KraneShares AI ETF AGIX Buys Anthropic Shares
NEW YORK, March 04, 2025 (GLOBE NEWSWIRE) -- KraneShares today announced its KraneShares Artificial Intelligence & Technology ETF (Ticker: AGIX) has become one of the first US-listed exchange-traded funds to directly invest in a private company1, acquiring shares in Anthropic. KraneShares believes this places AGIX at the forefront of ETF innovation, delivering investors unparalleled access to high-growth private AI opportunities.
As of the date of this release, Anthropic represented 4.60% of AGIX's net assets.2 Holdings are subject to change.
AGIX was launched on July 18, 2024, by KraneShares in collaboration with Etna Capital Management, an established pioneer in AI venture investing. Etna's expertise is underscored by its early-stage investments in groundbreaking AI innovators such as Anthropic, xAI, and Perplexity.
AGIX offers shareholders direct exposure to Anthropic, a pioneer in large language models (LLMs) and enterprise-focused AI solutions.
Anthropic is an artificial intelligence research company founded in 2021. It is backed by technology giants, including Amazon and Google, and focuses on developing safe and ethical AI systems. Its flagship product, the Claude AI assistant, has become a cornerstone for businesses seeking advanced yet responsible AI capabilities.
'This transaction redefines what's possible for ETFs in private markets,' said Derek Yan, Senior Investment Strategist at KraneShares. 'KraneShares has always been dedicated to unlocking investment opportunities that were once out of reach for most investors. By securing direct ownership in Anthropic – a leading private AI company – we are making investing in private companies more accessible.'
'We believe we are at the dawn of a new era of intelligence, and Anthropic is uniquely positioned to lead the global competition among AI model companies. This leadership will be driven by Anthropic's commitment to cutting-edge research, strategic capital deployment, comprehensive model training data preparation, and a strong focus on delivering controllable and safe models tailored for enterprise needs,' said Solomon Bier, Partner at Etna Capital Management. 'We are thrilled about AGIX's investment in Anthropic and are actively working on expanding the pipeline of private investments for AGIX, positioning it as a solution for investors seeking exposure to AI companies across both public and private markets.'
AGIX is designed to prepare investors' portfolios for the era of artificial general intelligence (AGI) by investing in companies driving progress toward this goal. We believe the inclusion of Anthropic, a leading LLM company, enhances AGIX's distinctive role in delivering comprehensive exposure to the full AI value chain across public and private markets.
For more information on the KraneShares Artificial Intelligence & Technology ETF (Ticker: AGIX), top 10 holdings, and its innovative structure, please visit https://kraneshares.com/agix.
About KraneShares
KraneShares is an investment manager focused on providing innovative, high-conviction, and first-to-market ETFs based on extensive investing knowledge. KraneShares identifies groundbreaking capital market opportunities and offers investors cost-effective and transparent tools for gaining exposure to diverse asset classes. Founded in 2013, KraneShares serves institutions and financial professionals globally.
Citations:
Data from Bloomberg as of 2/14/2025.
Data from Bloomberg as of 3/3/2025. *Up to limits permitted by the Investment Advisors Act of 1940.
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full and summary prospectus, which may be obtained by visiting: www.kraneshares.com/agix. Read the prospectus carefully before investing.
Risk Disclosures:
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index.
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. Certain content represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results; material is as of the dates noted and is subject to change without notice.
AGIX may invest in derivatives, which are often more volatile than other investments and may magnify AGIX's gains or losses. A derivative (i.e., futures/forward contracts, swaps, and options) is a contract that derives its value from the performance of an underlying asset. The primary risk of derivatives is that changes in the asset's market value and the derivative may not be proportionate, and some derivatives can have the potential for unlimited losses. Derivatives are also subject to liquidity and counterparty risk. AGIX is subject to liquidity risk, meaning that certain investments may become difficult to purchase or sell at a reasonable time and price. If a transaction for these securities is large, it may not be possible to initiate, which may cause AGIX to suffer losses. Counterparty risk is the risk of loss in the event that the counterparty to an agreement fails to make required payments or otherwise comply with the terms of the derivative.
AI-exposed companies face profitability challenges due to high research costs, competition, IP reliance, and regulatory risk. Product failures or safety concerns could be detrimental. Identifying AI companies accurately is complex. Tech firms face risks of product failure, obsolescence, regulatory impact, and uncertain profitability due to technological advancements and government policies. Certain tech investments may lack current profitability and future success is uncertain. AGIX is subject to non-U.S. issuers risk, which may be less liquid than investments in U.S. issuers, may have less governmental regulation and oversight, are typically subject to different investor protection standards than U.S. issuers, and the economic instability of the non-U.S. countries. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values. AGIX may invest in Initial Public Offerings (IPOs). Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile. In addition, as AGIX increases in size, the impact of IPOs on AGIX's performance will generally decrease.
