US stocks cruise toward the finish of a record-setting week

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By STAN CHOE, Associated Press Business Writer

NEW YORK (AP) — U.S. stocks are adding to their records on Friday as Wall Street cruises toward the finish line of another winning week.

The S&P 500 rose 0.2% and is heading for its seventh winning week in the last nine. The Dow Jones Industrial Average was up 167 points, or 0.4%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.2% higher. All three indexes are coming off all-time highs set the day before.

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Trading could get bumpier later in the morning after reports come out showing how businesses in U.S. services industries are doing. Ahead of them, Treasury yields in the bond market were also holding relatively steady.

Usually, the first Friday of each month has Wall Street focused on the monthly jobs update that the U.S. government publishes. It shows how many jobs employers created and destroyed, while also updating the unemployment rate.

Such data is particularly important now, given how much on Wall Street is riding on the expectation that the job market is continuing to slow by enough to get the Federal Reserve to keep cutting interest rates. But the shutdown of the U.S. government, now in its third day, is delaying the release.

So far, the U.S. stock market has looked past such delays, which also includes Thursday’s report on unemployment claims. Past shutdowns of the U.S. government have tended not to hurt the economy or stock market much, and the thinking is that this one could be similar, even if President Donald Trump has threatened large-scale firings of federal workers this time around.

Excitement around artificial intelligence and the massive spending underway because of it are a major reason the U.S. stock market has hit record after record, along with hopes for easier interest rates.

The industry got another boost after Japan’s Hitachi signed a memorandum of understanding with OpenAI related to powering AI. It followed a set of announcements by OpenAI with South Korean companies the day before.

Hitachi’s stock jumped 10.3% in Tokyo, and tech stocks in the United States drifted higher. Nvidia added 0.6%, and Broadcom rose 1.5%.

But AI stocks have become so dominant, and so much money has poured into the industry that worries are rising about a potential bubble that could eventually lead to disappointment for investors.

On the losing end of Wall Street was Applied Materials, which sank 2.5%. The company, whose equipment helps make semiconductor chips, said it will take a roughly $110 million hit to its revenue in the fourth quarter because of a new U.S. Commerce Department rule expanding export restrictions to certain customers based in China.

In stock markets abroad, indexes were mixed across Europe and Asia.

Japan’s Nikkei 225 was a big winner, and rose 1.9% thanks in part to Hitachi’s jump.

In the bond market, the yield on the 10-year Treasury edged down to 4.09% from 4.10% late Thursday.

AP Writers Teresa Cerojano and Matt Ott contributed.

Supreme Court will consider overturning strict Hawaii law regulating where people can carry guns

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By LINDSAY WHITEHURST, Associated Press

WASHINGTON (AP) — The Supreme Court said on Friday that it will take up its latest gun rights case and consider striking down strict regulations on where people can carry firearms in Hawaii.

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President Donald Trump’s Republican administration had urged the justices to take the case, arguing the law violates the court’s 2022 ruling that expanded gun rights by finding the Second Amendment generally gives people the right to carry firearms.

The court will consider Hawaii’s restriction banning guns on private property unless the owner has specifically allowed them. The law also prohibits firearms in places like beaches, parks, bars and restaurants that serve alcohol.

State attorneys argue that they’ve already loosened its concealed-carry permit regulations to align with the high court’s 2022 ruling. They say its new restrictions strike a reasonable balance between gun rights and public safety.

A judge blocked the Hawaii law after it was challenged in court by a gun rights group and three people from Maui. But the 9th U.S. Circuit Court of Appeals largely reversed that decision and allowed Hawaii to enforce the law.

Four other states, including New York, have laws banning guns in areas often referred to as sensitive locations. Another appeals court largely upheld the New York law but struck down the the private-property restrictions similar to those in Hawaii.

The Supreme Court has previously declined to hear a challenge to the New York law.

Trump pauses $2.1B for Chicago infrastructure projects, leveraging shutdown to pressure Democrats

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By CHRIS MEGERIAN, Associated Press

WASHINGTON (AP) — President Donald Trump’s administration will withhold $2.1 billion for Chicago infrastructure projects, the White House budget director said Friday, expanding funding fights that have targeted Democratic areas during the government shutdown.

