In partnership with

Greetings !

The theme of this week’s world famous News Haiku™ competition is that Venezuelan opposition leader Maria Corina Machado was awarded the Nobel Peace Prize for her fight for democracy in the country. I’ve already had one entry in Spanish.

Email me your entry by Thursday at noon Eastern for your chance to be voted winner by your Cheddar peers! (*We’re working on getting some cult status T-shirts made saying “I won the world famous News Haiku™ competition,” too…but it might, you know…take us a week or two, so no promises).

Now let’s talk about today’s news you Need2Know, shall we?

—Matt Davis, Need2Know Chedditor

News You Need2Know

• Wall Street rallies to recover some of Friday’s se …

• Nor’easter rocks the East Coast, Typhoon causes ha …

• Warner Bros. rejects Paramount’s takeover offer

• IRS releases new tax brackets for next year

• Nobel economics prize for “creative destruction” t …

What’s the stock market up to, eh?

$SPX ( ▲ 1.56% ) $DJI ( ▲ 1.29% ) $NDX ( ▲ 2.21% )

Companies mentioned in today’s newsletter

$AVGO ( ▲ 9.88% )  $PSKY ( ▲ 0.59% )  $WBD ( ▲ 3.98% )  $ORCL ( ▲ 5.14% )  $NFLX ( ▼ 0.09% )  $AMZN ( ▲ 1.71% )  $SPOT ( ▲ 0.99% )  

Wall Street rallies to recover some of Friday’s sell-off

After a turbulent Friday that saw Wall Street experience its worst trading day since April, U.S. stocks staged a strong rally on Monday. President Donald Trump’s more conciliatory tone toward China appeared to bolster investor confidence, easing some of the uncertainty that rattled markets just days earlier.

The S&P 500 $SPX ( ▲ 1.56% ) climbed 1.6%, regaining over half of Friday’s losses, while the Dow Jones Industrial Average rose 598 points $DJI ( ▲ 1.29% ) (1.3%), and the Nasdaq Composite surged $NASDAQ ( 0.0% ) 2.1%.

“Don’t worry about China,” Trump reassured on his social media platform Sunday, adding, “The U.S.A. wants to help China, not hurt it!!!”

This marked a stark shift from his earlier remarks accusing China of being “a moral disgrace” in its trade practices. On Friday, Trump had threatened severe tariffs on Chinese imports, a move that fueled market volatility. In response, China’s Commerce Ministry called for negotiations, asserting, “We do not want a tariff war but we are not afraid of one.”

Monday’s rebound also saw Broadcom $AVGO ( ▲ 9.88% ) shares jump 9.9% after announcing a major collaboration with OpenAI. My editor’s father was laid off by Broadcom around 2016. Let’s just say this did not have great consequences.

Song of the day: Amber Mark, ‘Let Me Love You’

“Let Me Love You” is a synthy, effervescent, bass-popping disco-funk track from a genre-busting talent. It’s made its way into my “Aug/Sep/Oct 2025” playlist already on Spotify, and that’s a high bar, ladies and gentle-cheddz. My editor has been listening to her since before she was cool, although this was also around the time her dad got laid off from Broadcom.

Nor’easter rocks the East Coast, Typhoon causes havoc in Alaska

A powerful nor’easter unleashed flooding, heavy rains, and high winds along the U.S. East Coast on Monday. Meanwhile remnants of Typhoon Halong wreaked havoc in western Alaska, sweeping homes off foundations and leaving communities in distress.

Here’s a picture I took of the street outside my church in Norfolk, Virginia on Sunday, three hours before high tide when there was 10 inches of flooding on the street, and I was safely indoors with a pump at the ready in our basement. We had a power cut in the evening:

Got an extreme weather shot of your own to share? Email me.

From the Carolinas to New England, coastal areas faced severe conditions. In New Jersey, Governor Phil Murphy issued a state of emergency, with similar action taken by New York Governor Kathy Hochul for southern counties. Winds gusting up to 60 mph battered Long Island, while New York City was placed under coastal flood warnings, canceling the Columbus Day parade in Manhattan. “This storm may not have a name, but it is causing some serious problems and disruptions along the coast,” said AccuWeather hurricane expert Alex DaSilva.

