The US financial and political landscape saw significant developments on Wednesday, ranging from court interventions during the ongoing government shutdown to positive momentum in corporate and sovereign markets.
Key updates include a federal judge blocking Trump administration layoffs, Tesla’s stock rebound ahead of its Q3 earnings, regulatory approval for a new tech-focused bank, renewed US financial support for Argentina, and broader market movements amid mixed economic signals.
Judge blocks Trump administration from federal worker layoffs
A federal judge in San Francisco temporarily blocked the Trump administration from proceeding with layoffs of federal employees during the ongoing government shutdown.
The ruling came five days after more than 4,000 federal workers received reduction-in-force notifications.
Judge Susan Yvonne Illston criticized the administration’s actions, stating they were “contrary to the laws” and potentially targeted at programs favored by Democrats.
Two unions representing tens of thousands of federal employees had petitioned the court to halt the layoffs.
The ruling arrives as the government shutdown enters its 15th day, with Congress failing to pass a stopgap funding bill for the ninth time.
The decision underscores judicial oversight of executive actions that affect the livelihoods of federal workers.
Tesla stock rebounds ahead of Q3 earnings
Tesla shares rose over 1% on Wednesday after a decline the previous day, as investors focus on the company’s upcoming Q3 earnings report on October 22.
Strong September deliveries in China, totaling 71,525 vehicles—a 25% increase from August—helped fuel optimism despite a seven-month streak of year-over-year declines in the region.
Record US deliveries, which approached 497,100 vehicles, and ongoing interest in Tesla’s AI and autonomous driving technology are further supporting bullish sentiment.
Analysts, including Piper Sandler, raised price targets to $500, citing Tesla’s leading position in AI-powered vehicles and infrastructure.
Erebor Bank receives regulatory approval
US regulators granted preliminary approval for Erebor, a new bank founded by Silicon Valley figures Palmer Luckey and Joe Lonsdale, aiming to serve tech startups, crypto firms, and AI-driven companies.
The approval, issued just four months after the bank filed for a national charter, reflects the Trump administration’s efforts to encourage new entrants in the technology and digital asset sectors.
Erebor is backed by $275 million in capital and will operate digitally through mobile and online platforms.
Co-CEOs Jacob Hirshman and Owen Rapaport, along with President Mike Hagedorn, will oversee operations, with the bank positioned as a conservative, stable alternative for the “innovation economy.”
US extends financial support for Argentina
Treasury Secretary Scott Bessent confirmed that the US purchased Argentine pesos again in the open market, while planning a $20 billion facility to invest in Argentina’s sovereign debt.
Together with a $20 billion currency swap line, this brings total US support for the South American nation to $40 billion.
The support is intended to back sound policy rather than political outcomes, according to Bessent, and has already prompted gains in Argentine bonds and the peso.
However, short-term interest rates surged to a record 170%, raising concerns about credit availability and broader economic activity.
US markets mixed amid earnings and economic signals
The S&P 500 rebounded 0.4%, led by strong earnings reports from Bank of America and Morgan Stanley, while the Dow Jones Industrial Average fell by 0.04%.
The Nasdaq Composite advanced 0.66%, although Nvidia, an AI-focused stock, slipped 0.09% after earlier gains.
Investor sentiment continues to be influenced by government shutdown uncertainty, trade tensions with China, and upcoming corporate earnings reports.
The Cboe Volatility Index (VIX) rose to 20.7, reflecting elevated market nervousness.
The post US digest: Judge blocks federal layoff, Tesla rebound, regulators approve Erebor Bank appeared first on Invezz