Good afternoon! Microsoft’s AI chief Mustafa Suleyman says the company’s quest for superintelligence comes with a giant red button. If the tech ever looks like it could sprint ahead of human control, Microsoft will hit pause without hesitation.
The new stance follows a deal with OpenAI that finally lets Microsoft build AGI on its own, something it had quietly agreed not to do in exchange for early access to OpenAI’s best models.
Suleyman insists any system that could outperform humans has to be designed for humanity first, and he claims Microsoft is taking that goal more seriously than its peers.
For now, the whole conversation lives closer to science fiction than world domination. Today’s AI can plan your holiday shopping, not overthrow the calendar, but Microsoft wants everyone to know it is thinking two steps ahead.
MARKETS
Markets closed the week in the red as worries around Broadcom’s weak earnings and a report that Oracle may delay some OpenAI data centers to 2028 dragged the entire AI trade lower. Investors rotated out of tech and into the Dow, which briefly touched a new intraday record before all three major indexes faded late in the session.
Treasury yields jumped after Cleveland Fed President Beth Hammack signaled support for slightly more restrictive rates to fight inflation. Gold hit a seven-week high before easing back, while oil slipped toward its lowest level since October on renewed concerns about oversupply.
STOCKS
Winners & Losers
What’s up 📈
Tilray $TLRY rose 44.15% after reports that the Trump administration is close to reclassifying marijuana triggered a broad rally in cannabis stocks.
Canopy Growth $CGC gained 54.42% on the same regulatory optimism, which sparked renewed investor interest across the sector.
SNDL Inc. $SNDL climbed 25.14% as cannabis momentum accelerated throughout the morning session.
Vivopower International $VVPR jumped 13.39% after its digital asset arm announced a $300 million joint venture with South Korea’s Lean Ventures to acquire and hold Ripple Labs shares.
Rivian Automotive $RIVN rebounded 12.11% as enthusiasm returned around its custom AI chip and newly unveiled autonomy features for future models.
Lululemon $LULU traded 9.6% higher after raising its full-year outlook and announcing that its CEO will step down at the end of January.
Quanex Building Products $NX jumped 9.55% after swinging to a Q4 profit despite lower sales and a flat 2026 outlook.
Planet Labs $PL gained 4.38% after Citi initiated coverage with a buy rating and a 19 dollar price target.
UBS $UBS rose 1.27% after Swiss lawmakers proposed easing new capital rules.
What’s down 📉
Fermi $FRMI plunged 33.84% after its 150 million dollar funding commitment for Project Matador collapsed.
Bloom Energy $BE fell 12.85% as speculation around a future SpaceX IPO and space-based data centers pressured traditional power infrastructure names.
Broadcom $AVGO slipped 11.43% despite strong Q4 results, with its 73 billion dollar AI backlog failing to impress investors.
Roblox $RBLX declined 6.18% after JPMorgan downgraded the stock on slowing bookings growth, margin concerns, and ongoing child-safety scrutiny.
Oracle $ORCL slid 4.45% on reports of OpenAI data center delays due to material and labor shortages, although the company pushed back on the claims.
PHARMA
Trump Considers Lowering Marijuana’s Federal Drug Classification
Cannabis stocks lit up after reports that President Trump is considering reclassifying marijuana from Schedule I to Schedule III. The idea came up in calls with House Speaker Mike Johnson, HHS Secretary Robert F. Kennedy Jr., CMS chief Mehmet Oz, and several cannabis industry leaders. The White House says nothing is final, but the possibility alone was enough to send weed stocks into orbit as investors tried to price in a radically different future for the industry.
A move to Schedule III would not legalize cannabis, but it would change almost everything about how the sector operates. Companies would face fewer banking restrictions, researchers could finally study cannabis at scale, interstate transport rules would loosen, and businesses could deduct normal expenses for the first time. That tax shift alone explains the rally. Tilray $TLRY ( ▼ 8.75% ) , Canopy Growth $CGC ( ▼ 11.54% ) , SNDL $SNDL ( ▼ 5.64% ) , Cronos Group $CRON ( ▼ 0.34% ) , and Aurora Cannabis $ACB ( ▼ 7.62% ) all posted double-digit gains as traders reacted to what could be the biggest policy shift for marijuana in decades.
The High Road Has a Long On-Ramp
Reclassification is not a flip of a switch. It requires a full federal rulemaking process that includes DEA review, legal challenges, and public comment periods. Biden’s administration kicked off a similar review in 2024, but the process stalled once Trump took office. Critics say rescheduling overlooks health concerns, while supporters argue the federal status is wildly outdated given that more than 40 states allow medical use and about half permit recreational sales.
Blunt Truths Ahead: Even so, momentum is building. Trump has publicly acknowledged both sides of the debate and has hinted for months that a decision could come soon. Meanwhile, his administration continues to crack down on fentanyl trafficking, showing how selective federal drug priorities have become. Cannabis stocks usually spike on news like this and drift back down once the hype fades. For now, though, the industry is enjoying its highest high in a long time.
NEWS
Market Movements
📦 Instacart’s Wild Week: Instacart $CART kicked off the week with investor enthusiasm after launching a ChatGPT checkout integration, but a report accusing its AI pricing tests of showing different customers different prices quickly erased the gains. The company is leaning heavily on AI to protect thin margins while Amazon $AMZN expands same-day grocery delivery into more than 2,300 cities. Analysts warn Instacart could end up an “AI loser” if automation strengthens Amazon’s grip on logistics.
