8 points on the session. It's on pace for its highest close since June 10, when it closed at 22.22.

Typically, when the VIX is above 20 that indicates greater fear in the market. The index last closed above that level on July 29, when markets fell after the Federal Reserve kept interest rates steady at its meeting that month. The next day, stocks rose, and the day marked a bottom in a market where many AI-related stocks had been selling off in the previous month.

Cboe Volatility Index 6-month.

— Davis Giangiulio

Fri, Oct 16 20263:08 PM EDT

Nasdaq heads for worst week since April 2025

Pedestrians outside the Nasdaq MarketSite in New York, US, on Friday, Oct. 16, 2026.

Michael Nagle | Bloomberg | Getty Images

The Nasdaq Composite was down about 2.5% in afternoon trading on Friday, bringing its loss on the week to almost 5%.

With that move, the tech-heavy index on pace for its worst weekly performance since the week ended April 4, 2025, when the index recorded a roughly 10% drop.

Nasdaq Composite, 5-day

— Sean Conlon

Fri, Oct 16 20262:23 PM EDT

Communication services, information technology lead S&P 500 lower

Communication services and information technology led the S&P 500 lower on Friday.

The two sectors were down 2.7% and 2.4%, respectively, becoming the two biggest laggards among the 11 S&P 500 sectors. Consumer discretionary followed behind them, falling 1.5%.

However, a look beneath the surface showed that the S&P 500 — which was last down 1.3% — was more evenly split despite the losses at the index level. There were about 280 losers in the index and 222 gainers.

In total, five out of the 11 S&P 500 sectors were in positive territory, led by energy with its 2.1% gain and utilities with its rise of 1.2%.

— Sean Conlon and Sarah Min

Fri, Oct 16 20261:35 PM EDT

U.S. crude oil surpasses $100

In an aerial view, oil storage tanks are seen at the rail-fed diesel base, Exxon/Mobil Wink Transloading facility on Aug. 13, 2026 in Wink, Texas.

Brandon Bell | Getty Images

U.S. crude oil prices rose sharply Friday as Iran escalated its attacks in the Strait of Hormuz this week and Ukraine vowed to keep striking Russian refineries.

U.S. West Texas Intermediate futures were up 2.9% to $100.78 per barrel. Brent crude, the international benchmark, was 3.3% higher at $109.37 per barrel. Read more.

WTI, 1-day

— Spencer Kimball

Fri, Oct 16 20261:06 PM EDT

Moog, Fox Factory among the stocks making big moves midday

Federal-Mogul Holdings Corp. Moog brand steering and suspension parts sit on a shelf in an auto parts store in Princeton, Illinois, U.S.

Daniel Acker | Bloomberg | Getty Images

Here are the stocks making moves in midday trading:

Independent Bank — Shares of the Michigan-based bank holding company jumped almost 5% after third-quarter earnings surpassed estimates. Independent Bank earned $1.90 per share, topping the FactSet consensus call for $1.85 per share. Net interest income of $220.7 million also beat the $218.5 million estimate. The bank sees home equity loans growing by a high single-digit annualized percentage in the fourth quarter.
Moog — The manufacturer of precision motor control systems rose more than 4%. Morgan Stanley upgraded shares to overweight from equal weight. The firm also lifted its price target to $448 from $405, suggesting about 23% upside from Thursday's close. Shares have been on a tear in 2026, up more than 55%.
Fox Factory — The vehicle suspension maker tumbled 9% after CEO Mike Dennison stepped down from his role. Fox's board appointed Douglas Grimm as interim chief executive. The company also trimmed its full-year revenue outlook.

Read the full list here.

— Deena Zaidi

Fri, Oct 16 202611:38 AM EDT

Where investors are looking next after the pullback in semiconductors

Early in the "SaaSpocalypse" that roiled software companies this year, Manish Gupta, a portfolio manager at First Eagle Investments, added to Workday as he parsed through the wreckage for some bargains.

In recent months, that bet has paid off for the value investor. After falling about 40% in the first quarter of 2026, during which the enterprise software stock at various points was trading at not even three times revenue, the stock went on to surge more than 55% in the third. It's also outperforming this week, rising more than 2% amid a broader tech sell-off as investors exit for safer assets.

Gupta, who attended the company's analyst day this week, remains confident in Workday, which he said is trading at a discount to similar businesses in the private markets. Workday is a top 10 holding in the First Eagle Global Fund (SGENX), which he co-manages and which had nearly $75 billion in total net assets as of Sept. 30.

"The price has moved up, but the business has also become better," Gupta said. "The 'SaaSpocalypse' has also turned around, but the stock's still attractive."

CNBC Pro subscribers can read more here.

— Sarah Min

Fri, Oct 16 202610:48 AM EDT

Why Bank of America is in ‘risk-off’ mode for the next month

People walk by a Bank of America office in New York City, U.S., Sept. 1, 2026.

