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.

FED PAUSE

It was a jam-packed week for macro-economic developments. First, the consumer price index showed inflation continuing to slow, rising a meager 0.1 percent month-over-month and 4 percent from 12 months ago. Also, the Federal Reserve left its benchmark interest rate unchanged at about 5 percent, pausing a tightening cycle that began in early 2022 — even as it said that at least two more rate increases are in store for this year.

HEALTH SHOCK

UnitedHealth Group's stock plunged on Wednesday after the health insurer revealed that a spike in surgeries was pushing up costs. The stock fell 6.4 percent, one of its biggest decline ever. Chief Financial Officer John Rex blamed the cost increases on "pent-up demand" from the elderly, who put off surgeries, such as knee replacements, during the pandemic. The sell-off was a drag on the rest of the stock market, though the major indexes bounced back before the end of the trading week.

CAVA SOARS

The IPO market has been relatively quiet since the most recent bull market took hold, but the Mediterranean restaurant chain Cava breathed some life back into it this week with a blockbuster debut. The stock skyrocketed 117 percent on Thursday, closing above $43 per share and giving the company a market cap of nearly $5 billion. The chain started in 2006 and entered the emerging fast casual market in 2011, bolstered by other brands such as Chipotle Mexican Grill. Cava's sales shot up nearly 13 percent in 2022.

TOYOTA TOPS OUT

Toyota Motor's stock shot up 10 percent this week, marking the automaker's best week on Wall Street since 2009, after it disclosed plans for a next generation of electric vehicles. The stock usually doesn't make such large moves, but the latest news restored confidence in the company's EV strategy, which was previously criticized for lacking ambition compared to rival firms. The first line-up of new EVs will launch in 2026.

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Nestlé dismisses CEO after he has relationship with a subordinate
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 undoes blockbuster merger after a decade of falling sales
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.
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