US GDP was up, but so was inflation...
October 30, 2026

Happy Friday. The viral Dune Sandworm popcorn bucket from AMC Theatres is back—and it’s as NSFW as ever. To commemorate the final film in the trilogy (out Dec. 18), the bucket has not one but two bulging wormholes through which you must access your popcorn.
Sorry, but if they expect us to enter a wormhole at the movies, they should re-release Interstellar.
—Sam Klebanov, Molly Liebergall, Matty Merritt, Dave Lozo, Adam Epstein, Holly Van Leuven, Neal Freyman
In today’s newsletter, we’ll get into:
- The latest numbers on GDP (up) and inflation (also up)
- A storied New York law firm imploding
- The rise of horror bookstores
Markets
- Markets: Stocks caught the Halloween spooky vibes and tumbled yesterday amid another round of AI jitters. On a related note, Alphabet absolutely tanked, shedding $482 billion in market value in its worst day since going public in 2004.
GROWTH MINDSET
The US economy had a surprise growth spurt

Illustration: Morning Brew Inc., Photo: Spencer Platt/Getty Images
Just like a college student who finally started going to office hours, the US economy just got its best report card of the year. The GDP grew at an annualized rate of 3.4% in Q3, thanks to booming business investment and resilient consumer spending despite rising inflation, according to government data released yesterday.
The economic expansion was bigger than analysts expected, representing a sharp acceleration from the 2.5% and 2.2% growth in the preceding two quarters:
- Yearly consumer spending growth reached 3.8% last quarter, the fastest pace since 2024.
- Business investment jumped 12.7%, accounting for over half of GDP growth.
AI investment was a major GDP propellant: Equipment purchases soared by a whopping 20.9%, which included AI hyperscalers splurging on data center tech.
What were the drags on GDP? Paradoxically, the AI buildout was one of them. That’s because many AI hardware purchases, like computer chips, happened overseas. That reduced economic growth by skewing the US trade balance toward imports (which are subtracted from GDP). Plus, rising mortgage rates dampened homebuilding.
Not everyone feels the GDP in their wallets
Though unemployment remains low, inflation outpaced income gains last month. Price growth accelerated in September on both a monthly and annual basis, per the Federal Reserve’s preferred inflation measure. It remained well above the central bank’s 2% annual inflation target, strengthening the case for raising interest rates.
In a sign that higher prices might be straining American budgets, the after-tax savings rate dipped to 3.8% last month, the lowest since 2022. And purchases like cars, furniture, and electronics stagnated.
Momentum might be fragile. Many economists think that wealthier Americans, emboldened by gains in their stock portfolios (which are largely contingent on the AI boom), are sustaining consumption.—SK
World
Tour de headlines

John Phillips/Getty Images
💔 Patrick Stewart died at 86. The beloved English actor, best known for his roles as Captain Jean-Luc Picard in Star Trek: The Next Generation and Professor Charles Xavier in the X-Men film franchise, died after a battle with Alzheimer’s and Lewy body dementia, his family announced. His six-decade career included two Olivier Awards (the awards for top London theatre), a Grammy (for his narration of Peter and the Wolf), and four Emmy nominations. “Like me, Jean-Luc has lived an unusual life that has taken him far beyond the bounds of normal human experience,” Stewart wrote in his 2023 memoir. “In the end, he feels the call of home, as do I.”
🛒 DoorDash is buying Instacart for $17 billion. Bow to your new delivery overlords. DoorDash will acquire rival Instacart, the companies announced, uniting the US’ biggest restaurant delivery service with its biggest online grocery platform. The merger gives Instacart users access to thousands of additional stores and will combine memberships to each service into one subscription. Per NBC News, DoorDash is expected to keep Instacart’s brand and tech once the deal closes. Owning Instacart not only gives DoorDash more ammo in its duel with Uber, but it also helps the delivery giant compete with Walmart and Amazon in the increasingly competitive grocery space.
🥸 Report: Nvidia’s CEO may have been targeted in a Chinese spy plot. According to the New York Times, Nvidia chief Jensen Huang had a “close relationship” with an executive at a Singapore-based cloud company who US intelligence agencies believed was a Chinese asset. The woman, Alice Huang, was reportedly already suspected of helping China circumvent constraints on accessing AI chips from the US. Nvidia said its CEO’s interactions with the woman were not unusual, and that allegations that the cloud company was helping China evade US export controls were “investigated and debunked.” President Trump was briefed on the matter about a year ago and decided not to take any action, the NYT reported.—AE
BILLABLE FLOUNDERS
This prestigious firm’s downfall is shaking Big Law