Jordan Tovin | Reuters

The near-term case against stocks is growing, according to Bank of America.

Strategist Michael Hartnett laid out four reasons why the bank is taking a "risk-off" approach for the next month:

Higher yields and the "need for [the Federal Reserve] to hike on Oct. 28;"
Elevated oil prices due to the wars in the Middle East and Ukraine;
"Rising risk of 'wave-like' [Democratic] sweep midterms;"
The recent price action in artificial intelligence-linked names

CNBC Pro subscribers can read more here.

— Fred Imbert

Fri, Oct 16 202610:07 AM EDT

How the CoreWeave sell-off is affecting OpenAI vs. Anthropic valuations

Imen Ben Youssef | Afp | Getty Images

The spread is widening between AI leaders OpenAI and Anthropic as a sell-off in CoreWeave leads neocloud stocks lower.

OpenAI's valuation is down more than 4% the past 24 hours after briefly slipping under $1.5 trillion, according to perpetual futures pricing on decentralized exchange Hyperliquid. Meanwhile, Anthropic perps are up 2.4% over the same time period, recovering an overnight dip and indicating a valuation of just over $2 trillion.

Read the full story here.

— Oliver Renick

Fri, Oct 16 20269:34 AM EDT

S&P 500 opens slightly higher

The S&P 500 kicked off Friday's session in positive territory.

The broad market average moved up 0.1% just after 9:30 a.m. ET, while the Nasdaq Composite lost 0.2%. The Dow Jones Industrial Average added 188 points, or 0.4%.

— Sean Conlon

Fri, Oct 16 20269:05 AM EDT

Wells Fargo urges caution on buying longer duration bonds

Wells Fargo Investment Institute isn't buying longer-term bonds yet, despite the move lower in Treasury yields.

The firm doesn't believe investors are still adequately compensated for the risks associated with extending duration, which is a measure of interest rate sensitivity.

"Financial conditions are tightening, long-term borrowing costs face upward pressure, and investors are increasingly demanding additional compensation to hold longer-maturity bonds," said Darrell Cronk, president of Wells Fargo Investment Institute and chief investment officer of Wealth & Investment Management.

"Currently, we do not believe we have reached the peak in interest rates for this cycle, so caution is warranted."

— Michelle Fox

Fri, Oct 16 20268:05 AM EDT

Berkshire Hathaway seeks new ways to deploy capital with its recent investment in Bending Spoons, Morningstar says

Bending Spoons signage during the company's initial public offering (IPO) at the Nasdaq MarketSite in New York, US, on Wednesday, July 1, 2026.

Michael Nagle | Bloomberg | Getty Images

Greg Abel, the new leader of Berkshire Hathaway "pushes into new territory" with the firm's latest investment in Bending Spoons, an Italian-based private equity firm, Morningstar wrote Wednesday.

Abel, who took over as CEO in January, led a $330 million investment in Bending Spoons, following Berkshire's $600 million investment from July, when the Italy-based serial acquirer went public on the Nasdaq.

"It is a sign that the firm is finally moving out of its comfort zone to find places to put capital to work," Morningstar analyst Greggory Warren wrote.

The investments is already bearing fruit. As of Oct. 15, Berkshire is sitting on a nearly 80% gain on its investment in Bending Spoon, Morningstar noted, after shares rose in the days following the announcement of Berkshire's additional stake.

— Paulina Likos

Fri, Oct 16 20268:04 AM EDT

Stocks making the biggest moves premarket: Tesla, SpaceX, Alcoa, CoreWeave & more

The Tesla brand logo can be seen on May 28, 2026 at a location of the car manufacturer in Parsdorf near Munich (Bavaria, Germany).

Matthias Balk | Picture Alliance | Getty Images

Tesla shares climbed nearly 5% premarket after the EV maker unveiled its long-awaited second-generation Roadster on Thursday. The vehicle features SpaceX-developed rocket-style thrusters, giving investors another reason to focus on the overlap between Elon Musk's companies.

SpaceX also rose after Evercore ISI raised its price target on the stock to $275 from $230, while reiterating an outperform rating, citing stronger AI and Starship catalysts. Tesla describes it as the world's first flying car and expects production to begin in 2028.

The aluminum producer, Alcoa rose more than 2% after stronger quarterly results, while CoreWeave fell 4% premarket after the stock came under pressure this week as investors braces for higher interest rates that might impact the highly indebted company.

Read more here on companies making the biggest moves premarket.

— Deena Zaidi

Fri, Oct 16 20267:13 AM EDT

Travelers falls despite earnings beat

Travelers shares were down 4% even after the company reported third-quarter results that beat analyst expectations. The insurance giant posted core third-quarter earnings of $9.18 per share on revenue of $12.48 billion. Analysts polled by LSEG expected a profit of $7.42 per share on revenue of $11.38 billion.

