Stock markets slipped somewhat Friday but still ended the best week of the year on a decent note.
Shareholders of the shell company that plans to acquire Donald Trump’s Truth Social approved the takeover of the social media firm, which could mean a multi-billion dollar windfall for the former president as he tries to return to the White House.
While Nike and Lululemon stocks fell on the day after quarterly earnings reports pointed to lower revenue, FedEx stock rose on its plan for a $5 billion share buyback as cost-cutting measures lift profits. The afternoon also saw a comeback for Apple stock — thanks to AI, of course.
The Dow Jones Industrial Average remained shy of reaching the 40,000 mark for the first time ever. The Dow was down 305 points, or 0.7%, to 39,475 shortly before markets closed. The S&P 500 remained largely flat.
Trump big Truth Social merger hits the stock
Trump’s Truth Social took a step toward merging with Digital World Acquisition Corp, a company that’s known as a special purpose acquisition company, or SPAC. That sent DWAC stock down 12%.
Trump’s stake in the new company could be worth more than $3 billion, just as the former president and current presidential candidate badly needs a cash infusion.
The newly merged company, Trump Media, could start trading under the new stock ticker DJT next week.
Apple bounces back thanks to an AI boost
Apple stock had a rough day on Thursday, losing $113 billion in market cap after the Justice Department sued the iPhone maker in a major antitrust case that alleges the company created an illegal monopoly in the smartphone market.
Apple stock stopped losing ground Friday after a report that the company is in talks with Baidu to use its AI technology in China. The shares were up slightly late in the day. The stock ended the day with a 0.5% increase and closed at $172.
Other AI and tech stocks were also up on Friday, including a 3% rise for Nvidia, a 0.3% bump for Micron, and a 2% increase for Alphabet.