Market Beats | Why Many American Retirees Are Afraid to Spend Their Savings; Schwab Earnings Beat Estimates; CoreWeave Credit Risk Hits Record; Trump Blocks Livestream of Hasan Execution After Bipartisan Backlash; US Producer Prices Rise Most in Four Years; Anthropic Reports $16.8 Billion in Quarterly Revenue; US Grocery Prices Face Fresh Inflation

—— Why Many American Retirees Are Afraid to Spend Their Savings; Schwab Earnings Beat Estimates; CoreWeave Credit Risk Hits Record; Trump Blocks Livestream of Hasan Execution After Bipartisan Backlash; US Producer Prices Rise Most in Four Years; Anthropic Reports $16.8 Billion in Quarterly Revenue; US Grocery Prices Face Fresh Inflation

1. Why Many American Retirees Are Afraid to Spend Their Savings

Retirement is often seen as a time to enjoy the rewards of decades of work and saving. Yet for many older Americans, spending money on leisure has become a source of anxiety. Recent surveys suggest that even retirees with substantial investable assets can struggle to use their savings for enjoyment, largely because they fear running out of money before the end of their lives.

In a survey by Prudential Financial, more than 60% of retirees with at least $500,000 in investable assets said they were uncomfortable spending money for enjoyment. Separately, more than half of 1,000 respondents surveyed by TIAA identified their biggest retirement concern as “running out of money before they die.”

The findings do not necessarily signal a new wave of frugality. Instead, they reflect deep concerns about longevity and financial security. Living costs are rising across many categories, with healthcare particularly burdensome. Medical expenses can consume an increasing share of retirees’ budgets as they grow older.

Uncertainty over the future of Social Security adds to the pressure. Benefits could face a 22% reduction in six years, according to projections cited in the discussion of the program’s finances. At the same time, healthier Americans may live longer, requiring their savings to cover more years of retirement expenses.

Retirees are caught between two competing fears, said David Blanchett, head of retirement research at Prudential Financial: FOMO, or the fear of missing out on enjoying retirement, and FORO, the fear of running out of money.

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2. Schwab Earnings Beat Estimates

Charles Schwab Corp. posted stronger-than-expected third-quarter earnings as retail investors continued to pour money into the stock market, but weaker bank deposits and net interest margin weighed on the results.

The brokerage reported adjusted diluted earnings per share of $1.69 and net income of $3.02 billion for the quarter. Both figures exceeded the average estimates in a Bloomberg survey, which called for earnings of $1.65 a share and adjusted net income of $2.87 billion.

Chief Executive Officer Rick Wurster told analysts on a conference call Thursday that the company’s long-standing strategy of serving clients across different account sizes had stood the test of time and was driving record performance and growth.

Still, some key metrics fell short of expectations. Bank deposits totaled $244.1 billion in the third quarter, below the $250.7 billion forecast by Wall Street analysts. Net interest margin came in at 3.04%, missing the 3.09% estimate. Chief Financial Officer Mike Verdeschi said the company expects revenue growth and full-year net interest margin to land toward the lower end of its expected ranges.

Schwab shares fell 5.4% at 9:33 a.m. in New York, bringing their decline for the year to 8.2%.

Like other firms serving retail investors, Schwab is also navigating the impact of artificial intelligence on consumer financial services. AI could make financial information more accessible to consumers, while potentially disrupting traditional advisory services offered by Schwab and its competitors. The firm has responded in part by introducing Charley, an AI-powered assistant designed to help customers interact with the company.

Wurster said during the call that Schwab is blocking unauthorized agents from accessing customer accounts “to protect clients and our firm.”

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3. CoreWeave Credit Risk Hits Record

Growing concerns over the cost of financing artificial intelligence infrastructure are putting pressure on CoreWeave Inc. The AI cloud-computing company’s credit risk surged to a record high Thursday as its high-yield bonds extended their losses, with investors unsettled by plans to increase borrowing.

The cost of protecting CoreWeave’s debt against default for five years rose as much as 74.5 basis points to 1,194.5 basis points, according to ICE Data Services. The level marked a record intraday high, with credit-default swaps pricing in a greater than 60% probability of default over the next five years.

CoreWeave’s bonds were also among the biggest decliners in the US junk-bond market on Thursday. Its 9% notes due in 2031 fell about 3.3 cents on the dollar to 79.9 cents as of 9:38 a.m. in New York, lifting the yield to 15.6%, according to TRACE data. Its 9.75% bonds due the same year dropped about 2.6 cents to roughly 78.65 cents, pushing the yield to 16.2%.

The selloff followed comments from CoreWeave co-founder Brannin McBee in an interview with the Financial Times published Wednesday. McBee said the company aims to secure an investment-grade credit rating and gain access to what he described as “unlimited” pools of borrowing.

The broader rush to finance AI infrastructure is unsettling debt investors and prompting a reassessment of credit risk across some of the largest technology companies. The shift is showing up in rising costs for credit protection, increased market volatility and weaker bond performance.

CoreWeave is attracting particular scrutiny because it was an early entrant in AI cloud computing and has relied heavily on high-yield debt to fund its infrastructure expansion. As the company looks to borrow more, investors are increasingly focused on the implications for its financing costs and credit profile.