Large capitalization companies may struggle to adapt fast, impacting their growth compared to smaller firms, especially in expansive times. This could result in lower stock returns than investing in smaller and mid-sized companies. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. AGIX is new and does not yet have a significant number of shares outstanding. If AGIX does not grow in size, it will be at greater risk than larger funds of wider bid-ask spreads for its shares, trading at a greater premium or discount to NAV, liquidation and/or a trading halt. Narrowly focused investments typically exhibit higher volatility. AGIX's assets are expected to be concentrated in a sector, industry, market, or group of concentrations to the extent that the Underlying Index has such concentrations. The securities or futures in that concentration could react similarly to market developments. Thus, AGIX is subject to loss due to adverse occurrences that affect that concentration.
A large number of shares of AGIX are held by a single shareholder or a small group of shareholders. Redemptions from these shareholders can harm Fund performance, especially in declining markets, leading to forced sales at disadvantageous prices, increased costs, and adverse tax effects for remaining shareholders. AGIX is non-diversified.
ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. The returns shown do not represent the returns you would receive if you traded shares at other times. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Beginning 12/23/2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. Prior to that date, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time.
The KraneShares ETFs and KFA Funds ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Funds, or any sub-advisers for the Funds.
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Yahoo
an hour ago
- Yahoo
Trump tariffs live updates: US-China trade talks to continue on Tuesday after signs of progress
The US and China will continue trade talks on Tuesday after six hours of discussions between top officials kicked off in London on Monday. Tuesday's talks are expected to continue to focus on easing tensions over rare earths and tech. After day one, US officials were upbeat but vague on progress. Treasury Secretary Scott Bessent said it was a "good meeting" while Commerce Secretary Howard Lutnick called the negotiations "fruitful." President Trump said on Monday he received "good reports" but added that "China's not easy." Vice Premier He Lifeng, who led China's delegation, did not comment on the meeting. The negotiations follow Trump's call with Xi last week, which both leaders framed as positive. US-China tensions have risen in the aftermath of the countries' trade truce reached in mid-May in Geneva, with both countries accusing the other of breaching that truce while ratcheting up pressure on other issues. The US and China are also now using their control over certain key materials to gain control in the trade war. Bloomberg reported on Friday that the US dominates in ethane, a gas used to make plastics, and China buys nearly all of it. Washington is now tightening control by requiring export licenses. China's curbs on exports of rare earth minerals, crucial for autos and more, have drawn Washington's ire. Read more: What Trump's tariffs mean for the economy and your wallet The US-China talks come as Trump pushes countries to speed up negotiations. The US sent a letter to partners as a "friendly reminder" that Trump's self-imposed 90-day pause on sweeping "reciprocal" tariffs is set to expire in early July. White House advisers have for weeks promised trade deals in the "not-too-distant future," with the only announced agreement so far coming with the United Kingdom. US and Indian officials held trade talks this week and agreed to extend those discussions on Monday and Tuesday ahead of the July 9 deadline. New tariffs are coming into play: Effective Wednesday, June 4, Trump doubled tariffs on steel and aluminum from 25% to 50%. Meanwhile, Trump's most sweeping tariffs face legal uncertainty after a federal appeals court allowed the tariffs to temporarily stay in effect, a day after the US Court of International Trade blocked their implementation, deeming the method used to enact them "unlawful." Here are the latest updates as the policy reverberates around the world. The number of ocean containers from China bound for the US fell precipitously in May when President Trump's 145% tariffs on Chinese goods were in effect. Supply chain technology company Descartes said Monday that seaborne imports from China to the US dropped 28.5% year over year, the sharpest decline since the pandemic, per Reuters. Overall, US seaborne imports fell 7.2% annually in May to 2.18 million 20-foot equivalent units. The decline snaps a streak of increases fueled by companies frontloading goods to avoid higher duties, which has kept US seaports, such as the Port of Long Beach, busy. "The effects of U.S. policy shifts with China are now clearly visible in monthly trade flows," Descartes said in a statement. Read more here. In today's Chart of the Day, Yahoo Finance's Josh Schafer writes that tariff headlines have been rattling markets to a lesser degree than they did in April, despite an escalation of trade tensions recently: Sign up for the Morning Brief newsletter to get the Chart of the Day in your inbox. US import costs of steel and aluminum are expected to rise by more than $100 billion after President Trump doubled tariffs on the metals to 50% this week. That is expected to impact automakers such as Ford (F), as well as importers for a variety of goods, from baseball bats to aircraft parts. The Financial Times reports: Read more here. Tariffs have brought challenges for many, but Century Aluminum (CENX) and top recycler Matalco stand to benefit from President Trump's metal import duties as domestic prices rise. Reuters reports: Read more here. The US is keen to strike a firm deal with China on rare earths exports as both sides resume talks in London today. Reuters reports: Read more here. Global auto companies are hoping that trade talks between the US and China on Monday could help fast track rare earth exports from China, which are desperately needed. Reuters reports: Read more here. Outbound shipments of rare earths in May from China rose 23% on the month to their highest in a year, despite Beijing's export curbs on some of the critical minerals prevented some overseas sales, with shortages impacting global manufacturing. Bloomberg News reports: Read more here. Chinese exports rose less than expected last month, held back by the biggest drop in shipments to the US in over five years, despite strong demand from other markets. Bloomberg News reports: Read more here. The US and China will restart trade talks in London on Monday after President Trump and Xi spoke last week. The two sides have accused each other of breaking a May deal in Geneva to pause tariff hikes above 100%. Trump, after agreeing with Xi to resume critical mineral flows, said he expects the talks to go "very well." 'We want the rare earths, the magnets that are crucial for cell phones and everything else to flow just as they did before the beginning of April, and we don't want any technical details slowing that down,' Kevin Hassett, head of the National Economic Council at the White House, said Sunday on CBS's Face the Nation. 'And that's clear to them.' US-China tensions rose this year after Trump raised tariffs on Chinese goods, triggering retaliation from Beijing. The Geneva deal was meant to ease tariff tensions, but talks stalled as both sides blamed each other. The US criticized a drop in Chinese exports of rare earth magnets and China pushed back on US curbs targeting AI chips and student visas. In London, US officials, which include Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will meet with Vice Premier He Lifeng. According to a report in Bloomberg on Monday, Lutnick's presence suggests the US may review some tech restrictions. The recent Trump-Xi call brought hope if lower tariffs, but investor confidence remains cautious. As of today, the US has only secured one new trade deal — with the UK. A startup that assembles one of its smartphones entirely in the US says it's possible for a company like Apple to do the same and not incur prohibitive costs, but it's not easy and would take several years of focused effort, Fortune reports: At least one expert in the UK believes Prime Minister Keir Starmer may have unrealistic expectations about a trade deal with President Donald Trump and the US, Bloomberg reports: Read more here President Donald Trump has come up short on striking trade deals with most nations with just one month left before his self-imposed tariff deadline, even as he took his first steps in weeks toward engaging with China. Trump secured a much-desired call with Chinese President Xi Jinping, paving the way for a new round of talks on Monday in London — yet the diplomacy was overshadowed by a blowout public fight between Trump and his billionaire onetime ally, Elon Musk. Trump's aides insisted Friday that the president was moving on and focused on his economic agenda. Still, question marks remain over the US's most consequential trade relationships, with few tangible signs of progress toward interim agreements. Read more here Bloomberg reports: Read more here. President Trump said a new round of trade talks between the US and China would start Monday, a day after he spoke with Chinese leader Xi Jinping. Trump said Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer would lead talks for the US. "The meeting should go very well," Trump predicted. Bessent led the last round of talks in Geneva, which led to a tariff truce that sent markets soaring. That truce has come under strain in recent weeks over various trade and other thorny issues, including China's curbs on rare earth mineral exports and US chip curbs. Bet you were wondering how long we could go before mentioning Elon Musk's feud with President Trump in this blog (lots more on that here, here, and here). Yes, the remarkable back and forth included Trump threatening Musk's government contracts — and Musk seeming to agree with a call to impeach Trump, while also throwing in an "Epstein files" mention. But as Yahoo Finance's Ben Werschkul details, Musk is now going to war with many of the biggest pillars of Trump's agenda. There was a tariff mention as part of that. Specifically, Musk not only criticized the tariffs — he's now on record saying he thinks they will cause a recession this year. As Ben writes: Read more here. Trade talks between the US and India were set to wrap up this Friday, but now they are being extended into next week as officials on both sides aim to work out an interim deal before a July 9 deadline. Indian government sources said the discussions, which have focused on tariff cuts in the farming and auto sectors, will continue next Monday and Tuesday. President Trump and Indian Prime Minister Narendra Modi are looking to double trade by 2030 and cement a trade pact by fall 2025. Reuters reports: Read more here. US and Chinese officials exchanged jabs at an event held by the American Chamber of Commerce (AmCham) in Shanghai on Friday, as the chamber appealed for more clarity for American businesses operating in China. Reuters reports: Read more here. India's Tata Steel has warned that it might be excluded from tariff-free access to the US under the UK's trade agreement with the Trump administration. This exclusion risks putting more than $180M worth of annual exports at risk. The FT reports: Read more here. Two of the largest economies in the euro zone saw industrial production decline in the first month of President Trump's sweeping tariffs, indicating a economic slowdown after a stronger-than-expected