The Rundown - OpenAI Challenges Google with AI Web Browser, Pentagon Takes Stake in MP Materials

Episode Date: July 10, 2025

Stock market update for July 10, 2025. This video is for informational purposes only and reflects the views of the host and guest, not Public Holdings or its subsidiaries. Mentions of assets are not recommendations. Investing involves risk, including loss. Past performance does not guarantee future results. For full disclosures, visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Public.com/disclosures⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.

Public.com presents the rundown, your daily market update in under 10 minutes. My name is Zad Admani, and today is Thursday, July 10th. In today's episode, we'll tell you about the big milestone that Nvidia crossed yesterday and the impact it's having on the S&P 500. We'll also discuss OpenAI's plans to take on Google's Chrome browser and what Delta is saying about the summer travel season. Then stick around to the end of the show to find out why Amazon, on Prime Day sales are down 40% this year. We got a great show for you today.

Let's go. After a bumpy start to the week, markets were back to rallying on Wednesday, thanks to a jump in tech stocks. The S&P 500 was up 0.6%, and the NASDAG added nearly 1%, which was enough to push the index to record highs. And it wasn't just stocks breaking records. Bitcoin also hit all-time highs for the first. first time since May, crossing $112,000 for the first time ever. And then to round out the record

books, Nvidia's market cap briefly crossed $4 trillion on Wednesday, which is the first company in history to reach that milestone. Invita is such a massive company now that their market cap is more than meta and Google combined, which is pretty nuts if you think about it. NVIDIA by itself now accounts for more than 7% of the S&P 500. And speaking of the S&P 500, it's back to being top heavy, with the top 10 companies in the S&P now accounting for 40% of the index. So when you invest in an S&P 500 ETF for index, you're mostly getting exposure to the big tech stocks.

Now, zooming out a bit, yesterday we also got some tariff news. President Trump sent out a fresh round of tariff letters hitting multiple countries with high rates, including Brazil, which got hit with a hit with a tax. a 50% tariff rate that will go into effect starting August 1st. But what was interesting was the markets kind of brush that aside. I think investors are just ignoring all the tariff chaos for now and probably getting ready for earnings season, which kicks off next week.

And then don't forget, at the end of the month, we also have a Fed meeting. You know, there's some drama surrounding that. Markets aren't expecting a rate cut, but President Trump continues to ratchet up pressure on Fed Chair Jerome Powell to cut rates. He went as far as yesterday to tell Jerome Powell to resign immediately. So we'll see how the Fed meeting goes and how Jerome Powell handles the added pressure by the president. So yeah, well, the past couple of weeks have been pretty slow in the markets. Things are starting to ramp up as we head into the dog days of summer.

So make sure you guys are subscribed to the podcast and tuning in every day to stay in the loop. Let's run through some headlines. Open AI is getting ready to launch its own AI powered web browser, which would be another shot at Google's dominance. According to Reuters, the browser could roll out in just a few weeks, and it's going to feature conversational interface powered by AI agents. See, right now, Chrome is the most popular web browser in the world by far, and it's very valuable to Google's ad business

because it supplies Google a flow of user data that can be leveraged for better ad targeting. Chrome is like a secret data goldmine for Google. ChatGPT does have 500 million weekly active users, so if OpenAI can convert some of those users to use their new browser, They could turn that browser into a data gold mine for themselves. You know, there's already data showing that AI is starting to replace traditional search. People are using chat GPT to get answers instead of turning to Google. So now if OpenAI starts taking users away from Chrome, I mean, that could be a big deal for Google

and could take a piece out of their $200 billion ad empire. And by the way, OpenAI is not the only ones going after Chrome. The AI search platform perplexity yesterday launched Comet, which is their own browser designed for agenic search. So we might be entering into. a new version of the browser wars. Chrome was able to beat out Firefox and Internet Explorer last time. This time they might not come out as the winner.

