Business News

US employers scaled back hiring in April. How that could let the Fed cut interest rates

WASHINGTON (AP) — The nation’s employers pulled back on their hiring in April but still added a decent 175,000 jobs in a sign that persistently high interest rates may be starting to slow the robust U.S. job market. Last month’s hiring gain was down sharply from the blockbuster increase of 315,000 in March. Yet the moderation in the pace of hiring, along with a slowdown last month in wage growth, will likely be welcomed by the Federal Reserve, which has kept interest rates at a two-decade high to fight persistently elevated inflation. Hourly wages rose a less-than-expected 0.2% from March and 3.9% from a year earlier, the smallest annual gain since June 2021.

Stock market today: Wall Street surges as key report shows pullback in hiring

Stocks are rising on Wall Street, erasing the market’s losses for the week, after the government reported a cooldown in hiring last month. For markets that was a welcome sign that the Federal Reserve’s efforts to fight inflation by slowing the economy with high interest rates might be making some progress. The S&P 500 rose 1.3% in afternoon trading Friday. The Dow Jones Industrial Average added 468 points, and the Nasdaq composite climbed 2.1%. U.S. employers added 175,000 jobs last month, down sharply from a blockbuster increase in March. Apple jumped 7% after announcing a mammoth $110 billion stock buyback.

Google, Justice Department make final arguments about whether search engine is a monopoly

WASHINGTON (AP) — The government and Google are making their closing arguments in a high-stakes antitrust trial to a federal judge in Washington who must now decide whether the tech giant’s search engine constitutes an illegal monopoly. The Justice Department argued Friday that Google’s preeminence as an internet search engine is an illegal monopoly propped up by more than $20 billion spent each year by the tech giant to lock out competition. Google argues that its ubiquity flows from its superior product and its ability to deliver consumers the results that it’s looking for. A final ruling in the case is expected later this year.

US loosens some electric vehicle battery rules, potentially making more EVs eligible for tax credits

DETROIT (AP) — West Virginia Sen. Joe Manchin says new rules governing electric vehicle tax credits are a giveaway to China. Manchin, a Democrat who chairs the Senate Energy and Natural Resources Committee, said that exemptions in the new rules effectively endorse the idea that EVs will be “made in China.” The comments came as the Treasury Department loosened some rules governing EV tax credits a bit, potentially making more EVs eligible for credits of up to $7,500. The rule are aimed at juicing demand for EVs in an effort to reach a Biden administration goal that half of all new vehicle sales be electric by 2030.

Apple’s quarterly iPhone sales plunge 10%, but stock price surges on dividend, stock buyback news

Apple has posted its steepest quarterly decline in iPhone sales since the pandemic’s outset. The results reflect a deepening slump that’s increasing the pressure on the trendsetting company to spruce up its products with more artificial intelligence. The 10% drop in year-over-year iPhone sales for the January-March period is latest sign of weakness in a product that generates most of Apple’s revenue. It marked the biggest drop in iPhone sales since July-September period in 2020 when production bottlenecks caused by factory closures during the pandemic resulted in a delayed release of the new model that year. Apple’s revenue and profit still eclipsed analyst projections, and its stock rose in extended trading.

Yellen says threats to democracy risk US economic growth, an indirect jab at Trump

WASHINGTON (AP) — Treasury Secretary Janet Yellen is arguing that a fractured democracy can have destructive effects on the economy. In an address prepared for delivery Friday in Arizona, Yellen never mentions Republican presidential hopeful Donald Trump by name but hints at his potential influence if he regains the White House. Yellen uses economic data to paint a picture of how disregard for democratic institutions can bring economic harm. Yellen’s remarks serve as a sort of warning for business leaders who may overlook Trump’s disregard for modern democratic norms because they prefer his vision of achieving growth by slashing taxes and stripping away regulations.

Aetna agrees to settle lawsuit over fertility coverage for LGBTQ+ customers

The health insurer Aetna has agreed to settle a lawsuit over whether its fertility treatment coverage discriminates against LGBTQ+ patients. The insurer will make coverage of artificial insemination standard for all customers nationally and work to ensure that patients have equal access to more-expensive in-vitro fertilization procedures. A CVS Health spokesman says the company was pleased to resolve the case and committed to providing care to all individuals. A federal judge still must approve the deal, which was announced Friday.

King Charles’ longtime charity celebrates new name and US expansion at New York gala

NEW YORK (AP) — The King’s Trust has celebrated its new name, an update of King Charles III’s long-running charity The Prince’s Trust. The organization marked the expansion of its work in the United States with a star-studded gala in New York City on Thursday night. The Prince’s Trust was founded in 1976 when then-Prince Charles used his severance pay from the Royal Navy to launch the nonprofit dedicated to helping unemployed young people in the United Kingdom get job training. Since then, the charity has expanded its education and employment initiatives into 25 countries, including the U.S., where it launched its first program in The Bronx last year.

Peloton cutting about 400 jobs worldwide; CEO McCarthy stepping down

Peloton is cutting about 400 jobs worldwide as part of a restructuring effort and its CEO Barry McCarthy is stepping down after two years as the company continues to work on turning around its business. Peloton Interactive Inc. said Thursday that the job reductions amount to approximately 15% of its global headcount. The restructuring efforts, which are expected to lower its annual run-rate expenses by more than $200 million by fiscal 2025’s end, also include continuing to close retail showrooms.

Artists from Universal Music Group are heading back to TikTok as new licensing deal reached

Artists from Universal Music Group, which include Drake, Adele, Bad Bunny and Billie Eilish, will be returning to TikTok as the two parties have struck a new licensing agreement following an approximately three-month long dispute. The two sides said Thursday that they are “now working expeditiously to return music by artists represented by Universal Music Group and songwriters represented by Universal Music Publishing Group to TikTok in due course.”