Key Takeaways
- Meta (META) shares plummeted 7.1% following reports that the social media giant is weighing a secondary stock offering worth tens of billions of dollars to fund expansion after a major deal with Google.
- US Crude Oil futures settled lower at $90.54/bbl, a decline of 2.69% ($2.50), as President Trump noted increased supply flows from the Strait of Hormuz.
- Trump envoys Jared Kushner and Steve Witkoff convened with nuclear experts at Oak Ridge National Laboratory, signaling the most serious step yet toward restarting nuclear negotiations with Iran.
- President Trump signed a historic directive on AI for the National Security Enterprise and announced a White House summit with major AI CEOs scheduled for next week.
- Trade tensions intensified as the US signaled demands for tougher car part rules in Mexico trade talks, specifically aiming to eliminate Chinese components from North American vehicle supply chains.
Meta Faces Sell-Off Amid Dilution Fears
Meta (META) saw its stock price sink as much as 7.1% on Friday following a report from the Financial Times that the company is considering a massive equity raise. The potential offering, rumored to be in the "tens of billions," follows a blockbuster partnership with Google and suggests a significant capital intensive pivot.
Adding to the volatility, The Information reported that Meta is mulling a $200-per-month subscription fee for a specialized consumer AI agent tool. Investors appear wary of the potential share dilution despite the company’s aggressive push into the AI sector.
Energy Markets Retreat as Supply Concerns Ease
US Crude Oil futures faced a sharp correction, settling at $90.54 per barrel. The 2.69% drop came as President Trump told reporters that "a lot of oil" is currently entering the country and moving through the Strait of Hormuz with US assistance.
Trump remarked that market participants had expected prices to be significantly higher, but increased flows have stabilized the domestic energy outlook. Meanwhile, Iran reported that debris removal at two damaged refineries is now 60% complete, hinting at a gradual return of regional refining capacity.
Diplomatic Movement: The "Tennessee Meeting"
In a significant geopolitical development, Trump envoys Steve Witkoff and Jared Kushner traveled to the Oak Ridge National Laboratory in Tennessee on Thursday. According to Axios, the duo met with a new team of nuclear experts to prepare for potential negotiations with Tehran.
While a US official cautioned that the meeting "doesn't mean a deal is happening," the administration is reportedly ensuring experts are ready if talks are launched. President Trump reiterated his stance on Friday, stating firmly that "Iran won't have a nuclear weapon."
AI Policy and National Security
The White House released a fact sheet today regarding a new Historic Directive on AI in the National Security Enterprise. President Trump confirmed that a meeting is scheduled with the heads of all major AI companies at the White House, likely taking place next week.
Trump expressed interest in the concept of an "American Public-AI Partnership," suggesting a more integrated approach between the private tech sector and federal security interests. This move aligns with the administration's broader goal of maintaining a competitive edge over China.
Trade and Monetary Policy Outlook
The US is taking a hard line in trade talks with Mexico, with the Financial Times reporting that the administration wants to drastically reduce Chinese supplies in North American vehicles. The US is demanding tougher rules of origin to ensure "American content" is prioritized in the regional automotive trade.
On the domestic front, President Trump addressed monetary policy, stating he would like to see lower interest rates. However, he noted he would leave the decision on a potential rate cut to Kevin Warsh (presumed Fed leadership role) during the upcoming October meeting, signaling a hands-off approach to the immediate central bank schedule.
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.