Key Takeaways
- Robinhood (HOOD) users' assets have dramatically surged to $332.7 billion on the platform as of Q3 2025, a significant increase from $44.4 billion in the same quarter of 2020.
- Federal Reserve Governor Stephen Miran indicated that the burgeoning growth and widespread adoption of stablecoins could contribute to lower short-term interest rates by increasing the net supply of loanable funds in the economy.
- Palantir (PLTR) stock has suffered its worst week since April, declining by 13% this week, prompting CEO Alex Karp to criticize short sellers for undermining American innovation.
- Global markets are anticipated to enter a "digestion phase" next week as the flow of corporate earnings and economic data slows to a trickle.
- A magnitude 6.7 earthquake struck off Japan's Honshu east coast, triggering a tsunami advisory for Iwate Prefecture.
Market Dynamics and Corporate Movements
Robinhood Markets Inc. (HOOD) has reported a substantial increase in assets held on its platform, with user assets reaching $332.7 billion as of the third quarter of 2025. This marks a sharp rise from $44.4 billion in the same quarter of 2020, driven by strong growth in cryptocurrencies, options trading, and Robinhood Gold subscribers. The company's Q3 2025 results showed total net revenues of $1.27 billion, a 100% year-over-year increase, and diluted EPS of $0.61, up 259% year-over-year.
In other corporate news, Palantir Technologies Inc. (PLTR) has experienced a challenging week, with its stock falling 13%, marking its worst weekly performance since April. CEO Alex Karp has publicly criticized short sellers, accusing them of "market manipulation" and attempting to question the AI revolution. Despite the recent downturn, Palantir's stock has surged 136.64% in 2025, reaching a market capitalization of over $421.93 billion, after reporting better-than-expected Q3 revenue of $1.18 billion (a 63% increase year-over-year) and EPS of $0.21.
Bank of America (BAC) and Domino's Pizza (DPZ) are also in the spotlight, with Bank of America reportedly identifying Domino's Pizza as a potential M&A candidate. This comes as Warren Buffett's Berkshire Hathaway has made significant portfolio shifts, reducing its stake in Bank of America while substantially increasing its investment in Domino's Pizza, holding 2,382,000 shares valued at over $1.1 billion. Buffett's move is seen as a strategic shift towards consumer brands with strong growth potential and predictable cash flows.
Looking ahead, CNBC reports that markets could enter a "digestion phase" next week as the volume of earnings reports and economic data begins to slow. Investors are advised to prepare for a potentially slower trading environment following a period of significant activity.
Monetary Policy and Digital Assets
Federal Reserve Governor Stephen Miran delivered a significant speech, suggesting that the rapid expansion and adoption of stablecoins could lead to lower short-term interest rates. Speaking at the BCVC Summit 2025, Miran explained that even conservative estimates of stablecoin growth imply an increase in the net supply of loanable funds, which would push down the neutral rate (R-star). Miran noted that if R-star is lower, policy rates should also be commensurately lower to support a healthy economy, and a failure to cut rates in response would be contractionary. He also highlighted that dollar-denominated stablecoins are increasing demand for U.S. Treasury bills and other dollar-denominated liquid assets, thereby lowering borrowing costs for the U.S. government. Fed analysts project stablecoin uptake could reach as much as $3 trillion by the end of the decade.
Geopolitical Developments
A magnitude 6.7 earthquake struck off the east coast of Honshu, Japan, on Sunday, prompting the Japan Meteorological Agency (JMA) to issue a tsunami advisory for Iwate Prefecture. The quake, initially reported as magnitude 6.1 and 6.26 by GFZ, occurred at a depth of approximately 10 kilometers, with waves of up to one meter possible. Residents in affected coastal areas have been urged to move to higher ground.
In the Middle East, the Hamas armed wing announced it would hand over the body of a deceased Israeli hostage in Gaza on Sunday at 2 PM local time. This follows the identification of the remains of volunteer ambulance driver Lior Rudaeff, returned by Palestinian militants on Friday. Reports suggest Hamas may have also located the remains of Israeli officer Lt. Hadar Goldin, captured in 2014. The exchange is part of a broader ceasefire agreement that has seen the return of deceased hostages and Palestinian remains.
The conflict in Ukraine continues, with the Russian Defence Ministry reporting ongoing offensive operations in Ukraine's Myrhorod area. Russian forces also claimed to have repelled seven Ukrainian attacks and eight attempts to break out of encirclement in the Pokrovsk area, and six Ukrainian attempts to unblock surrounded units in the Kupyansk area. Additionally, Russia stated it hit energy facilities supporting Ukraine's defense industry and captured Rybne in Ukraine's Zaporizhzhia region.
Public Health Alert
A baby formula recall has been issued after reports of infant botulism in 10 U.S. states. Federal and state health officials are investigating 13 cases of infant botulism linked to ByHeart Inc.'s Whole Nutrition Infant Formula. The company has voluntarily recalled two lots of its powdered formula out of an abundance of caution. Symptoms of infant botulism can include poor feeding, loss of head control, difficulty swallowing, and decreased facial expression. Parents are advised to discard or return the recalled product and seek immediate medical care if their infant exhibits symptoms.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.