Blue Wave Jitters, McRib Lawsuit and AI Spending Panic Rattle Markets

Frequently Asked Questions

Why are the hosts worried about a Democratic blue wave even though gridlock is often good for markets?

Horowitz argues gridlock itself is fine, but he and Dvorak fear a Democratic House and Senate would launch repeated impeachment efforts and push anti-AI, anti-data-center measures at the state level. With roughly 80% of recent market gains tied to AI capex, even symbolic political resistance could rattle a trade the hosts say is already facing a credibility test.

What is the McRib lawsuit actually about?

A federal judge allowed key claims in a proposed class action against McDonald's to proceed, alleging the McRib's name and rib-shaped patty mislead customers into overpaying roughly $7 for a sandwich plaintiffs say contains heart, tripe, stomach, ears and snouts rather than actual rib meat. McDonald's calls the claims meritless, and Dvorak speculates the sandwich's limited-time status was designed to limit exactly this kind of exposure.

Why is Microsoft offering buyouts to 27% of its workforce if executives say it is not about AI?

Dvorak insists it is about AI, because capex is exploding toward roughly $175 billion while Copilot, Xbox, Windows, Finance and HR remain cost centers. Horowitz adds that zero-interest-rate-era overhiring left the company bloated, and voluntary buyouts across the U.S., Canada, India and the U.K. are a less painful way to shed staff than forced layoffs.

What is happening with France's bond market and why should U.S. investors care?

French 10-year yields crossed 5% for the first time since 2002, Moody's is reviewing the country's AA3 rating with a negative outlook, and debt-to-GDP sits near 120%. Horowitz compares it to a household mortgage ratcheting from 2.5% to 5%, warning that as France, the eurozone's second-largest economy, refinances, contagion risk and a possible credit crisis could spill into global markets.

What are the signs that the AI spending boom may be cracking?

Meta posted $2.12 billion in negative free cash flow, Lam Research fell 12%, Intel is down roughly 45% from its high, and Anthropic reportedly lost $28 billion in a quarter while still committing to $800 billion in spending. OpenAI scaled a raise to $20 billion and Oracle is preparing a $10 billion equity-and-bond offering, which Horowitz sees as evidence companies are burning through cash faster than investors realized.

Why did SpaceX's wireless network announcement move tower stocks?

SpaceX is moving toward a nationwide wireless network, potentially buying spectrum and integrating satellite phone service to become a fourth competitor against AT&T, Verizon and T-Mobile. Crown Castle surged about 13% and American Tower gained on expectations SpaceX could access roughly 80,000 cell sites, while Dvorak notes Starlink's signal distortion also doubles as a powerful imaging platform that can defeat stealth.