Table of Contents

• US Stocks

• SoftBank

• OpenAI

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Economy & Finance

US Stocks

U.S. stocks experienced a significant decline on Monday, with the Dow Jones Industrial Average posting its worst day in nearly two years, dropping 1,033.99 points (2.6%). The S&P 500 and Nasdaq Composite also saw substantial losses of 3% and 3.43%, respectively. The decline was driven by concerns over a potential U.S. recession following a weaker-than-expected July jobs report and apprehensions about the Federal Reserve's delayed response in cutting interest rates. The sell-off extended to major tech stocks, including Nvidia, Apple, and Tesla, while global markets, including Japan's Nikkei and Europe's Stoxx 600, were also impacted. Treasury yields fell, and the VIX index spiked, indicating heightened market volatility. The overall sentiment was cautious, with investors seeking safe-haven assets amidst economic uncertainty.

SoftBank

SoftBank Group's shares plummeted nearly 19% on Monday amid a global market downturn, significantly impacting founder Masayoshi Son's wealth. The decline followed a broader sell-off in Japanese equities, triggered by the Bank of Japan's decision to raise its benchmark interest rate. The drop wiped out $4.6 billion from Son's net worth and led to a 12.4% loss in the Nikkei 225 index, marking its worst day since the 1987 "Black Monday." Prior to this decline, SoftBank's stock had reached record highs, partly due to the Vision Fund's recovery and the strong performance of its subsidiary Arm. The recent downturn has nearly erased these gains, with the company's shares now only 1.7% higher for the year. SoftBank is set to report its fiscal first-quarter earnings on Wednesday, with investors closely watching for further updates on the Vision Fund.

Technology

OpenAI

Elon Musk has filed a new lawsuit against OpenAI and its CEO, Sam Altman, alleging that they manipulated him into co-founding the company under false pretenses. Musk claims that OpenAI shifted from its original non-profit mission to a largely for-profit enterprise, betraying the company's founding agreement to develop AI for humanity's benefit. This latest lawsuit, which comes after Musk abruptly withdrew a similar suit earlier this year, accuses Altman and others of misrepresentation and wire fraud, seeking to recover their alleged gains. OpenAI has denied these allegations, suggesting Musk's complaints are driven by jealousy and frustration over the company's success. The lawsuit also includes new claims under federal racketeering laws, making it a more aggressive legal challenge than the previous one. Musk's relationship with Altman has soured significantly since he left OpenAI, with the dispute now centering on the ethics and direction of the company's AI development.

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