From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
TECH SELL-OFF
It was a tough week for tech stocks — those trusty workhorses of the pandemic-era bull market. News from the Federal Reserve that it's considering tightening its monetary policy sooner than many expected drove up Treasury yields, which led to a sell-off among rate-sensitive growth stocks. The bad vibes didn't end there though. Hedge funds like Cathie Wood's ARK Innovation were especially hard-hit, performing well below the major indexes. Crypto, likewise, is having a tough start to the year, dropping to one-month lows amid the broader market sell-off. Analysts have been predicting for a while that 2022 might bring a shift in the stock market away from high-flying tech stocks, but the New Year hangover has been rougher than expected. In the meantime, Apple became the first U.S. company to reach a $3 trillion market cap.
MIXED JOBS REPORT
A strong jobs report on Friday might have helped steady the market, but the latest reading from the U.S. Labor Department was decidedly mixed. Job gains came in at nearly half of estimates, even as unemployment dropped down to 3.9 percent and workers made sizable wage gains. The disappointing report fueled a further rise in 10-year Treasury bonds, which has contributed to mortgage rates hitting their highest levels since 2020. So, it's been a funky week for markets, and added uncertainty around the economic impact of the omicron variant hasn't helped.
EV RACE HEATS UP
Not all is woe on Wall Street. Automakers, for instance, are beginning the year on better footing. Following news of a rebound in sales in 2021 from its pandemic lows, there was a slew of major announcements from carmakers about their electric vehicle roll-outs. GM unveiled its electric Chevy Silverado, pitching it as a rival to Ford's forthcoming F-150 Lightning. Mercedes-Benz also announced its luxury EV model, and Vietnam's first global automaker, VinFast, unveiled its full EV line-up at the annual CES trade show. If all this EV talk wasn't enough to signal that a new era is beginning, Toyota this week officially overtook GM as the top car seller in the U.S., after a 90-year run from the Michigan-based manufacturer.
BED BATH & BEYOND (EXPECTATIONS)
Meanwhile, Bed Bath & Beyond delivered less than stellar third-quarter results, but that didn't stop the sometimes meme-stock from rising 8 percent on Thursday. The stock remains heavily shorted, and heavily traded, and by the end of the week it was down more than 5 percent on the week. Regardless, the company is moving forward with a plan to shut down up to 200 of its stores over the next two years, as supply chain pressures cost the company nearly $100 million and it faces increasing competition from online retailers.
DAVE'S BIG DEBUT
Billionaire Mark Cuban is wading into the fintech boom with the public debut of a new banking app called Dave. The company went public via a SPAC and started trading Thursday. Cuban is pitching the app as a solution to excessive fees in retail banking. Despite the positive buzz, the company nonetheless had a rocky debut, sinking around 25 percent from its offering price.
The State Department had been in talks with Elon Musk’s Tesla company to buy armored electric vehicles, but the plans have been put on hold by the Trump administration after reports emerged about a potential $400 million purchase. A State Department spokesperson said the electric car company owned by Musk was the only one that expressed interest back in May 2024. The deal with Tesla was only in its planning phases but it was forecast to be the largest contract of the year. It shows how some of his wealth has come and was still expected to come from taxpayers.
At 100 years old, the Goodyear Blimp is an ageless star in the sky. The 246-foot-long airship will be in the background of the Daytona 500 — flying roughly 1,500 feet above Daytona International Speedway, actually — to celebrate its greatest anniversary tour. Even though remote camera technologies are improving regularly and changing the landscape of aerial footage, the blimp continues to carve out a niche. At Daytona, with the usual 40-car field racing around a 2½-mile superspeedway, views from the blimp aptly provide the scope of the event.
You'll just have to wait for interest rates (and prices) to go down. Plus, this deal's a steel, the big carmaker wedding is off, and bribery is back, baby!
It’s a chicken-and-egg problem: Restaurants are struggling with record-high U.S. egg prices, but their omelets, scrambles and huevos rancheros may be part of the problem. Breakfast is booming at U.S. eateries. First Watch, a restaurant chain that serves breakfast, brunch and lunch, nearly quadrupled its locations over the past decade to 570. Fast-food chains like Starbucks and Wendy's added more egg-filled breakfast items. In normal times, egg producers could meet the demand. But a bird flu outbreak that has forced them to slaughter their flocks is making supplies scarcer and pushing up prices. Some restaurants like Waffle House have added a surcharge to offset their costs.
William Falcon, CEO and Founder of Lightning AI, discusses the ongoing feud between Elon Musk and Sam Altman, and how everyday people can use AI in their lives.
U.S. tariffs on steel and aluminum “will not go unanswered,” European Union chief Ursula von der Leyen vowed on Tuesday, adding that they will trigger toug
The Trump administration has ordered the Consumer Financial Protection Bureau to stop nearly all its work, effectively shutting down the agency that was created to protect consumers after the 2008 financial crisis and subprime mortgage-lending scandal. Russell Vought is the newly installed director of the Office of Management and Budget. Vought directed the CFPB in a Saturday night email to stop work on proposed rules, to suspend the effective dates on any rules that were finalized but not yet effective, and to stop investigative work and not begin any new investigations. The agency has been a target of conservatives since President Barack Obama created it following the 2007-2008 financial crisis.
