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.
Stocks fell on Friday after a turbulent week on Wall Street amid continued fears that a series of banking collapses could lead to a wider financial crisis. The situation is rapidly developing, but here's a rundown of the biggest developments so far this week.
BANKER BAILOUT
On Thursday, 11 of the biggest U.S. banks announced they were teaming up to deliver a $30 billion rescue package to First Republic Bank, which is the latest bank to nearly collapse due to fleeing depositors. The bank served a similar clientele as Silicon Valley Bank, which went into receivership last weekend following a massive bank run. Many see the package as a vote of confidence for First Republic and the banking sector overall.
FED THROWS A LIFELINE
The Federal Reserve has loaned a total of $300 billion to struggling banks over the past week. About half of that chunk, $143 billion, went to the newly formed holding companies behind Silicon Valley Bank and Signature Bank, both of which saw bank runs. The Fed hasn't revealed where the other half went, leading to speculation about the extent of the crisis. The money went toward shoring up a bank's balance sheets.
CREDIT SUISSE TUMBLES
Swiss bank Credit Suisse on Wednesday saw its shares plunge more than 30 percent after the Saudi National Bank, its biggest shareholder, said it would no longer provide funding. The news sowed fear that the U.S. banking crisis was going global. However, the troubles at Credit Suisse started long before the collapse of Silicon Valley Bank. Depositors have been pulling out of the bank since last year, when the bank admitted that it had misjudged its financial risks.
INFLATION SLOWS
Meanwhile, inflation continues to slow. The consumer price index jumped 0.4 percent month-over-month in February, which is down from 0.5 percent in January, while the annual inflation is up 6 percent, down from 6.4 percent. The trend is notable development considering many of the issues afflicting the banking sector originate, in part, from the Fed's quest to tamp down prices with higher rates.
President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
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.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
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.
