Federal Reserve Chair Jerome Powell testified before Congress earlier this week and once again repeated the message that more rate hikes are likely if inflation continues. He also stressed that the current labor market is too hot, and even got into a back-and-forth with Sen. Elizabeth Warren (D-Mass.) about the need to increase unemployment. The testimony confirmed investors' suspicions that the Fed wasn't done with tightening, and markets were rattled accordingly. The jobs report released on Friday only reinforced this narrative, as it showed the U.S. economy adding 311,000 jobs in February, which is 100,000 more than the consensus estimate. In other words, it's becoming even more clear that the Fed won't be changing course anytime soon.
BANKING TROUBLES
Shares of Silicon Valley Bank, a major lender in the nation's biggest tech hub, plunged toward the end of the week after the banker said it needed to raise $2.25 billion in stock to remain solvent. Then the bank announced it was trying to sell itself, adding momentum to the sell-off. Fears that Silicon Valley Bank's troubles would spread to the rest of the banking sector put downward pressure on markets Friday, but stocks rebounded later in the morning, with investors betting that the problems were contained. Trading of the stock was halted early Friday, and the Federal Deposit Insurance Corporation shut down the bank and seized its assets.
CRYPTO WOES
The price of Bitcoin sank more than 10 percent to below $20,000, with second-largest cryptocurrency ether falling by a similar amount. The sell-off followed the announcement from crypto bank Silvergate Capital was winding down operations due to liquidity issues. The crypto sector overall suffered hundreds of millions in liquidations this week, with this latest bankruptcy adding to a growing consensus that the crypto market is in shambles.
WEIGHTWATCHERS GAINS
WeightWatchers' stock soared more than 70 percent Tuesday following reports that it was planning to buy Sequence, a telehealth company that helps treat obesity. The company has struggled over the past year to transition away from weight loss and embrace other aspects of wellness and nutrition. CEO Sima Sistani took over in February, and the acquisition is one of the company's first big plays under new leadership. The purchase also comes amid heightened buzz around weight loss drugs such as Ozempic.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
As Big Tech reports Q3 earnings, investors await proof that massive AI and cloud investments from Meta, Apple, Microsoft, and Alphabet are driving real growth.
Eric Trump joins us to discuss American Bitcoin’s mission, market strategy, and why he believes the U.S. must lead the next era of digital currency innovation.
