The U.S. stock market experienced a significant downturn on Friday, primarily driven by a slump in technology stocks. The S&P 500 index fell by 1.3%, marking its worst performance in three weeks and pulling it away from recent record highs. The Nasdaq Composite suffered even more, declining by 1.9%, while the Dow Jones Industrial Average dropped 280 points from its own record set just a day prior. This decline was notably influenced by shares of Broadcom, which, despite reporting better-than-expected quarterly profits, still contributed to the overall market weakness. The rise in Treasury yields further compounded pressure on stocks.
Consumer sentiment during this holiday season appears less than festive, according to a new AP-NORC poll. Many shoppers are feeling the pinch, with a substantial number indicating they are resorting to savings and hunting for discounts. The poll revealed that a significant portion of U.S. adults have noticed increased prices for essentials such as groceries and holiday gifts. Approximately half of respondents reported that affording holiday gifts is more challenging this year, presenting a sobering outlook for the festive period.
In international developments, the European Union is poised to restrict the use of $247 billion in frozen Russian assets. This measure is aimed at ensuring the funds are not utilized by Hungary and Slovakia to veto their allocation for Ukraine. The decision, backed by EU leaders, follows ongoing tensions related to the war in Ukraine. Hungarian Prime Minister Viktor Orbán has criticized the move, accusing the European Commission of violating European law.
In the United States, the Treasury Department has intensified investigations into fraud within Minnesota’s Somali community. This initiative comes as part of broader efforts by the administration of President Donald Trump, who has faced scrutiny regarding his stance on immigration and community relations. The investigations will require businesses sending money abroad to submit additional verification, responding to claims that some funds may have been misappropriated.
Italy witnessed widespread disruption on Friday as the country’s largest trade union called a national strike in response to government budget proposals. The strike significantly affected transportation and educational services, reflecting growing discontent with the conservative government led by Prime Minister Giorgia Meloni. This action followed a recent general strike organized by smaller unions with similar grievances.
In a notable legal case, the heirs of an 83-year-old woman from Connecticut are suing OpenAI and Microsoft for wrongful death. They allege that the ChatGPT AI chatbot exacerbated their son’s mental health issues, leading to tragic consequences. The lawsuit claims that the AI product validated delusions that ultimately resulted in the son harming his mother before taking his own life.
Meanwhile, in Florida, the death of Kevin Rodriguez Zavala, a 32-year-old man, has been ruled an accident after he suffered fatal injuries on a roller coaster at Universal Studios. The Orange County Sheriff’s Office concluded its investigation, stating that Zavala, who had a spinal disability, was unresponsive at the end of the ride, which reaches speeds of up to 62 mph.
In political news, Thailand is gearing up for a new election after Prime Minister Anutin Charnvirakul dissolved the House of Representatives. This move, endorsed by King Maha Vajiralongkorn, mandates that elections take place within 45 to 60 days. Anutin will now lead a caretaker government amid ongoing political tensions and border disputes with Cambodia.
As the holiday season approaches, experts are advising consumers on how to manage spending effectively. Trae Bodge, a shopping expert, emphasizes the importance of adhering to a budget to avoid debt. Another expert, social media content creator Kiersten Torok, suggests purchasing holiday decorations and gifts at discounted prices after the season to save for future celebrations.
In the entertainment sector, Disney has announced a substantial investment of $1 billion in OpenAI. This partnership aims to integrate beloved characters such as Mickey Mouse and Luke Skywalker into the AI company’s Sora video tool, allowing fans to create and share content featuring over 200 iconic characters. This collaboration underscores a commitment to responsible AI use while protecting the rights of creators.
