MARKET WRAPS

STOCKS: Stocks rose and the broad S&P 500 closed at a new record high as the artificial intelligence boom regained momentum.

TREASURYS: U.S. Treasury yields fell, but long-term rates hovered near multiyear highs.

FOREX: The U.S. dollar gave back some of its recent gains as euro-zone worries subsided.

COMMODITIES: Oil futures ticked up amid hopes that Middle East exports were normalizing despite continued disruptions in the Strait of Hormuz.

HEADLINES

U.S. Trade Deficit Widens to Largest Level in More Than a Year

The U.S. trade deficit widened in August to its biggest in more than a

year, with the U.S. buying more products like crude oil, gold and

semiconductors from abroad.

The trade gap in goods and services widened by 14% in August from the

prior month to a seasonally adjusted number of roughly $106 billion, the

Commerce Department said Tuesday.

That marked the highest level since March 2025, when companies were

racing to import goods early in President Trump's second term to get

ahead of tariffs.

Google and Constellation Energy Strike a Sweeping Nuclear-Power Deal

Google and Constellation Energy agreed to a sweeping, 20-year

nuclear-power deal that would boost output at 11 existing reactors, the

latest tie-up between the tech and energy industries to power new data

centers.

The 890-megawatt power-purchase agreement unveiled by the companies

Tuesday involves improvements to Constellation-owned reactors in

Illinois, Pennsylvania and New Jersey.

The upgrades will provide additional power to the grid that is roughly

equivalent to building a new large reactor. The deal is the largest-ever

"uprate" project, one that squeezes more power out of existing reactors,

between a nuclear-power provider and a tech company.

AI-Computing Startup Lambda Is Raising $4 Billion in Final Round Before

Planned IPO

Nvidia-backed cloud-computing company Lambda is raising up to $4

billion in a final round of fundraising before the company's planned

initial public offering, according to people familiar with the matter.

The new funding will give the company a valuation of $14.5 billion,

excluding the amount of the money being raised.

The pre-IPO funding round is led by investment firms Blackstone and

Coatue Management, both of which have been highly active in the

artificial-intelligence and data-center industries.

Uber to Expand Uber Eats Service with $2.3 Billion Acquisition of

Catering Platform

Uber Technologies is expanding its food delivery service with its $2.3

billion acquisition of ezCater.

The deal gives Uber Eats access to ezCater's network, which is used

primarily in workplaces in the U.S., and supports everything from

meetings, events, and recurring enterprise catering needs. It is used in

more than 140,000 restaurants across the country and generates over $2.5

billion in annual gross bookings, Uber said.

"Catering is a big business, and can be a huge revenue stream for

restaurants," Uber Chief Executive Dara Khosrowshahi said. EzCater

average orders come in at more than $400, according to Uber.

Skydance Sets Ambitious Financial Targets. What It Must Overcome.

Skydance laid out ambitious financial targets, including a goal of

more $10 billion in free cash flow in 2030, after it completed its

purchase of Warner Bros. on Tuesday. Tens of billions in debt, and tough

conditions in some of its businesses, are among the hurdles the company

will have to overcome.

Skydance changed its name from Paramount Skydance and took the ticker

SKYD as it moved its primary market to the NYSE from the Nasdaq Tuesday.

Skydance is paying nearly $80 billion for Warner's equity and also

assuming debt.

The targets haven't lifted Skydance stock, which was down 1.5% at

$9.63.

U.S. Escalates Pressure on Russia Over Siberia Lab Death

The U.S. has warned Moscow that its failure to disclose details about

the death of a lab worker from a plague research center in Siberia runs

counter to its international health obligations, U.S. officials said.

Russia has provided the U.S. with little information about the

mysterious episode, which has stirred fears that an infectious disease

might spread inside Russia and beyond the country's borders, American

officials say.

The confidential diplomatic communication, known as a démarche, adds

another source of tension between Russia and the U.S. as Trump seeks to

improve ties with Russian President Vladimir Putin and make headway on

efforts to end the war in Ukraine.

Becton Dickinson to Invest $19 Billion in U.S. in Exchange for Tariff

Relief

Becton Dickinson inked a deal with the Trump administration to invest

$19 billion in the U.S. in exchange for relief from future tariffs.

The move makes the needle- and medical-device maker the latest company

to pledge to expand domestic manufacturing to secure an exemption from

the Trump administration's tariffs.

A wide array of companies - from tech giants like Apple and Micron to

pharmaceutical players like Eli Lilly and Johnson & Johnson - have

entered similar agreements as President Trump seeks to revive domestic

manufacturing.

Emmy Awards Will Leave Broadcast TV for Amazon's Prime Video

Amazon's Prime Video will be the new home for the Emmy Awards starting

in 2027, as another Hollywood gala abandons broadcast television.