The pause affects a long-awaited plan to extend the city’s Red Line train. The money was “put on hold to ensure funding is not flowing via race-based contracting,” budget director Russ Vought wrote on social media.

FILE – A Chicago Transit Authority train pulls into the new Damen Ave. station just two blocks from the United Center, Aug. 12, 2024. (AP Photo/Charles Rex Arbogast, File)

Vought made a similar announcement earlier this week involving New York, where he said $18 billion for infrastructure would be paused, including funding for a new rail tunnel under the Hudson River.

Trump, a Republican, has embraced Vought’s tactics. On Thursday night, he posted a video depicting him as the reaper, wearing a hood and holding a scythe.

Losing the money would be a significant setback for Chicago’s transportation plans. The Red Line extension is slated to add four train stops on the city’s South Side, improving access for disadvantaged communities.

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In addition, a broader modernization project for the Red and Purple lines, which Vought said was also being targeted, is intended to upgrade stations and remove a bottleneck where different lines intersect.

In New York’s case, Trump’s Transportation Department said it had been reviewing whether any “unconstitutional practices” were occurring in the two massive infrastructure projects but that the government shutdown, which began Wednesday, had forced it to furlough the staffers conducting the review.

The suspension of funds for the Hudson River tunnel project and a Second Avenue subway line extension is likely meant to target Senate Democratic leader Chuck Schumer, whom the White House is blaming for the impasse. The New York senator said the funding freeze would harm commuters.

“Obstructing these projects is stupid and counterproductive because they create tens of thousands of great jobs and are essential for a strong regional and national economy,” Schumer said on X.

Trump no longer distancing himself from Project 2025 as he uses shutdown to further pursue its goals

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By JILL COLVIN, Associated Press

NEW YORK (AP) — President Donald Trump is openly embracing the conservative blueprint he desperately tried to distance himself from during the 2024 campaign, as one of its architects works to use the government shutdown to accelerate his goals of slashing the size of the federal workforce and punishing Democratic states.

In a post on his Truth Social site Thursday morning, Trump announced he would be meeting with his budget chief, “Russ Vought, he of PROJECT 2025 Fame, to determine which of the many Democrat Agencies, most of which are a political SCAM, he recommends to be cut, and whether or not those cuts will be temporary or permanent.”

Russell Vought, Office of Management and Budget director, listens as he addresses members of the media outside the West Wing at the White House in Washington, Monday, Sept. 29, 2025, in Washington. (AP Photo/Evan Vucci)

The comments represented a dramatic about-face for Trump, who spent much of last year denouncing Project 2025, The Heritage Foundation’s massive proposed overhaul of the federal government, which was drafted by many of his longtime allies and current and former administration officials.

Both of Trump’s Democratic rivals, Joe Biden and Kamala Harris, made the far-right wish list a centerpiece of their campaigns, and a giant replica of the book featured prominently onstage at the Democratic National Convention.

“Donald Trump and his stooges lied through their teeth about Project 2025, and now he’s running the country straight into it,” said Ammar Moussa, a former spokesperson for both campaigns. “There’s no comfort in being right — just anger that we’re stuck with the consequences of his lies.”

Shalanda Young, director of the Office of Management and Budget under Biden, said the administration had clearly been following the project’s blueprint all along.

“I guess Democrats were right, but that doesn’t make me feel better,” she said. “I’m angry that this is happening after being told that this document was not going to be the centerpiece of this administration.”

Asked about Trump’s reversal, White House spokesperson Abigail Jackson said, “Democrats are desperate to talk about anything aside from their decision to hurt the American people by shutting down the government.”

Project what?

Top Trump campaign leaders spent much of 2024 livid at The Heritage Foundation for publishing a book full of unpopular proposals that Democrats tried to pin on the campaign to warn a second Trump term would be too extreme.