year, according to a report in the Wall Street Journal on Friday. Wall Street Journal: Read more here. The EU said on Friday that it is open to reducing tariffs on US fertiliser imports as a trade bargaining tool in talks with the Trump administration. However, the EU said it would not weaken its food safety standards in pursuit of a deal. EU agriculture commissioner Christophe Hansen told Reuters: "That is definitely an option," Hansen said, of reducing US fertiliser tariffs. Reuters reports: Read more here. The number of ocean containers from China bound for the US fell precipitously in May when President Trump's 145% tariffs on Chinese goods were in effect. Supply chain technology company Descartes said Monday that seaborne imports from China to the US dropped 28.5% year over year, the sharpest decline since the pandemic, per Reuters. Overall, US seaborne imports fell 7.2% annually in May to 2.18 million 20-foot equivalent units. The decline snaps a streak of increases fueled by companies frontloading goods to avoid higher duties, which has kept US seaports, such as the Port of Long Beach, busy. "The effects of U.S. policy shifts with China are now clearly visible in monthly trade flows," Descartes said in a statement. Read more here. In today's Chart of the Day, Yahoo Finance's Josh Schafer writes that tariff headlines have been rattling markets to a lesser degree than they did in April, despite an escalation of trade tensions recently: Sign up for the Morning Brief newsletter to get the Chart of the Day in your inbox. US import costs of steel and aluminum are expected to rise by more than $100 billion after President Trump doubled tariffs on the metals to 50% this week. That is expected to impact automakers such as Ford (F), as well as importers for a variety of goods, from baseball bats to aircraft parts. The Financial Times reports: Read more here. Tariffs have brought challenges for many, but Century Aluminum (CENX) and top recycler Matalco stand to benefit from President Trump's metal import duties as domestic prices rise. Reuters reports: Read more here. The US is keen to strike a firm deal with China on rare earths exports as both sides resume talks in London today. Reuters reports: Read more here. Global auto companies are hoping that trade talks between the US and China on Monday could help fast track rare earth exports from China, which are desperately needed. Reuters reports: Read more here. Outbound shipments of rare earths in May from China rose 23% on the month to their highest in a year, despite Beijing's export curbs on some of the critical minerals prevented some overseas sales, with shortages impacting global manufacturing. Bloomberg News reports: Read more here. Chinese exports rose less than expected last month, held back by the biggest drop in shipments to the US in over five years, despite strong demand from other markets. Bloomberg News reports: Read more here. The US and China will restart trade talks in London on Monday after President Trump and Xi spoke last week. The two sides have accused each other of breaking a May deal in Geneva to pause tariff hikes above 100%. Trump, after agreeing with Xi to resume critical mineral flows, said he expects the talks to go "very well." 'We want the rare earths, the magnets that are crucial for cell phones and everything else to flow just as they did before the beginning of April, and we don't want any technical details slowing that down,' Kevin Hassett, head of the National Economic Council at the White House, said Sunday on CBS's Face the Nation. 'And that's clear to them.' US-China tensions rose this year after Trump raised tariffs on Chinese goods, triggering retaliation from Beijing. The Geneva deal was meant to ease tariff tensions, but talks stalled as both sides blamed each other. The US criticized a drop in Chinese exports of rare earth magnets and China pushed back on US curbs targeting AI chips and student visas. In London, US officials, which include Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will meet with Vice Premier He Lifeng. According to a report in Bloomberg on Monday, Lutnick's presence suggests the US may review some tech restrictions. The recent Trump-Xi call brought hope if lower tariffs, but investor confidence remains cautious. As of today, the US has only secured one new trade deal — with the UK. A startup that assembles one of its smartphones entirely in the US says it's possible for a company like Apple to do the same and not incur prohibitive costs, but it's not easy and would take several years of focused effort, Fortune reports: At least one expert in the UK believes Prime Minister Keir Starmer may have unrealistic expectations about a trade deal with President Donald Trump and the US, Bloomberg reports: Read more here President Donald Trump has come up short on striking trade deals with most nations with just one month left before his self-imposed tariff deadline, even as he took his first steps in weeks toward engaging with China. Trump secured a much-desired call with Chinese President Xi Jinping, paving the way for a new round of talks on Monday in London — yet the diplomacy was overshadowed by a blowout public fight between Trump and his billionaire onetime ally, Elon Musk. Trump's aides insisted Friday that the president was moving on and focused on his economic agenda. Still, question marks remain over the US's most consequential trade relationships, with few tangible signs of progress toward interim agreements. Read more here Bloomberg reports: Read more here. President Trump said a new round of trade talks between the US and China would start Monday, a day after he spoke with Chinese leader Xi Jinping. Trump said Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer would lead talks for the US. "The meeting should go very well," Trump predicted. Bessent led the last round of talks in Geneva, which led to a tariff truce that sent markets