Softbank sells entire stake in Nvidia, the health of the AI trade, flight cancellations mount

Government Shutdown - The Senate has passed a bill to end the government shutdown, which is expected to pass in the House and be signed into law by President Trump [1][7][10] - The House will begin a series of votes to pass the bill, with expectations of a close vote [8][9] - The reopening of the government is anticipated to reverse economic damage caused by the shutdown, including flight delays and lack of government data [10][11] SoftBank and Nvidia - SoftBank sold its entire stake in Nvidia, amounting to $5.8 billion, citing the sale as a necessary financing measure rather than a reflection on Nvidia's performance [3][4][14] - The sale allows SoftBank to provide investment opportunities for shareholders and maintain financial strength [4][14] - Nvidia's stock is experiencing downward momentum after Coreweave, a cloud computing provider, lowered its annual sales forecast due to a data center delay [2][16] Coreweave and Market Impact - Coreweave's annual sales forecast was cut from $5.15 billion to a range of $5.05 billion to $5.15 billion, disappointing investors [16] - Analysts note that supply constraints are short-term but highlight execution risks in the cloud computing sector [2][3] - The AI sector is experiencing volatility, with significant gains in the S&P 500 recently, but concerns remain about sustaining momentum [17][19] Corporate Buybacks - US corporate buybacks have reached approximately $1.2 trillion this year, 15% ahead of the same time last year, indicating confidence among companies [42][44] - The increase in buybacks suggests that companies may view their stocks as undervalued despite market highs [44][46] - The service sector's performance is crucial, as it constitutes a significant portion of GDP, and recent data shows a rebound in new orders [47][48] AI Sector Trends - The AI sector is seeing mixed performance, with companies like Coreweave facing challenges while others like Nebus report significant sales growth [39][41] - The adoption of AI is still in early stages, with many companies yet to scale their AI initiatives [28][30] - Investment opportunities may arise from companies addressing capacity constraints in the AI infrastructure space [21][22]