Welcome to Markets Desk, your midday read on what's moving markets and why.
The Trump administration has suspended Microsoft, Adobe, and several Indian tech giants from the PERM labor certification program, which companies use to sponsor foreign workers for green cards. Vice President JD Vance singled out Microsoft as the worst offender, reigniting a sharp debate over whether tightening skilled immigration protects American workers or quietly hollows out the tech sector's talent pipeline.
Shifting to macro, Ray Dalio is raising a flag that deserves attention. The Bridgewater founder warns that strong corporate earnings have been absorbing the pressure from rising bond yields, acting as a buffer between equity valuations and a more hostile rate environment. But Dalio says that cushion is thinning as free cash flow shows signs of softening, and when earnings stop doing the heavy lifting, stocks become far more exposed.
Meanwhile, European equities are pointing higher heading into Friday's open, even after Wall Street took a notable hit overnight. The Nasdaq logged its steepest single-session decline since mid-August, driven by renewed anxiety over whether the artificial intelligence spending boom can sustain its current pace. U S futures have since nudged upward, suggesting traders are not fully convinced the selloff has further to run.
That's the tape. Markets Desk, signing off the floor.
