Tech stocks shriveled up Tuesday as fears about an AI bubble sapped market momentum. Why it matters: Chatter about a bubble has been prominent in recent months but hasn't yet delivered a long-lasting blow to stocks. Driving the news: The tech-heavy Nasdaq Composite Index fell 2.5% shortly after the opening bell. - The broad S&P 500 index was down roughly 1%. Zoom in: It's a particularly ugly day for chip memory and data storage stocks. - They suffered some of the worst declines early, after a 10% overnight drop in South Korea's KOSPI index, which is dominated by memory chip makers Samsung Electronics and SK Hynix. - In the U.S., memory chip maker Micron dove more than 10% in early trading, storage device maker Sandisk plunged more than…
For the first time in years, data revisions could end up adding jobs to the official U.S. tally rather than erasing them. Why it matters: Early indicators point to a labor market that might be stronger than the monthly employment reports suggest . - Even a mild positive revision would reverse a stretch of after-the-fact updates that showed the labor market was notably weaker than it appeared in real time. - Last year's gloomy update showed that net job creation had all but come to a halt . The intrigue: Some Fed officials have been on the hunt for weak spots. But the labor market in recent months has defied the slowdown narrative. - Payroll growth has surpassed last year's pace. - Unemployment has held steady. - Now, the employment…
One of the biggest unknowns in AI security is also one of the most consequential: China's progress toward frontier AI models. Why it matters: The world is only months away from AI models dramatically accelerating cyber threats, Five Eyes leaders warned Monday. - Yet preparations are being slowed by Washington infighting and industry-wide confusion over how to measure AI risk. Driving the news: A new Chinese open-source model , GLM-5.2, rocked the internet this weekend with its ability to match the agentic capabilities of models like Anthropic's Opus 4.8 — garnering praise from Silicon Valley elites and raising questions about just how quickly China will close the gap. - At the same time, the Trump administration is still debating…
OpenAI rolled out a cybersecurity model that rivals the capabilities of Mythos — without nearly as much fanfare or political pushback as Anthropic received. Why it matters: The seemingly straightforward model release raises questions about what actually triggered the Trump administration's concerns about Anthropic's Fable 5 and Mythos 5. Catch up quick: OpenAI debuted an update to GPT-5.5-Cyber on Monday as part of a slew of announcements aimed at deepening its work with cybersecurity companies and researchers. Yes, but: The new GPT-5.5-Cyber achieved an 85.6% score in CyberGym, an internal benchmark that measures whether an AI agent can reproduce known software vulnerabilities. - In comparison, Mythos 5 scored 83.8% on the same…
President Donald Trump speaks in Pennsylvania about affordability and the economy during a visit to a truck manufacturing facility. More: https://tinyurl.com/3wpeptev #affordability #Trump #Pennsylvania
