US Stocks Rise on AI Enthusiasm
American stock markets edged upward Friday, fueled by continued investor appetite for companies benefiting from the artificial intelligence boom. The S&P 500 gained 0.4%, wrapping up its fourth winning week out of the last five. The Dow Jones Industrial Average climbed 0.3%, and the Nasdaq composite also added 0.3%. Shares of South Korean technology company SK Hynix surged on their first day of trading in the United States. Oil prices slipped, while Treasury yields moved slightly higher. Stock markets outside the U.S. showed mixed results.
Apple Sues OpenAI Over Alleged Trade Secret Theft
Apple filed a lawsuit Friday accusing ChatGPT creator OpenAI of stealing its trade secrets as the AI company works to develop its own hardware. The legal action marks a significant breakdown in the relationship between the iPhone manufacturer and the artificial intelligence firm. Filed in a California federal court, Apple’s lawsuit claims the theft was part of what it described as a “coordinated pattern of misconduct at an institutional level” by OpenAI. Two former Apple employees who now work at OpenAI are also listed as defendants in the case. OpenAI had not responded to requests for comment as of Friday.
Global Oil Demand Falling, But American Drivers Still Filling Up
Global demand for oil is on track to fall this year for the first time since 2020, according to the International Energy Agency, which projects a decline of roughly 1 million barrels per day by 2026. The drop is being driven by elevated oil prices and supply disruptions linked to the U.S.-Iran conflict. In May, worldwide demand slipped to 97.9 million barrels per day, with Asia experiencing the sharpest decline. China cut its oil consumption by nearly 6 million barrels per day. Despite high prices, American gasoline use actually increased during this period. A fragile ceasefire allowed some oil to flow through the Strait of Hormuz, helping to stabilize prices.
Volkswagen Reports Steep Sales Drop, Plans to Trim Brand Lineup
German automaker Volkswagen announced Friday that its sales fell sharply, with particularly severe declines in China, and revealed plans to cut its vehicle model lineup by nearly half. Group-wide sales dropped 8.6% in the second quarter, falling to just under 2.1 million vehicles. Sales in China alone collapsed by more than one-third. CEO Oliver Blume said the goal is to make the company faster and more competitive by reducing complexity and excess production capacity. The automaker pointed to geopolitical tensions and rising costs as key challenges. On Thursday, workers demonstrated outside the Zwickau manufacturing plant, calling for job protections as the facility transitions to electric vehicle production.
EU Orders Meta to Remove Addictive Features from Facebook and Instagram
The European Union accused Meta on Friday of violating social media regulations by engineering Facebook and Instagram to be addictive. The EU’s executive body called on Meta to turn off features such as infinite scrolling and autoplay by default. The charges stem from an investigation under the Digital Services Act, which requires technology platforms to safeguard users or risk substantial financial penalties. Regulators say Meta failed to properly evaluate the health risks these design features pose to users, including minors. While Meta does offer tools to help users manage their time on the platforms, those tools are described as easy to dismiss. Meta will have an opportunity to respond before any final decision is made, which could result in significant fines.
Trump Lets Housing Bill Become Law Without His Signature
President Donald Trump announced Friday that he will not sign a broad housing affordability bill, citing his frustration that Congress failed to pass a strict voter ID measure that lacks sufficient support to advance. Despite refusing to sign the legislation, the housing bill is expected to become law on its own, as Trump had a 10-day window to issue a veto and chose not to do so. Trump’s public statement simply indicated he would not be putting his signature on the measure.
SK Hynix Soars Nearly 13% in Record-Breaking US Market Debut
Shares of South Korean memory chipmaker SK Hynix jumped nearly 13% on their first day of trading in the United States, riding a wave of surging demand for chips tied to the artificial intelligence boom. The company priced its American depositary receipts at $149 each, and they closed Friday at $168.01 on the Nasdaq. The offering of 177.9 million ADRs raised $26.5 billion, making it the largest initial share sale on a U.S. exchange ever by a foreign company. SK Hynix holds a leading global position in high bandwidth memory, a component considered essential to the advancement of AI technology.
China Halts Helium Exports Amid Iran War Supply Crunch
China announced Friday that it is temporarily suspending exports of helium, a critical material used in semiconductor manufacturing, as the ongoing Iran war continues to disrupt global supply chains. The ban was announced by China’s commerce ministry and customs agency, citing the country’s Foreign Trade Law. Helium plays a vital role not only in chipmaking but also in medical applications such as cooling MRI machines. Supply disruptions and rising prices have been ongoing since the Iran war began in late February. China produces about 15% of its own helium and imports much of the rest from Qatar. The move is intended to protect domestic industries as China works to strengthen its self-sufficiency in chipmaking and artificial intelligence.
New York Times Files Countersuit Alleging Political Retaliation
The New York Times fired back Friday with a countersuit against a federal civil rights agency, accusing it of political retaliation and violations of free speech. The move came in response to a discrimination lawsuit the news organization is facing on behalf of a white male employee who was passed over for a position given to a multiracial woman. In its court filing, the Times argued that the Equal Employment Opportunity Commission brought the original lawsuit in retaliation for the newspaper’s critical reporting on President Donald Trump’s administration — specifically a story revealing that EEOC staff are under pressure to pursue cases aligned with the administration’s priorities, including discrimination claims filed by white men.
Federal Reserve Forms Task Forces With High-Profile Leaders
The Federal Reserve released a list of names Thursday of prominent figures who will help develop recommended changes to the central bank’s operations. Among those named are venture capitalist Marc Andreessen, economist Raj Chetty, and former Bank of England governor Mervyn King. The effort is being led by someone who previously called for “regime change” at the Fed while being considered to replace former chair Jerome Powell. That individual has expressed a desire to communicate less about the Fed’s interest rate thinking and has indicated he wants to reduce the central bank’s approximately $6.7 trillion in government bond holdings. How far-reaching the task forces’ recommendations will ultimately be remains to be seen.