soaring. That truce has come under strain in recent weeks over various trade and other thorny issues, including China's curbs on rare earth mineral exports and US chip curbs. Bet you were wondering how long we could go before mentioning Elon Musk's feud with President Trump in this blog (lots more on that here, here, and here). Yes, the remarkable back and forth included Trump threatening Musk's government contracts — and Musk seeming to agree with a call to impeach Trump, while also throwing in an "Epstein files" mention. But as Yahoo Finance's Ben Werschkul details, Musk is now going to war with many of the biggest pillars of Trump's agenda. There was a tariff mention as part of that. Specifically, Musk not only criticized the tariffs — he's now on record saying he thinks they will cause a recession this year. As Ben writes: Read more here. Trade talks between the US and India were set to wrap up this Friday, but now they are being extended into next week as officials on both sides aim to work out an interim deal before a July 9 deadline. Indian government sources said the discussions, which have focused on tariff cuts in the farming and auto sectors, will continue next Monday and Tuesday. President Trump and Indian Prime Minister Narendra Modi are looking to double trade by 2030 and cement a trade pact by fall 2025. Reuters reports: Read more here. US and Chinese officials exchanged jabs at an event held by the American Chamber of Commerce (AmCham) in Shanghai on Friday, as the chamber appealed for more clarity for American businesses operating in China. Reuters reports: Read more here. India's Tata Steel has warned that it might be excluded from tariff-free access to the US under the UK's trade agreement with the Trump administration. This exclusion risks putting more than $180M worth of annual exports at risk. The FT reports: Read more here. Two of the largest economies in the euro zone saw industrial production decline in the first month of President Trump's sweeping tariffs, indicating a economic slowdown after a stronger-than-expected year, according to a report in the Wall Street Journal on Friday. Wall Street Journal: Read more here. The EU said on Friday that it is open to reducing tariffs on US fertiliser imports as a trade bargaining tool in talks with the Trump administration. However, the EU said it would not weaken its food safety standards in pursuit of a deal. EU agriculture commissioner Christophe Hansen told Reuters: "That is definitely an option," Hansen said, of reducing US fertiliser tariffs. Reuters reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Stock market today: S&P 500, Nasdaq gain as upbeat US-China trade talks continue
US stocks edged higher on Monday as US-China trade talks are set to continue, giving investors hope of a dial down in tensions in order for both sides to reach a tariff deal. The S&P 500 (^GSPC) rose 0.1%, with the benchmark a little more than 2% off its all-time closing high. The Dow Jones Industrial Average (^DJI) was flat, while the tech-heavy Nasdaq Composite (^IXIC) gained about 0.3%. High-level US-China trade talks began in London on Monday and were set to continue on Tuesday, after a phone call between President Trump and Chinese President Xi took place last week. Read more: The latest on Trump's tariffs The stakes of the negotiations are high given warnings that tariff barriers will harm economies worldwide — and the US in particular. Investors are looking for a revival of the momentum shown in the Geneva pact in mid-May. Relations between the two countries have soured since then, with the US and China accusing each other of not keeping to the trade truce and ratcheting up pressures in other areas. For now, markets appear to have shaken off the volatility that has plagued markets following Trump's early-April tariff hikes. Stocks ended last week on a high note, as encouraging jobs data helped ease fears of a recession fueled by his policy overhaul. The economic highlight this week is the May US consumer inflation print due on Friday, with the wholesale inflation report ushering it in on Thursday. On the corporate front, Apple (AAPL) announced a sweeping revamp of its iOS operating system at the iPhone maker's annual Worldwide Developers Conference. The new interface called Liquid Glass was designed to make the software feel more responsive across the company's hardware lines. Treasury Secretary Scott Bessent said "good meeting" following the high level talks between China and the US which took place on Monday. Investors have been paying close attention to any developments on the trade front after President Trump and his Chinese counterpart Xi Jinping held a phone conversation last week. Yahoo Finance's Dan Howley reports: Bitcoin (BTC-USD) surged more than 2% on Monday, rising above $108,000 per token. As momentum for crypto builds, the cryptocurrency is up 16% year-to-date. Crypto-related stocks also rose. Strategy (MSTR), the largest holder of bitcoin among public companies, rose more than 4%. MARA Holdings (MARA) and Galaxy Digital (GLXY-TO) also gained on the heels of bitcoin's surge. Yahoo Finance's Josh Schafer reports: Read more here. Apple (AAPL) announced a new operating system redesign called "Liquid Glass" on Monday. The new design was unveiled at its annual Worldwide Developers Conference, an event where the iPhone maker announces its latest tech advancements. Apple shares were down more than 1.5% during the event. Yahoo Finance's Pras Subramanian reports: Read more here. Shares of International Business Machines (IBM) hit all-time highs on Monday, surpassing a market cap of $250 billion for the first time in the company's history. IBM stock is up more than 23% year to date as recent acquisitions have helped the company, once known for computer mainframes, enter the high-growth software and services space. Over the past year, the stock is up roughly 60%. New data from the New York Fed suggests