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4. Trump Blocks Livestream of Hasan Execution After Bipartisan Backlash

President Donald Trump has rejected a plan to livestream the execution of Nidal Hasan, a former Army major who killed 13 people in 2009, overruling Defense Secretary Pete Hegseth after the proposal drew intense criticism from both parties.

Trump said Thursday that Hasan’s execution would proceed as scheduled, but that only the victims’ immediate families may attend in person. “But this event will not be livestreamed,” he said.

In a social media post, Trump said broadcasting the execution might serve as a deterrent by showing the world how the US deals with terrorists. He added, however, that many well-intentioned people would prefer not to watch Hasan die, whether through a livestream or another visual medium.

Hegseth announced last week that Hasan would be executed by firing squad on Dec. 3 and that the process would be broadcast publicly. The plan prompted widespread objections. The US ended public executions decades ago, and critics argued that televising the killing of Hasan, who is confined to a wheelchair, could make the country appear barbaric while providing extremist groups with a propaganda victory.

Hasan opened fire at Fort Hood in Killeen, Texas, in November 2009, killing 13 people and wounding more than 30 before he was shot in the back and subdued.

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5. US Producer Prices Rise Most in Four Years

Rising energy costs are feeding through the US economy, pushing producer prices higher at their fastest pace in more than four years. September’s inflation readings exceeded market expectations across both headline and underlying measures, suggesting price pressures remain firm as fuel costs climb.

The producer price index rose 1.3% from the previous month, the biggest increase since March 2022, and 6.3% from a year earlier, according to data released Thursday by the Bureau of Labor Statistics. Excluding food and energy, core producer prices increased 0.7% on the month and 5% from a year earlier. All four readings came in above every estimate in a Bloomberg survey.

The report points to persistent inflation beyond the immediate impact of higher fuel prices. With US midterm elections approaching in November and affordability a central concern for voters, the latest figures add to the economic and political pressure surrounding the cost of living. A separate report released Wednesday also showed a key measure of consumer prices rising more than expected in September, potentially reinforcing expectations that Federal Reserve officials will consider further interest-rate increases in the months ahead.

For policymakers, a key question is whether the energy shock is spreading to the prices of other goods and services. Energy prices rose 10.8% in September, while transportation and warehousing prices climbed 3.4%, their biggest increase since April. Food prices advanced 1.2%.

Higher transportation costs can ripple through supply chains, as raw materials and other manufacturing inputs are shipped to factories and finished goods move from producers to wholesalers and retailers.

US Treasuries remained higher and stock futures lower following the release.

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6. Anthropic Reports $16.8 Billion in Quarterly Revenue

As investor scrutiny of the AI trade intensifies, Anthropic is seeking to demonstrate that its growth and profitability can support a blockbuster initial public offering. The company’s latest figures show revenue continuing to climb, although its pace of expansion has slowed from the breakneck growth seen earlier this year.

Anthropic told investors that third-quarter revenue reached $16.8 billion, up nearly 50% from $11.5 billion in the three months through June, according to the Financial Times. The company also said it was profitable on an adjusted basis for a second consecutive quarter, people familiar with the matter said.

The figures were presented during a full day of investor meetings at Anthropic’s San Francisco office on Wednesday. Executives outlined how the company’s safety-focused approach, rapid expansion and efficiency gains could help position it for a successful IPO planned for November.

Still, the latest growth rate represents a slowdown from earlier in the year. Revenue more than doubled between the first and second quarters, rising from about $4.8 billion to $11.5 billion. The more moderate increase in the third quarter was below the expectations of some investors and analysts.

Anthropic did not provide an updated annualized revenue figure. Its annualized revenue had reached $65 billion at the end of July. Research firm SemiAnalysis estimated that the latest results implied an annualized revenue run rate of roughly $74 billion.

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7. US Grocery Prices Face Fresh Inflation

American households that rely primarily on heating oil are facing significantly higher energy costs this winter. The US Energy Information Administration (EIA) expects heating bills for these households to rise about 21% from last winter.

The forecast adds to the energy-cost pressures facing the Trump administration. With the midterm elections just four weeks away, Republicans are expected to face voter dissatisfaction over higher gasoline, electricity and other energy costs.

Heating oil prices are closely linked to diesel, which has surged as the US-Iran war and Ukrainian drone strikes on Russian refineries have tightened fuel supplies.

The EIA expects heating oil prices across the US to rise about 30% this winter from a year earlier. However, milder weather in the Northeast is expected to partially offset the impact on household bills, as homeowners may consume less fuel.

About 3% of US households primarily rely on heating oil, with the vast majority located in the Northeast. Maine has the highest share of heating-oil-dependent households in the country. As of Sept. 28, heating oil prices in the state stood at $5.96 per gallon, nearly 80% above the level a year earlier.

The EIA also raised its forecast for crude oil prices. It now expects Brent crude to average $105 a barrel in the fourth quarter, $14 higher than its previous estimate. US retail diesel prices are expected to remain above $6 a gallon through October before falling toward $4.50 a gallon next year.

On the supply side, the agency expects Middle Eastern oil production and exports to gradually recover. Increased shipments through the Strait of Hormuz, combined with alternative transportation routes and other supply workarounds, could eventually ease pressure on global oil markets.

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