Moderna rallies after BofA raises its price target to $24 from $21

OpenAI boosted its revenue and cash burn forecasts, The Information reports

According to a new report from The Information, OpenAI is boosting both how much cash is expected to come in the door and how much they’ll be sending out of it.

The ChatGPT maker increased its revenue projection for the next five years by 27% while also forecasting $112 billion in additional cash burn (or more than twice as much as previously expected), per the report. New revenue streams like advertisements are likely contributing to this improved top-line outlook.

More cash outflows, of course, necessitates that the firm be given more money to spend. OpenAI is in the midst of nailing down a $100 billion funding round in which Nvidia, Amazon, and SoftBank are expected to be major contributors. It’s expected to be valued at $730 billion, per various media reports, as ChatGPT remains the most heavily-used chatbot.

CNBC, citing sources, also reports that “OpenAI is telling investors that it’s now targeting roughly $600 billion in total compute spend by 2030, months after CEO Sam Altman touted $1.4 trillion in infrastructure commitments.”

However, it’s unclear whether this represents scaled-down ambitions or more of a timing mismatch, as Altman tweeted, “We are looking at commitments of about $1.4 trillion over the next 8 years” in November.

Luke Kawa3h

Futures fall after President Trump announces new global tariff rate boosted to 15%

10% global tariffs will be 15% global tariffs.

In a Truth Social post on Saturday, President Donald Trump said he was boosting new levies slated to go into effect after the Supreme Court ruled against his reciprocal tariff regime.

US equity futures were lower on Sunday evening as traders digested the news, with S&P 500 futures and Nasdaq 100 futures off 0.5% and 0.7%, respectively, as of 7:26 p.m. ET.

Section 122 of the Trade Act of 1974 sets a ceiling of 15% on the tariff rate that can be imposed “to deal with large and serious United States balance-of-payments-deficits,” which was cited as part of the rationale for this measure.

This tax on imports can stay in place for 150 days; afterwards congressional approval would be required. It will not apply to a variety of different products, including energy, critical minerals, certain electronics, passenger vehicles, and goods that fall under the USMCA.

In press interviews on the weekend, Treasury Secretary Scott Bessent described this global tariff as a “five-month bridge” during which time the administration to go through the process of enacting tariffs using alternative authorities.

JPMorgan estimates that the effective US tariff rate will fall modestly as a result of the end of IEEPA tariffs and utilization of Section 122.

“The macro impact of these developments shouldn’t be huge,” writes JPMorgan chief US economist Michael Feroli. “This isn’t to say there won’t be headaches for importers juggling different tariff schedules, but the difference in the aggregate fiscal burden of the tariffs on domestic purchasers is not enough to have a big effect on our outlook.”

That being said, US effective tariff rate has risen meaningfully during each of President Trump’s terms in office. Trump Always Raises Tariffs (TART).

“President Trump really believes that tariffs work and that trade deficits are bad,” writes Libby Cantrill, head of public policy at PIMCO. “Given the tools he has, we should expect tariff and trade policy uncertainty to last as long as Trump is in the White House.”

However, the smaller set of tools the president is being forced to work with have “substantially greater process constraints in place, meaning that the planning uncertainty for firms is reduced even if the administration is committed to reinstating some of the tariffs,” writes Peter Williams, economist at 22V Research. “The whimsical nature of the process over the past year is gone and with it much of the day-to-day uncertainty.”

Stocks jump after Supreme Court strikes down Trump’s reciprocal tariffs