Americans are gaining confidence in the labor market, even as broad uncertainty around trade policy, interest rates, and other unknowns clouds the economic outlook. According to the New York Fed's May 2025 Survey of Consumer Expectations, the perceived chance that the US unemployment rate will rise over the next year fell by 3.3 percentage points to 40.8%. It's a notable drop as the labor force remains mostly stable. But the figure still sits above the 12-month average of 37.7%, suggesting caution hasn't disappeared entirely. Consumers are also feeling a bit more secure in their own roles. The perceived likelihood of losing a job over the next year fell to 14.8%, the lowest level since early this year. At the same time, the expected quit rate, or the probability of voluntarily leaving one's job, nudged slightly higher to 18.3%. Inflation expectations also cooled in May, mirroring the improved outlook in the labor market, just ahead of this Wednesday's Consumer Price Index (CPI) release. Tesla (TSLA) recovered from a 4% drop on Monday, following two analyst downgrades after CEO Elon Musk's public feud with President Trump. Baird has downgraded the stock from Outperform to Neutral, citing excessive optimism surrounding the company's Robotaxi rollout, fading EV tax credits, and the public clash between Musk and Trump, which sent the stock reeling last week. Argus Research also lowered its recommendation to Hold, pointing out the political fallout from Musk's war of words with Trump. The company is reportedly planning to launch its latest robotaxi on Thursday, June 12. Circle's stock (CRCL) surged for a third day in a row on Monday following its blockbuster IPO last week. Shares of the stablecoin issuer gained more than 15% to trade near $122 per share, raising the company's market cap to roughly $24 billion. The move follows gains on Thursday and Friday, when the stock rose as much as 200% shortly after its long-anticipated public market debut. Stocks edged higher on Monday amid hopes that US-China trade talks will ease tariff tensions and eventually lead to a permanent deal between the two leading economies. The S&P 500 (GSPC) rose to just above the flat line, after the broad benchmark closed on Friday at its highest level since February. The Dow Jones Industrial Average (^DJI) gained 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) edged 0.2% higher. High-level trade talks between Beijing and Washington began in London on Monday. This follows a phone call between President Trump and Chinese leader Xi Jinping last week. Apple's annual Worldwide Developers Conference (WWDC) kicks off in Cupertino, Calif., today. While investors may get another taste of artificial intelligence features, including AI-powered Siri, Apple isn't expected to deliver any big announcements. The company will likely showcase new features and designs for iOS, iPadOS, macOS, and watchOS. There's always a chance it will debut a new piece of hardware too. Apple (AAPL) stock rose 0.5% in premarket trading ahead of the event. Read our tech editor's preview of everything to expect from Apple WWDC 2025. Robinhood (HOOD) stock slipped 4% after it didn't make it into the benchmark S&P 500 index as some speculated it might. S&P Dow Jones Indices did not make any changes to S&P 500 membership as part of its quarterly rebalancing. Reuters reports: Read more here. Shares of Warner Bros. Discovery (WBD) rose more than 6% in premarket trading on Monday after the media company said it would split into two companies. Warner Bros. will separate its studios and streaming business, which includes HBO Max, and its cable television networks, including CNN. The split is expected to be completed by mid-2026. Reuters reports: Read more here. Economic data: New York Fed one-year inflation expectations (May); Wholesale trade sales month-over-month (April) Earnings: Casey's (CASY) Here are some of the biggest stories you may have missed overnight and early this morning: All eyes on AI as Apple takes the stage for WWDC A quieter summer is coming for stocks: Wall Street experts Hopes for US-China thaw as trade talks resume Senate GOP to lay out major revisions to Trump's tax bill Resilient economy to limit summer pullback in stocks: MS, Goldman Meta is set to throw billions at startup that leads in AI data China exports to US fall by most since 2020 despite tariff truce Here are some top stocks trending on Yahoo Finance in premarket trading: Robinhood (HOOD) stock fell 5% before the bell on Monday after the S&P Dow Jones Indices made no changes to the S&P 500 in its quarterly rebalancing. Tesla (TSLA) stock also dropped on Monday in premarket trading after CEO Elon Musk criticized President Trump's tax bill. Strategy (MSTR) stock rose on Monday by 2%. A SEC filing revealed the company had purchased 705 bitcoin during the period of May 26 to June 1 at an aggregate purchase price of $75.1M. Wall Street strategists are growing optimistic about US stocks, with forecasters at Morgan Stanley (MS) and Goldman Sachs Group (GS) the latest to suggest resilient economic growth would limit any pullback over the summer. Bloomberg reports: Read more here. Treasury Secretary Scott Bessent said "good meeting" following the high level talks between China and the US which took place on Monday. Investors have been paying close attention to any developments on the trade front after President Trump and his Chinese counterpart Xi Jinping held a phone conversation last week. Yahoo Finance's Dan Howley reports: Bitcoin (BTC-USD) surged more than 2% on Monday, rising above $108,000 per token. As momentum for crypto builds, the cryptocurrency is up 16% year-to-date. Crypto-related stocks also rose. Strategy (MSTR), the largest holder of bitcoin among public companies, rose more than 4%. MARA Holdings (MARA) and Galaxy Digital (GLXY-TO) also gained on the heels of bitcoin's surge. Yahoo Finance's Josh Schafer reports: Read more