Author: PAZAMBA

Summary:

The Dow Jones Industrial Average (DJIA) and the S&P 500 ended this week on a high, with a gain of 0.37% leading the DJIA to close at 46,315.27 and a 0.49% increase setting the S&P 500 at 6,664.36. The Nasdaq Composite also rose by 0.72% to 22,631.48.

Apple Inc. became a market leader with a 3.2% rise in share value as the newest iPhone was launched, while Tesla shares increased by over 2.2%. On the other hand, the small-cap Russell 2000 index dipped 0.7% despite touching a record high earlier in the week.

The Fed’s decision to reduce its benchmark overnight lending rate sparked gains, leading the S&P 500, the DJIA, and the Nasdaq to increase 1.2%, 1%, and 2.2% respectively in the past week.

Stocks like Tesla, Alphabet, and Apple emerged as strong gainers with Tesla gaining nearly 8% for the week, Alphabet adding approximately 6%, and Apple rising almost 5%. However, AI chipmaker Broadcom ended the week down 4% following last week’s upswing.

Stocks related to the nuclear sector, such as Oklo and NANO Nuclear, showed positive movements amid optimism in the sector. Meanwhile, the homebuilder company Lennar faced a 4.2% loss following lower-than-anticipated revenue for the quarter.

Overall, rate cuts by the Federal Reserve and promising trade developments lifted markets, leading most to closing highs. The rate cuts are anticipated to provide a boost to the housing market by potentially reducing mortgage rates. However, investors are waiting cautiously as the failure of the Fed to meet rate cut expectations could potentially result in a significant market drop.

Oklo (NYSE: OKLO) shares have soared by 63.5% this week due to a nuclear collaboration agreement between the U.S. and U.K. which reduces reactor licensing timelines. The S&P 500 and the Nasdaq-100 also experienced gains of 1.2% and 2.2% respectively. The nuclear energy agreement aims to reduce Russian dominance in nuclear fuel supply, with both countries committed to eradicating Russian fuel imports by 2028. Despite not generating significant revenue yet, Oklo could profit from streamlined licensing with its compact fast reactor design.

In other stock news, Canada’s main stock index, the S&P/TSX composite index, ended the week with a notable 300-point rise, closing at 29,768.36, driven by strength in base metals. U.S. markets also experienced significant gains, with the Dow Jones industrial average rising 172.85 points to 46,315.27. The S&P 500 index went up 32.40 points to 6,664.36, while the Nasdaq composite increased by 160.75 points to 22,631.48.

Gold and silver materials recorded significant gains in Canada, strengthening over the past three weeks to push the TSX materials index up by over 65% year-to-date. The rise in gold prices came as a result of expectations for lower interest rates, high inflation, and potential U.S. and worldwide government debt impacting currency value.

Newmont Corp., a gold miner based in Colorado, rallied 4% on the TSX after it disposed of its investment in Canadian gold producer Orla Mining Ltd. for about $605 million. By contrast, Orla shares fell more than 5% to $14.44 on the TSX.

In the U.S., tech stocks led the market progression, particularly hardware and equipment. On the downside, Canadian energy stocks and the November crude oil contract experienced losses, following a trend observed over the past weeks.

Notable economic data releases are expected this upcoming week in Canada and the U.S., including GDP numbers, the Purchasing Manager’s Index, jobless claims, and inflation data. Investors are advised to look beyond daily news flow and focus on longer-term trends.

Tech stocks made considerable gains as the S&P 500 was set to close higher for the week, largely propelled by mega cap tech stocks. This trend is due to investors returning to large-cap growth tech stocks as the interest rates slowly increase since the Federal Reserve’s recent rate cut. Particularly, Microsoft announced price rises for several Xbox consoles in the U.S. due to changes in the macroeconomic environment, marking the second such increase this year. This is seen as a reaction to the Trump administration’s tariffs aimed at revitalizing American manufacturing.