TRV 5-day chart

— Fred Imbert

Fri, Oct 16 20264:45 AM EDT

Stocks on the move in premarket: CoreWeave down, Tesla up

Tesla unveils its long-delayed Roadster nearly a decade after first revealing a next-generation version of its original electric sports car, at a launch event in Waco, Texas, US, on October 15, 2026, in this still image taken from a handout video.

Tesla | Via Reuters

CoreWeave shares were 4% lower in premarket at 4:40 a.m ET on Friday, following a rollercoaster session in which it tumbled on fears over its debt pile before ending higher.

VIDEO2:4102:41

Coreweave's corporate bonds are in freefall. What happens next?

Squawk Box Europe

Tesla shares were up 4.4% after the electric vehicle maker unveiled its next-generation Roadster, which can accelerate from zero to 60 miles per hour in less than a second.

— Jenni Reid

Fri, Oct 16 20264:15 AM EDT

U.S Treasury yields inch lower as investors digest hot inflation data

U.S. Treasury yields declined on Friday as investors weighed hotter-than-expected inflation data and Federal Reserve Chairman Kevin Warsh's latest comments on interest rates.

Fri, Oct 16 20263:26 AM EDT

Turbine maker Nordex pops 14% on guidance raise

Dark clouds pass over the rotor blade plant of wind turbine manufacturer Nordex, a wind turbine on the factory premises is turning.

Bernd Wustneck | Picture Alliance | Getty Images

Shares of renewable energy firm Nordex jumped nearly 14% in early deals after the company raised its earnings before interest, taxes, depreciation and amortization (EBITDA) margin guidance for full-year 2026 to 11.5% to 12.5% from 8% to 11%.

In a pre-results release, the Hamburg-based wind turbine maker also said it expected third-quarter earnings of 278 million euros ($312.3 million), up from 136 million euros the previous year and ahead of consensus expectations.

Nordex said performance was driven by higher margins in its services segment, strong project execution and previously flagged risks to its projects not being as severe as expected.

Citi analysts said the update should have a "positive knock-on effect on 2027 consensus estimates and beyond."

"Nordex's stock is, in our view, priced for outer-year earnings risk tied to the German outlook. While we think bears may stick with this view into Germany's 2027 wind auctions, this update means that the earnings starting point is higher, making the outer-year decline implied by the current valuation even steeper," they said in a Friday note.

Nordex share price.

— Jenni Reid

Fri, Oct 16 20263:27 AM EDT

Asia markets close higher as tech stocks bounce back

Japan's Nikkei 225 closed 1.39% higher at 65,324.29, while South Korea's Kospi rose 2.05% to 5,668.05.

Australia's benchmark S&P/ASX 200 gained 1% to 8,806.70.

Hong Kong's Hang Seng index was up 0.51% in the last hour of trade on Friday, while mainland China's CSI 300 closed 0.11% higher at 4,170.61

— Justina Lee

Fri, Oct 16 20263:11 AM EDT

European stocks open higher, tech rebounds

European equity markets were mostly higher at Friday's open, with the regional Stoxx 600 index up 0.3% in early deals.

The technology sector rose 0.7%, rebounding from its 1.48% decline on Thursday amid global concerns about debt levels in AI-linked firms.

German blue chips were up 0.43%, though London's FTSE 100 slipped 0.26%. U.K. lenders Lloyds and Natwest were both around 2% lower following reports that the upcoming budget will contain tax hikes on banks.

— Jenni Reid

Fri, Oct 16 20263:01 AM EDT

South Korea's Kospi logs worst week since 2008, dropping over 14% on AI worries

South Korea's benchmark index Kospi ended the week 14.5% lower to mark its worst performance since October 2008, as index heavyweights Samsung and SK Hynix tumbled nearly 20% and 25%, respectively.

That comes against the backdrop of a sharp drop in chip names globally this week amid concerns over continued funding for the artificial intelligence boom, intensifying competition and also a possible chip supply glut in a few years.

On the day, the Kospi gained 2%, snaping a seven-session losing streak. The index has lost almost 40% since its June high and is firmly entrenched in bear market.

— Vinay Dwivedi

Fri, Oct 16 20262:20 AM EDT

Global bond yields continue to ease

Government borrowing costs around the world were slightly lower on Friday, as the recent global sell-off continues to cool.

The U.S. 10-year Treasury yield fell 10 basis points on Thursday, taking its weekly decline to around 15 basis points, according to LSEG data. It was around 1 basis point lower on Friday. Yields move inversely to prices.

German, French and U.K. yields were also marginally in the red. The 10-year yields on their bonds have all fallen between 7 and 8 basis points this week.

Investor nerves over governments' mounting debt piles and a lack of fiscal consolidation have driven many yields to the highest level in decades, but the sell-off has eased amid lower oil prices and following a strong U.S. Treasury auction.

Loading chart...

— Jenni Reid

Fri, Oct 16 202612:12 AM EDT

Hybe shares jump 10% as K-pop sensation BTS’ tour lifts earnings hopes

Shares of Hybe, the company behind K-pop supergroup BTS, surged 10% on Friday as investors weighed an upbeat third-quarter earnings outlook fueled by its artistes' global concerts.

