…and the banking-crisis encore
| Regulation loading… (Lionel Bonaventure/Getty Images) | |
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Yesterday's Market Moves | | Dow Jones
33,674 (-1.24%) | S&P 500
4,136 (-0.80%) | Nasdaq
12,235 (+0.07%) | Bitcoin
$29,516 (+0.60%) |
| Dow Jones
33,674 (-1.24%) | S&P 500
4,136 (-0.80%) | Nasdaq
12,235 (+0.07%) | Bitcoin
$29,516 (+0.60%) |
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Hey Snackers, There aren't many places you'd expect to find 500+ pounds of pasta, but the New Jersey woods probably wouldn't be your first guess. But that's how much spaghetti a resident found dumped by a stream, leaving officials with an impastable mystery to salt. Stocks fell for the week but rallied on Friday after expectation-beating April US job growth and stronger-than-anticipated Apple earnings. Regional-bank stocks partially recovered after plunging earlier in the week as contagion fears linger. | |
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As AI anxiety spreads, Washington pressures Big Tech CEOs to ensure their products are safe | Bots on the hill… VP Kamala Harris met last week with the bosses of Alphabet, Microsoft, OpenAI, and Anthropic as AI innovation draws greater scrutiny in DC. The White House said AI developers are expected to have their products reviewed at August's Defcon cybersecurity conference, and debuted a $140M plan to build AI-research hubs. As large language models (LLMs) like ChatGPT go mainstream, Washington says companies have an "ethical, moral, and legal" responsibility to ensure their tech is safe. A few concerns: Data privacy: There are worries LLMs could leak sensitive user data they collect. Last week Samsung barred its staff from using ChatGPT after a leak. Misinfo: LLMs are known for spewing false or biased info. Governments are concerned bad actors could use LLMs to spread propaganda. Copyright: Legal issues have emerged over AI-related infringement, from cover art to fake Drake songs. It's also an element of the recent WGA strike: writers worry that studios could use their scripts to churn out AI-generated stories without them. Plagiarism: Teachers are concerned, too, as students lean on LLMs for homework. Last week Chegg shares fell 40%+ after the edu-tech company noted a spike in students flocking to ChatGPT.
Workin' 9-to-AI… Another trigger of AI-anxiety: job security. Last week IBM froze hiring for nearly 8K roles that it said could be replaced by AI, and said the tech could replace almost a third of its non-customer-facing roles. By some estimates, 300M jobs could be affected by AI, while Goldman Sachs estimates it could boost global GDP by 7%. |  | THE TAKEAWAY |
| With great tech comes great responsibility… From fake Drake to fake news and AI-fueled propaganda campaigns, the risks of unregulated AI are clear. As major companies start to integrate the tech into products that billions of people use (like: search engines), we can expect governments to get involved in regulating it. But the rapid innovation means it could be harder to move responsibly. | |
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| On to the next one… JPMorgan Chase CEO Jamie Dimon said last week that "this part" of the banking crisis is over after America's largest bank took over First Republic (the second-largest US bank failure ever). Later, regional-bank shares plunged on concerns over PacWest: like other recently flopped banks, it has lots of uninsured deposits (aka: accounts over $250K). Last week the FDIC proposed broadening deposit insurance for businesses, which could prevent more SVB-style bank runs. If you know your deposit is safe, you're less likely to panic. Mining your business… The White House pitched a 30% tax on crypto miners' electricity usage in a stated bid to blunt the industry's environmental impact. (FYI: Last year US miners used as much energy as TVs). But according to crypto cos like Riot and Marathon Digital, the tax could drive business overseas. The proposal follows a brutal year for miners (picture: plunging crypto prices, soaring energy bills) that saw several file for bankruptcy, and comes just as bitcoin regains steam. The OG blockchain saw record transactions just last week. | |
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| Hyrule hype… Nintendo is (finally) dropping its newest Zelda game, "Tears of the Kingdom," this Friday. The much-hyped title is expected to boost sales of the popular Switch console, which paraglided past the newest Microsoft Xbox and Sony PlayStation to become the third-best-selling console ever. Nintendo's said to be ramping up Switch production to meet Zelda fans' desire to cook Salmon Risotto in the Gerudo Desert. The industry's growth slowed when players went IRL after quarantine, but gaming demand's still hot. PSA: Mother's Day is this Sunday… But working moms still face a "motherhood penalty." After millions of women left jobs during the pandemic to shoulder childcare duties, 1M mothers have reentered the workforce since the end of 2021, and last year's labor-force participation rate for mothers surpassed the prepandemic rate. But biases around job productivity and commitment contribute to an $18K/year pay gap between US mothers and fathers. Studies say the lifetime earnings loss that moms experience is the most significant factor driving the gender pay gap. | |
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| Gargle: J&J's consumer spinoff, Kenvue (think: Tylenol, Neutrogena), had the largest US IPO since 2021. The $3.8B raise stands out in a dry IPO market: before Kenvue, US-listed companies raised $4B this year versus $155B in 2021. Cord: Disney's ESPN may get the final say on cable's lifespan. The network said it'll eventually move its full TV offerings over to its streamer ESPN+. But it's having trouble cutting the cord since TV earns more $$. Haul-ted: Fast-fashion hit Shein wants to IPO this year, but US lawmakers are urging the SEC to halt that plan until Shein's labor practices are audited to show its clothes aren't made using forced labor.
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What else we're Snackin' | Closer: The World Health Organization announced last week that the Covid global health emergency is over, a big step toward ending a pandemic that's killed 7M. The virus' death rate dropped to 3.5K/week in April. Unfriendly: Americans were scammed out of $1.2B on social media last year as sketchy sellers tricked users into handing over their credit-card deets. It's the most common way 18- to 29-year-olds get defrauded. Soaring: Avian-flu cases are at record highs. Consumers have mainly seen the impact in egg prices, but experts worry the virus could spark the next pandemic. A global effort is underway to stop its spread.
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Snack Fact Of the Day | 60% of workers are employed in professions that didn't exist in 1940 | | |
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Monday | Monday: Earnings expected from Tyson, BioNTech, Six Flags, PayPal, and Palantir Tuesday: Earnings expected from Airbnb, Affirm, Novavax, Fisker, Nikola, Under Armour, Duke Energy, ZipRecruiter, Warby Parker, Expensify, Nintendo, Wynn Resorts, Fisker, Duolingo, H&R Block, AMC, Rivian, and Squarespace Wednesday: Consumer price index for April. Earnings expected from Roblox, Wendy's, Disney, Beyond Meat, Cheesecake Factory, The New York Times, and GoodRx Thursday: Weekly jobless claims. Earnings expected from JD.com, Fiverr, Yeti, Krispy Kreme, News Corp., Subaru, Getty Images, and Honda Friday: Earnings expected from Spectrum Brands
Authors of this Snacks own bitcoin and shares of: Alphabet, Apple, Beyond Meat, Disney, and Microsoft | |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more | |
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