Another sell-off for AI stocks knocks Wall Street back to where it was 5 weeks ago
NEW YORK (AP) – Another sell-off for artificial-intelligence stocks dragged the U.S. market sharply lower. The S&P 500 dropped 1.6% Wednesday for its first back-to-back drop in three weeks and is back to where it was in early May. The Dow Jones Industrial Average tumbled 953 points, and the Nasdaq composite led the market lower with a 2% slide. Wall Street has been shaky since last week, when AI stocks went from roaring to records to suddenly turning lower. Among the worries is that their prices have simply shot too high, too fast. Oil prices rose after President Donald Trump threatened more strikes on Iran.
Anthropic pledges $200 million to research AI’s economic impact as CEO suggests job loss solutions
Anthropic has joined calls for the AI industry to find ways to cushion people from AI’s disruptions to the workforce. The company announced a $200 million investment to research AI’s economic impact. On Wednesday, CEO Dario Amodei published an essay with proposals for government support for those financially affected by AI. He warned that AI could cause significant and lasting labor market disruptions. Amodei suggested data collection, pro-employment policies, and possibly universal basic income. Anthropic plans to fund research and a fellowship program to extend AI benefits. The announcement follows similar plans by OpenAI and discussions with political leaders about public compensation.
US households, businesses stung by higher energy prices that have pushed inflation above 4%
WASHINGTON (AP) – Rising gas prices pushed inflation to its highest level in three years last month, a headache for the Federal Reserve and a potential political challenge for the Trump administration as midterm elections near. New data showed Wednesday that consumer prices rose 4.2% in May from a year earlier, the third straight monthly increase. Prices have now risen faster than wages for several months. Families are dipping into savings to maintain their spending, and more people are falling behind on their credit card bills. Large retailers say they have also noticed changes in customer behavior, like buying smaller amounts of gas during visits to the pump.
SpaceX wants regular investors to help its stock launch. Here’s what to know before clicking ‘buy’
NEW YORK (AP) – When SpaceX makes its debut on the U.S. stock market, it wants smaller-pocketed, mom-and-pop investors to play a big role in what may be the biggest IPO ever. Elon Musk’s rocket company, formally known as Space Exploration Technologies Corp., is steering some of its initial public offering of stock directly to what are called retail investors. These are people who buy stocks in a brokerage account on their phone, not big pension funds or other big institutional investors that send orders to their professional trading desks. Before they click ‘buy,’ they need to be aware of the risks.
A glossary to help understand what happens in an initial public offering
Anyone following SpaceX’s plans to sell shares to the public is likely to hear terms thrown around that describe steps and components of an initial public offering. Here’s a quick guide.
As FIFA entices a new generation of fans, a Brazil influencer’s platform will stream all 104 games
GUADALAJARA, Mexico (AP) – In Brazil, home of soccer-mad fans and the five-time world champions, the only way to watch all 104 games of the World Cup will be through the streaming platform anchored by a digital influencer. Elsewhere, YouTube and TikTok users will get to see parts of the matches live for the first time. Forget about the exclusivity of traditional over-the-air networks. That’s giving way to digital platforms and streaming services. The World Cup will be watched differently this time. Younger audiences will get increased access to soccer’s showcase event as FIFA pushes to engage the next generation of fans.
Trump has a new, surprising take on the higher cost of living: ‘I love the inflation’
WASHINGTON (AP) – President Donald Trump has a surprising take on a new report that shows inflation spiking to its highest level in three years. Trump told reporters in the Oval Office on Wednesday that “I love the inflation.” Ahead of the November midterm elections, voters have ranked the economy as a top concern – and have given Trump low marks on that issue. The problem has intensified as the Iran war has pushed oil prices higher. Within minutes of his on-camera comment, Democrats quickly rushed to promote it on social media. On Capitol Hill, Representative Emilia Sykes – a Democrat from Ohio – asked Energy Secretary Chris Wright if he, too, loved inflation. Wright said he’d prefer lower inflation, but praised Trump’s work on curbing Iran’s nuclear ambitions.
Visa plugs its payment network into ChatGPT, letting AI agents shop and pay for users
SAN FRANCISCO (AP) – Visa is embedding its payment network into ChatGPT, allowing the chatbot to shop and complete transactions for users. This collaboration enables ChatGPT to make purchases at any merchant accepting Visa, unlike previous attempts limited to specific retailers. OpenAI will provide the technology for decision-making and purchasing, while Visa ensures secure transactions. The companies haven’t disclosed financial terms or fees. Concerns include potential overspending and unauthorized purchases, but Visa plans to implement safeguards like spending limits. This move could impact businesses, with AI agents authorized to procure items and handle invoicing. Mastercard is also developing AI-shopping features.
Hollywood directors reach tentative 4-year deal with studios and streamers
LOS ANGELES (AP) – Hollywood directors have reached a four-year tentative contract agreement with studios and streaming services. The Directors Guild of America and the Alliance of Motion Picture and Television Producers struck the deal Tuesday after four weeks of talks. This is the first negotiation under new DGA President Christopher Nolan. Similar four-year deals have been ratified recently by unions representing writers and actors. This agreement adds to the likelihood of long-term labor peace in Hollywood despite industry upheavals. The collective bargaining agreement must still be approved by the guild’s national board and ratified by the guild membership.
Law firms cheated in filing claims with NFL’s $1 billion concussion settlement fund, report says
The court officials overseeing the NFL’s $1 billion-plus settlement fund for concussion-related injuries have barred five law firms from handling any more claims from former players, after finding that they fraudulently steered clients toward doctors willing to give them a Parkinson’s disease diagnosis whether they exhibited symptoms or not. A report filed in federal court in Philadelphia this week says the five firms represented or performed work involving 98 former players who in recent years sought payouts from the settlement for Parkinson’s disease claims. Dozens of those claims were approved to the tune of $95 million – with the share going to the attorneys totaling about $20 million.
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