In other tech news, Elon Musk’s AI initiative, xAI, is reportedly seeking to raise $10 billion in investment at a $200 billion valuation. This is amid increasing interest and skyrocketing valuations in foundational AI models. Musk, however, has denied the report, stating that xAI is not currently raising capital. Microsoft, GE Vernova, and Eaton Resources are all performing well with the latter two benefitting from the Energy Department’s new “Speed to Power” initiative.

Former Disney CEO Michael Eisner demonstrated his support for Jimmy Kimmel after Kimmel’s show was suspended indefinitely by ABC for comments he made. Eisner accused FCC Chairman Brendan Carr of attempting to intimidate ABC and Disney. In a related event, Republican Sen. Ted Cruz criticized Carr, drawing a comparison between the FCC Chair’s behavior and a ‘mafia boss’ due to Carr’s threats to cancel ABC’s broadcast license over Kimmel’s remarks

Next week, earnings from Costco, Micron, Cintas, KB Home, and Jabil will be closely watched, as will data on the S&P Global PMIs, weekly mortgage applications, and weekly jobless claims, considering their potential to influence market trends.

The day’s biggest movers in stocks were Brighthouse Financial, Lennar, Apple, FedEx, Newmont, and Orla Mining among others. Brighthouse Financial saw a significant surge of 26% following a report of a potential buyout by a group led by Aquarian Holdings. Conversely, publisher Scholastic saw its stock fall almost 11% due to wider losses in the recent fiscal quarter.

Newmont and Orla Mining experienced opposite antics after Newmont sold its stake in Orla for $439 million, leading to a price rise of over 4% for Newmont and a 7% fall for Orla. SolarEdge Technologies saw a strong 4% rise, adding to the week’s 24% surge. FedEx’s stock jumped 3% following a better-than-expected earnings report, while Intel pulled back 2%.

The home-builder Lennar, however, saw a 3.7% drop following weaker-than-expected third-quarter revenue. JPMorgan’s price target hike for Apple saw the stock rise 3%.

In other news, e-commerce firm Pattern Group made its Nasdaq debut with its stock rising slightly, raising $300 million and valuing the company at about $2.5 billion. The company recorded a 39% revenue growth year-over-year to $598.2 million in Q2.

Investment in chip stocks is concentrated on Nvidia, Intel, Astera Labs, Rambus, and others. The AI boom has led chip stocks to be more under scrutiny. VanEck’s Semiconductor ETF and iShares’ Semiconductor ETF, for example, have seen significant growth, focusing on broad exposure to the chip industry.

Despite some concerns, Jim Cramer recommended more bullish behaviour on Apple stock due to strong early signs of demand for its new iPhone models and optimistic comments from Apple’s CEO, Tim Cook.

In a polarized stance, Federal Reserve Governor Stephen Miran predicts that President Donald Trump’s tariffs will not increase inflation in the U.S. economy. Despite most measures indicating inflation running above the Fed’s 2% target this year.

President Donald Trump has indicated he might revoke the licenses of broadcast television networks that he perceives as being ‘against’ him. This includes ABC, whose license is presently at risk for failing to take action against Jimmy Kimmel, host of ‘Jimmy Kimmel Live’ who made negative comments linking Trump to a crime.

Meanwhile, Trump suggested that a possible ceasefire between Russia and Ukraine might be progressing. Speaking after his UK state visit, Trump said he hoped for a resolution soon, admitting that resolving the war has been harder than anticipated.

In market news, investment analyst Jim Cramer predicts a possible 3%-5% correction before year-end, adding that it would depend on Trump’s unpredictable actions. He also predicted any potential declines would stem from earnings and advises investors to seize opportunities presented by any dip in the market.

In company updates, Intel’s shares soared 28% after Nvidia announced a $5 billion investment. FactSet Research Systems saw its shares drop by 6% after reporting disappointing earnings and full-year guidance. Wynn Resorts’ shares rose by 2% after Stifel raised its price target due to positive indicators for the international gaming market. Allstate shares gained 4.8% after its catastrophe losses for July-August came in significantly less than expected.

