October 15, 2026

Presented By

Hi there. Sci-fi did not adequately prepare us for this moment. When we pictured having to make our way through an AI simulation to get a job, we assumed there would be a lot more impressive martial arts and a lot less imagining you’re in a conference room in a suburban Ohio office park. But, according to the Wall Street Journal, McKinsey is now using an AI avatar trained to behave like a client as part of the hiring process for some junior roles. And not even a particularly demanding and difficult client, just the kind they’re likely to encounter most days, so it’s not even like pretending to take on a final boss.

—Dave Lozo, Molly Liebergall, Sam Klebanov, Holly Van Leuven, Abby Rubenstein

In today’s newsletter, we’ll get into:

Inflation heating up last month
Layoffs at Netflix
Mark Zuckerberg’s attempt to drink a beer

Markets

Nasdaq

26,692.87

-1.88%

S&P

7,718.94

-1.11%

Dow

51,621.48

-0.09%

10-Year

5.190%

-3.0 bps

Bitcoin

$81,636.15

-2.19%

Dell

$507.93

-11.27%

Data is provided by

*Stock data as of market close, cryptocurrency data as of 6:00pm ET. Here's what these numbers mean.

Markets: Some do not like it hot: Stocks fell yesterday, after inflation data from last month came in hotter than expected (more on that below). Dell shares dipped yesterday after analysts downgraded the stock amid AI spending fears, dragging other data center-related stocks down with it.

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STEP ON THE GAS

Inflation worsens as midterms and Fed meeting near

Illustration of a gas station sign showing Regular Unleaded and Diesel fuel prices but with an arrow exploding out the top of the sign as it rises higher and higher.

Nick Iluzada

For the sixth straight month, inflation outpaced wages. That’s just one of many data points from the Labor Department’s latest piping-hot inflation report that dropped yesterday, with the Federal Reserve’s next rate-setting meeting and the midterm elections just weeks away.

Top-line inflation for September rose 3.7% from a year ago and came in above economists’ expectations. The core consumer price index, which strips out food and energy, also exceeded forecasts, climbing 2.6% on an annual basis.

Energy costs, driven up by the war in Iran, appear to be starting to flow into other areas:

Gasoline prices surged 9.1% between August and September and were up 34% over the previous year. The cost of heating oil, which is very similar to diesel fuel, has skyrocketed 74% compared with the same time period a year ago.
Transportation costs are up 0.6%. Food prices remained flat, but experts are wary that businesses will pass on higher shipping expenses to consumers by increasing food prices, something PepsiCo said last week it will do with its snacks and sodas.

The AI buildout has also led to an increase in the cost of chips and semiconductors, which led to a 9.7% rise in the price of computers, peripherals, and smart home assistants compared to a year ago. A Goldman Sachs report this week estimated that the buildout is responsible for nearly half a percentage point of the annual inflation rate.

How will the Fed and voters react? The odds of Fed Chair Kevin Warsh announcing a quarter-point interest rate increase when the Federal Open Market Committee convenes on Oct. 27 and 28 went from 22% to 35% after the inflation data was released, per FedWatch. But raising borrowing costs might have little effect on the buildout of AI hyperscalers working toward huge profits in the future. Meanwhile, affordability is considered a major issue for voters ahead of the midterms taking place on Nov. 3, which could make it harder for Republicans to hang on to power.—DL

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World

Tour de headlines

Satellite view of the Strait of Hormuz from March 2026.

Getty Images

🌍 Ship sinks as Iran ramps up Hormuz attacks. A container ship registered in Singapore sank in the Strait of Hormuz yesterday after being hit by a projectile and catching on fire. The ship’s crew members are safe, officials said, and Iran said the ship hit a naval mine. Iran has stepped up attacks on commercial vessels in the vital waterway for trade—and the New York Times reports there were about the same number of attacks last week as in all of last month. The added danger has been driving up shipping costs, with shipbroker Gibson estimating last week that it currently costs more to hire an oil tanker from the US to China (~$80 million) than to launch a rocket into space (about $74 million to launch a SpaceX Falcon 9).

