Hello Capitalists,

Here is everything you should be following today:

• Dalio backs Trump Accounts for kids

• Oracle loses a finance partner and plunges hard

• Oracle’s slide snowballs across Wall Street

• Billionaire developer has major concerns about AI datacenter leases

• Sliver continues its surge

• GM to spend millions to fund a trade skills revival

Today’s markets + assets:

• ✅ DOW: 48046.49 (⬆️ 0.33%)

• ✅ S&P: 6787.00 (⬆️ 0.97%)

• ✅ NASDAQ: 23067.77 (⬆️ 1.62%)

• ⚠️🔴CBOE VIX Volatility Index: 17.29 (⬇️ 5.10%)

• 🔴 Gold: $4358.40 (⬇️ 0.33%)

• 🔴 Silver: $65.16 (⬇️ 2.60%)

• 🔴 Bitcoin: $86,406 (⬇️ 0.35%)

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Dalio to back Trump’s child accounts following Michael Dell’s lead

Billionaire investor Ray Dalio is stepping up to help fund new investment accounts for children in Connecticut under the Trump administration’s initiative, Treasury Secretary Scott Bessent announced Wednesday, targeting kids born between 2025 and 2028.

Trump initiative targets newborns: The program creates investment accounts for U.S. children born from 2025 to 2028 to build long-term wealth.

Connecticut secures Dalio pledge: Dalio, Bridgewater Associates co-chairman, is contributing to fully fund the accounts specifically for Connecticut children.

Bessent promotes national expansion:Treasury Secretary Scott Bessent revealed the donation while urging donors in every state to support the effort.

States eye similar funding: Twenty other U.S. states are considering adding their own funds to bolster the child investment accounts.

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Oracle shares plunge as debt finance deal tanks, drags tech stocks and Nasdaq with it

Oracle shares tumbled nearly nearly 6% Wednesday after a report revealed major private lender Blue Owl Capital backed out of a $10 billion deal to finance a massive AI data center in Michigan, spotlighting the company’s soaring debt amid aggressive AI expansion.

• Financing Talks Collapse: Blue Owl Capital, Oracle’s key data center partner, halted negotiations for the Michigan project despite prior collaborations in Texas and New Mexico.

• Oracle Disputes Report: Oracle insists final financing negotiations remain on schedule with a different equity partner, downplaying the snag.

• Debt Load Scrutinized: Oracle faces major investor concerns over $248 billion in lease obligations and reliance on external funding, while lacking strong internal cash flows like its Big Tech peers.

• Broader Market Fallout: Oracle’s shares are down 18% this month just since its earnings, and down 46% since its September highs, with credit default swap spreads hitting highs not seen since since 2009.

Nasdaq, Tech stocks and Semiconductor sector plunges as Oracle spirals

The Blue Owl Capital news regarding Oracle caused a cascade across the market with Tech stocks losing ground and dragging Wall Street lower with Nasdaq closing 1.8% down.

• AI Financing Scrutiny Intensifies: There are mounting concerns over off-balance-sheet debt for massive AI projects, pressuring related stocks like GE Vernova (down nearly 8%).

• Semiconductor Sector Hit Hard: Broadcom fell 3%, Nvidia dropped 2%, with ASML, TSMC, and AMD also declining amid broader AI demand questions.

• Concentration Risks Highlighted: The top 10 S&P 500 stocks now account for 41% of the index’s market cap, amplifying fears of an AI-driven bubble.

Billionaire Developer Waves Red Flag on Data Centers

Billionaire developer Fernando de Leon, who built a $10 billion real estate empire from scratch, is steering clear of the booming data center market, warning that massive investments risk collapse due to shaky financing, tech obsolescence, and unreliable long-term leases with hyperscalers.

• Hyperscalers Avoid Ownership: Trillion-dollar tech giants refuse to own assets central to their AI business, pushing build-and-finance risks onto investors.

• Rapid Tech Obsolescence: AI’s self-improving efficiency will quickly devalue equipment inside centers, where true worth lies—not in the buildings.

• Leases Full of Holes: 15-20 year contracts with hyperscalers are “Swiss cheese,” riddled with escape clauses, endangering pension fund-backed investments.

• No Big Exits: Lacks comparable sales above $4-5 billion for multibillion-dollar data centers, raising valuation concerns.

Silver continues it’s relentless surge, passing it’s previous $65 record high

Silver prices soared to a fresh all-time high Wednesday, hitting $66.88, fueled by robust investment demand, momentum buying and its addition to the U.S. critical minerals list amid a persistent supply deficit and surging industrial needs.

• Persistent supply deficit: The lack of supply underpins the rally, combined with strong fundamentals from geopolitical tensions and safe-haven flows shared with gold.

• Industrial demand booms: From AI data centers, solar panels and electric vehicles the increasing use of Silver in manufacturing is driving healthy long-term prospects.

• Momentum buying intensifies Strong performance is luring Chinese and Indian traders, boosting exchange volumes and open interest.

• Analysts forecast upside: Projections see Silver going to near $75 per ounce by the end of 2026, though volatility warns of sharp corrections tied to gold movements.

GM invests $242M in trades revival

General Motors is pouring more than $242 million into its skilled trades apprenticeship program to combat a looming U.S. manufacturing workforce crisis, training hundreds annually as millions of experienced workers near retirement.

• Addressing Massive Skills Gap: Projections show 2.1 million manufacturing jobs could go unfilled by 2030, potentially costing the economy $1 trillion amid retiring baby boomers.

• Rigorous Apprenticeship Training: The program graduates 600 apprentices yearly with paid on-the-job experience, classroom instruction, and journeyperson certification in roles like electrician and toolmaker.

• Early Youth Engagement Efforts: GM introduces kindergarten through high school students to manufacturing via plant tours, robot demonstrations, and hands-on projects like building model cars.

• Upskilling Current Workforce: Technical Learning University annually trains about 2,500 employees on new technologies in a safe, real-system environment to boost vehicle quality and efficiency.

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