Under the terms of a new deal with the Television Academy, Prime Video

will carry the awards show for six years and will have global rights, the

company and the nonprofit said Tuesday.

Terms of the deal weren't disclosed. Previously, the awards rotated

yearly between the big four broadcast networks-ABC, CBS, Fox and NBC-with

the annual rights valued at approximately $9.5 million, according to the

Television Academy's most recent annual report.

Energy Transfer to Acquire Vaquero Midstream for $2.63 Billion

Energy Transfer plans to acquire Vaquero Midstream for about $2.63

billion in cash and stock.

The pipeline transportation company said Tuesday the deal consists of

$1.95 billion in cash and about 33.3 million newly issued Energy Transfer

common units.

Vaquero Midstream brings a rapidly-growing midstream services business

that includes wellhead gathering and intrabasin transportation pipelines

as well as a natural gas processing complex, Energy Transfer said.

Lamb Weston Says Cost-Saving Efforts Are Paying Off

Lamb Weston said profit and sales exceeded expectations in the latest

quarter, citing strong demand and steps the company has taken to counter

rising costs.

The quarterly results gave the french fry maker confidence to raise

its outlook for the year. Investors rallied behind the report, sending

shares 12% higher, to $49.74, on Tuesday.

Chief Executive Mike Smith said the company is working to drive

additional savings as inflation and freight expenses pressure Lamb

Weston's bottom line.

TALKING POINT Wall Street Bonuses Are Expected to Hit Another High This Year

Wall Street took home a record bonus haul in 2025. This year is expected to be even better.

The nation's biggest banks have raked in profits from both Wall Street businesses and their Main Street consumers, reflecting booms in corporate dealmaking, initial public offerings, artificial intelligence and market volatility as well as a resilient consumer. That has the industry on pace for more than $90 billion in profits, according to new estimates released by New York State Comptroller Thomas DiNapoli.

In turn, the bonus pool for securities industry employees in New York state is expected to increase, DiNapoli said. That would help the city, which has previously forecast a 20% drop in the bonus pool.

In 2025, the average bonus on Wall Street was $246,900 and the average total compensation was $561,770, reflecting a gangbusters year for banks' results. The total bonus pool was $49.2 billion. Adjusting for inflation, the record was set before the financial crisis.

The forecast for this year requires Wall Street to keep chugging along. But the overall economic picture remains cloudy, in part because of geopolitical conflict and a turbulent bond market. The Federal Reserve raised interest rates in September for the first time in years, reflecting concerns about sticky inflation.

Big banks report third-quarter results next week, which will provide a fresh signal on the health of the economy.

Wall Street's performance is a key contributor to the fiscal health of New York state and city. That puts it front and center in the political changes the city's mayor, Zohran Mamdani, has been urging.

--Ben Glickman, The Wall Street Journal

Expected Major Events for Wednesday 05:00/JPN: Aug Indexes of Business Conditions - Preliminary Release

06:00/JPN: Aug Revised Machine Tool Orders

06:00/UK: Sep Lloyds House Price Index

06:00/GER: Aug Industrial Production Index

06:45/FRA: Aug Foreign trade

06:45/FRA: Aug Balance of payments

08:30/UK: Sep Narrow money (Notes & Coin) and reserve balances

11:00/US: 10/02 MBA Weekly Mortgage Applications Survey

14:00/US: Sep Online Help Wanted Index

14:30/US: 10/02 EIA Weekly Petroleum Status Report

19:00/US: Aug Consumer Credit

23:01/UK: Sep RICS Residential Market Survey

23:01/UK: Sep KPMG and REC UK Report on Jobs

23:50/JPN: Sep International Transactions in Securities

23:50/JPN: Aug Balance of Payments

23:50/JPN: 2Q Revised Balance of Payments

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Expected Earnings for Wednesday Applied Digital Corp (APLD) is expected to report $-0.30 for 1Q.

Bio-Path Holdings Inc $(BPTH)$ is expected to report for 2Q.

Costco Wholesale Corp (COST) is expected to report.

Firan Technology Group Corp (FTG.T) is expected to report for 3Q.

Levi Strauss & Co $(LEVI)$ is expected to report $0.36 for 3Q.

Nurix Therapeutics Inc (NRIX) is expected to report $-0.60 for 3Q.

Obsidian Therapeutics Inc (OBX) is expected to report for 2Q.

Resources Connection Inc $(RGP)$ is expected to report $-0.20 for 1Q.

Richardson Electronics Ltd $(RELL)$ is expected to report $0.09 for 1Q.

Richelieu Hardware Ltd (RCH.T) is expected to report $0.47 for 3Q.

Velan Inc (VLN.T,VLNSF) is expected to report for 2Q.

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This article is a text version of a Wall Street Journal newsletter published earlier today.