🏦 Bank of America had a bad day. It was never going to be an easy job to deliver an earnings report the day after news broke that the bank had been fined $1.2 billion for anti-money laundering lapses—the biggest fine ever issued by the Office of the Comptroller of the Currency. CEO Brian Moynihan tried to reassure investors that BofA is “far along with and committed to completing the work required to be addressed by the regulators.” But the large fine cut into the bank’s profits, and fixed income and equities trading revenue missed estimates. All told, the bank’s stock fell more than 8% yesterday before paring some of its losses to close nearly 5% down.

📼 SCOTUS considers what a law written for Blockbuster Video means today. The Supreme Court heard oral arguments yesterday about how a law requiring the protection of customer video-viewing habits applies now—and the “Be Kind Rewind”-era legislation may impact how companies can target you with ads online. Congress passed the Video Privacy Protection Act in 1988, after Supreme Court nominee Robert Bork’s video rental history made it into the (physical) newspaper (though it’s not why Bork’s nomination was unsuccessful). In the current case, a plaintiff is claiming its restrictions mean Paramount shouldn’t have sold his streaming data to Facebook to create targeted ads, and, according to SCOTUSblog, the justices appeared inclined to let the suit move forward.—AR

ARE YOU STILL WATCHING?

Netflix commences largest layoffs in years

a photo of the Netflix office, a gray modern building with the company's name in red above it

Chris Delmas/Getty Images

In a way, “Charlie bit my finger” led to this. Amid slowing growth and heightened competition from platforms like YouTube, Netflix is cutting 6% of its workforce—its largest layoff since 2022, the Wall Street Journal reported yesterday.

Roughly 1,000 people globally will lose their jobs, mostly in product, tech, legal, and HR, according to the WSJ (though several executives are reportedly also out). “Our mission—to entertain the world—is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” co-CEOs Greg Peters and Ted Sarandos told employees in an email.

Though Netflix boasts the most subscribers of any streamer, engagement and revenue growth are both slowing, as TikTok, Instagram, and other apps steal users’ attention. YouTube surpassed Netflix in average daily viewing across 20 international markets last year, per an analysis by the Digital i agency.

What to do?

Netflix has tried investing in live events, sports, games, kids’ programming, short-form creator content, and video podcasts.
It’s also pulled users’ favorite moves: raising subscription prices and expanding ad tiers to more countries.

There’s a new threat: Acquiring Warner Bros. Discovery’s streaming and studio business could’ve been a major lifeline for Netflix, but it lost that bidding war to Paramount Skydance. Now, the newly formed Skydance conglomerate’s massive budget and IP treasure chest “threatens Netflix the most,” a Needham analyst wrote in a note cited by Yahoo Finance.—ML

“Cannot be a coincidence”

Beskrestnov said the throttling of the Pentagon-backed system—which Ukraine’s military uses to guide drones and interceptor missiles to deflect attacks—came without warning, and was influenced by “the current political situation.”

In recent weeks, President Trump has pressured Ukraine to stop striking Russia’s energy facilities, suggesting that the attacks push up global energy prices. Musk seconded the sentiment over the weekend, saying “Zelensky has gone too far.”
On Saturday, Trump announced a pause in strikes on energy infrastructure, which Zelensky told Axios Ukraine would accept as long as Russia reciprocates.

But Russia is already ramping up attacks on Ukraine’s energy facilities. Russian strikes killed at least 10 people and injured dozens, and left 600,000 without power yesterday, per Ukrainian officials.

Meanwhile…Ukrainian officials said this week that the US military didn’t provide advance warning about two Russian attacks, interpreting it as a sign that the US is scaling back intelligence sharing, which Trump denied.—SK

MOLLY EXPLAINS THE INTERNET

Mark Zuckerberg fumbled a sip of Guinness

Screenshot from a video interview set in a pub showing Mark Zuckerberg just after he took a swig of Guinness, swishes it around in his mouth, and then looks a bit like he's going to throw up.

