Market Beats | White House Says Oracle to Secure and Rebuild US TikTok Algorithm; Crypto Market Hit by $1.5B Liquidations; Oracle Names Co-CEOs as Safra Catz Steps Down; Indian IT Stocks Drop as Trump Imposes $100,000 H-1B Visa Fee; Nvidia Plans Up to $100B Investment in OpenAI for AI Infrastructure; CVS Subsidiary Omnicare Files for Bankruptcy After $949M Judgment

—— White House Says Oracle to Secure and Rebuild US TikTok Algorithm; Crypto Market Hit by $1.5B Liquidations; Oracle Names Co-CEOs as Safra Catz Steps Down; Indian IT Stocks Drop as Trump Imposes $100,000 H-1B Visa Fee; Nvidia Plans Up to $100B Investment in OpenAI for AI Infrastructure; CVS Subsidiary Omnicare Files for Bankruptcy After $949M Judgment

1. White House Says Oracle to Secure and Rebuild US TikTok Algorithm

Oracle Corp. will take on the responsibility of recreating and securing a new US version of TikTok’s recommendation algorithm under a pending deal to sell the app to American investors, a White House official said Monday. The plan seeks to resolve a central concern in Washington — ensuring that TikTok’s US operations are fully controlled by domestic owners after a divestiture by ByteDance Ltd.

Under the proposal, US TikTok would lease a copy of the algorithm from ByteDance, but Oracle would retrain it “from the ground up,” operate it independently, and continuously monitor it for manipulation or surveillance. Data from US users would be housed in an Oracle-run secure cloud with safeguards to block foreign access. ByteDance would have neither visibility into American subscriber data nor authority over the US algorithm. “Oracle, the U.S. security partner, will operate, retrain, and continuously monitor the U.S. algorithm to ensure content is free from improper manipulation or surveillance,” a Q&A accompanying the remarks said.

TikTok’s algorithm has been a sticking point in negotiations. US law requires ByteDance to play no operational role in the American app, while Chinese regulations restrict the export of sensitive technology. Whether lawmakers will accept the proposed structure — and whether a complete separation from ByteDance is technically feasible — remains unclear.

The official added that Oracle will work with the US government on everything from algorithm retraining to app development and source code review, though the scope of government oversight has yet to be defined.

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2. Crypto Market Hit by $1.5B Liquidations

Cryptocurrency markets saw more than $1.5billion in bullish bets wiped out on Monday, sparking a steep selloff that sent Ether and other tokens tumbling.

Coinglass data showed nearly $500million of leveraged Ether long positions were liquidated, pushing the second-largest token down as much as 9% to $4,075. Bitcoin fell 3% to $111,998, while Solana, Algorand and Avalanche also declined. It was the biggest wave of liquidations across digital assets since March 27.

The surge in liquidations comes after listed firms that stockpile tokens helped drive Bitcoin and Ether to record highs in August. That momentum has waned as shares of companies like Michael Saylor’s MicroStrategy and Japan’s Metaplanet Inc. retreated. “It feels like the market needs a breather, with some participants worried the so-called DAT trade is losing steam and inflows have dried up,” said George Mandres, senior trader at XBTO Trading.

Funding rates for Ether perpetual futures have turned negative, reaching their lowest since last year’s yen carry trade unwind, according to CryptoQuant. This indicates short sellers are in control, paying longs to maintain positions. Bitcoin has largely stayed in a $110,100 to $120,000 range since early July, with subdued volatility, while Ether and Solana have outperformed with gains of 74% and 52% respectively over that period.

More than 407,000 traders saw positions closed in 24 hours, dragging the overall crypto market capitalization below $4trillion, according to CoinGecko.

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3. Oracle Names Co-CEOs as Safra Catz Steps Down

Oracle announced Monday that Safra Catz will step down as chief executive, with the software group appointing two executives — Clay Magouyrk and Mike Sicilia — as co-CEOs. Catz, who has led the company since 2014, will transition to executive vice-chair of the board.

Magouyrk, 39, heads Oracle’s data center operations and joined from Amazon in 2014. Sicilia, 51, oversees the applications division. The leadership change comes just over a week after Oracle’s latest earnings report highlighted surging demand for its data center infrastructure from AI start-ups and large technology companies.

“Safra led Oracle as we became a hyperscale cloud powerhouse — clearly demonstrated by our recent results,” said Larry Ellison, Oracle’s chair and largest shareholder. “As vice-chair, she and I will continue our 26-year partnership guiding Oracle’s growth and direction.”

Oracle’s shares have gained more than 80% this year, as investors reward the company’s transformation from a traditional business software provider into a major cloud player. The rally even briefly pushed Ellison past Elon Musk to become the world’s richest person earlier this month.

