Business Headlines
What could supply chain snags in the auto industry mean for car buyers?
Joe Raedle/Getty Images(NEW YORK) -- Car buyers may face elevated prices and a shortage of some vehicles due to a supply chain snarled by tariffs and challenges accessing crucial materials, some industry experts told ABC News.A shortage of aluminum halted production at plants operated by Jeep and Ford earlier this month, pausing the output of some Jeep SUVs and Ford trucks, the Wall Street Journal reported. Meanwhile, a trade spat between the U.S. and China has raised questions about the availability of semiconductors, a critical part at the center of a pandemic-era supply shock.Those disruptions follow far-reaching U.S. tariffs that have hit foreign automakers and added complications for domestic companies long-intertwined with manufacturers in Canada and Mexico.The headwinds swirling in ... Read More
As new tariffs take effect, US consumers footing more than half the burden: Report
Justin Sullivan/Getty Images(NEW YORK) -- With new tariffs taking effect Tuesday on furniture and lumber, an analysis released by Goldman Sachs finds American consumers are paying for more than half of the cost of the levies imposed by President Donald Trump.In a research note to its clients, the global investment and banking giant said U.S. consumers will absorb 55% of tariff costs by the end of this year. American businesses would pay 22% of the costs, foreign exporters would absorb 18% and 5% would be evaded, according to the Goldman Sachs analysis.Consumers could end up paying 70% of the cost by the end of next year, the report said."At the moment, however, U.S. businesses are likely bearing a larger share ... Read More
Consumer sentiment sours as government shutdown threatens economic damage
Oscar Wong/Getty Images(NEW YORK) -- Consumer sentiment soured in October as a government shutdown threatens to weaken a wobbly economy beset by an uptick in inflation and a sharp slowdown of hiring, fresh data on Friday showed. The reading marked a decrease from the previous month but it came in higher than economists expected.Shopper attitudes have worsened for three consecutive months, resuming a decline that took hold after President Donald Trump took office, University of Michigan Survey data showed.At its low point this year, consumer sentiment fell close to its worst level since an acute bout of inflation three years ago. The measure remains well below where it stood in December, before Trump took office.Year-ahead inflation expectations ticked down from 4.7% in September to 4.6% in ... Read More
Government shutdown halts data, stokes risk as economy wobbles, experts say
Andrew Harnik/Getty Images(WASHINGTON) -- The government shutdown halted the release of key economic data, choking off the flow of information as some experts warn the economy may be slipping toward a recession, some economists told ABC News.A federal agency postponed the release of a monthly jobs report on Friday, leaving observers in the dark about the status of a sharp hiring slowdown. If the government shutdown stretches into next week, fresh inflation figures will go unreported, masking price levels in the midst of rising costs.Jim Reid, a research strategist at Deutsche Bank, in a memo to clients on Monday, lamented the "data vacuum."The absence of government data heightens uncertainty at a fraught moment for the U.S. economy, potentially hamstringing responses ... Read More
Stocks close higher on 1st day of government shutdown
Matteo Colombo/Getty Images(NEW YORK) -- Stocks closed higher on Wednesday, just hours after a government shutdown began, defying fears among some observers about the economic risk posed by a potentially prolonged impasse.The Dow Jones Industrial Average jumped 43 points, or 0.09%, while the S&P 500 climbed 0.34%. The tech-heavy Nasdaq increased 0.42%.The Dow and S&P 500 each closed at record highs on Wednesday.The uptick extended a period of resilient performance for markets, which shrugged off the looming impasse a day earlier. Each of the major indexes ticked up on Tuesday.The shutdown coincides with a rough patch for the U.S. economy, at least by some key metrics. A recent hiring slowdown has stoked recession fears, while inflation has proven difficult to fully contain.Fresh hiring data on Wednesday ... Read More
Trump announces deal to put TikTok under control of US investors
