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FAA Cuts Flights 10% as Shutdown Grounds Air Travel

Travel and Markets Brace for Turbulence November 7, 2025
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Changes in the Market are on display A pause on the runway: FAA’s 10% flight cut highlights the real cost of the shutdown.

Good Morning,

Markets are steady but cautious this morning as the FAA orders a 10% cut in flights at 40 major U.S. airports. The move, tied to the ongoing government shutdown, is raising concerns about travel demand, logistics delays, and ripple effects across airline and tourism stocks. We unpack what the cuts mean for investors, how Washington gridlock is feeding through to markets, and which sectors could feel the next pinch.

Nancy Pelosi retires after four decades in Congress, marking the end of an era in Democratic leadership, a judge dismisses Boeing’s conspiracy charge over the 737 Max crashes despite public outrage, and the prolonged government shutdown drags on as Congress struggles to reach a bipartisan funding deal.

Don't forget to voice your opinion below in my polls.

Here are your Morning Bullets.

– Truly yours, Fred Frost


📉 Yesterday's Market Recap

Markets took a hit yesterday as Fed uncertainty over rate cuts, compounded by a government shutdown, spooked investors. CoreWeave slid over 6 percent amid broader declines, while mixed earnings added to the choppy picture.


  • CoreWeave (CRWV) Drops 6.21%: AI cloud specialist fell to $107.32 amid market downturn and Fed comments on rate cut doubts. → Benzinga

  • Affirm (AFRM) Jumps 10% After Hours: Shares soared on raised GMV guidance and a Q1 earnings beat, bucking the trend. → Seeking Alpha

  • Duolingo (DUOL) Crashes 26%: Stock plummeted after Q3 earnings missed user growth targets despite strong revenue. → Benzinga


📉 Daily Performance Snapshot

Index/Asset Closing Value Change
S&P 500 6,720.32 -1.12%
Nasdaq 23,053.99 -1.9%
Dow Jones 46,912.30 -0.84%
Gold $3984.80 -0.16%
Crude Oil $59.53 +0.17%
Bitcoin $101,396 -2.28%
10-yr Treasury Yield 4.093% -1.54%

🔭 What to Watch Today

Today’s docket is packed with events that could sway markets, from earnings reports to geopolitical maneuvers. Keep your eyes peeled for these potential catalysts.

  • AST SpaceMobile Earnings (Nov 10): Set to release Q3 results, ASTS could signal strength in satellite broadband with Vodafone’s Germany hub plans. → Benzinga
  • Trump-Iran Sanctions Talks: Discussions on sanctions relief for Iran could ease tensions, impacting oil and geopolitical risk premiums. → Fortune
  • Holiday Retail Data Releases: Early holiday sales figures may hint at consumer strength, critical for Macy’s and Nordstrom’s recovery narrative. → MoneyWeek

  • 💡 Opportunity Watch

    Amidst today’s market currents, a few opportunities stand out for savvy investors willing to look beyond the noise.

    • Alibaba (BABA): Riding a 98 percent YTD gain, its AI and cloud expansion could be a long-term play despite U.S. chip restrictions. → Benzinga
    • Nordstrom (JWN): With a 4.1 percent sales bump and holiday season looming, this retailer might offer a short-term value bet. → Fortune
    • Satellite Broadband (ASTS): AST SpaceMobile’s European push with Vodafone signals growth in underserved connectivity markets for 2026. → MoneyWeek

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    🔥 The Big Bullet

    FAA Orders 10% Flight Cuts at 40 Major Airports Amid Shutdown

    What happened: The Federal Aviation Administration confirmed that flight schedules will be reduced by 10% at 40 major U.S. airports starting this Friday. The move comes as the agency faces a shortage of air traffic controllers caused by the ongoing government shutdown. This reduction will affect both domestic and international flights, with major hubs like Atlanta, Chicago, and New York expected to see the biggest disruptions. Airlines have been notified to adjust schedules and rebook affected travelers. The FAA says it aims to maintain safety while easing the workload on remaining staff. Passenger delays are expected to rise during peak hours. The order is set to remain in place until staffing levels improve or the government reopens.


    Why it matters: Air travel accounts for a major share of U.S. consumer spending, and the prolonged government shutdown is now rippling through the broader economy. Fewer flights could slow tourism and business travel, hurting airlines, hotels, and local economies that depend on steady traffic. Cargo and logistics networks may also see delays, which can affect supply chains and pricing. For investors, this raises questions about fourth-quarter earnings for major airlines and travel-related firms. The airline sector, already battling high costs and uneven demand recovery, could face another quarter of turbulence if the cuts persist. Analysts warn that even a short disruption can push up ticket prices and curb consumer confidence.

    What’s next: All eyes are on Washington as lawmakers try to strike a deal to end the shutdown. If the standoff continues, the FAA may expand or extend its flight reduction order. Investors should watch for updates from airline earnings calls in the coming weeks, where executives will likely outline cost and capacity adjustments. Any signs of resolution in Congress could trigger a short-term rebound in travel and airline stocks. However, if the shutdown lingers, market sentiment could worsen—especially if flight cancellations rise ahead of the holiday season. Travel analysts also expect to see how this impacts key airline markets in 2026 budgeting and hiring plans.


    Reader Feedback

    Yesterday, I asked you: Who do you think is most at fault for leaving investors “in the dark” during the shutdown?? The majority of you at 39% said "ICongress for not passing a budget"

    Bryan from South Dakota replied: "Congress needs to do better. They are the most at fault in this situation."

    Here's what I'm asking you today:

    Who do you think is most responsible for the FAA’s 10% flight cuts at major U.S. airports?

    Login or Subscribe to participate

    As always if your opinion is not here, or you want to throw your two cents at me, reply to the E-mail, and let me know your exact thoughts.


    🧭 Policy & Market Ripples

    • Nancy Pelosi Retires After 40 Years: Speaker Emerita steps down, leaving a legacy of landmark legislation and over $1 billion in Democratic fundraising. → Fortune
    • Boeing Conspiracy Charge Dismissed: Federal judge upholds $1.1 billion deal over 737 Max crashes, despite accountability concerns from families. → Fortune US
    • Government Shutdown Stalemate: Republican leaders face tightrope with Democratic healthcare demands; Senate eyes 'minibus' funding package. → Daily Signal

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    📜 This Day in History – November 7

    November 7 is a date for bold builders and quiet innovators — from revolutions in lighting and logistics to institutions that reshaped how the world shares information and energy.

    Marie Curie in her laboratory with early radiation apparatus

    1867 – Marie Curie was born in Warsaw, Poland; her discoveries in radioactivity would lay the groundwork for medical imaging and nuclear energy — entire industries of invisible power.

    1868 – Harvey Firestone was born, later founding the Firestone Tire and Rubber Company, one of the firms that turned the automobile from novelty to necessity.

    1932 – Franklin D. Roosevelt was elected U.S. president, ushering in an era of large-scale fiscal experimentation and redefining government’s role in the modern economy.

    1993 – The International Telecommunication Union convened its first World Telecommunication Standardization Assembly, a quiet milestone in the codification of the digital era’s connective tissue.

    Yesterday, 75% of you chose the right answer to the trivia question: The nominal interest rate adjusted for inflation


    If you think nobody cares if you’re alive, try missing a couple of car payments.
    – Earl Wilson
    Thanks for Reading.

    Stay Sharp. Stay Focused.
    Fredrick Frost
    Editor, MorningBullets

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