Tech Stocks Rally, SNAP Funding Debate, and Kenvue Buyout on Bloomberg News Now

Market Performance and Economic Outlook

• 📈 Tech stocks showed gains at the start of what is known as the best month of the year for stocks.
• 📊 The S&P 500 gained 12 points, the NASDAQ gained 110 points, and the Dow lost 225 points.
• 📉 The ten-year Treasury yield was at 4.1%, and the two-year yield was at 3.59%.

SNAP Funding and Government Shutdown

• ⚠️ The Trump administration announced partial funding for SNAP (food aid) following judge's rulings.
• 🗣️ House Minority Leader Hakeem Jeffries criticized the partial payments, stating the money exists to pay full benefits.
• 💰 Republican Congressman Mike Lawlor noted that the available emergency fund of roughly $6 billion is insufficient to cover the monthly SNAP benefits, which exceed $9 billion.
• ⏳ The government shutdown reached its 34th day, on track to become the longest ever if not resolved.

Major Tech Deals and AI Infrastructure

• 🤝 Amazon Web Services secured a $38 billion deal with OpenAI to supply computing power, including Nvidia GPUs, over seven years.
• 💡 This deal is part of OpenAI's plan to invest $1.4 trillion in infrastructure for AI model development.
• 💻 Microsoft signed a roughly $9.7 billion agreement for AI computing capacity from Ireland, including access to NVIDIA systems.
• 🚀 Shares of ION gained about 14%, while Amazon shares rose approximately 5%.

Geopolitical Considerations in AI Chip Sales

• 🇨🇳 President Trump reportedly considered a request from Nvidia's CEO to allow sales of new AI chips to China during a meeting with Xi Jinping.
• ⚠️ Top administration officials advised against the sales, citing national security concerns and the potential to boost China's AI datacenter capabilities.

Kimberly-Clark's Acquisition of Kenvue

• 🏥 Kimberly-Clark agreed to acquire Kenvue in a deal valued at approximately $40 billion.
• 📉 Bloomberg Intelligence senior analyst Diana Gomez expressed surprise, noting the deal provides a lifeline to Kenvue and highlights the work needed to turn around the business.
• 📊 Kimberly-Clark shares fell 14%, while Kenvue shares jumped 14% in regular trading.