\n<\/p>\n
A couple of years after the financial crisis, Kevin Warsh, Mark Carney, and Donald Kohn laced up their hiking boots and headed out of the Jackson Hole Symposium. In the wilds of Wyoming, they might have hoped\u2014though couldn’t have known\u2014that one among them would go on to lead the U.S. Federal Reserve, and another would become the prime minister of his native Canada.\u00a0<\/span><\/p>\n At the time, Kohn was the vice chair of the Federal Reserve Board of Governors and, for his part, was unaware that his infamously rigorous expeditions had earned a nickname\u2014”death march”\u2014among his peers.<\/span><\/p>\n A little over a decade later, Kohn looked on as Warsh, his close former colleague, invoked the spirit of these hikes\u2014walking hikes, not interest rate hikes\u2014in his inaugural speech as central bank chairman at Jackson Hole in August.<\/span><\/p>\n Tina Knowles on Building C\u00e9cred with Beyonc\u00e9 and Living Her Best Life at 72<\/span><\/a> | Fortune Daily<\/span><\/p>\n Mark Cuban took off his watch the day he became a millionaire: \u2018I wanted to be able to control my own time\u2019<\/span><\/a> – Sydney Lake<\/span><\/p>\n Obama mocked Trump\u2019s gold White House as a Cheesecake Factory. The chain just posted a record quarter<\/span><\/a> – Andrew McGowan<\/span><\/p>\n Despite a $150 million net worth, Quentin Tarantino refuses to give a \u2018penny\u2019 of his fortune to his mother: \u2018No house, no Cadillac\u2019<\/span><\/a> – Orianna Rosa Royle<\/span><\/p>\n Anthropic\u2019s S-1 reveals two areas where OpenAI could have the upper hand, experts say<\/span><\/a> – Emily Forlini<\/span><\/p>\n Trump\u2019s immigration policy is so harmful to talent that Anthropic mentioned it as a risk factor in its historic IPO<\/span><\/a> – Marco Quiroz-Gutierrez<\/span><\/p>\n Americans are expected to spend a record $13.5 billion on Halloween\u2014pushing one in four revelers into debt<\/span><\/a> – Mia Osmonbekov<\/span><\/p>\n Airbnb guests no longer have to wash dishes or strip beds. Furious hosts are threatening to boycott and raise cleaning fees<\/span><\/a> – Lena Borrelli<\/span><\/p>\n Trump\u2019s farmworker pay cut moved $2.5 billion a year from workers to growers. A judge says it\u2019s illegal, and back pay could follow<\/span><\/a> – Molly A. Wallace<\/span><\/p>\n After the Iran war started, the world did not run out of jet fuel, <\/span>as some feared at the time<\/span><\/a>, but airlines have had to navigate increased expenses\u2014with mostly negative results for their bottom lines. Jet fuel \u201cis often the largest or second-largest cost item for airlines. In 2025, it accounted for 27% of total operational costs on average. This share could move towards 35% in 2026,\u201d <\/span>according to ING\u2019s Rico Luman<\/span><\/a>. <\/span><\/p>\n Of the airlines he tracks, all suffered reduced operating profits this year due to shortages in supply from the Middle East. All, that is, except Southwest Airlines, which was the only one to see a gain in earnings before interest and taxes:<\/span><\/p>\n <\/p>\n <\/span><\/p>\n Nasdaq futures were up this morning on upbeat news for the AI sector. Chipmaker <\/span>SK Hynix beat expectations<\/span><\/a> for its Q3 earnings. Its stock rose 11%, and South Korea\u2019s KOSPI closed up 6.63%.\u00a0<\/span><\/p>\n S&P 500 futures were flat after the index rose in the previous two sessions. It remains within touching distance of its all-time high. Traders appear to be ina holding pattern as they await a new interest rate decision from the Fed later today. The CME FedWatch index of Fed futures shows a 91% expectation that the central bank will hold rates at the 3.75% level.<\/span><\/p>\n Stocks backed off their record high this month, but the angst should be over soon\u2014once we have the results of the U.S. midterm elections. That\u2019s because October 27 is behind us. For some strange reason, October 27 is usually the worst day of the fall period for U.S. stocks, which often take an inexplicable seasonal dive at this time of year, according to Deutsche Bank.<\/span><\/p>\n The fall dip effect is more pronounced in a year with midterms, DB\u2019s Jim Reid says. But even so, once the elections are out of the way, it\u2019s usually \u201cone-way traffic\u201d upward for stocks, he said in an email. The S&P 500 made gains over the next three months in 21 of the last 23 midterm years, according to the bank\u2019s Binky Chadha and Parag Thatte.