@soundmigration via X

The online world can be a beautiful yet confusing series of tubes. On Thursdays, the Brew’s Molly Liebergall untangles them for you.

Another uncanny encounter between Mark Zuckerberg and human foodstuff just dropped. The Meta CEO appeared on this week’s episode of Cheeky Pint, a hangout-style podcast hosted by Stripe’s co-founder, but the internet couldn’t hear anything anyone said about Meta’s AI plans and new Muse agent over the sight of Zuck drinking a Guinness.

In a clip of the moment with 14+ million views on X, Zuckerberg—sitting next to Meta’s chief AI officer Alexandr Wang—appears to take a sip, swish the stout around, wince, and swallow against his will while trying to appear chill about the whole thing. Online commenters said it looked like he was chewing Guinness, or that he was pretending to enjoy it. “That’s just my face,” Zuck later responded.

Meanwhile, Zuck’s perceived struggle with the culturally dominant dark beer drowned out some revelations from his 134-minute episode, including that he approved $100 billion–$200 billion for Muse before seeing any results. Though at least some of what was said about Muse got attention: “The longer version of this clip is hilarious because of the Muse use cases they brag about,” including feeding Muse sparring footage from Zuck’s home MMA gym, something that’s “very relatable,” Pod Save America co-host Tommy Vietor posted on X.—ML

Reader Poll

Do you share Mark Zuckerberg’s apparent distaste for Guinness?

Yes, it’s bitter.
No, I am a huge fan and an expert G-splitter.
I used to, but I have acquired a taste for it.
I like other beers, but I haven’t tried it.
I don’t drink.

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News

What else is brewing

Apple closed with a market cap above $5 trillion yesterday, hitting the milestone despite it being a rough day for other AI companies.
Social Security recipients will get a 3.6% cost-of-living boost next year. Because of high inflation, it’s the biggest raise since 2023.
New York City lawmakers reached a deal to pass legislation banning horse-drawn carriages from Central Park, after 150 years of carriage rides through the park and lots of controversy over safety and the animals’ welfare.
Prosecutors are seeking life in prison for former luxury real-estate brokers Tal and Oren Alexander and their brother Alon, following their conviction for sexual assault of multiple women.
Tesla is scheduled to unveil its long-awaited (and long-delayed) Roadster tonight.

recs

A map of the most expensive zip code in every state.
The video footage of Kelly Clarkson’s animatronic bird incident, in case anyone asks if you’ve seen it.
It’s time to level up your Star Wars reenactments if you’ve got some spare millions.
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Play

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Three Headlines and a Lie

Three of these headlines are real and one is faker than your excuse for missing that party last weekend. Can you spot the odd one out?

Palantir CTO says some AI researchers are taking up smoking because they expect AI to cure cancer
Dead end for realtors: Sales of homes on cul-de-sacs are down 45% in 2026
Mr. Sparklepants and 29 flamingo friends rode out Isaias in the bathroom
Pool man sacked for ‘inadvertently’ making mustard gas

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Answer

We made up the one about cul-de-sacs.

Word of the Day

Today’s Word of the Day is: throttling, meaning “reducing the speed of something via regulation.” Thanks to Jacobo Villegas from Los Angeles for a suggestion we were quick to choose. Submit another Word of the Day here.

✢ A Note From Infinity Fuel

This is a paid advertisement for Infinity Fuel Cell and Hydrogen, Inc.’s Regulation Crowdfunding offering. Please read the offering circular at invest.infinityfuel.com. Forward-looking statements were included here that the Company believes to be accurate given the current information. Past performance is not indicative of future results.

Written by Abigail Rubenstein, Dave Lozo, Molly Liebergall, Sam Klebanov, and Holly Van Leuven

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