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.

RALLY CHECK

A year ago this week, U.S. equities reached the top of their longest-ever bull run… just before the gathering coronavirus crisis spilled over into global markets. Markets have again been reaching new highs, fueled by cheap money, but the stocks ended the week mixed on Friday with the Dow up less than a point and the S&P dropping 0.2 percent, its first losing week in the last three. This was all despite optimism that more government stimulus is on the way and COVID cases in the U.S. keep plummeting, down some 75 percent in the last six weeks. On the negative side, atrocious weekly jobless claims showed another 861,000 workers filed for unemployment in the week prior. 

TEXAS ENERGY CRISIS

Investors mostly shrugged off the deepening energy crisis in Texas after blackouts caused by the historic deep freeze that shut refineries across the state. The commodity analytics firm Kpler estimates as much as 40 percent of U.S. crude output may have been forced offline due to the storm. Gas prices, already on the rise, are forecast to spike 10 to 20 cents in the next two weeks, though crude prices had started falling by Friday as more production came back online. The price of natural gas and propane has skyrocketed in the last week, and that will soon be felt in the form of higher home heating costs. 

GAMESTOP HEARING

Robinhood CEO Vlad Tenev apologized during congressional testimony for the decision to pause trading in stocks like GameStop, calling the extreme volatility in that stock a black swan event that was impossible to prepare for. Keith “Roaring Kitty” Gill of Reddit fame also testified and made a bullish case for why he and other day traders rallied behind that stock. (His testimony actually had the effect of sending $GME shares higher in real-time, before they pared those gains). On the other side, the founder of Melvin Capital, the hedge fund that bet against GameStop, defended his firm’s short position. No immediate policy outcomes resulted from the marathon hearing, and more testimony is expected in the coming weeks.  

PAYING FOR NEWS

The standoff between Big Tech and news publishers took one major step toward conciliation and then one major step back in the span of just a few hours. Google and News Corp announced a landmark deal in which Google will make a “significant payment” to the parent company of Fox News, the NY Post, and the WSJ to license its journalism on Google’s platforms in the U.S., UK, and Australia. That’s widely considered to be a win for media companies that have long said they’re giving away their content for free on the search engine. Then Facebook said it would start restricting users and publishers in Australia from sharing links to news articles in response to a proposed law that would require tech giants to pay publishers to link to their stories. Facebook has said that law is simply unworkable on the open internet and acted accordingly — though conversations between the company and Australian lawmakers are set to continue as other countries prep for similar legislation.

BITCOIN BULLS

The price of Bitcoin soared past $50,000 for the first time, and it hasn’t stopped. The digital coin is up 80 percent so far this year. The rally has been helped along by new institutional interest in crypto — big names like Mastercard and Morgan Stanley warming to the idea of digital currencies not backed by governments — but the sustained rally also suggests that some of the same retail investors that powered Bitcoin’s last bull run in 2017 are coming back, buying and holding the asset for the long run. 

Share:
More In Business
Al Sharpton to lead pro-DEI march through Wall Street
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
A US tariff exemption for small orders ends Friday. It’s a big deal.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines’ new policy will affect plus-size travelers. Here’s how
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Load More