Caitlin McCabe (2:42)

Chip makers including Nvidia have slipped dramatically in recent days, with Nvidia's shares down some 12% from their record high last month. With the bar set especially high for Nvidia's earnings, Hannah says all sets the stage for some big swings in its stock.

Hannah Aaron Lang (3:00)

Even a really impressive report on its face hasn't been enough to wow investors, and we've actually seen Nvidia shares turn lower the day after earnings, even if the financials themselves were quite good. That being said, for this particular round of earnings, option traders are actually anticipating some pretty big moves in Nvidia's stock price. So as of Tuesday, traders were positioning for a roughly 8% swing high, higher or lower in the stock price after earnings. And through Friday and on Tuesday, some of the most actively traded Nvidia options contracts were those pegged to the stock jumping to $195 a share or $200 a share. And just for context, shares closed Tuesday at about $181.

Caitlin McCabe (3:48)

For more on the finances of the tech industry and whether the AI bubble could find its way into the bond market, check out this Week's episode of WSJ's take on the Week, wherever you get your podcasts. After months of the president calling the push to release files related to Jeffrey Epstein a Democratic hoax, legislation to make a trove of government files public has landed on Trump's desk. The House voted 427 to 1 yesterday to pass the Epstein Files Transparency act, and the Senate quickly agreed to approve it by unanimous consent. The bill directs Attorney General Pam Bondi to make unclassified documents related to the late sex offender and his associate Ghislaine Maxwell publicly available within 30 days of being signed into law. Speaking in Washington after Congress approved the bill, Epstein accuser Annie Farmer said it was a watershed moment in the quest for accountability.

Annie Farmer (4:47)

I very much, I think like many people, you know, there were fights going on. There were definitely women that had, you know, worked so hard for so long for justice. But I had, you know, given up on the idea that anything would happen in this case.

Caitlin McCabe (5:02)

Ahead of the Senate vote, Minority Leader Chuck Schumer said Epstein's victims supported the bill and deserved credit for getting it passed.

Chuck Schumer (5:10)

The American people have waited long enough. Jeffrey Epstein's victims have waited long enough. Let the truth come out.

Caitlin McCabe (5:20)

Heading into Trump's second term, many MAGA supporters were demanding more disclosures in the Epstein case, believing there was a list of powerful men whose identities were being protected. Trump has said he cut off ties with Epstein long before the financier was first arrested in 2006. A high level Pentagon delegation is on its way to Kyiv as part of the administration's latest attempt to revive negotiations on ending Ukraine's war with Russia. The White House is turning to Army Secretary Dan Driscoll and other senior military in the belief that Moscow might be more open to talks brokered by the military. Driscoll will meet with President Volodymyr Zelensky and other Ukrainian officials, with plans to meet with Russian officials at a later date. Turning to a slew of AI news now and President Trump has said that the US Must have one federal standard for regulating artificial intell posting on social media yesterday, he added that the technology risked being overregulated if each American state came up with its own standard. This comes as many startups are burning through cash in a bid to quickly build infrastructure that can help train and refine their AI models. We are exclusively reporting that Elon Musk's artificial intelligence company XAI is in advance talks to raise $15 billion in new equity at a 230 billion doll, a significant step up from the $113 billion XAI disclosed after acquiring Musk's social media site X in March. We've also learned that Brookfield Asset management is targeting $10 billion in equity for its new AI infrastructure fund. The world's biggest infrastructure investor has already raised $5 billion of that from the likes of Nvidia, Kia and and its own balance sheet. Brookfield said it plans to use that money to build and acquire as much as $100 billion worth of AI infrastructure, including data centers, dedicated power providers and semiconductor manufacturing. And the Trump administration will back a $1 billion federal loan to Constellation Energy to restart the Three Mile island nuclear plant in Pennsylvania. Constellation Energy aims to bring the mothballed plant that suffered a partial core meltdown in 1979 to help generate electricity for Microsoft, which needs more power to fuel its AI business. Coming up, why Americans are leaving behind billions in lost investment gains when they change jobs. And we unpack the $236 million Modern Art sale that just made auction history. That's after the break.

Twilio Representative (8:15)

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Caitlin McCabe (8:42)

Workers in the US are leaving behind their retirement accounts as they switch jobs, often unknowingly, meaning they're missing out on billions of dollars in investment gains, Employers can automatically enroll new starters in a 401k plan. So in some cases, people don't even realize that they're saving for retirement or that they're leaving behind a plan when they change jobs. The Journal's Ann Tergeson explains how it's particularly relevant for young workers who tend to switch jobs more often.

Ann Tergeson (9:11)

The young workers, they're not paid a lot. They might be automatically enrolled in the 401k plan, so they have these small balances and then change jobs. They may not know that they did save. They may not know that they're leaving money behind, or they may know. They may think it's totally fine that they leave the money in their former employer's 401k plan. But in fact, when the balance is below $7,000, an employer has the option to get rid of that account and to force it out of the 401 and into an IRA. And so what happens is that this can result in people having one or more small 401k accounts that get transferred to IRAs that people lose track of.

Caitlin McCabe (9:57)

Employers are required to notify former workers when they're transferring savings into an ira. And as Ann explains, that isn't a good deal for the former employee.

Ann Tergeson (10:07)

When an employer does a forced rollover into an ira, the money is required to be invested in cash until the former employee comes along and decides to invest it in something else, like stock or bonds. Well, cash just doesn't return as much historically as stocks and bonds. So to the extent that people have money sitting in these IRAs, they're locking in a very low return on that money for the period of time in which it is in the IRA.

Caitlin McCabe (10:36)

Approximately 1.7 million 401k accounts are projected to be transferred into IRAs this year, rising to 2.2 million by 2030. And an auction at Sotheby's last night has set the record for the most expensive modern work of art ever sold at auction.

Kelly Crowe (11:00)

A Gustav Clint painting just made auction history tonight, selling for $236.4 million. This makes it the world's most expensive modern artwork and the second priciest artwork ever sold at auction. It's called the Portrait of Elizabeth Lederer, and Klimt painted it in 1914-1916.

Caitlin McCabe (11:20)

That's WSJ reporter Kelly Crowe, who was at the auction. She said at least six bidders vied for the Gustav Klimt painting with one telephone bidder only jumping in once the competition reached $171 million. Another bidder eventually won the work, but only after a 20 minute bidding war that saw bids escalate in multimillion dollar increments.

Chuck Schumer (11:42)

Here it is for the Elizabeth later, a portrait only at Sotheby's hit here in the Breuer, the Klimt Julian is yours. Congratulations.

Caitlin McCabe (11:50)

The record breaking sale is good news for the auction house whose $100 million investment in new headquarters in New York's Breuer building was a bid to crawl out of a period of downturn sales across the wider art industry. And that's it for what's news for this Wednesday morning. Today's show is produced by Daniel Bach, Kate Bullivant and Hattie Moyer. Our supervising producer was Sondra Kilhoff. And I'm Caitlin McCabe for the Wall Street Journal. We'll be back tonight with a new show. Until then, thanks for listening.

Paycom Representative (12:29)

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