U.S. President Donald Trump speaks during a bilateral meeting with President of Ukraine Volodymyr Zelensky at the 80th session of the UN’s General Assembly (UNGA) at the United Nations headquarters on September 23, 2025 in New York City. World leaders convened for the 80th Session of UNGA, with this year’s theme for the annual global meeting being “Better together: 80 years and more for peace, development and human rights.” (Photo by Chip Somodevilla/Getty Images)(WASHINGTON) -- President Donald Trump on Thursday announced an agreement that will pave the way for social media giant TikTok to come under the control of a group of U.S. investors.The move comes months after a ban on the China-based app was set to take effect at ... Read More
US economy grew 3.8% in 2nd quarter, far exceeding previous estimate
Javier Ghersi/Getty Images(NEW YORK) -- The U.S. economy expanded significantly more than initially estimated over a recent three-month period, suggesting robust growth despite uncertainty set off by President Donald Trump's tariff policy, federal government data on Thursday showed.The U.S. economy grew at an annualized rate of 3.8% in the second quarter in the government's final estimate, besting a 3.3% rate issued in its second estimate and far exceeding a 3% initial estimate.The figure marked a sharp acceleration from an annualized contraction of -0.5% over the first three months of 2025. Still, taken together, the data indicates an economic slowdown over the first half of 2025.A boost in consumer spending helped propel the economic surge over three months ending in June, the U.S. Commerce Department said. Consumer ... Read More
Starbucks to lay off 900 workers, close stores
A close-up of a Starbucks coffee shop sign on September 8, 2025 in Cardiff, Wales. (Photo by Matthew Horwood/Getty Images)(NEW YORK) -- Coffee giant Starbucks will lay off workers and close stores as part of a $1 billion restructuring plan, CEO Brian Niccol said in a memo to employees on Thursday.The company will slash 900 employees at its stores in North America, Niccol said. The store closures will amount to a roughly 1% decline in the total number of Starbucks locations in North America in this fiscal year, after accounting for some store openings, Niccol added."While we’re making good progress, there is much more to do to build a better, stronger, and more resilient Starbucks," Niccol said.Shares of Starbucks ticked ... Read More
Fed Chair Powell says rising inflation and slow hiring pose ‘challenging situation’
Construction continues on the Marriner S. Eccles Federal Reserve Board Building, the main offices of the Board of Governors of the Federal Reserve System on September 16, 2025 in Washington, DC. (Kevin Dietsch/Getty Images)(WASHINGTON) -- Federal Reserve Chair Jerome Powell warned a recent uptick of inflation, alongside a hiring slowdown, poses a "challenging situation" for central bankers as they aim to steer the U.S. economy through a "turbulent period."The Fed, which opted to cut interest rates last week, is guided by a dual mandate to keep inflation under control and maximize employment. Speaking at the Greater Providence Chamber of Commerce, in Providence, Rhode Island, on Tuesday, Powell said a sharp cooldown of hiring over the summer had shifted the balance ... Read More
Fed cuts interest rates for 1st time in Trump’s 2nd term
Kevin Dietsch/Getty Images(NEW YORK) -- The Federal Reserve cut its benchmark interest rate a quarter of a percentage point on Wednesday, opting for its first interest rate cut this year in an effort to revive the flagging labor market.The central bank delivered a policy long-sought by President Donald Trump, though the size of the rate cut all but certainly fell short of Trump's desired outcome. The Federal Open Market Committee (FOMC), a policymaking body at the Fed, projected two additional quarter-point rate cuts over the remainder of the year.Five meetings and nine months have elapsed since the Fed last cut interest rates. The federal funds rate stands between 4% and 4.25%, preserving much of a sharp increase imposed in response ... Read More
Trump races to reshape Fed days before interest rate decision
Chip Somodevilla/Getty Images(WASHINGTON) -- Twelve policymakers at the Federal Reserve are set to take a high-stakes vote this week on the nation's benchmark interest rate, attempting to steer the economy through a stormy bout of slow hiring and rising inflation.In a highly unusual circumstance, however, two of the policymakers stand in limbo – uncertain if they will vote at all – with little more than 48 hours before the announcement.In recent weeks, President Donald Trump has moved to fire one member of the Fed's board of governors and secure Senate confirmation for another. The race to reshape the Fed comes after Trump railed for months against the central bank and its Chair Jerome Powell for declining to heed his call ... Read More
Mortgage rates are falling fast. Is it a good time to buy a home?
