Good morning investors! The Nasdaq Composite slid as new details about OpenAI spooked investors, putting the artificial intelligence trade under pressure.
Today we cover:
Green card program suspended for tech firms?
OpenAI disappoints
Getting a lower mortgage rate
📊 Economy and News
US Suspends Microsoft, Adobe and Major IT Firms from Green Card Program
The U.S. government has suspended Microsoft, Adobe and several large IT outsourcing firms from the PERM program, which lets companies sponsor H-1B workers for green cards.
Vice President JD Vance announced the move, citing alleged abuse. “The message to Microsoft is you’ve got to hire American workers,” he said.
Labor Secretary Keith Sonderling confirmed suspensions for Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe. The department is also investigating nine major universities, including Harvard, Yale, Stanford and MIT, over J-1 visas.
Microsoft said roughly 80% of its recent H-1B filings were for existing employees already in the U.S., not new hires from abroad, and that it pays H-1B workers the same as comparable U.S. staff. The company said it looks forward to providing more information to the administration.
Microsoft shares fell about 1.7% on the news; Adobe rose roughly 1%.
Global hits:
US 30-year fixed-rate mortgage rate hits 7.40%, likely to further erode housing demand.
Mexico inflation accelerates to 3.45% in September.
BoE’s Greene says UK wage growth forecast at 3.5% for 2027.
Reminder: Trump says U.S. will not attack Iran before midterm election as Iran declines to abandon uranium enrichment program.
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📈 Stocks
S&P 500 7,765.36 (-0.47%)
DJIA 51,231.64 (+0.11%)
NASDAQ 27,193.34 (-1.25%)
BRENT CRUDE 104.26 (+4.05%)
* Prices as of Oct 9th, 12:20 AM UTC
AI Stocks Drop After OpenAI Revenue Comes in Below Expectations
Nvidia, Oracle, CoreWeave and other AI-related stocks fell after OpenAI disclosed lower-than-expected revenue figures.
OpenAI told investors its annualized revenue reached about $50 billion at the end of September — well below the $68 billion figure widely reported earlier. The higher number included gross revenue from partners, according to a person familiar with the matter.
The company also reported 77% total run-rate growth in the third quarter and 107% growth in its enterprise business.
Nvidia shares dropped 3%, Oracle nearly 6%, and CoreWeave almost 8%. AMD, Broadcom, Intel and Super Micro also declined 4–5%.
OpenAI, valued at roughly $852 billion, is preparing for a potential 2027 IPO amid ongoing safety concerns and early talks about a new funding round that could reach around $30 billion.
SpaceX Spectrum Deal Hits Mobile Service Providers: SpaceX announced a deal to buy a nationwide spectrum portfolio, intensifying its push to expand Starlink into the U.S. mobile market.
The agreement with Grain Management covers up to 14 MHz of paired spectrum in the 800 MHz band and still needs FCC approval. SpaceX said the low-band spectrum will help Starlink Mobile become a major U.S. carrier.
Surprising: Amazon overhauls aging devices lineup with higher-priced Alexa tablet, dumping the budget Fire. In other news, Yemen’s Iran-aligned Houthis have stepped up their deadly campaign of strikes on Saudi Arabia’s capital Riyadh.
💵 Personal Finance
You Can Still Get a Lower Rate
The average 30-year fixed mortgage rate climbed to 7.28% this week, up from 7.03% and marking the sixth straight weekly increase. It’s the highest level since November 2023 and the biggest one-week jump in nearly four years, driven by rising Treasury yields and inflation concerns.
Even so, some buyers can still secure a sub-7% rate. Options include:
Shorter or adjustable loans: A 15-year fixed rate is typically lower (though monthly payments are higher). Adjustable-rate mortgages (ARMs) currently run about 0.80 percentage points below fixed rates and now make up over 10% of applications.
Assumable mortgages: Many FHA, VA and USDA loans can be taken over by a buyer, locking in the seller’s lower rate — but you’ll usually need extra cash to cover the difference in home price.
Rate buydowns: Pay more upfront for a permanent or temporary lower rate, or negotiate for the seller or builder to cover the cost (especially common with new construction).
Special programs and relationships: VA or USDA loans, bank “rate sales,” or preferential rates for moving deposits can help.
Shop around: Compare offers from at least three lenders within a 14- to 45-day window to protect your credit score.
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