Hybe's third-quarter revenue is expected to reach 1.5 trillion won ($1.11 billion), up 106% from a year earlier, while operating profit is projected at 172.2 billion won, according to local brokerage firm iM Securities. Concert revenue is expected to come in at 717 billion won, nearly tripling from a year earlier.

The share price gain on Friday outperformed the broader Kospi, which rose 2.9%.

BTS' ongoing world tour featured 16 stadium shows in North America and eight in Europe during the third quarter.

— Jenny Lee and Lim Hui Jie

Thu, Oct 15 202610:53 PM EDT

Indonesia's benchmark index falls 8% as MSCI considers market downgrade

The Jakarta Composite fell 8% in early trading as MSCI is considering to reclassify Indonesian indexes from emerging to standalone market status

The news is a major setback to Indonesia's benchmark index, already among the worst performers globally this year, as standalone status will exclude it from major indexes, preventing flows from passive funds.

Index provider MSCI said that it will make its final decision by the end of June 2027.

— Justina Lee

Thu, Oct 15 202610:03 PM EDT

SK Hynix, Samsung gain as Asian tech stocks bounce back

The SK Hynix Inc. booth at the Computex 2026 expo in Taipei, Taiwan, on Tuesday, June 2, 2026.

Lam Yik Fei | Bloomberg | Getty Images

Asian technology stocks rose Friday, recovering from sharp losses in the previous session on concerns over AI financing and rising competition in the chip sector.

In Japan, SoftBank Group advanced 1.92%, while chip equipment maker Tokyo Electron rose nearly 2% higher. Advantest added 1.89% and Japanese memory chipmaker Kioxia surged 6%.

In Hong Kong, Alibaba added 3.1% higher and Tencent rose 2.2%.

In South Korea, SK Hynix gained 2.85% and Samsung Electronics rose 2.38%. Meanwhile, the country's finance ministry is looking to step up market monitoring after the benchmark Kospi index fell nearly 8% on Thursday, Reuters reported.

— Justina Lee

Thu, Oct 15 20269:46 PM EDT

Mainland China, Hong Kong indexes open higher

Mainland China and Hong Kong indexes rose Friday, as Asian markets staged a recovery after a sell-off in the previous session.

Hong Kong's Hang Seng index advanced 1.27%, while the Hang Seng Tech index gained 2.16%. Mainland China's CSI 300 was 0.30% higher.

The gains in Hang Seng were led by educational services and healthcare sectors, up 3.17% and 2.52%, respectively.

— Justina Lee

Thu, Oct 15 20268:09 PM EDT

Asia-Pacific markets open higher as investors assess AI prospects

Asia-Pacific markets traded higher early Friday.

Japan's Nikkei 225 added over 1% while the Topix rose 1.14%.

The Kospi advanced 1.22% at open, and the small-cap Kosdaq gained 1.28%.

Australia's benchmark S&P/ASX 200 was 0.83% higher.

— Justina Lee

Thu, Oct 15 20267:32 PM EDT

Japan's Nikkei 225 is set to rise after Thursday rout, tracking Wall Street gains

Asia-Pacific markets were set to open higher on Friday, tracking gains in U.S. stocks.

Japan's Nikkei 225 was poised to rise, with the Chicago futures contract at 65,460 and its Osaka counterpart last trading at 65,520, compared with the index's previous close of 64,425.95.

Hong Kong Hang Seng index futures were at 24,274, compared with the index's last close of 24,062.72.

Australia's S&P/ASX 200 was 1.02% higher in early trade.

A potential recovery in Asia stocks comes following a sharp rout on Thursday as investors soured on artificial intelligence plays amid concerns over financing, increased competition and possible oversupply of chips in a few years.

— Justina Lee

Thu, Oct 15 20266:30 PM EDT

Interactive Brokers, J.B. Hunt and Varonis Systems among the stocks making moves after the bell

Check out the companies making headlines in after-hours trading:

Interactive Brokers – Shares of the electronic broker fell 1% after the company's third-quarter earnings missed analyst expectations. Interactive Brokers reported adjusted earnings of 67 cents per share, just below the 68 cents per share that analysts surveyed by LSEG were expecting. Revenue, however, topped expectations, coming in at $1.91 billion versus the consensus estimate of $1.87 billion.
J.B. Hunt Transport Services – The stock shed more than 2% following the company's latest quarterly results. For the third quarter, J.B. Hunt earned $1.82 per share, missing the $1.89 per share that analysts were looking for. The company also posted $3.68 billion in revenue, which exceeded the $3.57 billion that was expected.
Varonis Systems – The artificial intelligence security company's stock gained more than 2% after Proofpoint announced that it will be acquiring the company in an all-cash deal valued at roughly $6.3 billion. The deal is expected to close in the first half of 2027.