moodboard/Getty Images(NEW YORK) -- Mortgage rates have fallen rapidly in recent months, offering homebuyers an opportunity for some borrowing relief if they move ahead with the big-ticket purchase.The average interest rate on a 30-year fixed mortgage stands at 6.35%, dropping from 6.5% over the week ending on Thursday, which amounted to the largest one-week drop in mortgage rates this year, FreddieMac data shows. As recently as January, the average 30-year fixed mortgage rate exceeded 7%.The sharp drop in mortgage rates owes in part to government data showing a significant decline in hiring, which has heightened expectations that the Federal Reserve will slash interest rates and in turn put downward pressure on borrowing costs, some analysts told ABC News.Each percentage point ... Read More
Inflation climbed in August as Trump’s tariffs intensified
President Donald Trump speaks to Treasury Secretary Scott Bessent while watching the men's singles finals U.S. Open, September 7, 2025 in New York City. (Kevin Dietsch/Getty Images)(NEW YORK) -- Consumer prices rose 2.9% in August compared to a year ago, marking an uptick in price increases as President Donald Trump's tariff policy intensified. The reading matched economists' expectations.The fresh inflation data indicated an acceleration from a 2.7% inflation rate recorded in the month prior, according to the U.S. Bureau of Labor Statistics. Price increases remain below the 3% rate recorded in January, the month Trump took office.The new report arrives days before the Federal Reserve is set to announce a widely expected quarter-point interest rate cut. The price hike last month may ... Read More
Wholesale prices unexpectedly fall amid Trump’s tariffs
lvcandy/Getty Images(NEW YORK) -- Wholesale prices unexpectedly dropped in August, clocking in lower than economists expected and defying concerns about a tariff-induced spike in costs suffered by suppliers.Producer prices fell 0.1% in August, rolling back some of a sharp increase in wholesale prices that took hold in the previous month, the U.S. Bureau of Labor Statistics said on Wednesday.Since President Donald Trump began escalating tariffs earlier this year, the monthly wholesale-price measure has drawn close attention as an indicator of a potential pass through to consumer prices.In July, producer prices rose 0.9%, exceeding economists’ expectations and stoking fear of an eventual hike in prices paid by shoppers. The downshift in wholesale prices last month could ease some of those worries, though analysts will gain further clarity ... Read More
US economy added 911,000 fewer jobs than previously reported
Marko Geber/Getty Images(NEW YORK) -- U.S. employers added far fewer jobs in 2024 and early 2025 than previously thought, indicating the labor market may have been significantly weaker than initial estimates had suggested.The U.S. economy added 911,000 fewer jobs over the 12 months ending in March than previously estimated, the U.S. Bureau of Labor Statistics (BLS) said on Tuesday. The figure, which exceeded economists' expectations, appears to be the largest revision ever recorded. The preliminary estimate will be finalized next year.The revision, a routine step in the compilation of government labor statistics, assesses monthly survey estimates alongside state unemployment data. The fresh data comes weeks after President Donald Trump fired BLS Commissioner Erika McEntarfer in response to a weak monthly jobs report. ... Read More
Why is it hard to find a job right now? Experts weigh in
Treasury Secretary Scott Bessent speaks alongside President Donald Trump during a press availability in the Oval Office of the White House, Sept. 5, 2025. (Kevin Dietsch/Getty Images)(NEW YORK) -- Employers in nearly every industry have cut back on hiring, according to the latest data, leaving job seekers with fewer places to turn.A recent jobs report extended a lackluster run of labor data that stretches back to the beginning of the summer. While the unemployment rate stands at a historically low level, millions of out-of-work Americans face stiff conditions.Nearly two million job seekers have been out of the workforce for more than 27 weeks, which amounts to about a quarter of all unemployed people, the U.S. Bureau of Labor Statistics said ... Read More
Hiring slowdown continues in 1st jobs report since Trump fired commissioner