here. Apple (AAPL) announced a new operating system redesign called "Liquid Glass" on Monday. The new design was unveiled at its annual Worldwide Developers Conference, an event where the iPhone maker announces its latest tech advancements. Apple shares were down more than 1.5% during the event. Yahoo Finance's Pras Subramanian reports: Read more here. Shares of International Business Machines (IBM) hit all-time highs on Monday, surpassing a market cap of $250 billion for the first time in the company's history. IBM stock is up more than 23% year to date as recent acquisitions have helped the company, once known for computer mainframes, enter the high-growth software and services space. Over the past year, the stock is up roughly 60%. New data from the New York Fed suggests Americans are gaining confidence in the labor market, even as broad uncertainty around trade policy, interest rates, and other unknowns clouds the economic outlook. According to the New York Fed's May 2025 Survey of Consumer Expectations, the perceived chance that the US unemployment rate will rise over the next year fell by 3.3 percentage points to 40.8%. It's a notable drop as the labor force remains mostly stable. But the figure still sits above the 12-month average of 37.7%, suggesting caution hasn't disappeared entirely. Consumers are also feeling a bit more secure in their own roles. The perceived likelihood of losing a job over the next year fell to 14.8%, the lowest level since early this year. At the same time, the expected quit rate, or the probability of voluntarily leaving one's job, nudged slightly higher to 18.3%. Inflation expectations also cooled in May, mirroring the improved outlook in the labor market, just ahead of this Wednesday's Consumer Price Index (CPI) release. Tesla (TSLA) recovered from a 4% drop on Monday, following two analyst downgrades after CEO Elon Musk's public feud with President Trump. Baird has downgraded the stock from Outperform to Neutral, citing excessive optimism surrounding the company's Robotaxi rollout, fading EV tax credits, and the public clash between Musk and Trump, which sent the stock reeling last week. Argus Research also lowered its recommendation to Hold, pointing out the political fallout from Musk's war of words with Trump. The company is reportedly planning to launch its latest robotaxi on Thursday, June 12. Circle's stock (CRCL) surged for a third day in a row on Monday following its blockbuster IPO last week. Shares of the stablecoin issuer gained more than 15% to trade near $122 per share, raising the company's market cap to roughly $24 billion. The move follows gains on Thursday and Friday, when the stock rose as much as 200% shortly after its long-anticipated public market debut. Stocks edged higher on Monday amid hopes that US-China trade talks will ease tariff tensions and eventually lead to a permanent deal between the two leading economies. The S&P 500 (GSPC) rose to just above the flat line, after the broad benchmark closed on Friday at its highest level since February. The Dow Jones Industrial Average (^DJI) gained 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) edged 0.2% higher. High-level trade talks between Beijing and Washington began in London on Monday. This follows a phone call between President Trump and Chinese leader Xi Jinping last week. Apple's annual Worldwide Developers Conference (WWDC) kicks off in Cupertino, Calif., today. While investors may get another taste of artificial intelligence features, including AI-powered Siri, Apple isn't expected to deliver any big announcements. The company will likely showcase new features and designs for iOS, iPadOS, macOS, and watchOS. There's always a chance it will debut a new piece of hardware too. Apple (AAPL) stock rose 0.5% in premarket trading ahead of the event. Read our tech editor's preview of everything to expect from Apple WWDC 2025. Robinhood (HOOD) stock slipped 4% after it didn't make it into the benchmark S&P 500 index as some speculated it might. S&P Dow Jones Indices did not make any changes to S&P 500 membership as part of its quarterly rebalancing. Reuters reports: Read more here. Shares of Warner Bros. Discovery (WBD) rose more than 6% in premarket trading on Monday after the media company said it would split into two companies. Warner Bros. will separate its studios and streaming business, which includes HBO Max, and its cable television networks, including CNN. The split is expected to be completed by mid-2026. Reuters reports: Read more here. Economic data: New York Fed one-year inflation expectations (May); Wholesale trade sales month-over-month (April) Earnings: Casey's (CASY) Here are some of the biggest stories you may have missed overnight and early this morning: All eyes on AI as Apple takes the stage for WWDC A quieter summer is coming for stocks: Wall Street experts Hopes for US-China thaw as trade talks resume Senate GOP to lay out major revisions to Trump's tax bill Resilient economy to limit summer pullback in stocks: MS, Goldman Meta is set to throw billions at startup that leads in AI data China exports to US fall by most since 2020 despite tariff truce Here are some top stocks trending on Yahoo Finance in premarket trading: Robinhood (HOOD) stock fell 5% before the bell on Monday after the S&P Dow Jones Indices made no changes to the S&P 500 in its quarterly rebalancing. Tesla (TSLA) stock also dropped on Monday in premarket trading after CEO Elon Musk criticized President Trump's tax bill. Strategy (MSTR) stock rose on Monday by 2%. A SEC filing revealed the company had purchased 705 bitcoin during the period of May 26 to June 1 at an aggregate purchase price of $75.1M. Wall Street strategists are growing optimistic about US stocks, with forecasters at Morgan Stanley (MS) and Goldman Sachs Group (GS) the latest to suggest resilient economic growth would limit any pullback over the summer. Bloomberg reports: Read more here.
