WSJ What's News – PM Edition

Episode Date: November 7, 2025
Episode Title: Nasdaq Has Its Worst Week Since April
Host: Alex Osilow
Podcast: The Wall Street Journal – What's News

Overview

This episode delivers a succinct recap of a tumultuous week in financial markets with a particular focus on the Nasdaq's sharp decline, the ripple effects of the ongoing U.S. government shutdown (especially on air travel), and mounting political tensions over U.S. immigration enforcement. Additionally, the show analyzes Microsoft’s efforts to chart its own AI course, potentially independent of OpenAI. The episode closes with quick updates on supply chain developments and changing consumer patterns at major restaurant chains.

Key Discussion Points & Insights

1. Nasdaq's Steep Decline and Market Jitters

• AI-Fueled Volatility: The episode highlights how optimism around artificial intelligence previously drove markets higher; now, doubts about sustainable profits are causing a pullback.
  • Hannah Aaron Lange (WSJ Markets Reporter):

    “The AI trade kind of dominates the entire stock market right now… The big question that investors have is, is all of this money that we're spending going to be worth it?” (01:27)

• Market Summary:
  • Nasdaq: Worst week since April, down 3% over the five sessions
  • S&P 500: Down 1.6%
  • Dow Jones: Down 1.2%
  • Daily trading mixed, with slight recoveries in parts of the market (02:02)
• Driving Fears:
  • Investor jitters around high stock valuations and the uncertain returns from massive tech investments in AI
  • Negative sentiment worsened by government data delays due to the shutdown
  • University of Michigan survey: Consumer sentiment in November at near record lows

2. Government Shutdown and Flight Disruptions

• FAA Mandated Flight Cuts:
  • 4% reduction at 40 airports already underway; could escalate to 10% by next Friday, potentially reaching as high as 20% if the shutdown continues (02:35–03:24)
  • Transportation Secretary Sean Duffy:

    “If this shutdown doesn't end relatively soon… we may again move from 10% to 15%, maybe to 20[%].” (03:07)

• Impact on Travelers:
  • Hundreds of canceled flights, growing delays expected
  • Advice: Monitor airline communications closely; airlines typically rebook passengers, but travelers can accept or reject new flight assignments (03:24)

3. Infighting Over US Immigration Tactics at DHS

• Policy Divide at DHS:
  • Two camps at the Department of Homeland Security (DHS) over deportation tactics:
    • Traditionalists (mainly at ICE): Favor targeted lists, prioritize criminals, prefer less public-facing operations (04:12)
    • “Splashy Raids” Advocates: Led by Border Patrol veteran Greg Bovino, favor highly public raids with social media videos, now seen in cities like LA and Chicago
      • Michelle Hackman (WSJ Immigration Reporter):

        "They were really crucially putting those raids on social media, posting videos… People think that’s ICE… But it actually is the Border Patrol carrying all that out." (04:12)

• DHS Official Stance:
  • No acknowledged divisions; plan to carry out 600,000 deportations by end of Trump’s first year (05:27)
• Political Ramifications:
  • Tension between Trump supporters wanting visible actions vs. discomfort among broader electorate with aggressive tactics
  • Recent shift among Hispanic voters back toward Democrats possibly tied to high-profile immigration enforcement (05:56)
    • Michelle Hackman:

      “The question is whether ICE raids become one of the most salient issues to those voters or whether they're thinking about other things when they go to the ballot box next year.” (06:16)

4. Microsoft’s Evolving AI Strategy—Possible Split from OpenAI

• New Vision:
  • Microsoft’s AI chief, Mustafa Suleiman, outlines a push for AI self-sufficiency, prepping for a future less reliant on OpenAI.
    • Mustafa Suleiman (Microsoft AI Chief):

      “We are free to develop our own superintelligence and become AI self-sufficient…that's like a mission-critical objective which the board has set.” (07:40)

• Strategic Shift:
  • Microsoft launching a “superintelligence team”
  • Prioritizing real-world problem solving (healthcare, science, clean energy) over conversational, anthropomorphized AI
    • Sebastian Herrera (WSJ Tech Reporter):

      "Microsoft's approach is that… interacting with AI shouldn't be like talking to a human being. We shouldn't over empathize with it. It's actually here to help us solve the world's hardest problems." (08:07)

  • Despite ongoing partnership (and investment), Microsoft preparing to stand alone if OpenAI ceases to exist by 2030s (09:04)
  • Internally, Microsoft still seen as technologically behind OpenAI
    • Sebastian Herrera:

      “Microsoft employees feel like they're still years away from being able to replace OpenAI technology with Microsoft's own technology.” (09:58)

• About Mustafa Suleiman:
  • London native, co-founded DeepMind (acquired by Google), then Inflection AI, now AI chief at Microsoft

5. Other Noteworthy Business Stories

• Microchip Supply Chain Thaw:
  • Nixperia chip shipments resume from China; supply threatened after Dutch seizure of company due to geopolitical tensions
  • Chips essential to the auto industry; resumption attributed to diplomacy following last week’s Trump-Xi meeting (11:00)
• Consumer Trends – Wendy’s Closures:
  • Wendy’s announces closure of hundreds of US restaurants out of 6,000, citing pressure on low-income consumers
  • Signals belt-tightening as restaurant goers cut spending and visits (11:20)

Notable Quotes & Timestamps

• On AI Market Jitters:

  • Hannah Aaron Lange (01:27):

    “The big question that investors have is, is all of this money that we're spending going to be worth it?”

• On Escalating Flight Cuts:

  • Sean Duffy (03:07):

    “If this shutdown doesn't end relatively soon, the consequence of that is going to be more controllers don't come to work. And then… we may again move from 10% to 15%, maybe to 20[%].”

• On Deportation Tactics:

  • Michelle Hackman (04:12):

    “They were really crucially putting those raids on social media, posting videos… People think that’s ICE… But it actually is the Border Patrol carrying all that out.”

• On Microsoft–OpenAI Rift:

  • Mustafa Suleiman (07:40):

    “We are free to develop our own superintelligence and become AI self-sufficient… that's like a mission-critical objective which the board has set.”

  • Sebastian Herrera (08:07):

    "Interacting with AI shouldn't be like talking to a human being… It's actually here to help us solve the world's hardest problems."

Segment Timestamps

• AI Market & Nasdaq Selloff: 00:34 – 02:40
• Airport Delays & Flight Cancellations: 02:40 – 03:50
• Immigration Enforcement Infighting: 04:12 – 06:38
• Microsoft’s AI Independent Strategy: 07:26 – 10:55
• Supply Chains & Restaurant Spending: 11:00 – 11:40

Tone & Style

The podcast maintains a brisk, fact-driven style, with clear transitions and an emphasis on actionable news and expert analysis. Quotes from sources and WSJ reporters offer deeper insight and reflect the slightly urgent, analytic tone of a high-paced news roundup.

This summary covers all critical topics and key moments, providing both substance and context for listeners who may have missed the episode.