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.
RUN, BULLS, RUN
The S&P 500 has officially exited its longest bear market run since the 1940s. The index charged into bull territory on the back of major gains in tech, in particular chipmakers such as Nvidia. Enthusiasm around artificial intelligence is partly behind the shift in sentiment, as well as a general uptick in investor optimism as inflation continues to slow and the U.S. economy, so far, manages to avoid a long-anticipated recession.
FED WATCH
Despite the good feeling on Wall Street, investors are bracing themselves for next week's Federal Reserve meeting. While it's widely believed that the central bank is nearing the end of its aggressive rate hiking cycle, the chance of another interest rate increase has markets on edge. There have been few hints from Fed officials lately, as they have been quiet as part of their usual media blackout period prior to FOMC meetings.
CARVANA ACCELERATES
Shares of Carvana skyrockeed more than 50 percent on Thursday amid a devastating short squeeze that was initiated after the struggling car retailer forecast positive adjusted earnings in the second quarter. "Our record-breaking 2023 first quarter is evidence that our strategy is working, and our updated Q2 2023 outlook demonstrates that our progress continues to positively impact the business even faster than expected," CEO Ernie Garcia said in a statement. The rally comes as the stock tries to recover from being wiped out in 2022, when it fell 98 percent.
TESLA RALLIES
Tesla’s stock is up about 12 percent this week, putting the carmaker on track to match its longest winning streak ever. The boost came after General Motors announced that it's struck a deal with Tesla to start installing its charging ports beginning in 2025. Many are hopeful that the deal marks a turning point for legacy automakers, and that others could soon adopt Tesla's charging technology as well.
APPLE DOWNGRADE
Apple's stock got a downgrade this week, despite a much-hyped developer conference that unveiled its first major product release since 2014. The long-awaited "mixed reality headset," however, didn't generate the same level of excitement as previous big product announcements such as the iPhone. It's also unclear when exactly the headset will hit markets, with Apple saying it might need more time to develop features for it.
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.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
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 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.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
