Business Headlines
Elon Musk served by the SEC earlier this month, filing says
(Andrew Harnik/Getty Images)(NEW YORK) -- A representative of the Securities and Exchange Commission served Elon Musk earlier this month with a copy of a complaint alleging he misled investors when he bought millions of dollars in Twitter stock in 2022, according to a court filing on Thursday.An employee of a Virginia-based process server delivered the SEC complaint to Musk at SpaceX's Starbase facility in Brownsville, Texas, on March 14, according to a sworn filing.The process server said three different security guards refused to accept service of the legal documents, so he left it on the ground outside at the SpaceX facility."Upon arrival, I stepped one foot past the gate, but security told me to step back and that I was ... Read More
Trump criticizes Federal Reserve, calls for lower interest rates
Federal Reserve Chairman Jerome Powell/Kevin Dietsch/Getty Images(WASHINGTON) -- President Donald Trump late Wednesday criticized the Federal Reserve, urging the central bank to reduce interest rates, hours after it chose to leave borrowing rates unchanged.The move marked the latest example of Trump exerting pressure on the Federal Reserve, despite a longstanding norm of political independence at the central bank.Trump said lower rates would best prepare the economy for tariffs that are set to escalate over the coming weeks.“The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy,” Trump said in a post on Truth Social on Wednesday, adding “Do the right thing.”The president did not provide further explanation but as ... Read More
Will Trump’s tariffs threaten the Fed’s soft landing? Experts weigh in.
Spencer Platt/Getty Images(WASHINGTON) -- Federal Reserve Chair Jerome Powell stepped to the podium in August with a sunny forecast that defied the snow-capped mountains inscribed on curtains behind him.The central bank planned to begin cutting rates, Powell announced, reversing a yearslong battle against pandemic-era inflation. "The time has come," Powell told the audience at a conference in Jackson Hole, Wyoming, touting a steady cooldown of price increases.Months later, economic uncertainty looms large, complicating the Fed's approach while clouding the outlook for inflation and interest rates, some experts told ABC News.President Donald Trump's tariffs have roiled markets, stoked recession concerns and heightened worries about inflation. In short order, Trump has paused or reversed some tariffs, casting doubt over his plans and ... Read More
Fed set to make first interest rate decision since outbreak of trade war
Spencer Platt/Getty Images(NEW YORK) -- The Federal Reserve is set to announce its first interest rate decision since a global trade war touched off by President Donald Trump's tariffs sent stocks reeling and triggered concern about a possible recession.The move arrives less than two weeks after Fed Chair Jerome Powell said tariffs would likely raise prices, while voicing patience as Trump's economic policies take shape."We are focused on parsing the signal from the noise as the situation evolves," Powell told an economic forum in New York City. "We are not in a hurry."Investors expect the central bank to leave rates unchanged on Wednesday, according to the CME FedWatch Tool, a measure of market sentiment.The Trump administration earlier this month slapped ... Read More
Tesla board members, executive sell off over $100 million of stock in recent weeks
Jakub Porzycki/NurPhoto via Getty Images(NEW YORK) -- As Tesla stock has fallen in recent weeks, members of the board and an executive at Elon Musk's company have been selling off millions of dollars in stock, according to filings with the U.S. Securities and Exchange Commission.Together, four top officers at the company have offloaded over $100 million in shares since early February.Last week, longtime Musk ally James Murdoch -- the estranged son of Fox boss Rupert Murdoch and a board member since 2017 -- became the latest to do so, exercising a stock option and selling shares worth approximately $13 million, according to an SEC filing. The sale took place on March 10, coinciding with the stock's largest single-day decline in ... Read More
Gold prices are soaring. Is it a good investment amid the stock selloff?