<\/span><\/p>\n <\/p>\n <\/span><\/p>\n Why do stocks rise after midterms? Because traders love it when political uncertainty is replaced by the guaranteed inaction of congressional gridlock, according to Pimco\u2019s Libby Cantrill.<\/span><\/p>\n \u201cThe difference between a Democratic sweep\u2014a Democratic House and Senate\u2014and a split Congress\u2014a Democratic House and a Republican Senate\u2014are just not all that different. Under either, President Trump still has veto authority regardless,\u201d Cantrill told <\/span>Fortune <\/span><\/i>via email. \u201cUnder either scenario, we expect to see more oversight, more obstruction, and incrementally higher spending.\u201d\u00a0<\/span><\/p>\n Perfect for equities, in other words!<\/span><\/p>\n <\/p>\n <\/span><\/p>\n The PHP internet vulnerability discovered by two firms using AI models from OpenAI and Google last week is the tip of the iceberg, according to Karim Mattar at ARK Invest.<\/span><\/p>\n In June, about 1,500 high- and critical-severity vulnerabilities were disclosed by various organizations, three and a half times the record before Anthropic launched Claude Mythos Preview back in April.<\/span><\/p>\n \u201cAI can surface vulnerabilities rapidly, [and] attackers are likely to exploit weaknesses more quickly, forcing organizations to patch their software systems more often,\u201d he said in a note.<\/span><\/p>\n The number of bags of coffee beans consumed by the world annually, according to Goldman Sachs intern Samuel J\u00f6nsson and his colleagues Lina Thomas and Daan Struyven. Each bag weighs 60 kilograms (132 pounds), for a total of 1.08 billion kilos (23.8 billion pounds) of coffee.<\/span><\/p>\n <\/p>\n <\/span><\/p>\n Live: Israeli exit polls suggest no clear winner in pivotal general election<\/span><\/a> – BBC<\/span><\/p>\n Polymarket\u2019s top trader is sports gambler \u2018Swiss Tony\u2019<\/span><\/a> – FT<\/span><\/p>\n Trump says Iran war will end \u2018when I want it to\u2019 as costs reportedly balloon to $47 billion<\/span><\/a> – CNBC<\/span><\/p>\n U.S. Warns Gulf of Possible Short, Intense Renewal of Iran War After Midterms<\/span><\/a> – WSJ<\/span><\/p>\n U.S. granting visas to Fl\u00e1vio Bolsonaro and family<\/span><\/a> – Axios<\/span><\/p>\n Mbappe Learns the Value of Silence on China<\/span><\/a> – Bloomberg<\/span><\/p>\n Inside the Billionaires\u2019 War Against California\u2019s Proposed Wealth Tax<\/span><\/a> – NYT<\/span><\/p>\n Crooks are ripping off huge shipments of pricey AI equipment \u2013 $100M in heists since June<\/span><\/a> – NY Post<\/span><\/p>\n When it comes to inheriting significant wealth, many rich families avoid the conversation about how the estate will be divided because they\u2019re afraid of the emotional discomfort, writes Wingspan Legacy Partners founder Christina Wing. <\/span>She told <\/span>Fortune<\/span><\/i><\/a> about her work with a high-net-worth couple, Jose and Natalia:<\/span><\/p>\n \u201cJose was educated as an accountant and worked for investment banks before founding a wildly successful private equity firm. The couple, who now live in San Francisco and are in their eighties, have built substantial wealth. Their assets total over $1 billion.\u201d<\/span><\/p>\n \u201cThey have four children in their fifties, all well-educated and financially independent. Years ago, the parents gave each child a significant gift\u2014about $25 million each [and] the children have always assumed they would inherit most of the estate when the parents die.\u201d<\/span><\/p>\n \u201cHere\u2019s the secret: They won\u2019t.\u201d<\/span><\/p>\n Find out how the children reacted by <\/b>reading the whole thing here<\/b><\/a>. (Spoiler alert: It did not go well!)<\/b><\/p>\nMORE FROM FORTUNE<\/h3>\n
FUEL FOR THOUGHT<\/h3>\n
Southwest Airlines was the only winner in the Iran war jet fuel shock<\/b><\/h2>\n
THE MARKETS<\/h3>\n
Tech stocks poised to move higher after chipmaker SK Hynix reports blowout Q3<\/b><\/h2>\n
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The worst is behind us: Stocks poised to rise after the midterms<\/b>\u00a0<\/span><\/h2>\n
CHART OF THE DAY<\/h3>\n
AI is discovering high-severity cybersecurity holes in record numbers<\/b><\/h2>\n
NUMBER OF THE DAY\u00a0<\/h3>\n
180 million<\/b><\/h2>\n
THE FRONT PAGES TODAY<\/h3>\n
ONE MORE THING<\/h3>\n
Inside one family\u2019s $1 billion inheritance drama, in which a father had to tell his kids they weren’t getting any money<\/b><\/h2>\n