Musk’s $1 trillion compensation, a reduction for obesity medications, Target’s store challenges, and more in Morning Squawk.

Here’s a snapshot of key developments that might interest investors as they kick off their trading day.

The world’s wealthiest individuals are poised to increase their fortunes.

Yesterday, shareholders backed Elon Musk’s almost $1 trillion compensation package, with around 75% supporting it despite pushback from prominent proxy advisors. This plan will grant Musk 12 stock tranches if the company meets specific targets over the coming decade, while also boosting his voting power in Tesla, elevating his stake from 13% to 25%.

One of the key targets includes delivering 1 million humanoid Optimus robots. Musk suggested on Thursday that this initiative could “end poverty” and become “bigger than a cell phone.” However, these robots are not available yet, and Musk hasn’t outlined a timeline for their rollout.

Yesterday saw a continuation of stock declines as traders expressed unease about the lofty valuations of artificial intelligence stocks. Shares of Nvidia, Advanced Micro Devices, and Microsoft all closed lower, contributing to what looks like a downward trend for major stock indexes this week.

Here’s a quick overview of what’s happening:

• After a robust trading day on Wednesday, traders refocused on apprehensions regarding tech sector valuations and the dominance of AI stocks in today’s market.
• The tech-heavy Nasdaq Composite dropped by 1.9%, while the Dow Jones Industrial Average lost 400 points.
• Job market worries also affected stock performance this week, as the Bureau of Labor Statistics will not release a nonfarm payrolls report due to a government shutdown, though layoffs surged last month, according to outplacement firm Challenger, Gray & Christmas.
• Laid-off workers reached 153,074 in October, a staggering increase of 183% from September and 175% year-over-year.
• Dow Jones economists predicted that had the jobs report been available, employment might have dropped by 60,000 in October, pushing the unemployment rate up to 4.5%.

President Trump announced a deal with Eli Lilly and Novo Nordisk to decrease prices for certain obesity medications. This agreement will allow Medicare to cover GLP-1 drugs for obesity for the first time starting in mid-2026.

Under this arrangement, monthly out-of-pocket costs for patients may range from $50 to $350, depending on dosage and insurance plans, while list prices for these drugs can go as high as $1,350 per month without insurance.

David Sachs, who advises Trump on AI and cryptocurrency, stated there won’t be a federal bailout for AI. His remarks followed those of OpenAI’s CFO, Sarah Friar, who had suggested that they were seeking government support for funding.

However, Friar later clarified that her comments might have confused the issue, emphasizing that America’s technological strength arises from actual industrial capacity, necessitating collaboration between the private sector and the government.

At the same time, OpenAI CEO Sam Altman remarked that AI startups could generate over $20 billion in revenue this year, potentially expanding to hundreds of billions by 2030. The company has recently secured over $1.4 trillion in infrastructure contracts, though uncertainty remains regarding funding these deals.

Target is facing customer dissatisfaction over its in-store experience, with numerous complaints regarding disorganized aisles and delayed checkout times. As a result, the retailer is updating its website strategy.

Unlike competitors, Target has been using its physical stores to fulfill e-commerce orders. However, the new plan aims to limit which stores handle these online orders, allowing staff to focus on improving the in-store shopping experience.

Here’s a roundup of other important news you might have missed this week.