The Stock Market's AI Rally Faces 3 Big Problems All at the Same Time -- Barrons.com

By Callum Keown After the Lord Mayor's show comes the garbage truck, as the British idiom goes. The stock market feels a bit rubbish this morning after yesterday's record-setting spectacle. The S&P 500 was set to open lower Wednesday after closing at a record high. Artificial-intelligence stocks and chip names were taking a hit, perhaps with profit-taking to blame.

S. dollar is a potential problem but it seems to be hurting cryptocurrencies more than stocks this morning. The Federal Reserve September minutes later on Wednesday could alter that dynamic. But the AI frenzy feels far from over.

Elon Musk, in particular, is making sure of that. SpaceX and Nvidia look set to strengthen their ties with Musk's space-and-artificial intelligence company spending even bigger on chips. The Tesla CEO has also stepped in to clarify that Taiwan Semiconductor Manufacturing won't run the huge Terafab chip plant, to the relief of Intel investors. Once the profit-taking cleanup operation ends, the show must go on for the stock market.

And it probably will. You can subscribe to the Barron's Daily newsletter here. We'd like to hear from you! com 📈 Here's what's happening in markets today Stock futures are pulling back after the S&P 500 and Nasdaq surged to record highs.

TSMC, Constellation Brands, FICO, and more stocks that explain today's market. Coinbase, Robinhood stocks fall. The crypto rally is facing a perfect storm. SpaceX and Nvidia strengthen ties as Musk spends big on AI chips.

Intel rebounds as Musk explains Terafab AI chip project and TSMC's role. FICO cuts 15% of its staff. Why investors aren't buying it. Marvell stock looks a great bet as stellar earnings target wows Wall Street.

Why SpaceX can get a boost from Trump's space traffic rules. Micron falls as strike threat adds to chip-sector gloom. 🔐 Inside the big money business of protecting data centers Developers are spending big on physical security as data centers become larger and more valuable, turning once-sleepy facilities into fortresses guarded by drones and facial-recognition technology. Read here for more about what developers like Galaxy Digital and Applied Digital are doing now.

🔌 Why power stocks just broke out of a long slump Companies that sell electricity have found a way to make money off the data center boom without ending up on the wrong side of the political fight against data centers. 6 gigawatts of electricity to Google in a deal that allows it to upgrade several nuclear facilities. Read more here. 🚀 Is SpaceX stock getting cheaper and cheaper?

Wall Street's outlook on SpaceX's stock has evolved, especially when it comes to earnings estimates. Analysts projected essentially no earnings shortly after SpaceX's IPO in June. 05 by 2031. Read here for more.

🌿 Curaleaf gets the munchies for Canada's biggest weed company The largest American cannabis seller is pressing a hostile takeover of its Canadian counterpart. After their stocks fell 95% and 99% from their respective peaks, Curaleaf began a bid for Aurora in August. This week Curaleaf boosted its cash and stock offer by 25%, to $5 a share. For the latest on the offer, read here.

🧠 This quantum operator lands partner to move out of the lab Xanadu Quantum Technologies has landed a heavyweight partner to help move its quantum systems out of the lab and into mass production, striking a multiyear agreement with GlobalFoundries to make quantum hardware components. Read about it here. 💉 Pandemic panic is back on Wall Street A mysterious death at a Russian research lab has sent health authorities scrambling and Wall Street into a familiar, headline-driven tailspin. Its weighing on shares of vaccine makers Moderna and Novavax, which make vaccines against viral pathogens that can cause viral pneumonia.

Read more about it here. 📰 Don't miss out on our other newsletters Review & Preview: Rally Time View From the Circle: How to Position for When Market Breadth Returns Energy Insider: LNG's Golden Age Could Last Longer Than Expected. These Stocks Benefit Most. 💸 Don't miss the latest from The Moneyist at MarketWatch MarketWatch's managing editor for advice Quentin Fottrell, otherwise known as The Moneyist, has advice for a reader debating whether to use an inheritance to buy a second home or to help adult children buy a first home.

Read the column here. 💬 Quote of the day Other headlines moving markets Penguin Solutions' memory business soars on AI demand. ERock rides the surge in power stocks amid the AI boom. This number explains why Constellation Brands' earnings weren't as good as they looked.

This freshly public quantum stock could rise 120%. The case for buying the long bond. Winter heating bills could be lower for most homes. Wall Street's record run poses risk for New York state, comptroller says.

Higher mortgage rates send pending home sales plunging. The world's largest stock has lagged. If Nvidia runs, tech and markets will follow. Marvell CEO announces huge long-term revenue target.

Wall Street bonuses head for a new record. Which retailers do AI agents cite most? Walmart and Costco. How this active value ETF rode to the top.

How to monetize Mastercard's weakness before it reports earnings. - Edited by Liz Moyer, Stacy Ozol, and Rupert Steiner This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. (END) Dow Jones Newswires October 07, 2026 07:35 ET (11:35 GMT) Copyright (c) 2026 Dow Jones & Company, Inc.

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