Read here for the full list.

— Sean Conlon

Thu, Oct 15 20266:03 PM EDT

Stock futures open little changed

U.S. equity futures were trading around the flatline on Thursday evening.

S&P 500 futures traded down 0.04% just after 6 p.m. ET, while Nasdaq-100 futures shed about 0.2%. Futures tied to the Dow Jones Industrial Average added 7 points, or 0.01%.

— Sean Conlon

Brent oil touches $110 as Iran escalates Hormuz attacks, Ukraine vows to hit Russian refineries

Spencer Kimball — Fri, 16 Oct 2026 20:02:21 GMT

In this article

@LCO26Z

VIDEO4:1604:16

Rapidan Energy’s McNally: Three conflicts are impacting energy flows and fixed energy infrastructure

Power Lunch

Crude oil prices rose sharply Friday as Iran escalated attacks in the Strait of Hormuz, Houthi militants fired missiles at Saudi Arabia and Ukraine vowed to keep striking Russian refineries.

Brent futures hit a session high of $110 per barrel for the first time since May before easing slightly to close at $109.86, a gain of 3.7%.

U.S. West Texas Intermediate rose 3.5% to settle at $101.41 per barrel. WTI added more than 10% this week while Brent advanced nearly 5%.

Saudi Arabia intercepted several missiles fired over the Red Sea on Friday, including one that was heading toward the oil export terminal Yanbu, a military spokesman said. Three drones were also destroyed in the kingdom's Riyadh and southern regions, the military said.

Iran-allied Houthi militants in Yemen have repeatedly fired at Saudi Arabia this week. Oil giant Aramco came under attack when one of its administrative buildings in Dhahran was hit Tuesday, the kingdom's energy ministry said.

The Houthis attacked Riyadh's international airport on Oct. 10, killing 12 and injuring more than 300.

In the Strait of Hormuz, at least nine tankers and cargo ships have come under attack since Sunday as Iran tries to choke off oil exports through the waterway. Iran sank the container ship GFS Pride on Wednesday, U.S. Central Command said. The crew of the Singapore-registered ship was safely evacuated, according to Singapore's maritime authority.

The attacks have left three seafarers injured and two missing this week, according to the International Maritime Organization.

Crude exports through Hormuz have pulled back after touching prewar levels in September. Shipments stood at 9.4 million barrels per day for the week ended Wednesday, about 70% of the average before the Iran war, according to data provided by the energy researcher Kpler.

Meanwhile, the "energy ceasefire" that President Donald Trump tried to broker between Ukraine and Russia has quickly unraveled. The Kremlin continued attacking Ukrainian infrastructure despite the supposed truce. President Volodymyr Zelenskyy said Kyiv would resume strikes on Russian refineries in retaliation.

Diesel prices have surged this year due to Ukraine's attacks on Russian refineries and Iranian strikes on energy infrastructure in the Middle East. The fuel cost an average of $6.33 a gallon in the U.S. Friday, more than 70% above the same period last year, according to AAA data.

U.S. crude oil prices were also driven higher by a big decline of more than 8 million barrels for the week ended Oct. 9 in commercial inventories due to production shut-ins on the Gulf Coast from Hurricane Isaias, according to the Energy Information Administration.

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Looking for a non-AI trade? This bank stock is poised for a breakout next week

Jay Woods — Fri, 16 Oct 2026 19:19:28 GMT

(See the video above for Jay's complete chart breakdown.) As a former market maker at the NYSE, one of the drawbacks was that I had to trade the same stocks every single day. However, one of the luxuries was you really got to know how those stocks moved. You may know that feeling watching some of your own personal holdings move from day-to-day, week-to-week and quarter-to-quarter as well. The moves may not always make sense, but patterns develop and these patterns can create opportunities. In that vein, I want to revisit a stock we discussed here in May. While I never made a market in it, it is a stock I personally own — JPMorgan Chase . The first time we mentioned it here, the trade worked very well. Months later, it is giving us another nice risk-reward setup for a near-term trade as it retreated to its longer-term uptrend. Let's break down the one-year daily chart. Key points: Remains in longer term uptrend Consolidating above its key AVWAP level from 2026 lows Bullish MACD crossover Bullish RSI divergence at recent lows The long play (see chart below) remains the smartest and safest of them all. The trend remains your friend as price holds above $325. We see that old resistance at its 2025's highs now become support. Short term there's an opportunity for shares to hold and bounce back towards its highs of $360. The stock has held up much better than its peers and looks poised to lead the seasonal charge higher. As always, we enter with risk management levels in place. If price were to break below the $310 level and the rising 50-week moving average, the trend has changed and we want to exit for now and revisit the trade again later. The next level of support is $280. The good news is the upside potential appears greater than the downside risk. The trend worked for us many times before and we will continue to trust it until proven otherwise. -Jay Woods with Chase Games Jay Woods is the Chief Market Strategist at Freedom Capital Markets. DISCLOSURES : Woods owns JPMorgan personally and with family. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.