Ni Lifang/VCG via Getty Images(NEW YORK) -- President Donald Trump’s tariffs sent stocks tumbling in recent weeks, but the uncertainty helped propel a different asset viewed as a safe haven: gold.The price of gold topped $3,000 per ounce for the first time ever last week, and the precious metal continued to hover around that mark in early trading on Monday.Gold prices have soared 12% so far this year, while the S&P 500 has plummeted nearly 7%. Over that period, the Dow Jones Industrial Average has dropped 2% and the tech-heavy Nasdaq has tumbled 8.5%.The rush toward gold makes financial sense, experts said. The asset offers investors a hedge against uncertain stock performance, since gold prices often display a degree of ... Read More
Consumer sentiment sours amid trade war, recession fears: Survey
lechatnoir/Getty Images(NEW YORK) -- Consumer attitudes soured in March alongside slumping markets and growing concern about a possible recession, University of Michigan survey data on Friday showed. Sentiment worsened more than economists expected.The figure marked the third consecutive month of dampening consumer attitudes, data showed.Expectations about future economic conditions worsened in a slew of key areas, including personal finances, labor markets, inflation and stock markets, the survey said.Consumer sentiment soured among both Democrats and Republicans, though it dropped more among Democrats, data showed.On Thursday, the S&P 500 closed down more than 10% since a peak attained last month, meaning the decline officially qualified as a market correction. It marked the index's first correction since October 2023.The major stock indexes recovered ... Read More
US stocks climb amid signs government may avert shutdown
Spencer Platt/Getty Images(NEW YORK) -- U.S. stocks climbed on Friday amid signs the federal government may avert a shutdown, recovering some of the losses suffered during an escalating trade war.The Dow Jones Industrial Average closed up 675 points, or 1.65%, while the S&P 500 increased 2.1%. The tech-heavy Nasdaq climbed 2.6%.Despite the gains, each of the major indexes posted losses for the week.The market upswing comes after Senate Democratic Leader Chuck Schumer announced Thursday night that he plans to vote to keep the government open, signaling that there will almost certainly be enough Democratic votes to advance a House GOP funding bill before a shutdown deadline at the end of the day Friday.The gains offered relief for investors reeling from ... Read More
Trump stands firm on tariff plans after threat against EU: ‘I’m not going to bend at all’
Makoto Honda / 500px/Getty Images(WASHINGTON) -- President Donald Trump on Thursday stood firm on his tariff policy, hours after threatening to escalate a global trade war with a 200% tariff on champagne and other alcohol products from the European Union."I'm not going to bend at all," Trump told reporters at the White House on Thursday. When asked whether he would reconsider a fresh round of tariffs set to go into effect on April 2, Trump offered a one-word reply: "No."U.S. stocks tumbled Thursday, erasing some gains in the S&P 500 and tech-heavy Nasdaq a day earlier. The Dow Jones Industrial Average closed down 535 points, or 1.3%, while the S&P 500 dropped 1.4%. The tech-heavy Nasdaq declined nearly 2%.Shares of ... Read More
US stocks down slightly amid trade war and looming government shutdown
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.(NEW YORK) -- U.S. stocks dropped slightly lower early Thursday, after a reprieve for the S&P and Nasdaq a day earlier amid President Donald Trump's trade war.The Dow Jones Industrial Average fell 150 points in early trading, or 0.4%, while the S&P 500 ticked down 0.25%. The tech-heavy Nasdaq declined 0.35%.Trading opened minutes after Trump threatened a 200% tariff on champagne and other alcohol products from the European Union, escalating a global trade war that has roiled markets.A continued back-and-forth over international tariffs is hanging over the U.S. economy, along with a looming government shutdown with a deadline on Friday.Federal officials said Wednesday that consumer ... Read More
Stock market teeters amid trade war, recession fears
