Business and Finance News - 8.6.24

Berkshire Hathaway halved its stake in Apple, now holding $84.2 billion compared to $174.3 billion at the start of the year. This news caused Apple shares to drop over 9% in pre-market trading, eventually settling down 5% shortly after the market opened. (Quartz)

*Apple (AAPL) - Apple Inc. is a multinational technology company known for its innovative products and services (iPhone, iPad, Mac Computers, etc.).

*Berkshire Hathaway (BRK.B) - Berkshire Hathaway Inc. is a multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. The company is known for its control and leadership by Warren Buffett, one of the most famous investors in the world.

The cryptocurrency market lost around $367 billion in value over 24 hours as bitcoin dropped 15% and ether plunged 22%. This sell-off followed the Nasdaq's worst three-week stretch in two years and coincided with broader market declines, including a significant drop in Japan’s Nikkei 225. (CNBC)

*Bitcoin (BTC) - Bitcoin is a decentralized digital currency that enables peer-to-peer transactions without the need for an intermediary such as a bank. It uses blockchain technology, which records and verifies all transactions in a public ledger.

*Ethereum (ETH) - Ethereum is a decentralized, open-source blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (DApps). Ethereum's native cryptocurrency is called Ether.

The Dow dropped 864 points and Japan’s Nikkei 225 experienced its worst crash since 1987 due to worries about a slowing U.S. economy and weak jobs reports. The S&P 500 fell 2.4%, and the Nasdaq composite slid 2.8%, reflecting a global sell-off that began last week. (AP News)

*Global Markets - Global markets refer to the interconnected marketplaces across the world where various financial securities, commodities, and other assets are traded. These include stock exchanges, bond markets, commodity markets, and foreign exchange markets.

The Magnificent Seven tech stocks, led by Apple and Nvidia, are set to lose nearly $900 billion in value due to recession fears and Berkshire Hathaway cutting its Apple stake. The sell-off, spurred by weak U.S. payroll data, has hit major tech companies including Alphabet, Amazon, Meta, Microsoft, and Tesla. (Reuters)

*Magnificent Seven - The "Magnificent Seven" refers to seven large-cap technology and tech-related stocks that have a significant influence on the stock market. These stocks include: Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), Tesla (TSLA), and Nvidia (NVDA)

Elon Musk filed a new lawsuit against OpenAI and its founders, Sam Altman and Greg Brockman, alleging they prioritized profits over the public interest, violating the company's founding agreement. The suit claims Musk was deceived into co-founding OpenAI with the promise it would remain a nonprofit focused on safety and openness. (Axios)

*OpenAI - OpenAI is an artificial intelligence research organization and company with a mission to ensure that artificial general intelligence (AGI) benefits all of humanity.

Here’s how the major indexes did yesterday:

• Dow Jones Industrial Average: 38,703.27 -1,033.99 (-2.60%)

• S&P 500: 5,186.33 -160.23 (-3.00%)

• Nasdaq Composite: 16,200.08 -576.08 (-3.43%)

• Russell 2000: 2,039.16 -70.15 (-3.33%)

• CBOE Volatility Index (VIX): 38.57 +15.18 (+64.90%)

Here’s how leading market ETFs did yesterday:

• SPDR S&P 500 ETF Trust (SPY): 517.38 -15.52 (-2.91%)

• iShares Core S&P 500 ETF (IVV): 520.18 -15.59 (-2.91%)

• Invesco QQQ Trust (QQQ): 435.37 -13.38 (-2.98%)

• Vanguard S&P 500 ETF (VOO): 475.20 -14.71 (-3.00%)

• Vanguard Total Stock Market ETF (VTI): 255.18 -7.72 (-2.94%)

Here’s how The Magnificent Seven did yesterday:

• Apple (AAPL) [3.209T]: 209.27 -10.59 (-4.82%)

• Microsoft (MSFT) [2.937T]: 395.15 -13.34 (-3.27%)

• Nvidia (NVDA) [2.475T]: 100.45 -6.82 (-6.36%)

• Alphabet (GOOG) [1.977T]: 160.64 -7.76 (-4.61%)

• Amazon (AMZN) [1.676T]: 161.02 -6.88 (-4.10%)

• Meta Platforms (META) [1.207T]: 475.73 -12.41 (-2.54%)

• Tesla (TSLA) [634B]: 198.88 -8.79 (-4.23%)

Here’s how the major cryptocurrencies did yesterday:

• Bitcoin (BTC): $55,682.95 (8:15PM PST on 8/5/24)

• Ethereum (ETH): $2,493.44 (8:15PM PST on 8/5/24)

• Solano (SOL): $138.39 (8:15PM PST on 8/5/24)