Narisara Nami/Getty Images(WASHINGTON) -- Fresh jobs data on Friday showed a continued hiring slowdown in the first such release since a dismal jobs report last month prompted President Donald Trump to fire the top official tasked with compiling labor statistics. The reading fell well short of economists' expectations.The U.S. added 22,000 jobs in August, according to data from the U.S. Bureau of Labor Statistics. That figure showed a sharp decrease from 79,000 jobs added in the previous month. The unemployment rate ticked up to 4.3%, but it remained at a historically low level.A previous jobs report showed a sharp slowdown of hiring over the summer, eliciting concern among some economists about a possible recession.The U.S. added an average of about 28,000 jobs over three ... Read More
Gold prices hit a record high as economic uncertainty looms
A 500 gram gold bar is seen in a gold shop window on April 17, 2025 in Istanbul, Turkey. Chris McGrath/Getty Images(NEW YORK) -- The price of gold topped $3,500 per ounce for the first time ever on Tuesday, reaching toward new record highs as trading stretched into midday.Gold prices have soared 35% so far this year, far outpacing a 9% gain in the S&P 500. Over that period, the Dow Jones Industrial Average has jumped 6% and the tech-heavy Nasdaq has climbed 10%.The rush toward gold reflects heightened economic uncertainty, experts said. The safe-haven asset offers investors a hedge against an uneasy financial environment as a sharp hiring slowdown coincides with a steady uptick of inflation, according to analysts. Stress in long-term bond markets ... Read More
What does the closure of the de minimis loophole mean for shoppers?
Chip Somodevilla/Getty Images(WASHINGTON) -- A tariff loophole for low-cost shipments helped fuel an explosion of U.S. consumers purchasing shoes, sunglasses and a host of other items directly from sellers overseas. The Trump administration closed that exemption on Friday, bringing the era of duty-free online buying to an end.President Donald Trump closed what's known as the "de minimis" loophole, which allowed for duty-free import of goods valued at less than $800. Now, such imports will face tariffs based on the relevant rates for a given country of origin or product.Peter Navarro, senior counselor to the president for trade and manufacturing, said on Thursday that the move would add up to $10 billion in tax revenue and help "save thousands of American ... Read More
Fed Governor Lisa Cook sues Trump over attempted ouster
Drew Angerer/Getty Images(WASHINGTON) -- Federal Reserve Governor Lisa Cook sued President Donald Trump on Thursday over his move to fire her, saying she should retain her position as a top policymaker at the central bank.The lawsuit, filed in U.S. District Court for the District of Columbia, describes Trump's effort as "illegal and unprecedented," claiming Cook's ouster violates the independence of the Fed, a cornerstone of the nation's economy.Trump's action violates Cook's constitutional right to due process, as well as her right to notice and a hearing under the Federal Reserve Act, the lawsuit says.Hours after Cook filed the lawsuit, a judge granted a hearing for Friday morning. The case has been assigned to Judge Jia M. Cobb, who was nominated ... Read More
Chip giant Nvidia beats revenue expectations, defying fears of AI ‘bubble’
Co-founder and chief executive officer of Nvidia Corp., Jensen Huang attends the 9th edition of the VivaTech trade show at the Parc des Expositions de la Porte de Versailles on June 11, 2025, in Paris. (Chesnot/Getty Images, FILE)(NEW YORK) -- Chip giant Nvidia delivered more revenue than expected over a recent three-month period, the company said on Wednesday, defying concern among some prominent figures about a possible bubble in the artificial intelligence industry.The California-based company recorded $46.7 billion in sales over three months ending in July, which exceeded analyst expectations of $46.2 billion. The jump in revenue marked 56% growth compared to the same quarter a year earlier.The fresh data offered the latest window into the health of the artificial intelligence (AI) ... Read More
Consumer confidence worsened slightly in August
