Business News

US economy grew at a solid 3% rate last quarter, government says in final estimate

WASHINGTON (AP) — The American economy expanded at a healthy 3% annual pace from April through June, boosted by strong consumer spending and business investment, the government said, leaving its previous estimate unchanged. The nation’s gross domestic product — the nation’s total output of goods and services — picked up sharply in the second quarter from the tepid 1.6% annual rate in the first three months of the year. Consumer spending, the primary driver of the economy, grew last quarter at a 2.8% pace, down slightly from the 2.9% rate the government had previously estimated. The final GDP estimate for the April-June quarter included figures showing that inflation continues to ease, to just above the Federal Reserve’s 2% target.

The number of Americans filing for jobless aid falls to lowest level in 4 months

The number of Americans applying for unemployment benefits last week fell to the lowest level in four months. The Labor Department reported Thursday that applications for jobless claims fell by 4,000 to 218,000 for the week of Sept. 21. That’s fewer than the 224,000 analysts were expecting. The four-week average of claims, which evens out some of weekly volatility, fell by 3,500 to 224,750. The total number of Americans collecting jobless benefits rose by 13,000 to about 1.83 million for the week of Sept. 14. Applications for jobless benefits are widely considered a proxy for U.S. layoffs.

Stock market today: Wall Street rises, but a sharp slide for oil keeps the gains in check

NEW YORK (AP) — U.S. stocks are ticking higher as financial markets around the world rally again. The S&P 500 rose 0.2% in midday trading Thursday and was flirting with the possibility of setting an all-time high for the third time this week. The Dow Jones Industrial Average was up 205 points, or 0.5%, and the Nasdaq composite was edging up by less than 0.1%. Micron Technology led the way after AI-related demand helped it deliver a stronger-than-expected profit report. But falling energy stocks kept the gains in check after the price of oil sank. Stock markets overseas jumped on hopes for more moves by China to prop up the world’s second-largest economy.

OpenAI looks to shift away from nonprofit roots and convert itself to for-profit company

OpenAI’s history as a nonprofit research institute that also sells commercial products like ChatGPT may be coming to an end as the San Francisco company looks to more fully convert itself into a for-profit corporation accountable to shareholders. The company’s board is considering a decision that would change the company into a public benefit corporation, according to a source familiar with the discussions who wasn’t authorized to speak publicly about them.

China redoubles first-aid for its economy with support for banks and workers

China is redoubling its first-aid for the economy, targeting banks, workers and poor families as the ruling Communist Party prepares to mark the 75th anniversary of the founding of the People’s Republic. Reports Thursday said the government plans to spend about $142 billion on recapitalizing six big state-owned banks. Authorities also said the government would unspecified cash payments to poor families ahead of the Oct. 1 National Day holiday. President Xi Jinping and other top Chinese leaders held a quarterly meeting on the economy, where state media said they acknowledged “some new situation and problems” had emerged. They promised to focus on support for new college graduates, migrant workers, the unemployed, elderly and disabled.

One Tech Tip: Using Instagram’s new teen account settings to supervise young users

LONDON (AP) — Worried about your teen’s Instagram use? Faced with growing pressure to do more to stop online harm, the social media platform has rolled out a major new update to protect young people and give more control to parents. Teen accounts will automatically be set to private. They’ll also be subject to messaging restrictions and the strictest content settings. Parents can also add more supervisory controls that will let them see who their teen has traded messages within the past seven days. They can also limit the amount of time their teen spends on Instagram each day and block them from using it during specific times of the day.

Harrods apologizes to women who say they were abused by former owner Mohamed Al Fayed

LONDON (AP) — The managing director of Harrods says the London department store is “deeply sorry” for failing employees who say they were sexually assaulted by late owner Mohamed Al Fayed. Michael Ward said it is clear Al Fayed “presided over a toxic culture of secrecy, intimidation, fear of repercussion and sexual misconduct.” Five women have told the BBC they were raped by Al Fayed, who died last year aged 94. Several others allege acts of assault and physical violence. Lawyers for the accusers say they have been retained by 37 women and the list is growing. Ward said in a statement, “We failed our colleagues and for that, we are deeply sorry.”

How much will Southwest Airlines change to boost profits? Some details are emerging

DALLAS (AP) — Southwest Airlines leaders are proving more details about their plans to change the airline and increase profits. Southwest is holding an investor meeting on Thursday at its Dallas headquarters. The event is taking place as the airline tries to fend off a possible proxy fight from one of its biggest shareholders, hedge fund Elliott Investment Management. While the meeting is aimed at investors, consumers will learn about how assigned seating and premium seats will work at Southwest. The airline says the open-boarding system it has used for more than 50 years will disappear in the first half of 2026 and passengers will be assigned seats, just like on all the other big airlines.

Old newspaper boxes are being used to distribute the overdose reversal drug Narcan

CHARLESTON, W.Va. (AP) — Old newspaper boxes are being repurposed into containers that distribute Narcan, an emergency treatment to reverse drug overdoses. The boxes have proliferated nationwide since the U.S. Food and Drug Administration approved the sale of naloxone without a prescription. They are appearing in neighborhoods, in front of hospitals, health departments and convenience stores. They are one way those supporting people with substance use disorder have sought to make Narcan, which can cost around $50 over the counter, accessible to those who need it most. Sixty Narcan boxes were distributed across 35 states in honor of Thursday’s “Save a Life Day.” The Narcan distribution and education event was started by a West Virginia nonprofit in 2020.

NASA downplays role in development of Titan submersible that imploded

OceanGate co-founder Stockton Rush said the carbon fiber hull used in an experimental submersible that imploded en route to the wreckage of the Titanic was developed with help of NASA and aerospace manufacturers. But a NASA official testified Thursday that the space agency actually had little involvement. A NASA official testified that NASA planned to play a role in building and testing the carbon fiber hull but the COVID-19 pandemic prevented NASA from fulfilling its role. Rush was among the five people who died when the submersible imploded in June 2023. The design of the company’s Titan submersible has been the source of scrutiny since the disaster.