Catz oversaw Oracle’s shift to cloud computing, winning significant contracts with AI firms such as OpenAI, which use Oracle’s servers to train large language models.

Oracle also announced further management changes: Mark Hura, head of North America sales, will lead global field operations, while Doug Kehring, executive vice-president of operations, will take on the role of chief financial officer.

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4. Indian IT Stocks Drop as Trump Imposes $100,000 H-1B Visa Fee

Shares of Indian IT service firms fell sharply Monday after US President Donald Trump announced a $100,000 fee for H-1B visa applications, a move that threatens disruption for one of India’s most successful export industries.

The Nifty IT index slid 3% in Mumbai, with Tata Consultancy Services down 3%, Infosys falling 2.6%, Wipro off 2.2% and HCLTech losing 1.9%. India’s tech services sector, which generates $283billion in annual revenues, relies heavily on the H-1B program to deploy staff to US client projects. Indian nationals account for more than 70% of H-1B holders.

“This sudden fee hike has sparked confusion and panic among tech companies and international workers,” said Devarsh Vakil, head of research at HDFC Securities in Mumbai. “The cost of sending Indian professionals onsite for new assignments in the US will soar, making such deployments less viable financially.”

Critics of the program, including Trump, argue that H-1B visas allow companies to undercut American workers by hiring cheaper Indian staff. Supporters, such as Tesla CEO and Trump donor Elon Musk, credit the program with sustaining US technology leadership.

The announcement triggered travel disruptions over the weekend as Indian professionals rushed back to the US or canceled holiday plans. The White House later clarified that the new rules would apply only to new applications filed in the next lottery in February, not to current visa holders.

The move is expected to further strain ties between Washington and New Delhi. Trump has already levied a 50% tariff on Indian goods, citing the country’s trade in Russian oil. India’s foreign ministry warned the visa change is “likely to have humanitarian consequences” by disrupting families.

Both Indian and US companies are among the largest users of the program. TCS is the second-largest corporate sponsor of H-1B petitions, while thousands of employees at Amazon, Microsoft and Apple also rely on it.

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5. Nvidia Plans Up to $100B Investment in OpenAI for AI Infrastructure

Nvidia Corp. said Monday it will invest as much as $100billion in OpenAI to fund the development of new data centers and infrastructure required to handle artificial intelligence workloads.

“To support this deployment, including data center and power capacity, Nvidia intends to invest up to $100billion in OpenAI as the new Nvidia systems are deployed,” the company said.

The company announced in a statement that it has signed a letter of intent for a strategic partnership with OpenAI.

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6. CVS Subsidiary Omnicare Files for Bankruptcy After $949M Judgment

Omnicare Inc., a pharmacy-services unit of CVS Health Corp., has filed for Chapter 11 bankruptcy in Texas after being ordered to pay $949million over allegations it improperly dispensed prescription drugs to long-term care patients.

Court filings Monday show Omnicare and affiliates listed at least $100million in assets and between $1billion and $10billion in liabilities. The $949million civil judgment is recorded as its largest unsecured debt, though the company is contesting the ruling.

The company secured $110million in debtor-in-possession financing to support operations during bankruptcy. Combined with ongoing cash flow, Omnicare said the funds will provide sufficient liquidity to meet obligations while it explores restructuring options or a potential sale. The Chapter 11 filing is also expected to pause government efforts to collect the judgment.

The move follows reports that Omnicare was working with Alvarez & Marsal Inc. to address cash flow and operational pressures. In August, a federal judge rejected Omnicare and CVS’s bid to overturn the jury verdict. The case stemmed from a 2015 whistleblower lawsuit by a former pharmacist in New Mexico, with the US government joining in 2019.

Omnicare stressed it “remains fully focused” on serving long-term care facilities and residents, assuring that customers and patients will continue to receive uninterrupted pharmacy and clinical services.

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7. Porsche Cuts Forecast as EV Launches Delayed

Porsche AG lowered its outlook for the year, warning of a €1.8billion ($2.2billion) hit to operating profit as it postpones new electric vehicle rollouts and opts to continue offering combustion and hybrid drivetrains. The sports-car maker now expects a return on sales of up to 2% for the 2025 financial year, down from its previous range of 5% to 7%. Its American depositary receipts dropped 3.3%.

A new line of SUVs originally planned as fully electric will instead debut with combustion and hybrid options, the company said. The decision underscores mounting pressure on Europe’s auto industry, which faces weakening EV demand despite years of heavy investment in electrification. Porsche is also grappling with headwinds from US tariffs and a slowdown in the Chinese market.

As a result of Porsche’s revised strategy, parent company Volkswagen AG also cut its operating margin forecast for this year to between 2% and 3%, from as high as 5% previously.

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