Vegetables on display in a grocery store on August 15, 2025 in Delray Beach, Florida. Joe Raedle/Getty Images(NEW YORK) -- Consumer confidence worsened slightly in August, erasing some gains from the previous month and resuming a downward trend suffered at the outset of 2025, the Conference Board said on Tuesday.The souring of shopper attitudes followed a weak jobs report and a set of sweeping new tariffs issued by President Donald Trump. A lower-than-expected inflation report this month eased some concerns about significant tariff-induced price increases, though a measure of underlying inflation ticked up.The consumer confidence index declined 1.3 points to 97.4 in August, the Conference Board said. The figure came in higher than economists expected. The index has hovered around the same level ... Read More
Elon Musk’s xAI sues Apple, OpenAI over alleged scheme to dominate AI
Justin Sullivan/Getty Images(NEW YORK) -- Elon Musk-owned xAI on Monday sued tech giants Apple and OpenAI over an alleged scheme to illegally dominate the artificial intelligence industry through a collaboration that equipped iPhones with AI tools.The exclusive agreement between the world's largest smartphone producer and a top AI firm effectively shut other AI companies out of an opportunity to reach tens of millions of customers, according to the lawsuit filed in a Texas federal court."This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit says.The lawsuit aims to "stop Defendants from perpetrating their anticompetitive scheme and to recover ... Read More
Jerome Powell hints long-awaited rate cuts are coming
WASHINGTON — CNN reports that the job market is on such shaky ground that the Federal Reserve may soon need to cut interest rates to support the economy, Fed Chair Jerome Powell said Friday at a key central banking forum. In one of his most consequential speeches, Powell suggested the labor market could benefit from lower rates, which the Fed has kept unchanged for eight straight months. “Downside risks to employment are rising,” Powell said in prepared remarks for his keynote speech at the Federal Reserve Bank of Kansas City’s annual economic symposium in Jackson Hole, Wyoming. He said the possibility of Trump’s tariffs having only a short-lived effect on inflation is “reasonable.” “With policy in restrictive territory, the baseline ... Read More
US and EU release details for tariffs on cars, pharmaceuticals
President of the European Commission Ursula von der Leyen meets with U.S. President Donald Trump at Trump Turnberry golf club on July 27, 2025 in Turnberry, Scotland. Andrew Harnik/Getty Images(NEW YORK) -- The United States and European Union on Thursday released new details of their trade agreement, including tariff levels for consumer staples like pharmaceuticals and autos.Prior to the agreement last month, the European Union faced the prospect of a 30% tariff rate. Instead, products from one of the largest U.S. trade partners will be slapped with a 15% tariff.In exchange, the EU will remove tariffs on U.S. goods and European companies will aim to buy hundreds of billions of dollars in U.S. products."This Framework Agreement will put our trade and investment ... Read More
SpaceX’s Starship faces 10th test after previous flights end in explosions
Joel Kowsky/NASA via Getty Images(NEW YORK) -- SpaceX's Starship is about to face its 10th test flight following explosions on previous launches. SpaceX CEO Elon Musk has promised that the world's most powerful rocket and spacecraft will one day take humans to Mars and beyond. But leading up to its 10th launch, scheduled for Sunday at 7:30 p.m. ET, Starship has yet to achieve all its mission goals. And the last three flight tests, plus a static engine test in June, ended in explosions."We now have serious questions whether the architecture of Starship is in fact feasible or not," said Olivier de Weck, the Apollo Program professor of Astronautics and Engineering Systems at MIT and editor-in-chief of the Journal of Spacecraft ... Read More
Target CEO to step down as sales remain sluggish
Target CEO Brian Cornell. The Walt Disney Company/Image Group LA via Getty Images(NEW YORK) -- Target CEO Brian Cornell will step down early next year after more than a decade at the helm of the $107 billion retail giant, the company said on Wednesday.In recent years, Target has suffered sluggish sales as the company weathered consumer boycotts over its Pride collection and a rollback of its diversity, equity and inclusion policies.Michael Fiddelke, who currently serves as chief operating officer, will assume the role of CEO on Feb. 1. Cornell will become executive chair of the company’s board of directors."With the board's unanimous decision to appoint Michael Fiddelke as Target's next CEO, I want to express my full confidence in his leadership and focus ... Read More
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