The future of wearable tech is likely to revolve around smart glasses, according to Meta Chief Product Officer Chris Cox. Cox spoke about the company’s new $799 Meta Ray-Ban Display glasses, capable of recording videos and sending messages through various controls.

In today’s stock market, cybersecurity software provider Netskope made a significant debut on Nasdaq with shares opening at $23, subsequently rising by over 20%. The firm raised more than $908 million, valifying the company at $7.3 billion. On the innovation front, the California-based start-up Beewise has developed BeeHome, an AI-directed robotic beehive, that has so far attracted $170m in funding. The BeeHome is designed to combat the damaging effects of climate change on bee colonies, which threaten pollination and food supplies.

However, regulatory issues continue to challenge several companies. The Trump administration asked the Supreme Court to overturn lower court rulings preventing the dismissal of Federal Reserve Governor Lisa Cook. This follows allegations of mortgage fraud by Cook, claims she denies. In more legal woes, the U.S. Federal Trade Commission has sued Ticketmaster and its parent company, Live Nation Entertainment, for “illegal” ticket resale tactics, with the lawsuit claiming these tactics “cost ordinary fans millions of dollars every year”. Following the news, shares of Live Nation fell approximately 2%.

Also in focus today were poor earnings for Cracker Barrel and disappointing preannouncement earnings for the steelmaker Nucor. Intel, however, saw a significant 28% rise in stocks following an agreement with Nvidia. Furthermore, CrowdStrike’s stocks rose by nearly 5% after the cybersecurity provider projected optimistic long-term financial targets. Meta’s Mark Zuckerberg continues to push boundaries in AI, with the reveal of a $799 Meta Ray-Ban smart glasses display. In international news, Chinese tech giant Huawei claimed to unveil the “world’s most powerful” AI chip cluster.

Jim Cramer’s investing tips today included positive outlooks for Nvidia, Reddit, and SoFi Technologies. Cramer also highlighted potential growth opportunities for low-cost drone maker AeroVironment and controversial growth expectations for Abercrombie & Fitch.

The Federal Reserve cut its benchmark overnight lending rate by a quarter percentage point in an 11-to-1 vote, bringing its target range to 4% to 4.25%. Notably, newly appointed Fed Governor Stephen Miran was the only dissenter favoring a half-point reduction. The Fed rate cut will affect various aspects of consumer finances, such as credit cards, mortgages, auto loans, student loans, and savings rates.

The S&P 500 was down by about 0.2%, and the Dow Jones Industrial Average held onto gains but gave up some post-decision rise. The yield on the 10-year Treasury note rallied to highs of the day, resulting in a sell-off in Home Depot’s shares.

Moreover, nine Fed members indicated two more cuts are likely by year-end, suggesting a quarter-point cut at both the October and December meetings. However, some saw as many as four cuts in 2026. Concerns have intensified over the U.S. labor market, which underwent a sharp slowdown in hiring. The unemployment rate stood at 4.3% in the August jobs report.

In the IPO landscape, both StubHub and WaterBridge Infrastructure started trading on the NYSE, and Netskope and Pattern Group are expected to go public later this week. Fitness app Strava has invited banks, including Goldman, to pitch for a potential IPO as early as next year.

Cybersecurity company CrowdStrike’s CEO, George Kurtz, emphasized the significance of artificial intelligence (AI) in cybersecurity during a recent interview. Kurtz shared how North Korean operatives are utilizing AI to infiltrate companies, asserting the need for AI for protecting from AI threats. Kurtz also talked about the increasing trend of autonomous AI systems and mentioned how CrowdStrike is perfectly positioned to lead the market. During the company’s annual Fal.Con event, CrowdStrike announced the acquisition of startup Pangea, which specializes in securing AI agents.

A bill called the Financial Exploitation Prevention Act, aiming to combat financial fraud against the elderly, is gaining traction in the U.S. Congress. Proposed by the bipartisan team of Sens. Bill Hagerty (R-Tenn.) and Ruben Gallego (D-Ariz.), the bill proposes measures to help financial institutions deal with potential financial abuse against the elderly and disabled. The AARP reports that criminal theft costs elderly adults over age 60 an estimated $28.3 billion each year.

