Google is making big changes to its finance team, with layoffs and relocations as part of a shift towards artificial intelligence. Meanwhile, despite inflation and safety concerns, airline executives are expecting a record summer travel season. On Wall Street, there is speculation about whether the Federal Reserve will cut rates at all in 2024.
Stocks have been on a losing streak, with the S&P 500 and Nasdaq Composite both dropping for the fourth day in a row. Tech stocks were hit the hardest, falling 1.7%. Google’s parent company, Alphabet, announced the restructuring of its finance team, including layoffs, as it focuses on investing in AI technology. The company also terminated 28 employees after protests over labor conditions and a contract with the Israeli government.
On the bright side, airline executives are optimistic about the upcoming summer travel season, expecting record numbers of travelers despite recent safety concerns in the industry. Delta Air Lines and United Airlines are both anticipating strong demand for first-class tickets.
Taiwan Semiconductor Manufacturing Company reported better-than-expected revenue and profit in the first quarter, driven by strong demand for AI chips. The company, which counts Nvidia and Apple among its major clients, saw net revenue rise 16.5% to $18.87 billion.
As for the Federal Reserve, Wall Street is starting to question whether rate cuts will happen in 2024, given the current inflation rate of around 3%. While traders are still expecting rate cuts later this year, there is a growing possibility that the Fed may wait until 2025 to make any moves.
Overall, investors are keeping a close eye on these developments as they navigate the ever-changing landscape of the financial markets.