Now, sticking with the AI theme, let's talk about Nvidia. The chip giant is looking to launch their new AI chip for the Chinese market that meets the export restrictions that the Trump administration imposed earlier this year. See, a few months ago, Trump banned Nvidia from selling their H20 chips in China, even though those H20 chips were already a watered down version of the more powerful H-100. chips. That ban forced Nvidia to take a $5.5 billion write down. So the Trump administration is worried about the progress that Chinese companies are making in AI. Companies like Deepseek, Ali Baba, and ByteDance are releasing state-of-the-art AI models despite not having access to

the best chips. Now, Nvidia's CEO Jensen Huang is pushing hard to get back into the China market because he sees it as a $50 billion opportunity. He's made trips to China and he's looking to set up a meeting with China's premiere, who is one of the most powerful. people in the Chinese government. So definitely something to keep an eye on. If Nvidia can get access to the China market again, they might be approaching the $5 trillion market cap pretty soon. And finally, let's switch gears and talk about Delta because the airline stock is flying high today, jumping more than 10% after they reinstated their full year outlook for 2025. See, Delta had previously pulled its forecast because of tariff uncertainty and sluggish demand, but now they're

saying that bookings have stabilized and they're projecting a better than expected summer travel. season. The company did beat earnings and revenue estimates for Q2, and their plan to cater to high-end flyers seems to be working. Sales for first-class seats were up 10%, premium economy seats were up 5% while a sale of basic economy seats were down 5%. Let's talk about some stocks making moves today. Shares of the cereal maker WK. Kellogg are up 50% this morning because of reports that the Italian food giant Ferreiro is in talks to buy the company for $3 billion. This deal would bring together two food titans and create an iconic portfolio of brand. Kellogg owns iconic cereals like fruit loops, frosted flakes, rice Krispies,

basically everything we ate as kids but can't really eat anymore as adults without having a sugar crash. And then Ferreiro owns Nutella, Butterfingers, Baby Ruth, and they've been on a snack buying spree lately. The company recently bought Wells Enterprise, which is the maker. of Blue Bunny ice cream, and then also Nestle's U.S. chocolate business. Now, a quick backstory on WK. Kellogg. It was actually spun off two years ago from the parent company, which rebranded as Kelanova. Kelova recently got bought out by Mars for $36 billion, and now it looks like Ferreiro is

buying the cereals. Here's a free idea for Ferreiro. They should rebrand Tony the Tiger to be Italian. I think that would work. Now, another winner this morning is MP Material. shares are jumping more than 40% after the Department of Defense became its largest shareholder. MP Materials is entering into a multi-billion dollar partnership with the Pentagon that includes the Pentagon buying $400 million of preferred MP shares.

This partnership will also lock in a long-term supply commitment to help develop rare earth supply chains here in the U.S. The MP Materials operates the only rare earth mine in America, and rare earths are a big deal because they're used in everything from fighter jets, to electric vehicles. This deal overall is a broader push to break China's grip on the rare earth supply chain. Now, on the flip side, Canagra shares are down around 5% this morning after the company delivered a weak profit outlook weighed down by tariff costs. The package food giant behind brands like Slim Jim, Hebrew National and Ready Whip said that tariffs are taking a big bite out of its

bottom line. The company expects tariffs to increase its cost of goods by 3% or about $200 million dollars this year. Canagra says they're raising prices on cane goods, which are exposed to aluminum and steel tariffs. Let's wrap the show with the fun fact. Amazon Prime Day has been a flop this year. According to Bloomberg, sales on the first day of Prime Day were down 41% compared to the first day last year. And you know, I think there are a couple reasons why this might be happening. For one, Amazon expanded Prime Day from two days last year to four days this year, which kind of removes a sense of urgency. Shoppers are probably waiting for better deals to pop up before buying on the first day. On top of that, the deals just aren't as great and also kind of misleading. Now, this has been

happening for years now, but there are viral videos showing how some sellers raise prices the week before Prime Day and then discount them back down to make it seem like shoppers are getting a deal. Now, there's still a couple days left for Prime Day and maybe it ends up being a success for Amazon. We'll have to wait until Amazon reports their quarterly numbers to get an official result. But it does seem like Prime Day has lost its aura that it once had? You know what I mean? You know, I wouldn't be surprised if Amazon just goes back to making it a one or two day event next year. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did, and you have like eight extra seconds, consider giving us a five-star rating on Apple, Spotify, or

wherever you listen to your podcast. And if you do listen on Spotify, don't forget to vote in today's Spotify poll. Leave us a comment on Spotify. All that engagement. really does help us out, and it helps other people find the show. Also, don't forget, we're going to try to answer some more listener questions in the future episodes. So if you have any questions for us, let us know in the comments. Thank you guys again for listening and watching. Shout out to Mike and Connor for all the help behind the scenes. I'll see you guys back here tomorrow.