The Federal Reserve announced a quarter-percentage-point reduction in the benchmark overnight lending rate and signaled two more rate cuts possibly coming by year-end. This measure had one dissenting voice, newly appointed Fed governor Stephen Miran. In a news conference, Federal Reserve Chair Jerome Powell indicated the cut as a risk-management measure given the emerging risks in the economy.

Sales of heavy trucks exceeding 14,000 pounds in gross vehicle weight have reportedly decreased in the U.S., raising concerns about the state of the economy. Considered a leading indicator for the economy, the 15% year-over-year drop in sales volume for August and a 21% drop compared to August 2023 have been cited as causes for concern due to their historical precedents of preceding recessions.

Google’s AI-based Gemini app experienced a surge, taking the top spot on Apple’s App Store and reportedly attracting 13 million new users. This achievement also contributed to Alphabet’s entry into the $3 trillion market club alongside Nvidia, Microsoft, and Apple. Alphabet shares have increased by 33% this year compared to Nasdaq’s 16% gain.

MP Materials, the sole large-scale producer of rare earth minerals in the US, witnessed a significant rise in its shares after the company broke its previous record. The company produces 15% of the global supply of rare-earth oxides, key components of high-strength permanent magnets used in various industries such as electric vehicles, wind turbines, mobile devices, and defense systems.

Microsoft announced a significant investment of $30 billion in the UK for its AI infrastructure and operations by 2028. This investment will potentially result in building the UK’s largest supercomputer in partnership with Nscale, a local cloud computing firm.

Today’s stock market also marked an increase in Amazon’s price target to $270 from $250 by Truist due to a rise in Amazon’s North American revenue, roughly $1 billion above the consensus estimate. Shares of Oracle were also on the rise following reports suggesting that it would be running TikTok’s US operations.

Micron Technology saw a surge in its shares following an increase in its price target by Mizuho to $182 from $155. This is mainly due to the expected success of its high bandwidth memory (HBM) based on the ramp of Nvidia’s Blackwell Ultra chip. On the other hand, Goldman Sachs, Bank of America, Citigroup, and JPMorgan witnessed an increase in their price targets by Wells Fargo analyst Mike Mayo. He also raised the price target for Morgan Stanley, which is currently hold-rated.

Nike’s price target was elevated to $74 from $68 by Citi due to the expected earnings beat when the company reports on Sept. 30. According to Citi, better sales and lower selling, general, and administrative expenses are the primary driving factors.

Lastly, Prologis, an industrial real estate owner, experienced an upgrade from Bank of America from hold to buy along with an increase in its price target from $118 to $130.

Netskope is targeting a $7.3 billion valuation in its initial public offering, raising up to $908 million by selling 47.8 million shares at $17 to $19 each. It is leveraging a resurgence in IPO activity after soaring inflation and interest rates squashed the tech deal appetite.

According to Bank of America, gold is favored if federal interest rates are cut due to stubbornly high inflation of 2.9%. Over the past 25 years, the precious metal has never declined in price when the central bank eases monetary policy during high inflation periods. Gold futures have gained over 40% in 2025 alone, reaching $3,729 per ounce.

Wall Street’s Tuesday session saw a slip in S&P 500 and Nasdaq from their record-high closings at the start of the week. Market odds for a total of 75 basis points of Fed easing by the year-end remain high according to the CME FedWatch tool. Stocks making significant moves include Webtoon Entertainment, with shares surging 31% on a Disney digital comic platform deal, and Dave & Buster’s Entertainment, whose shares fell 16% after second-quarter earnings missed expectations.