In Alaska, rescue efforts were underway in remote villages such as Kipnuk and Kwigillingok, where homes were swept away by floods. “We have received reports that people’s homes have floated away and that people were potentially in those homes,” said Jeremy Zidek of Alaska’s emergency management division. Governor Mike Dunleavy extended a disaster declaration, pledging support: “Help is on the way.”

With some coastal areas experiencing their highest tides in a decade, residents across affected regions have been urged to stay safe, monitor forecasts, and remain indoors.

Today on the ‘gram: Stylish

Post of the day: It’s a bit late now, Al…

Quote of the Day

Warner Bros. rejects Paramount’s takeover offer

Paramount's $PSKY ( ▲ 0.59% ) ambitious bid to acquire Warner Bros. Discovery $WBD ( ▲ 3.98% ) has sent shockwaves through Hollywood, signaling a potential game-changing merger. Backed by billionaire Larry Ellison of Oracle $ORCL ( ▲ 5.14% ) fame, the initial $20-per-share offer was quickly rejected by Warner Bros. Discovery’s board, according to insiders. Talks continue, with Paramount reportedly preparing a second bid.

David Ellison, Larry Ellison's 42-year-old son, has been driving Paramount's aggressive push for expansion since his family's purchase of the company’s controlling stake. “Ironically, it was (WBD chief) David Zaslav last year who said that consolidation in the media business is important,” remarked the younger Ellison during Bloomberg’s Screentime media conference, hinting at a broader trend in the industry.

Analysts are divided on the outcome of the proposed merger. While Paramount’s acquisition of Warner Bros. Discovery could give it the firepower to compete against tech giants Netflix $NFLX ( ▼ 0.09% ) and Amazon $AMZN ( ▲ 1.71% ) , Warner Bros.’ recent hits — including “A Minecraft Movie” and James Gunn’s “Superman” — highlight the studio’s current strength. Despite Paramount’s determination, Warner Bros. Discovery faces staggering debt, and some analysts believe consolidation could prove beneficial.

Should you check your 401(k) today?

👍️ 

Yes. See above about it being back up again.

IRS releases new tax brackets for next year

The IRS has announced new tax brackets for 2026, making annual adjustments to ease the burden of inflation. This practice, known as “inflation indexing,” prevents taxpayers from being pushed into higher brackets due to rising wages. The changes mean taxpayers will keep more of their income before moving to higher tax rates. Here are those brackets for married couples filing jointly:

Additional relief might be on the way for seniors, thanks to the One Big Beautiful Bill Act, which temporarily offers a $6,000 tax deduction for those aged 65 and older. It’s “helping some American taxpayers avert a scheduled tax increase,” the IRS explained.

Nobel economics prize for “creative destruction” theory

The Nobel Memorial Prize in Economic Sciences celebrates three economists who have profoundly shaped our understanding of innovation and its role in driving economic growth. Joel Mokyr, Philippe Aghion, and Peter Howitt were honored for their groundbreaking work on "creative destruction" — a concept that explains how new innovations and technologies replace older ones to spark economic growth, improving human welfare.

“Aghion and Howitt’s work shows that economic growth cannot be taken for granted. We must uphold the mechanisms that underlie creative destruction so that we do not fall back into stagnation,” said John Hassler, chair of the committee for the prize. The economists’ models explored how innovation sustains growth while also examining its societal impacts, such as job disruption.

Mokyr emphasized the vast benefits of new technologies, describing them as "astonishing" despite their economic impact being tough to quantify. He referenced services like Spotify $SPOT ( ▲ 0.99% ) , which provide immense value beyond traditional economic measurements. Yet, he also acknowledged the challenges of innovation, including the short-term job losses associated with technological progress. If you ask musicians what they think of Spotify’s payment structure, they’ll also tell you it’s sub-optimal.

The laureates' work highlights the balance between embracing innovation and helping workers adapt. “We have to wake up,” Aghion urged, stressing the importance of fostering innovation to remain globally competitive.

Poll of the day: Nosing into your tax affairs

Poll results:

We asked: “Are you ready for androids?”

You answered:

🟨⬜️⬜️⬜️⬜️⬜️ Heck yes. I need help with these dishes. (65)

 🟩🟩🟩🟩🟩🟩 Heck no. I saw Terminator 2. (334)

 🟨⬜️⬜️⬜️⬜️⬜️ The real question is: Are the androids ready for me? (115)

514 Votes

via @beehiiv polls

Need2Know is covered by Cheddar’s Terms of Service.