Youtube·2025-10-02 21:00Market Overview - Stocks are on track for another record close despite the ongoing US government shutdown, with the Dow up 1.32% over five days and the Nasdaq composite also set for a record [1][2] - The bond market shows a decrease in yields, with the 10-year down to 4.09% and the 30-year at 4.69%, indicating a lack of long-term inflation concerns [2][3] - The S&P 500 sectors show mixed performance, with materials, tech, and industrials leading, while energy, real estate, and utilities are down [1][2] Economic Outlook - The US labor market is showing signs of slowing, with private data indicating muted hiring and high layoffs, which may influence the Federal Reserve's decisions [2][3] - Market expectations are leaning towards a 25 basis point cut in interest rates by the Fed in December, with a 97% probability priced in [2][3] - The outlook for 2026 appears clouded due to potential permanent layoffs from the government shutdown and a weakening consumer sentiment [2][3] Tesla's Performance - Tesla reported record deliveries of over 497,000 cars in Q3, but shares fell about 4% following the announcement, despite a 30% rally in September [2][3] - Analysts suggest that the expiration of EV incentives may have pulled forward demand, leading to expectations of a sequential decline in Q4 [3] - The introduction of new vehicles is anticipated to sustain growth momentum for Tesla in the coming quarters [3] AI and Tech Sector - Nvidia remains a key player in the AI sector, with bullish sentiment surrounding its stock due to expected licensing from the US government and significant investments in AI [4][5] - Amazon is viewed as a laggard in the AI space but is expected to catch up due to its partnership with Anthropic, which is projected to significantly contribute to AWS revenue growth [4][5] - The AI sector is experiencing a surge in investment, with companies like Coreweave and Applied Digital gaining traction as they provide essential infrastructure for AI applications [5][6] Cryptocurrency Market - Bitcoin has risen above $120,000, with October historically being a strong month for cryptocurrencies, supported by increased stablecoin issuance [5][6] - Analysts predict a potential rotation from gold to Bitcoin as investors seek opportunities in the digital asset space [5][6] Cannabis Industry - Cannabis stocks are experiencing a rally due to favorable messaging from the government regarding potential rescheduling of cannabis as a Schedule 3 drug [5][6] - Multi-state operators in the US are positioned to benefit significantly from any regulatory changes, with companies like Curaleaf and True Leaf being top picks for investors [5][6]