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.
DEBT CEILING FACEOFF
The effort to come to a compromise that would raise the national debt ceiling and avoid a cataclysmic national default appeared to make little headway this week. With a June 1 deadline looming, the Biden administration held a series of meetings aimed at carving out a compromise, but Democrats and Republicans remain at odds. Meanwhile, the Congressional Budget Office on Friday reiterated that the U.S. government was at a "significant risk" of defaulting in the first two weeks of June if a bill wasn't passed.
AI FRENZY
Shares of Google parent Alphabet got a boost this week after the company announced that it was integrating artificial intelligence features into its search engine. Investors and analysts interpreted the news as a sign that Google would stay at the forefront of the AI race, which is already generating enthusiasm on Wall Street. According to a report from Societe Generale, the AI craze is responsible for all of the gains on the S&P 500 this year.
FEELING BULLISH
Relatedly, the tech-heavy Nasdaq Composite has officially exited bear market territory. Enthusiasm for AI explains part of the gains, but the index was also buoyed by a broader rebound in large-cap tech stocks, such as Microsoft, Apple, and Meta. Whether this bull market has legs, however, is one of the biggest questions facing Wall Street.
WOODSTOCK FOR CAPITALISTS
At Berkshire Hathaway's annual shareholder meeting, known as "Woodstock for Capitalists," CEO Warren Buffett warned that the "majority of our businesses" would see lower earnings this year and noted that he's offloaded several bank stocks that had been in his portfolio for a quarter century after "spotting red flags." The 90-year-old also emphasized that he wasn't stepping down from Berkshire's board anytime soon.
DISNEY DIPS
Shares of Disney fell 9 percent on Thursday after the entertainment giant reported losing four million subscribers from its Disney+ streaming platform last quarter. Price increases helped offset some of that loss, but investors were actually expecting a gain of one million, and some analysts noted that raising prices is not sustainable long-term. Notably, Disney's streaming segment is still a net loser overall.
TYSON TUMBLES
Tyson Foods' stock plunged around 16 percent earlier this week following an earnings report that showed the meat processor squeezed by high animal and feed costs at the same time that poultry prices are tumbling. “Commodity prices for most fresh chicken cuts are much lower than last year,” CEO Donnie King told investors during an earnings call.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
With a merger this big, creators, studios, and theaters all face uncertain futures. Here’s what experts are worried about and what good could come from it.