Investors are bullish ahead of the Federal Reserve decision, marking the highest sentiment since February, as per Bank of America Securities’ latest survey. The central bank is expected to lower interest rates for the first time in 2025, which could further buoy investor confidence. Investors are hopeful that weak economic data hinting at labor market instability might prompt the Fed to implement cuts to stimulate growth. The S&P 500 recently closed above 6,600 for the first time, reflecting this optimism. Concurrently, some market observers warn investors to be cautious of an aggressive easing cycle typically embarked upon by the Fed during downturns. Inflation remains solid, and labor market signs are slowing.

Early demand for the iPhone 17 has led to positive projections for Apple. Global lead times for the new model have averaged better than the previous iPhone 16 model. These increased demands pushed Apple’s shares higher by 15% quarter-to-date. A significant boost for Apple was the success of the iPhone 17 base in China due to its lower cost. Despite a 5.7% year-to-date decline, analysts from JPMorgan and Bank of America maintain a positive outlook on the stock.

CoreWeave’s shares rose nearly 8% upon the announcement of a $6.3 billion agreement with Nvidia. CoreWeave, a provider of cloud infrastructure for AI workloads, plans to submit the full contract alongside its third-quarter financial results. Although CoreWeave continues to lose money, it remains reliant on Nvidia, and its shares have tripled since its IPO.

Unrelated, today flight company Alaska Air shares fell more than 5% after it announced lower projected earnings per share for the third quarter.

In the tech sector, Tesla CEO Elon Musk’s purchase of $1 billion in shares resulted in a stock increase of 6%. Additionally, the Winklevoss’ exchange, Gemini Space Station, added 1% following its debut on the Nasdaq.

RBC Capital Markets increased its year-end forecast for the S&P 500 from 6250 to 6350 due to stronger-than-expected corporate profits. However, it predicts ‘choppy’ action, as the market has struggled to break through its previous peaks.

Elon Musk has acquired over 2.5 million Tesla shares worth approximately $1 billion. This has led to a 6% increase in Tesla shares during premarket trading. Musk’s investment has produced significant excitement among investors and created positive speculation around the firm’s stock.

Oracle experienced its most significant weekly gain since 1999, with shares increasing by over 25% due to anticipated spending from OpenAI. This development reflects the growing trend in the tech industry, where companies with ties to OpenAI, including Oracle, Broadcom, Microsoft, and Nvidia, have experienced significant growth of their market caps, totaling $4.5 trillion since 2022.

However, Nvidia’s shares fell by about 2% following an announcement by China’s market regulator. The regulator has initiated a preliminary investigation alleging that Nvidia violated China’s anti-monopoly law during its acquisition of Mellanox.

Swiss watchmaker Swatch has revealed a unique response to President Trump’s imposing a 39% tariff on Switzerland. The manufacturer has released a special edition watch known as the “WHAT IF…TARIFFS?” model. If the U.S. decides to adjust its tariff policy, Swatch has stated that it will then cease selling the watch.

On the other hand, UnitedHealth Group’s shares have quickly risen by almost 30% after Berkshire Hathaway revealed it had taken a stake in the insurer.

Investors are also expecting an interest rate cut from the Federal Reserve this week. This key policy decision is much anticipated in the market, and traders expect Chair Jerome Powell to provide essential guidance on future rates.

In other news, Maurene Comey, a federal prosecutor involved in lawsuits against Jeffrey Epstein and Ghislaine Maxwell, is suing the Department of Justice for wrongful termination during the Trump administration.

Overall, the stock market shows signs of positivity, particularly regarding OpenAI’s impact on the tech industry and Elon Musk’s hefty purchase of Tesla shares.

The Nasdaq Composite ended the week on a high note, achieving a full week of record closes. This was fuelled by investor expectations of the Federal Reserve lowering interest rates due to signs of a weakening job market and tame inflation. The Nasdaq rose by 0.44% to close at 22,141.10, with a significant contribution to this increase coming from Tesla shares.

The S&P 500 had a slightly more mixed week, ending just 0.05% lower at 6,584.29 despite having its best weekly performance since early August. The S&P saw a week-to-date increase of 1.6%, making it its fifth positive week in six.

