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.
Raina Moskowitz, CEO of The Knot Worldwide, unpacks the 2025 Global Wedding Report, from Gen Z trends to how Taylor Swift's wedding could reshape the industry.
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