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Apple Researchers Just Released a Damning Paper That Pours Water on the Entire AI Industry
Researchers at Apple have released an eyebrow-raising paper that throws cold water on the "reasoning" capabilities of the latest, most powerful large language models. In the paper, a team of machine learning experts makes the case that the AI industry is grossly overstating the ability of its top AI models, including OpenAI's o3, Anthropic's Claude 3.7, and Google's Gemini. In particular, the researchers assail the claims of companies like OpenAI that their most advanced models can now "reason" — a supposed capability that the Sam Altman-led company has increasingly leaned on over the past year for marketing purposes — which the Apple team characterizes as merely an "illusion of thinking." It's a particularly noteworthy finding, considering Apple has been accused of falling far behind the competition in the AI space. The company has chosen a far more careful path to integrating the tech in its consumer-facing products — with some seriously mixed results so far. In theory, reasoning models break down user prompts into pieces and use sequential "chain of thought" steps to arrive at their answers. But now, Apple's own top minds are questioning whether frontier AI models simply aren't as good at "thinking" as they're being made out to be. "While these models demonstrate improved performance on reasoning benchmarks, their fundamental capabilities, scaling properties, and limitations remain insufficiently understood," the team wrote in its paper. The authors — who include Samy Bengio, the director of Artificial Intelligence and Machine Learning Research at the software and hardware giant — argue that the existing approach to benchmarking "often suffers from data contamination and does not provide insights into the reasoning traces' structure and quality." By using "controllable puzzle environments," the team estimated the AI models' ability to "think" — and made a seemingly damning discovery. "Through extensive experimentation across diverse puzzles, we show that frontier [large reasoning models] face a complete accuracy collapse beyond certain complexities," they wrote. Thanks to a "counter-intuitive scaling limit," the AIs' reasoning abilities "declines despite having an adequate token budget." Put simply, even with sufficient training, the models are struggling with problem beyond a certain threshold of complexity — the result of "an 'overthinking' phenomenon," in the paper's phrasing. The finding is reminiscent of a broader trend. Benchmarks have shown that the latest generation of reasoning models is more prone to hallucinating, not less, indicating the tech may now be heading in the wrong direction in a key way. Exactly how reasoning models choose which path to take remains surprisingly murky, the Apple researchers found. "We found that LRMs have limitations in exact computation," the team concluded in its paper. "They fail to use explicit algorithms and reason inconsistently across puzzles." The researchers claim their findings raise "crucial questions" about the current crop of AI models' "true reasoning capabilities," undercutting a much-hyped new avenue in the burgeoning industry. That's despite tens of billions of dollars being poured into the tech's development, with the likes of OpenAI, Google, and Meta, constructing enormous data centers to run increasingly power-hungry AI models. Could the Apple researchers' finding be yet another canary in the coalmine, suggesting the tech has "hit a wall"? Or is the company trying to hedge its bets, calling out its outperforming competition as it lags behind, as some have suggested? It's certainly a surprising conclusion, considering Apple's precarious positioning in the AI industry: at the same time that its researchers are trashing the tech's current trajectory, it's promised a suite of Apple Intelligence tools for its devices like the iPhone and MacBook. "These insights challenge prevailing assumptions about LRM capabilities and suggest that current approaches may be encountering fundamental barriers to generalizable reasoning," the paper reads. More on AI models: Car Dealerships Are Replacing Phone Staff With AI Voice Agents