The Dow Jones Industrial Average lost 273.78 points or 0.59%, closing at 45,834.22. Despite this loss, the Dow still managed to post a positive week, the first in three weeks, with a week-to-date increase of 1%.

Looking forward to next week, investors are anxious about the Federal Reserve’s decision on whether it will lower its benchmark interest rate on September 17, with futures markets almost certain of a quarter percentage point cut.

In terms of key performers, Tesla shares surged, making a significant contribution to the Nasdaq’s gains. Alternatively, the Dow and S&P had mixed performances with investors now looking to the Fed’s interest rate decision.

Economic data concerning job growth and inflation factors like the consumer price index indicates a “decelerating labor market”. This supports the decision for a cut next week according to Bill Northey, investment director at U.S. Bank Wealth Management.

In summary, a week of mixed performances was observed for the Dow and S&P, but was largely offset by record high performances by Nasdaq, supported by economic factors pointing towards lower interest rates.

Investing.com’s stocks of the week include Oracle, Warner Bros. Discovery (WBD), Synopsys, and UnitedHealth (UNH). Oracle was a significant gainer this week, with its shares up 26.3% following an earnings release showcasing a strong AI pipeline. WBD shares rallied 59.4% in the last week due to potential takeover news. However, Synopsys shares have declined 30.4% over the past week after disappointing earnings, revenue, and guidance. UNH has gained around 14.5% this week, reaffirming its adjusted 2025 earnings per share expectations.

The Dow Jones Industrial Average closed at 46,108.00, gaining 617.08 points or 1.4%. The Nasdaq Composite added 157.02 points, or 0.7%, to close at 22,043.08, while the S&P 500 gained 55.43 points, or 0.9%, to close at 6,587.47. All three indices reached new highs on expectations that the Federal Reserve will cut interest rates next week.

Among other major movers this week, Planet Labs’ (NYSE: PL) shares increased by almost 50% due to encouraging quarterly results. The company posted a 20% gain in revenue and managed to substantially decrease its net loss.

Finally, markets are anticipating multiple interest rate cuts in 2025 by the Federal Reserve. Despite the rise in inflation, the weak signals from the labour market underpin expectations of rate cuts. Investors are pricing in a higher probability of one or more rate cuts beginning at the upcoming Fed meeting.

The stocks market was mixed on Friday with S&P 500 tracking a weekly gain of more than 1.5% and trading at record highs. The market is preparing for the Fed’s meeting next week, which is largely expected to cut the Fed funds overnight bank lending interest rate by 25 basis points to a range of 4% to 4.25%.

Gemini, a cryptocurrency exchange owned by the Winklevoss brothers, soared up to 40% in its Nasdaq debut after it successfully raised $425 million in an initial public offering. The stock began trading at $37.01, up from its initial IPO price of $28. Despite the company undergoing net losses in recent years, it held over $21 billion of assets on its platform as of the end of July.

In terms of high-priced stocks, investors are being advised to focus on the underlying valuation metrics rather than the share price. This stands in light of advances in technology that now allows the trading of fractional shares. For instance, a 10% shift can equate to a $100 change in value whether 10 shares of a stock at $100 each, or one share at $1,000, are owned.

With the Federal Reserve planning to cut interest rates, there is concern over the $7.6 trillion ‘wall of cash’ in money market funds. This cut could potentially prompt a shift of money into riskier investments such as stocks and bonds. The bond market, however, has recently shown signs of volatility which could make duration a dicier proposition for investors.

Six Flags Entertainment, Tesla, Joby Aviation, IonQ, Super Micro Computer were the main gainers in the midday trading while Adobe, Microsoft and BigBear.ai also saw an increase in their stock prices. Warner Bros. Discovery and Figure Technology Solutions also saw an increase after recent company announcements. In contrast, RH and Opendoor Technologies saw a decrease in their stock prices.

Renowned pharmaceutical companies Pfizer and Moderna experienced a decline in stock shares by more than 3% and 7% respectively after a report announcing that Trump administration health officials plan to link Covid vaccines to the deaths of 25 children. Novavax shares also dropped by more than 4%. In contrast, technology companies Nvidia and Apple are performing well. Corning, a partner of both, reached a 25-year high in its shares, with a stock rise of 60% year-to-date.

