The Week's Top Stories is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
RATE HIKE WORRIES
The Federal Reserve Open Market Committee is meeting next week, and that means many investors are wondering whether the central bank will hit markets with another rate hike. The Fed took a break from tightening at its last meeting on the heels of multiple reports showing a slowdown in inflation, but Fed Chair Jerome Powell noted that at least one more rate hike was on the horizon. Whether that happens next Wednesday or later this year is the question haunting markets going into the weekend.
TESLA CRASH
Shares of Tesla crashed more than 9 percent for the week after CEO Elon Musk disclosed that production is set to slow down this quarter due to "global factory upgrades." He said the target for the year is still 1.8 million vehicle deliveries, but could see a lull in the third quarter. The company also announced that it's recalling 16,000 of its Model S and Model X vehicles from 2021-2023. The recall is related to an issue with the first-row seat belt.
GAMING MERGER
The Federal Trade Commission is backing down from an appeal to a recent ruling giving Microsoft the go-ahead to complete its acquisition of Activision Blizzard. The two companies recently announced an extension of the deadline for finishing the merger to October 18, giving them more leeway to secure government approval. They can continue to negotiate with other countries' regulatory authorities, including the United Kingdom's Competition and Markets Authority.
BANKING PROFITS
Bank of America earlier this week reported a 19 percent jump in net income from a year ago, while revenue shot up 11 percent. CEO Brian Moynihan said the strong earnings were the result of a "healthy U.S. economy" and a "resilient job market." The results also indicate that the bank's size and diversity has helped it avoid the headwinds facing smaller regional banks, and that its still able to make money on loans even as it pays out more for deposits due to higher interest rates.
Updated Tesla stock drop after close of markets Friday.
Merriam-Webster has fully revised its popular “Collegiate” dictionary with over 5,000 new words. They include “petrichor,” “dumbphone” and “ghost kitchen.” Also “cold brew,” “rizz,” “dad bod,” “hard pass,” “cancel culture” and more.
YouTube will offer creators a way to rejoin the streaming platform if they were banned for violating COVID-19 and election misinformation policies that are no longer in effect.
Lukas Alpert of MarketWatch explores how networks, brands, and ad buyers absorb the shockwaves when late‑night show hosts are suddenly cut — and brought back.
A new poll finds U.S. adults are more likely than they were a year ago to think immigrants in the country legally benefit the economy. That comes as President Donald Trump's administration imposes new restrictions targeting legal pathways into the country. The Associated Press-NORC Center for Public Affairs Research survey finds Americans are more likely than they were in March 2024 to say it’s a “major benefit” that people who come to the U.S. legally contribute to the economy and help American companies get the expertise of skilled workers. At the same time, perceptions of illegal immigration haven’t shifted meaningfully. Americans still see fewer benefits from people who come to the U.S. illegally.
Shares of Tylenol maker Kenvue are bouncing back sharply before the opening bell a day after President Donald Trump promoted unproven and in some cases discredited ties between Tylenol, vaccines and autism. Trump told pregnant women not to use the painkiller around a dozen times during the White House news conference Monday. The drugmaker tumbled 7.5%. Shares have regained most of those losses early Tuesday in premarket trading.