Prediction market odds on Tesla-SpaceX merger are above 50% for early 2027

Ananya Chetia — Fri, 16 Oct 2026 17:02:40 GMT

In this article

Tesla CEO Elon Musk during a state dinner in the East Room of the White House in Washington, Sept. 24, 2026.

Annabelle Gordon | Bloomberg | Getty Images

Following a Barclays note Wednesday that outlined what a merger between Tesla and SpaceX could look like, prediction market traders increased the odds of an integration above 50% for early 2027.

Odds of a merger happening before March jumped to 56% by Friday morning, up from 29%. Odds for an integration before April and May climbed to similar levels.

The contract asks, "When will Tesla and SpaceX merge?" and will be verified by news outlets and the Securities and Exchange Commission's EDGAR database.

Tesla, known for its electric vehicles, and SpaceX, a rocket and satellite company, have collaborated before. Both are controlled by Elon Musk.

On Thursday, Tesla showed off its long-delayed Roadster, which relies on SpaceX technology to make the vehicle hover. A video showcasing the Roadster's capabilities was also recorded from SpaceX's test site in Texas.

Beyond collaboration, the growing speculation of a merger comes after Musk spoke of "more and more overlap" between Tesla and SpaceX on the EV maker's latest earnings call.

Barclays now expects a merger could be announced before Tesla's annual general meeting, which must take place no later than Dec. 6, 2026. Analyst Dan Levy expects the merger may be proposed as an AI vertical integration, involving Tesla's Robotaxi and Optimus with SpaceX's Grok and Macrohard.

Terafab, the semiconductor project relying on Tesla, SpaceX and xAI, could also be a "key driver" for the merger, Levy added.

"Notably, while we suspect there would be some financial synergies, the true value would be in vertical integration," Levy said.

Earlier Friday, Evercore ISI recommended buying SpaceX shares ahead of its next scheduled earnings release, set for early November, and boosted its 12-month price target on the stock by 20% to $275.

Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.

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Tesla unveils long-delayed Roadster developed with SpaceX, fueling merger speculation

Lora Kolodny — Fri, 16 Oct 2026 15:52:41 GMT

In this article

VIDEO8:0808:08

Tesla unveils long-delayed Roadster, showing off its 'flying car' ambitions

Squawk Box

Tesla showed off its long-delayed next-generation Roadster on Thursday, almost a decade after Elon Musk's company started taking deposits for the electric sports car.

The event was livestreamed from a SpaceX test site in McGregor, Texas, near Waco, starting at 7:55 p.m. local time, or 8:55 p.m. ET. In attendance along with Musk were design leader Franz von Holzhausen and Lars Moravy, vice president of vehicle engineering.

"You're going to see some crazy stuff tonight," Musk said. "You're going to see the results of what happens when you have a collaboration with the world's best car company and the world's best rocket company."

Tesla's original Roadster, designed and engineered by a team led by founding CEO Martin Eberhard, was based on a Lotus Elise chassis and was first delivered in 2008, selling for roughly $100,000 in small volumes until 2012.

Tesla unveils its long-delayed Roadster nearly a decade after first revealing a next-generation version of its original electric sports car, at a launch event in Waco, Texas, Oct. 15, 2026. In this still image taken from a handout video the Roadster comes to a landing using rocket thrusters.

Tesla | Via Reuters

The next-generation Roadster is expected to be a high-end, low-volume model that relies on SpaceX technology to enable it to hover. While Musk fanatics expressed their excitement on social media, the Roadster isn't likely to have any material financial impact on the company.

At the event, Musk and his team showcased a white sports car that raced up a curved ramp, then clung to it upside down and vaulted off it, flipping in mid-air and hovering slowly before landing on the ground.

The two-seater can go from zero to 60 miles per hour in under a second, according to Tesla's timer, a feat Moravy demonstrated for the live audience.

Musk said the next-generation Roadster would enter production in 2028. The price wasn't announced, and the company didn't disclose specifications about other performance-level variants of the new Roadster. It was unclear whether the vehicle would be street-legal, with Musk saying on stage that, "This is not necessarily a safety-optimized car."

The Roadster unveiling has added to speculation of a possible merger between Tesla and SpaceX.

For years, Musk's companies have worked with and paid each other, even sharing some personnel. The collaboration has increased in 2026, with speculation about a possible SpaceX-Tesla tie-up swirling since the aerospace and defense company went public in June. SpaceX COO Gwynne Shotwell told CNBC ahead of the IPO that a merger "might make Elon's life a little easier."

Barclays analyst Dan Levy predicted in a note out this week that such a transaction could happen before the end of 2026.

SpaceX is currently valued at about $2 trillion, while Tesla has a market cap of $1.4 trillion, making them two of just 12 U.S. companies worth at least $1 trillion.