Opendoor, an online real-estate platform, saw their shares soar by 78% on Thursday following new appointments to positions including board chair and CEO. Despite facing a 12% slide on Friday, the company’s shares are up nearly 500% for the year. In contrast, Bank of America’s business-cycle metric indicates a positive shift for certain dividend stocks as it moves into a confirmed recovery phase. Their U.S. Regime Indicator shows potential for high-dividend yield stocks to perform well in the current market environment.

Healthcare firms Eli Lilly and Novo Nordisk are preparing for another rivalry with the upcoming launch of oral obesity drugs once they gain regulatory approval in the US next year. Lilly’s drug produced less weight loss than expected in a recent trial, raising speculation about the uptake of these oral drugs. The market for GLP-1 obesity drugs is projected to reach about $80 billion by 2030, according to data from Evaluate.

Finally, investors are looking favorably at high dividend stocks in the current environment. Stocks highlighted as potentially strong performers in this category include Regions Financial, AvalonBay Communities, Exelon, and Amgen. These companies are part of the Russell 1000 and have been identified for their strong trailing 12-month yield. This report suggests that dividend stocks could play a significant role in total returns in the near future.

The search for the next Federal Reserve chair continues, led by the US Treasury Secretary Scott Bessent. His reform agenda for the Fed includes a focus on reducing the Fed’s economic footprint and organizing an organic decrease of the massive bond portfolio of the central bank. The present Fed chair’s term will expire in May 2026, causing significant changes in the Fed’s complexion.

Commerce Secretary Howard Lutnick, announced that the US will equally share profits with Japan. A tariff deal allows for shared revenue from Japan-funded projects in the US until the initial $550 billion investment is recouped. Afterwards, the profit split shifts to favor the US by 90%.

In business and stock news, Tesla announced a record-breaking pay package for CEO Elon Musk in an attempt to compete with his private companies. The majority of Musk’s wealth now comes from these private ventures, including SpaceX and xAI Holdings. His fortune is estimated at $385 billion by Bloomberg and $436 billion by Forbes.

Meanwhile, Paramount Skydance is reported to be preparing a bid for Warner Bros. Discovery, with the bid coming as early as next week. In response, shares of Warner Bros. Discovery jumped by more than 25%. Shares of Paramount Skydance were also up, by about 8% during afternoon trading.

Finally, the Bureau of Labor Statistics released a report indicating that tariffs are beginning to affect consumer prices. Prices increases were seen in apparel, video and audio products, motor vehicle parts, new cars, energy, groceries, furniture and bedding, and tools and hardware. This may pose challenges for both consumers and Federal Reserve policymakers in the upcoming years.

JPMorgan has identified four “meme stocks” that could see sudden price swings due to retail investors and hedge funds taking opposite positions. The four stocks – Hims & Hers Health, ImmunityBio, Rocket Companies, and SoundHound AI – are attracting significant attention on social media and have high retail investor interest. Hims & Hers Health recently saw a share drop after its Q2 revenue results fell short of expectations. In contrast, Rocket Companies achieved a new 52-week high following a positive rating upgrade by Bank of America.

In other news, a plane carrying South Korean industrial workers who were detained by U.S. immigration at a Hyundai-LG Energy Solution battery plant returned to South Korea. This follows an immigration raid on the plant that led to upwards of 300 Koreans being detained, triggering a major diplomatic standoff.

Elsewhere, companies such as H.B. Fuller and Wyndham Hotels & Resorts, which carry a significant portion of floating rate debt, could benefit from possible reductions in short-term interest rates. The market currently prices an 89% likelihood of the Federal Reserve instituting a quarter-point rate cut at its next policy meeting. Goldman Sachs has identified companies with the largest proportion of floating rate debt, including H.B. Fuller, Wyndham Hotels & Resorts, Capri Holdings, Sandisk, Informatica, and Elanco Animal Health.