🧘 Lululemon Pops on Earnings and CEO Exit: Lululemon $LULU jumped after a strong third quarter, a full-year outlook raise, and confirmation that CEO Calvin McDonald will step down in January. International sales offset weakness in the Americas, keeping momentum intact. The company expects tariff pressures to ease next year and plans to boost marketing spend as competition intensifies.
🚀 Nvidia’s China Demand Twist: Nvidia $NVDA opened higher before slipping on reports it may increase H200 chip production to meet stronger-than-expected demand in China. Alibaba and ByteDance are among customers newly cleared to buy the chip, though Beijing may still restrict access. Even with expanded output, Nvidia faces tight supply across memory, packaging, and Blackwell production.
🏛 Big Tech Cheers Trump’s National AI Order: President Trump’s new executive order blocking state-level AI laws is being celebrated by OpenAI, Google $GOOGL, Microsoft $MSFT, and Meta $META. Wedbush called it a major win, preventing a fragmented patchwork of rules that could slow AI progress. Still, AI stocks remain mixed today as the sector reacts to weak earnings from Oracle $ORCL.
🎮 Roblox Takes a Breather: Roblox $RBLX slipped after JPMorgan downgraded the stock, citing viral hits that have already peaked and the need for fresh breakout games heading into 2026. Russia’s ban on Roblox and the rollout of facial age estimation tools may temporarily weigh on engagement. Rising competition from Take-Two’s $TTWO “GTA VI” and a growing Fortnite-Unity $U partnership adds more pressure.
⚡ Rivian Gets Its Second Wind: Rivian $RIVN is rallying after investors warmed to its AI Day announcements, including plans to move off Nvidia $NVDA chips and develop in-house silicon. The company also teased a future robotaxi platform, winning a price-target hike from Needham. Call-option activity spiked as shares hit their highest level since early 2024.
🛰 Planet Labs Stays Hot: Planet Labs $PL traded higher after Citi initiated coverage with a buy rating and a 19-dollar target, adding to a strong post-earnings run. Analysts highlighted the company’s AI-powered data flywheel powered by daily satellite imagery. Demand from customers like NATO and the Department of Defense continues to build as retail traders jump in.
🔧 The Google Supply Chain Unwinds: Broadcom’s $AVGO earnings stumble triggered a sharp sell-off across Google’s $GOOGL AI supplier ecosystem after weeks of Gemini 3 momentum. Celestica $CLS, TTM Technologies $TTMI, and Lumentum $LITE all dropped as investors reassessed demand for networking, circuit boards, and laser components. The release of OpenAI’s latest model added more pressure to hardware names tied to the AI boom.
AI
Oracle Delays Spark a Selloff Across the AI Trade
Oracle $ORCL ( ▲ 7.58% ) rattled the market after Bloomberg reported that several data centers being built for OpenAI will now come online in 2028 instead of 2027. The pushback stems from labor and material shortages, raising fresh doubts about whether Oracle can meet the aggressive cloud buildout it has been pitching.
The company had already surprised Wall Street by lifting full-year capex by 15 billion dollars, and today’s news added more questions about how quickly those investments translate into real revenue.
The AI Supply Chain Hits the Panic Button
The fallout spread fast. Nvidia $NVDA ( ▲ 3.74% ) , AMD $AMD ( ▲ 6.87% ) , Dell $DELL ( ▲ 3.05% ) , Constellation Energy $CEG ( ▼ 0.35% ) , Arista Networks $ANET ( ▲ 5.65% ) , Equinix $EQIX ( ▲ 2.31% ) , and Digital Realty $DLR ( ▲ 2.38% ) all moved lower as traders reassessed how fragile the AI infrastructure boom might be.
Hardware names took a sharper hit, with Sandisk $SNDK ( ▲ 7.9% ) , Western Digital $WDC ( ▲ 5.41% ) , Seagate $STX ( ▲ 4.06% ) , and Micron $MU ( ▲ 7.31% ) sliding as concerns spread from chips to storage to networking equipment. Builders like Vertiv $VRT ( ▲ 4.57% ) , Quanta Services $PWR ( ▲ 1.41% ) , Emcor $EME ( ▼ 0.29% ) , and power-linked names such as Vistra $VST ( ▼ 1.34% ) and Eaton $ETN ( ▲ 0.62% ) also dropped, marking one of the AI trade’s toughest sessions this year.
A Rough Week for AI’s Hype Cycle
This all landed on top of a disappointing week already reshaped by Broadcom’s $AVGO ( ▲ 1.98% ) underwhelming AI outlook, which had raised fears about slowing cloud momentum and rising balance-sheet pressure across the sector.
With sentiment souring, dip-buyers stayed mostly quiet heading into the weekend. By the afternoon, nearly every corner of the AI data-center ecosystem was in the red. A rare moment when the hottest trade on Wall Street finally hit a cold front.
CALENDAR
On The Horizon
Tomorrow
Next week is shaping up to be surprisingly busy for anyone tracking the economy. Things kick off Tuesday with the latest homebuilder confidence numbers, then Wednesday delivers a doubleheader: the delayed November jobs report and October retail sales. We also get fresh reads on services and manufacturing activity from S&P.
Thursday brings the big one, November CPI, alongside weekly jobless claims. By Friday, we’ll wrap with existing home sales and the final consumer sentiment update of the year.
Earnings tend to go quiet before Christmas, but a few names will still take the stage:
Tuesday: Lennar
Wednesday: Micron Technology, General Mills
Thursday: Nike, FedEx, KB Home, BlackBerry, CarMax, Accenture, Cintas, Birkenstock
Friday: Carnival Corp., Paychex, Conagra Foods, Lamb Weston
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