Tesla unveils its long-delayed Roadster nearly a decade after first revealing a next-generation version of its original electric sports car, at a launch event in Waco, Texas, Oct. 15, 2026

Source: Tesla

Tesla reopened reservations for the refreshed Roadster in recent weeks, accepting $50,000 deposits from prospective buyers in the U.S., Canada and China.

Musk first promoted the refreshed Roadster concept at an event in November 2017, and the following June in a series of tweets. He wrote at that time, "SpaceX option package for new Tesla Roadster will include ~10 small rocket thrusters arranged seamlessly around car." The engines would improve speed and braking, and may "even allow a Tesla to fly."

The prototype Tesla showed on Thursday is built to be as lightweight as possible with a steer-by-wire system, steering yoke, and an array of technologies developed by SpaceX, including thrusters, carbon overlay pressure vessels and diffusers, and powerful fans that enable the car to do some gymnastics.

One feature Tesla left out of its forthcoming Roadster is the company's "FSD" or automated driving system. Musk said the new Roadster will be the last vehicle the company produces that's intended to be controlled by a human driver.

Tesla started taking $50,000 deposits for the revamped Roadster in 2017, but has since missed every targeted delivery date. As recently as last October, Musk was hyping a Roadster demo that he hoped would happen before the end of 2025. That didn't take place either.

Tesla unveils its long-delayed Roadster nearly a decade after first revealing a next-generation version of its original electric sports car, at a launch event in Waco, Texas, Oct. 15, 2026

Source: Tesla

Musk's former friend and OpenAI co-founder Sam Altman mocked the Tesla CEO in posts on X last year over the extreme delays, showing screenshots of his reservation and refund requests.

"I really was excited for the car! And I understand delays," Altman wrote. "But 7.5 years has felt like a long time to wait."

Altman got his refund, and the two ended up in court earlier this year over a separate matter related to OpenAI's governance and ownership structure.

Others have kept their reservations.

Lawrence O'Connor, founder and CEO of Other World Computing in Austin, Texas, told CNBC ahead of the event that he reserved a Founder's Edition of the new Roadster in November 2017, effectively giving the company what he called an "interest-free loan" of $250,000.

O'Connor wrote in a message that he would be attending the show and was "excited to see what has been 9 years in the making." After the event, O'Connor said what he saw was "off the charts."

Tesla is scheduled to report third-quarter results after the bell on Wednesday.

WATCH: Tesla Roadster unveil set for Thursday evening

VIDEO4:0304:03

Dan Ives on Tesla stocks: A big step in the right direction

Closing Bell

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KFC to switch to Coca-Cola beverages in U.S. restaurants for the first time in decades

Amelia Lucas — Fri, 16 Oct 2026 11:02:24 GMT

In this article

KFC's U.S. restaurants will ditch PepsiCo and switch to Coca-Cola beverages next year, marking the first time in decades that the Yum Brands chain has changed its drink supplier, the restaurant company said Thursday.

Some of KFC's international markets serve Coke products, but the chain's U.S. restaurants have stuck with PepsiCo drinks ever since Pepsi bought KFC in 1986. At the time of the acquisition, KFC was Coke's second-largest fountain account, trailing only McDonald's. Pepsi later spun off KFC, along with sister chains Pizza Hut and Taco Bell — but even as the combined Yum Brands, the company stayed loyal to its previous owner. Without Pepsi, Taco Bell would not serve its iconic Mountain Dew Baja Blast.

The change comes as KFC aims to win back U.S. diners, who have ditched the fried chicken chain for rivals such as Chick-fil-A or Popeyes.

"This decision is a critical step in the Kentucky Fried Comeback," KFC U.S. President Catherine Tan-Gillespie wrote in a memo to franchisees and employees obtained by CNBC. "A new beverage offering, with a new partner in Coca-Cola, gives us a platform to innovate, meet changing tastes and give customers more reasons to choose us."

Beverage cups stacked inside a Yum Brands KFC restaurant in Shelbyville, Kentucky, Jan. 29, 2021.

Luke Sharrett | Bloomberg | Getty Images

For many fast-food chains, beverages have become a critical way to attract consumers. A number of restaurants, including McDonald's and Taco Bell, have broadened their drink offerings with options such as refreshers or "dirty soda." For its part, KFC recently unveiled new drinks, including iced coffees and shakes, at Open House, its innovation restaurant in McKinney, Texas.

Coke told CNBC earlier this year that the company has helped many of its restaurant partners create new drinks.

KFC expects to be pouring Coke beverages in all of its U.S. restaurants by the end of the first quarter of 2027, Tan-Gillespie said.

Tan-Gillespie also said that Pepsi remains an important partner for KFC's parent company and the chain's international markets.

For decades, Coke and Pepsi have tussled over important restaurant partners, which represent both a sales opportunity and the chance to grow the visibility of their beverage brands.

