Tech's All-Time High, Open AI's $500B Valuation, Tesla's Record Deliveries, Govt. Shutdown Day 2 10/2/25

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Carl Quintanilla (1:01)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street. Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Courtney Reagan, Mike Santoli here at Post 9 of the New York Stock Exchange. Cramer and Faber are observing Yelp Kapoor. Government shutdown day two. No real relief in sight as the Senate will not attempt to clean CR on this holiday. Coming off record highs for Dow S&P, Nasdaq and Semi's and Tech are going to join the strength out of pharma and healthcare these past couple of days. Our roadmap begins with investors brushing off some government shutdown fears, sending stocks to new all-time highs. As we said, Tech and the AI trade leading the charge.

Courtney Reagan (1:40)

Speaking of which, OpenAI's latest funding round sending its valuation soaring to $500 billion, topping Elon Musk's SpaceX. And it's Warren Buffett's biggest deal in three years. Berkshire Hathaway buying Occidental Petrochemical Junit for almost $10 billion.

Carl Quintanilla (1:55)

Let's begin with the markets hitting some record highs despite this government shutdown now entering the second day, despite ADP going negative, despite seven straight negative prints on ISM manufacturing. Mike, you talked about why a few moments ago.

Michael Santoli (2:07)

I did. And I don't know if we should sort of take out the word despite the government shutdown, more like amid the government shutdown. But as you point out, Carl, this market has kind of looked beyond many excuses to back up and have a proper pullback for a couple of months now.

It doesn't mean it's been universally strong and up up and away for everything, but it means it's been strong enough, resilient through rotation. Just the AI excitement, which took a little bit of a stutter step last week. I was joking that it was like the glass of water between drinks at the bar. You know, it prolongs the fun until whenever closing time is, but the clocks don't work, so nobody knows. But I think it really did get recharged this week. You have this global semi-move. It's overcoming a lot of other concerns. The other piece of it is, on a macro basis, we already were dealing with a slackening labor market. Maybe too much, maybe just enough, but it's getting us an easier Fed. It solidifies an October rate cut. Other economic inputs don't look so bad, although, as we can talk about, the consumer-geared stuff is looking a little wobbly in terms of the market's observation of them. So I think that explains part of it. Obviously, if this becomes a mass permanent layoff, if it really goes for a long time, you get a lot of disruption, money not flowing into parts of the economy that should, yes, we're going to have to adjust the growth expectations. But for now, I think the market is looking at the history, saying markets don't tend to really price in very much when it comes to these shutdowns, and leaning on that.

Courtney Reagan (3:36)

Yeah, I was speaking with Diane Swann from KPMG, and I was saying, what happens with the consumer in past shutdowns? I know history doesn't always repeat itself, and circumstances can be different. And she said, of course, the length of time that the shutdown is in place is really going to be the most impactful for the consumer. And if you look back at that prolonged shutdown, that 35 days that we had in late December of 2018, take a look there, you can see that real personal consumption expenditures did see a pretty big drop there for that month when the government was shut down for 35 days. But then, of course, you do see a little bit of rebound.