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Stocks slide on banking decline – Tesla falls on price cuts – Bitcoin, Ethereum, and Dogecoin jump on CPI data – House GOP to form crypto committee – Microsoft to invest $10 billion in ChatGPT – Apple’s Cook to take 40% pay cut – New discovery could weaken China’s manufacturing dominance
Stock futures slid on Friday, propelled by banking woes led by J.P. Morgan after it warned a recession was its base case for the year. J.P. Morgan, Wells Fargo, and Bank of America all fell more than 2% in premarket trading.
The Dow Jones Industrial Average slid 200 points, or 0.8%, while S&P 500 futures dropped 0.9%, and Nasdaq 100 futures fell 1%, CNBC reported.
The benchmark 10-year U.S. Treasury note was up +0.029 for a yield of 3.476 percent as of 8:58 AM EST.
In oil futures, WTI crude was up +0.17at $78.55 a barrel, while Brent crude was up +0.03 at $84.06 a barrel at 9 AM CT.
Shares of Tesla fell more than 4% pre-marking trading on Friday after the company announced new price cuts for the Model 3 and Model Y. In the past five trading sessions, Tesla had rallied about 9.5%, moving beyond its 65% decline in 2022, Yahoo Finance reported.
The value of Bitcoin, Ethereum, and Dogecoin jumped after the release of the latest consumer price index (CPI) numbers, with bitcoin nearing $19,000. However, the boost is “quickly fading away,” say analysts. As of early Friday, Bitcoin was at $18,872, up by 3.8243%, while Ethereum was up by 1.5501% at $14,005.96, and Dogecoin notched up by 4.2427% at $0.079, Benzinga reported.
House Republicans plan to establish a new subcommittee on “digital assets, financial technology and inclusion,” in a move to place oversight and legislation around the troubled crypto industry, Politico reported. The subcommittee is to be chaired by Rep. French Hill (R-Ark.).
Microsoft is reportedly planning on investing $10 billion in OpenAI, the creator of the game-changing ChatGPT artificial intelligence tool. Microsoft would make the investment in a round of funding that would value the company at $29 billion, Semafor reported. In return, Microsoft Word reportedly gets a 75% share of OpenAI’s profits until it makes back the money on its investment, after which the company would assume a 49% stake in OpenAI, CNBC reported. Betting on ChatGPT could help Microsoft boost its efforts in web search, a market currently dominated by Google.
Apple CEO Tim Cook requested and received a 40 percent pay cut in 2023 to $49 million after a shareholder vote, the company said in an SEC filing. In addition, the company reduced the number of restricted stock units Cook would receive if he retires before 2026. In 2022, Cook made just under $3 million in salary, $12 million in incentives, and $83 million in stock awards. In other benefits, Cook received retirement plan contributions, security, personal air travel, and over 46,000 in vacation cash-out, CNBC reported.
A Swedish mining company says it has found the largest deposit of rare earth oxides in Europe, a discovery that could reduce the continent’s reliance on China for the critical minerals, CNN reported. Rare earth minerals are key in generating clean energy and producing electric vehicles and consumer electronics. Currently, China dominates the market with 60 percent of global production, according to the US Geological Service.