Additionally, Jim Cramer’s Charitable Trust announced they are buying 50 shares of industrial company Honeywell, expecting it to benefit if lower interest rates stimulate economic growth. The Trust already owns 350 shares and is increasing its weighting to 2.25%.

Lastly, CNBC’s Jim Cramer sees substantial potential in Home Depot and Amazon. He expects Home Depot to particularly benefit from potential Fed rate cuts due to its impact on mortgage rates. On the other hand, Amazon was named a top pick by Morgan Stanley due to its growing footprint in the $600 billion grocery market. Despite a recent dip in Amazon’s stock following Oracle’s deal with OpenAI, Cramer recommends not giving up on Amazon.

He did not provide specific numbers for the Dow, S&P, and Nasdaq.

Despite the devastating crash of Air India Flight 171 in June, Air India CEO, Campbell Wilson, has emphasized a renewed safety focus under the “new normal”. Shares of Swedish fintech company Klarna rose by 30% on their New York Stock Exchange debut, opening at $52 per share after pricing their IPO above the expected range. Klarna is known for its ‘buy now, pay later’ products; the IPO raised $1.37 billion for the company and existing shareholders. However, by midday, the stock slipped to around $47, valuing the company at approximately $18 billion.

Oracle’s optimistic sales projection to $114 billion by fiscal 2029 has raised the stocks of other tech companies involved in AI development, such as Nvidia and Taiwan Semiconductor Manufacturing Co, which climbed by 4% and over 4% respectively. Oracle stock itself surged by 39% after the company reported 1529% growth in its multicloud database revenue from large companies like Amazon, Google, and Microsoft. In contrast, Synopsys shares tumbled by 35% after the semiconductor tool supplier posted disappointing third-quarter results.

Other notable market activity includes Chewy who saw a fall of 16% after reporting a steep year-over-year drop in earnings. Meme stock GameStop climbed more than 5% after reporting second-quarter earnings at 25 cents per share. Rubrik, a cloud data company’s stock also fell by 14% despite posting a second-quarter adjusted loss of 3 cents per share, narrower than the loss of 4 cents per share expected by analysts.

Lastly, US President Donald Trump has appealed against a federal judge’s order which prevents him from firing Federal Reserve Governor Lisa Cook, while a lawsuit challenging her removal continues. The president had announced his intention to fire Cook due to allegations of mortgage fraud by the Federal Housing Finance Agency Director, Bill Pulte.

Oracle co-founder Larry Ellison has become the world’s richest person, surpassing Elon Musk. Ellison’s wealth soared to $393 billion, after Oracle’s stock experienced its largest single-day gain since 1992. The surge in Ellison’s wealth was primarily driven by four multibillion-dollar contracts signed by Oracle this quarter, which pushed up the company’s share price.

Wells Fargo CEO, Charlie Scharf, voiced his support for the Federal Reserve’s independence while acknowledging President Donald Trump’s right to express his ideas on monetary policy. He said, while the administration has been vocal about decisions on interest rates, it is up to the Federal Reserve to make decisions based on the information it has.

The blowout earnings report from Oracle saw Ellison’s wealth increase by $110 billion. The software company’s cloud growth projections for the next five fiscal years sent the company’s shares up over 40%. This brought Ellison closer to possibly overtaking Elon Musk as the world’s wealthiest individual.

In NBA news, former Milwaukee Bucks co-owner Marc Lasry denied claims that L.A. Clippers owner, Steve Ballmer, attempted to bypass the NBA’s salary cap by secretly paying Kawhi Leonard through a third-party company in 2021.

Casey’s General Stores, an Iowa-based convenience store, has seen great success. Despite being located mainly in small towns with populations under 20,000, Casey’s has become the third-largest convenience store in the U.S. The company’s net profits rose by 19.5%, and its inside sales grew by 14.2% for fiscal Q1 2026. Casey’s stock has climbed by more than 190% since Sept. 2020.