Housing starts dipped to their lowest level since early in the pandemic, but homebuilder stocks jumped Friday on signals that the White House may be offering carrots to coax builders into action.
Why it matters: The housing market has been mired in a slump after years of price increases and rising mortgage rates, which has helped cool demand and drive builders to the sidelines.
Every year, more than 140,000 people descend on Las Vegas for the Consumer Electronics Show to showcase new tech and discuss partnerships for the year ahead. Typically, the show is politically agnostic. But this year, leaders are leaning into President Trump's AI strategy.
Why it matters: The Biden era saw the White House pitted against Big Tech firms in an effort to rein in misinformation and monopolies. Trump's embrace of the AI industry has been a welcome reprieve for Silicon Valley.
Elon Musk's Grok is limiting some of its image generation capabilities following widespread outcry over users using the tool toremove clothing from photos of women and minors.
Why it matters: xAI, Musk's AI company, is under fire from the European Commission,which said Friday it will investigate the images, calling them "illegal," "appalling" and "disgusting."
The U.S. economy added 50,000 jobs in December, while the unemployment fell to 4.4%, the Labor Department said on Friday.
Why it matters: Last year ended with solid hiring and lower joblessness after months of weak job gains that raised fears about the health of the economy.
Venture capital firm Andreessen Horowitz, whose past investments included Airbnb and Coinbase, on Friday announced that it raised over $15 billion for a group of new funds.
Why it matters: This is a major boost to the U.S. venture capital market, which just experienced its weakest year for fundraising since 2017.
Higher productivity is often viewed as a synonym for fewer workers. Market strategists, however, say productivity gains driven by AI could actually lead to more jobs.
Why it matters: That would be a boon for the economy and could give the stock market enough steam to extend its rally.
Defense stocks are catching a bid after President Trump announced he is considering a record $1.5 trillion U.S. defense budget. This comes after he floated limits on sector buybacks and dividends, which weighed on stocks.
Why it matters: This exemplifies the guessing game that Wall Street plays regarding policies from the White House, which can fundamentally change the base case for investing in a sector.
Meta on Friday unveiled nuclear power deals with three firms — Vistra, TerraPower, and Oklo — to back large existing plants and help spur construction of advanced reactor designs.
Why it matters: It's the latest sign of big tech companies looking to nuclear as they seek electrons for building and using AI models.
Seventeen Republicans voted with every Democrat to pass a bill to extend enhanced Affordable Care Act subsidies for three years.
Why it matters: They acted in rare defiance of President Trump and GOP leaders to pass the measure on a key health care affordability issue ahead of November's midterm elections, piling pressure on the Senate to reach a bipartisan deal.
Macy's is closing 14 stores in its latest round of cuts as the department store chain continues to shrink its footprint, the retailer said Thursday.
Why it matters: The department store chain is betting that fewer stores — and more investment in its strongest locations — can help revive the business.