Adobe Stock
Weil, it’s over. One of the most storied law firms in the industry—Weil, Gotshal & Manges—is set to wind down operations after ruling the world of high-profile bankruptcies for decades.
The nearly century-old firm’s stunning fall from grace happened slowly, and then all at once:
- More than 30 partners left Weil Gotshal this year, including several top moneymakers (who tend to take their clients with them).
- The firm was in talks to shore itself up through a merger with a rival, but the deal reportedly fell apart last week amid more partner exits.
- Then, news broke that the firm’s chosen successor to its current chair had declined the job.
Why this implosion is such a shocker: Weil Gotshal employs 2,000 people (including 1,200 lawyers), has few liabilities, and is one of the Top 20 most profitable law firms. It guided Enron’s historic bankruptcy filing in 2001 and scored $1+ billion in fees in 2009 from Lehman Brothers, General Motors, and other filers.
But…post-recession, Weil Gotshal was outpaced by competitors like Kirkland & Ellis, whose revenue exploded from $2 billion in 2015 to beyond $10 billion last year, while Weil Gotshal’s grew from $1 billion to $2 billion in the same period.
Zoom out: It’s now common practice for big firms to use multimillion-dollar pay packages to poach top partners, which can lead to a cascading talent exodus that’s hard to stop. It’s a “white-hot lateral market for partners,” law journalist Kathryn Rubino told CNBC.—ML
THEY’RE HERE
Indie bookstores are getting scary

Nick Iluzada
Your hunt for scary stories to tell in the dark is finally over. Genre-specific bookstores, especially for horror, have been multiplying to create a brood across the US, latching onto a swelling interest in the not-so-niche-anymore genre.
The perfect storm. The horror boom isn’t just for film: Horror book sales reached 5.1 million last year, up from 3.2 million in 2021, according to BookScan. And it’s a surprisingly good time to be an indie bookstore: In 2025, 600+ new independent shops opened in the US, an 87% jump from the previous year, according to the American Booksellers Association.
- Personalized recommendations and niche events give small shops an edge over larger chains, especially when they offer a wider range of a certain category, like horror.
- Romance-focused bookstores are also booming, particularly in small towns and rural areas where they double as community spaces.
Chicago is for (book) lovers. Placer.ai, which tracks physical foot traffic, identified the city as a top market for readers, with an ~11% jump in bookstore visits this year compared with last. The city hosted its largest independent bookstore crawl in August. Cities like Philadelphia, Houston, and Phoenix also logged increased in-person bookstore visits.—MM
Dave’s sports desk
Would you endure bad football for free tuition?

Roger Wimmer/Getty Images
On Fridays, the Brew’s Dave Lozo looks at a sports business story that says a lot more than just the final score of a game.
The University of Maryland is offering one student free partial tuition if they stay until the fourth quarter of tomorrow’s football game against Illinois—but it apparently doesn’t have anything to do with the bleak nature of its program.
How bleak? The Terps are 2–5, have lost 12 straight conference games, and fired head coach Mike Locksley last week.
But now there’s a financial incentive to endure Terps football: Students can scan a QR code at halftime, then wait to hear if their name is called during the final quarter. The school will cover $5,507 of tuition—the undergraduate, in-state rate for the 2027 spring semester.
Why now? Assistant Athletic Director Rachel Palmer said the idea has been in development since August because, as she told the Baltimore Sun, “It’s always hard to have students stay at entire games.” Especially when you’re down two touchdowns in the fourth quarter to Rutgers.—DL
Quiz
Friday news quiz

The feeling of getting a 5/5 on the Brew’s Weekly News Quiz has been compared to unexpectedly seeing someone use a gift you gave them a while ago.
It’s that satisfying. Ace the quiz.
News
What else is brewing
- Benjamin Netanyahu is claiming there was mass voting fraud in Arab communities after the Israeli prime minister’s far-right coalition lost its majority in the country’s election this week.
- ADT, the home security company, is being acquired by Thrive, the investment company formed by Josh Kushner, for $7.6 billion.
- Amazon became the latest AI hyperscaler to report negative free cash flow in its earnings results, which it released yesterday. The company missed Wall Street’s expectations on earnings and revenue.
- Christine Lagarde, the head of the European Central Bank, resigned yesterday nine months before the end of her term, which observers say is to ensure her successor is chosen while pro-EU French President Emmanuel Macron is still in office.
- Tennis and golf are the fastest-growing youth sports in the US, according to a new report from the Aspen Institute.
- Intel fell by more than 20% in after-hours trading yesterday, after it offered a weak fourth-quarter forecast that it blamed on the soft PC market worldwide.
- China’s first fully AI-generated movie flopped at the box office, but that’s probably only because they didn’t cast AI acting sensation Tilly Norwood.
recs

- How daylight saving time—which ends on Sunday—affects your body.
- This site combines fonts to generate endless wacky possibilities.
- The best hospitals in each state, according to Newsweek.
- A cashmere beanie that won’t break the bank (or ruin your hair).**
Play

Jigsaw: This edition of our picture puzzle takes you to an elaborate Halloween display in Burbank, CA. Play the Jigsaw here.
Friday puzzle
Write a three-letter word in the blank spaces to complete a word on the left and begin a separate word on the right.
1. feat _ _ _ oic = ?
2. cour _ _ _ nda = ?
3. disp _ _ _ over = ?
4. kee _ _ _ sist = ?
Answer
- Her (feather, heroic)
- Age (courage, agenda)
- Lay (display, layover)
- Per (keeper, persist)
(Source)
Word of the Day
Today’s Word of the Day is: circumvent, meaning “to find a clever, cunning, or indirect way around a rule, problem, or obstacle.” Thanks to Bailey from Seguin, TX, and others for the suggestion. Submit another Word of the Day here.
