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Tech, Fed, and Food Markets Update

5:22 recording · EN · 1 speaker

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Executive Summary AI
  • Shradha Dinesh of The Wall Street Journal reviews a week whipsawed by AI concerns, the war with Iran and Fed expectations, noting Treasury yields rose after two Fed officials explained their votes to raise rates while the Dow, Nasdaq and S&P 500 each added more than 1%.0:16
  • Microsoft added $450 billion in market value on Thursday, the biggest one-day gain for any U.S. business, while Meta notched 11 straight daily declines, its longest losing streak on record.1:29
  • Amazon soared about 15% on stronger cloud sales while Apple lost more than $350 billion in market cap, leaving Microsoft and Amazon up 22 and 17 percent for the week and Meta and Apple down about 6 and 7 percent.2:06
  • Jersey Mike's debuted at a valuation of nearly $8 billion and fell 6% before bouncing back about 6%, and Yum! Brands rose about 3% as Taco Bell rolls out $1 deals after a parasitic outbreak linked to lettuce.2:53
  • Universal Music Group shares plummeted 25% on Friday after a disappointing earnings report, their steepest drop since going public five years ago, leaving the stock down more than 40% over 12 months.4:32

Brief overview

A turbulent week split tech giants into big winners and losers while the Fed, restaurants and Universal moved markets.

  1. Big Tech split into clear winners and losersMicrosoft and Amazon rallied on earnings while Meta and Apple fell over spending and sales concerns.
  2. Investors bet on a near-term Fed rate hikeYields climbed across maturities after two Fed officials explained their votes to raise rates.
  3. Restaurant stocks got a second lookJersey Mike's rebounded after a weak IPO and Yum! Brands rose about 3% after its worst stretch since 2020.

Questions this recording answers

8 questions, each answered where it is said
Which company had the biggest one-day market cap gain ever for a U.S. business?

Microsoft, which added $450 billion to its value on Thursday. Its earnings report eased investors' concerns that its big spending on data centers, chips and more would outpace its ability to generate cash. Microsoft ended the week up 22 percent, the strongest of the big tech names mentioned.

Answered around 1:29
Why did Meta's stock keep falling?

Investors are punishing Meta over the same concern Microsoft eased: that heavy spending on data centers, chips and more would outpace its ability to generate cash. By Thursday Meta had notched 11 straight daily declines, its longest losing streak on record, and it ended the week down about 6 percent.

Answered around 1:40
How did Amazon and Apple stocks move on Friday?

Amazon shares soared about 15% after the company reported better sales trends in its cloud computing business, its biggest market cap gain ever. Apple lost more than $350 billion in market cap, its biggest one-day decline on record and the third largest of any U.S. company. Amazon ended up 17 percent, Apple down 7.

Answered around 1:58
Why did Treasury yields rise this week?

Yields rose after two Fed officials explained why they voted to raise interest rates this week. Investors increased their bets on a rate hike in the near term, and yields climbed across both short and long maturities. Stocks still finished strong, with the Dow, Nasdaq and S&P 500 each adding more than 1%.

Answered around 0:33
How did Jersey Mike's IPO perform?

The sandwich shop debuted on Thursday with a valuation of nearly $8 billion and shares promptly fell 6%, though they bounced back about 6% on Friday. It is the latest of 18 U.S. restaurant IPOs since 2017, according to Dealogic, following names like Sweetgreen, Kava and Krispy Kreme.

Answered around 2:53
How is Taco Bell trying to recover from the lettuce outbreak?

Taco Bell is rolling out $1 deals and new food options after a parasitic outbreak was linked to lettuce served at its restaurants and sales slumped. Parent Yum! Brands had its worst seven-day stretch since 2020 last week, falling about 10%, but rose about 3% this week.

Answered around 3:33
Why did Universal Music Group shares plunge?

A disappointing earnings report on Friday sent Universal shares down 25%, the steepest decline since it went public five years ago. Streaming has not grown as fast since the pandemic boom, and a hoped-for revenue rebound has failed to materialize, leaving the stock down more than 40% over 12 months.

Answered around 4:32
Which other recent IPOs fell on their first day?

Jersey Mike's is hardly alone: the hedge fund Pershing Square, the nuclear fuel company Standard Nuclear and the biotech firm Generate Biomedicines all had even steeper first-day drops earlier this year, even though IPOs are usually expected to pop.

Answered around 3:13
Key Quote
“That one's Microsoft, which added $450 billion to its value on Thursday.”
— Shradha Dinesh1:29
Key Quote
“By Thursday, it had notched 11 straight daily declines, its longest losing streak on record.”
— Shradha Dinesh1:52
Key Quote
“Shares of Amazon soared about 15% after the company reported better sales trends in its cloud computing business.”
— Shradha Dinesh2:06
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