It is unusual for large restaurant chains to switch beverage providers, but not unprecedented. In 2024, Pepsi poached Subway, the largest U.S. restaurant chain by number of locations, from Coke. Besides KFC, Coke has wooed away a number of notable Pepsi customers in recent years, including Culver's, Arby's and Panda Express.

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South Texas Latino voters who flipped for Trump in 2024 are up for grabs in 2026

Justin Papp — Wed, 14 Oct 2026 14:25:40 GMT

VIDEO9:4909:49

These Texas midterm races could determine control of the House

Markets and Politics Digital Original Video

TEXAS — Tano Tijerina had a confession to make.

"I want to tell you something I never thought I'd have to say from a stage like this," Tijerina, a former minor league baseball player and a Texas GOP congressional candidate, said during a speech at the Republican midterm convention in Dallas.

"I used to be a Democrat."

The line was hardly a bombshell. Tijerina had been elected three times for Webb County judge — in 2014, 2018 and 2022 — on the Democratic ticket. And he's made his 2024 defection a key part of his campaign in the majority-Latino, South Texas border district in which he's running.

But Tijerina's admission elicited shouts of "No!" and boos. Just to be sure, he quickly made clear he had kicked his old Democratic habits.

"I'm a beef-eating, truck-driving, gun-slinging, … Bible-thumping, Jesus-loving, calloused-hand cowboy that's going to fight like hell for South Texas," Tijerina — looking like a Texas brawler in a beige cowboy hat and a tight blue suit that hugged his biceps — thundered over a hearty round of applause.

Tijerina is part of a coalition of Hispanic and Latino voters who have long leaned Democratic but have more recently shown a willingness to vote for both parties. The group could be critical in deciding control of Congress this November.

Hispanic and Latino voters nationwide moved rightward in 2024 in surprisingly large numbers and helped deliver a second presidential term to Donald Trump. In the congressional district in which Tijerina is running, Texas' 28th, voters opted for Trump by 7 percentage points, after backing President Joe Biden four years earlier. However, they stuck with their Democratic congressman, Rep. Henry Cuellar, whom Tijerina hopes to pick off in November, reelecting Cuellar to an 11th term.

Riding high after their 2024 romp, in which Republicans won control of the White House and both chambers of Congress, there was optimism in the GOP that the rightward turn among Hispanic voters could reflect a permanent realignment. In the past two years in Texas and Florida — states with large Hispanic populations— Republicans redrew congressional maps, banking on their continued support.

Airport attacks put aviation in crosshairs of geopolitical conflicts

Leslie Josephs — Tue, 13 Oct 2026 18:33:42 GMT

In this article

Surveillance footage shows people reacting amid smoke at the moment of an attack at King Khalid International Airport in Riyadh, Saudi Arabia, October 10, 2026, in this frame from a handout video.

Saudi Ministry of Media | Reuters

Deadly attacks on Saudi Arabia's second-busiest airport over the past week are highlighting how conflicts in the Middle East are upending air travel on a larger scale.

Aviation is increasingly in the middle of these sprawling clashes as threats and outright attacks have forced airlines to quickly cancel flights throughout the Middle East for days, weeks and, in some cases, months. Some carriers might redeploy planes that would be going to some Middle East destinations like Dubai, United Arab Emirates, and Doha, Qatar, to other locations altogether.

"It's a new paradigm. Civil aviation is being directly targeted and it has not been the case in the last couple of decades," said Mark Zee, founder of OpsGroup, an independent aviation safety group whose members include pilots, dispatchers, airline employees and others.

The Saudi airport attacks, claimed by Yemen's Iran-backed Houthis, were the deadliest in the country in more than a decade. Over the weekend, at least 13 people were killed and more than 300 injured when a projectile hit terminals at King Khalid International Airport in the Saudi capital Riyadh, officials said. Other attacks have included drones.

Longer routes, cut flights

The conflicts have cut off big parts of airspace in the Middle East, mainly over Iran. The outbreak of the Iran war in February set off massive aviation, travel and safety crises.

For example, Australian carrier Qantas has changed its Perth, Australia-to-London route to avoid Iranian airspace. Because that flight is then longer, the carrier has added a stop in Singapore to refuel.

For four years, Western commercial passenger and cargo planes have already had to fly longer routes to avoid Russian airspace. Carriers started detouring away from Russia after its 2022 invasion of Ukraine.

Taking longer routes to avoid potentially dangerous airspace has been adding to airlines' fuel bills, which got even more expensive this year due to those same Middle East conflicts.

While much of the traffic to Dubai and Doha has rebounded from the first days of the war since the U.S. and Israel attacked Iran on Feb. 28, it remains below 2025 levels, according to flight-data firm OAG. Capacity by seats across the Middle East is down 5.7% in October from last year, 2.2 million fewer seats, OAG reported.

Some airlines are opting to stay away from the region altogether.

"We will not fly to Dubai and Doha, and we need to wait until the situation gets settled," Finnair CEO Turkka Kuusisto told reporters last month in New York.

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