Business News

Calm returns to Wall Street, and stocks bounce back after their worst drop in nearly 2 years

NEW YORK (AP) — Stocks rose on Wall Street as calm returned to the market a day after its worst drop in nearly two years. The S&P 500 rose 1% Tuesday to break a brutal three-day losing streak. The Dow Jones Industrial Average climbed 0.8%, and the Nasdaq composite added 1%. Strong profit reports from Uber and other companies helped support the market. Stocks of all kinds climbed in a mirror opposite of the day before, when the unraveling of some popular trades and worries about the U.S. economy wracked markets. Treasury yields climbed to claw back some of their sharp drops since April.

What investors should do when there is more volatility in the market

NEW YORK (AP) — U.S. stocks are bouncing back after the market experienced its worst day in two years on Monday, but the average investor may still be understandably spooked. Over a three day losing streak, the S&P 500 dipped more than 6% before rallying again Tuesday, up 1.6% in midday trading. For everyday people, what are the best ways to handle market volatility? The top advice is to do nothing, but ultimately your response depends in part on your circumstances and financial goals.

What are carry trades and how did they contribute to this week’s global market mayhem?

BANGKOK (AP) — The mayhem that swept across world markets this week was partly caused by a market strategy known as the “carry trade.” Japan’s benchmark Nikkei 225 plunged 12.4% on Monday and other world markets also suffered outsized losses as traders sold stocks to help cover rising risks from investments made using cheaply financed funds borrowed mostly in Japanese yen. Markets were jolted by a combination of factors. That includes fears of a recession in the United States and worries that technology shares have shot way too high this year. But the scale of the declines was exaggerated by the rush to sell dollars due to carry trade deals that had helped drive markets to record levels.

Financial markets around the world stabilize after recent rout. Here’s what to know

Markets on Wall Street and in Asia are stabilizing Tuesday following a mini-panic caused by an assortment of factors that stretched from late last week through Monday. Big Techs regained favor among investors after the sell-off that had knocked billions of dollars off their market values. Calmer voices that had urged patience and said a sell-off in an overpriced market can be a good thing appeared to prevail Tuesday. In Japan, market turbulence tied to a sudden spike in the value of the yen abated, and the Nikkei 225 regained most of its huge loss from Monday.

Hearing seeks insight into blowout on a Boeing jet that pilots said threw the flight into ‘chaos’

The midflight blowout of a panel from a Boeing 737 Max jet was so powerful that it blew open the plane’s cockpit door and tore off the co-pilot’s headset. And federal investigators began questioning officials from Boeing and its key supplier on Tuesday to understand how the accident occurred. Comments of the pilots, factory workers at Boeing and other people were released as the safety board held a rare investigative hearing into the blowout, an accident that further tarnished Boeing’s safety reputation and left it facing new legal jeopardy. The National Transportation Safety Board’s two-day hearing, which began Tuesday, could provide new insight into accident.

Bloomberg gives $600 million to four Black medical schools’ endowments

NEW YORK (AP) — Michael Bloomberg committed $600 million to the endowments of four historically Black medical schools through his organization Bloomberg Philanthropies. The gifts announced Tuesday are among the largest private donations to any historically Black college or university. Howard University College of Medicine, Meharry Medical College and Morehouse School of Medicine will each get $175 million. Charles Drew University of Medicine & Science will receive $75 million and Xavier University of Louisiana, which is opening a new medical school, will also receive a $5 million grant. The donation follows a $1 billion gift Bloomberg made in July to Johns Hopkins University that will mean most medical students there will no longer pay tuition.

WK Kellogg to close Omaha plant, downsize in Memphis as it shifts production to newer facilities

WK Kellogg Co. is closing one U.S. cereal plant and downsizing another as part of a plan to consolidate its operations in newer facilities. The company said Tuesday it will close its Omaha, Nebraska, plant by the end of 2026. It also plans to scale back production at its plant in Memphis, Tennessee, starting next year. WK Kellogg said it will increase production and invest in new infrastructure, equipment and technology at its plants in Battle Creek, Michigan; Lancaster, Pennsylvania; and Belleville, Ontario. WK Kellogg said the plan will result in a net loss of 550 jobs, a number that includes hirings at the plants that will increase production.

Elon Musk’s X sues advertisers over alleged ‘massive advertiser boycott’ after Twitter takeover

WICHITA FALLS, Tex. (AP) — Elon Musk’s social media platform X has sued a group of advertisers, alleging that a “massive advertiser boycott” deprived the company of billions of dollars in revenue and violated antitrust laws. The company formerly known as Twitter filed the lawsuit Tuesday in a federal court in Texas against the World Federation of Advertisers and member companies Unilever, Mars, CVS Health and Orsted. It accused the advertising group’s initiative called the Global Alliance for Responsible Media of helping to coordinate a pause in advertising after Musk bought Twitter for $44 billion in late 2022 and overhauled its staff and policies.

Olympics give athletes a chance to win gold — and also cash in on their short time in spotlight

PARIS (AP) — Noah Lyles wasted no time. After winning the 100 meters at the Paris Olympics, he promptly declared what he wanted the most as the newly anointed Fastest Man Alive. He wants his own sneaker to be part of the endorsement deals that should follow his success. Athletes come to the Olympics seeking gold medals, but for some, there are more lucrative prizes at stake. The two-week competition provides a global stage for competitors to be noticed and potentially cash in and extend their 15 minutes of fame.

The Small Business Administration expands clean energy loan program

NEW YORK (AP) — The Small Business Administration is looking to attract lenders to finance small businesses’ clean energy projects. It’s targeting lenders ranging from hyperlocal microlenders to nationally oriented financial institutions. Microlenders offer loans up to $50,000. A Certified Development Company is a nonprofit focused on economic development of its community. Lastly, a Community Advantage Small Business Lending Company, or CA SBLC, is a non-bank lender focused on “mission driven” projects. The CA SBLCs can apply to offer loans up to $2 million to finance climate-related projects.