Spencer Platt/Getty Images(NEW YORK) -- U.S. stocks teetered in early trading on Wednesday, posting shaky performance amid an escalating global trade war and concerns about a possible recession.After some initial modest gains, the Dow Jones Industrial Average fell 330 points, or 0.8%, while the S&P 500 dropped 0.25%. The tech-heavy Nasdaq ticked up 0.25%.Trading opened minutes after a fresh inflation report showed price increases had eased more than expected in February, the first full month under President Donald Trump.Tit-for-tat tariffs continued to rattle global trade early Wednesday, however.Trump’s 25% tariffs on all imported steel and aluminum products went into effect overnight. In response, Canada and the European Union slapped retaliatory duties on U.S. goods.Tesla, the electric carmaker run by Elon Musk, soared ... Read More
Inflation cools in first full month of Trump term but egg prices soar
Noel Hendrickson/Getty Images(NEW YORK) -- Consumer prices rose 2.8% in February compared to a year ago, easing slightly over the first full month under President Donald Trump and offering welcome news for markets roiled by a global trade war. Inflation cooled more than economists expected.The S&P 500 and tech-heavy Nasdaq closed higher on Wednesday, preserving early gains in the immediate aftermath of the release of the inflation report. The Dow Jones Industrial Average closed slightly lower.Speaking at the White House later in the morning, Trump touted the inflation report as "very good news."Price increases slowed from a 3% inflation rate recorded in January, though inflation remain nearly a percentage point higher than the Federal Reserve's target of 2%.Egg prices, however, ... Read More
Stock market eyes narrow gains, as traders digest Trump metal tariffs
Spencer Platt/Getty Images(NEW YORK) -- Stocks futures traded slightly higher early Wednesday, following another volatile day for the market amid the continued rollout of President Donald Trump's tariffs on goods from top U.S. trading partners.Dow futures were higher by 189 points or 0.46%. Both the Nasdaq and S&P 500 also appeared ready to open narrowly higher on Wednesday.Traders are expected to be looking to Wednesday's inflation report for clues on the health of the economy amid Trump's escalting trade war. Expectations are that inflation will be up 2.9% compared to a year ago. A worse-than-expected report could add to negative stock sentiment.Trump’s 25% tariffs on all imported steel and aluminum products came into effect overnight. The European Commission said EU ... Read More
Inflation report set to arrive amid stock slide, recession fears
Brandon Bell/Getty Images(WASHINGTON) -- An inflation report to be released on Wednesday will provide a fresh gauge of economic performance under President Donald Trump as markets slide and recession fears swell in response to an escalating trade war.Economists expect the data to show that inflation eased in February.Consumer prices are expected to have risen 2.9% over the year ending in February, which would amount to a slight slowdown from a 3% rate recorded in January.Analysts and households alike will closely watch for movement in egg prices, which soared 53% in January compared to a year ago. Bird flu has decimated the egg supply, lifting prices higher.The Trump administration has started investigating egg producers to learn if market practices have contributed ... Read More
Fed cuts interest rate by half a point
WASHINGTON (AP) — The Federal Reserve on Wednesday cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation but also made borrowing painfully expensive for American consumers. The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market, which has shown clear signs of slowing. Coming just weeks before the presidential election, the Fed’s move also has the potential to scramble the economic landscape just as Americans prepare to vote. The central bank’s action lowered its key rate to roughly 4.8%, down from a two-decade high of 5.3%, where it had stood for 14 months as ... Read MoreWynn Resorts paying $130M for letting illegal money reach gamblers at its Las Vegas Strip casino
LAS VEGAS -- Casino company Wynn Resorts Ltd. has agreed to pay $130 million to federal authorities and admit that it let unlicensed money transfer businesses around the world funnel funds to gamblers at its flagship Las Vegas Strip property. The publicly traded company said a non-prosecution settlement reached Friday represented a monetary figure identified by the U.S. Justice Department as “funds involved in the transactions at issue†at the Wynn Las Vegas resort. In statements to the media and to the federal Securities and Exchange Commission, the company said the forfeiture wasn’t a fine and findings in the decade-long case didn’t amount to money laundering. U.S. Attorney Tara McGrath in San Diego said the settlement showed that casinos are ... Read More
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