Core Viewpoint - The current government shutdown is significantly impacting the economy and stock market, with notable declines in major indices and concerns about job cuts and economic data availability [2][3][22]. Economic Impact - The government shutdown has lasted 37 days, leading to a 399-point drop in the Dow and a 1.12% loss in the S&P, with the Nasdaq down 1.90% [2]. - Job cuts have surpassed 1 million, marking the highest October total since 2003, with companies citing cost-cutting and AI as reasons [4]. - The FAA is reducing air traffic by 10% at 40 airports, indicating broader economic slowdowns [6]. Data Center Economy - The "data center blob" is growing rapidly, with OpenAI planning to build hundreds of billions of dollars worth of data centers in partnership with Oracle [9][12]. - Concerns are rising about the financial sustainability of these ambitious plans, especially after comments from OpenAI's CFO regarding potential government backing [13][17]. - The data center economy may require government assistance, which could have negative implications for the broader market [18]. Market Sentiment - High-flying stocks, particularly in the tech sector, are experiencing declines despite positive earnings reports, indicating a shift in market sentiment [19][21]. - Companies like Palantir and Nvidia, which are seen as leaders in the current bull market, are facing downward pressure despite strong performance [20]. - The overall market is currently influenced by negative headlines, with a need for the government to resume operations and for the data center sector to stabilize [22][23].
We've been witnessing the increasingly menacing blob, with the expansion of OpenAI, says Jim Cramer