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While many of the policies outlined in its 900-plus pages aligned closely with the agenda that Trump was proposing — particularly on curbing immigration and dismantling certain federal agencies — others called for action Trump had never discussed, like banning pornography, or Trump’s team was actively trying to avoid, like withdrawing approval for abortion medication.

Trump repeatedly insisted he knew nothing about the group or who was behind it, despite his close ties with many of its authors. They included John McEntee, his former director of the White House Presidential Personnel Office, and Paul Dans, former chief of staff at the U.S. Office of Personnel Management.

“I know nothing about Project 2025,” Trump insisted in July 2024. “I have no idea who is behind it. I disagree with some of the things they’re saying and some of the things they’re saying are absolutely ridiculous and abysmal. Anything they do, I wish them luck, but I have nothing to do with them.”

Trump’s campaign chiefs were equally critical.

“President Trump’s campaign has been very clear for over a year that Project 2025 had nothing to do with the campaign, did not speak for the campaign, and should not be associated with the campaign or the President in any way,” wrote Susie Wiles and Chris LaCivita in a campaign memo. They added, “Reports of Project 2025’s demise would be greatly welcomed and should serve as notice to anyone or any group trying to misrepresent their influence with President Trump and his campaign — it will not end well for you.”

Trump has since gone on to stock his second administration with its authors, including Vought, “border czar” Tom Homan, CIA Director John Ratcliffe, immigration hard-liner Stephen Miller and Brendan Carr, who wrote Project 2025’s chapter on the Federal Communications Commission and now chairs the panel.

Heritage did not respond to a request for comment Thursday. But Dans, the project’s former director, said it’s been “exciting” to see so much of what was laid out in the book put into action.

“It’s gratifying. We’re very proud of the work that was done for this express purpose: to have a doer like President Trump ready to roll on Day One,” said Dans, who is currently running for Senate against Lindsey Graham in South Carolina.

Trump administration uses the shutdown to further its goals

Since his swearing in, Trump has been pursuing plans laid out in Project 2025 to dramatically expand presidential power and reduce the size of the federal workforce. They include efforts like the Department of Government Efficiency and budget rescission packages, which have led to billions of dollars being stalled, scrapped or withheld by the administration so far this year.

They are now using the shutdown to accelerate their progress.

Ahead of the funding deadline, OMB directed agencies to prepare for additional mass firings of federal workers, rather than simply furloughing those who are not deemed essential, as has been the usual practice during past shutdowns. Vought told House GOP lawmakers in a private conference call Wednesday that layoffs would begin in the next day or two.

They have also used the shutdown to target projects championed by Democrats, including canceling $8 billion in green energy projects in states with Democratic senators and withholding $18 billion for transportation projects in New York City that have been championed by Senate Democratic Leader Chuck Schumer and House Democratic leader Hakeem Jeffries in their home state.

Dreaming of this moment

The moves are part of a broader effort to concentrate federal authority in the presidency, which permeated Project 2025.

In his chapter in the blueprint, Vought made clear he wanted the president and OMB to wield more direct power.

“The Director must view his job as the best, most comprehensive approximation of the President’s mind,” he wrote. Vought described OMB as “a President’s air-traffic control system,” which should be “involved in all aspects of the White House policy process,” becoming “powerful enough to override implementing agencies’ bureaucracies.”

Sen. Mike Lee, R-Utah, said on Fox News Channel that Vought “has a plan, and that plan is going to succeed in further empowering Trump. This is going to be the Democrats’ worst nightmare.”

House Speaker Mike Johnson echoed that message, insisting the government shutdown gives Trump and his budget director vast power over the federal government and the unilateral power to determine which personnel and policies are essential and which are not.

Schumer has handed “the keys of the kingdom to the president,” Johnson said Thursday. “Because they have decided to vote to shut the government down, they have now effectively turned off the legislative branch … and they’ve turned it over to the executive.”

Young said the Constitution gives the White House no such power and chastised Republicans in Congress for abandoning their duty to serve as a check on the president.

“I don’t want to hear a lecture about handing the keys over,” she said. “The keys are gone. They’re lost. They’re down a drain. This shutdown is not what lost the keys.”