Stock Market News: Fed’s pause, Nasdaq, S&P rise, Nvidia and chip stocks jump

The Starbucks sign is displayed in the window of a Pittsburgh Starbucks, Jan. 30, 2023. On Monday, June 12, jurors in a federal court in New Jersey awarded $25.6 million to a former regional Starbucks manager who alleged that she and other white employees were unfairly punished by the coffee chain after the high-profile 2018 arrests of two Black men at one of the chain's Philadelphia locations. (AP Photo/Gene J. Puskar, File)

Jurors in federal court in New Jersey have awarded $25.6 million to a former regional Starbucks manager who alleged that she and other white employees were unfairly punished by the coffee chain after the high-profile arrests of two Black men in 2018 at a Philadelphia location.

Law360 reports that jurors in Camden found on Monday that race was a determinative factor in the company’s firing of Shannon Phillips and awarding her $600,000 in compensatory and $25 million in punitive damages.

Her attorney said the company was looking for a “sacrificial lamb” to calm the outrage. Starbucks declined comment.

Columbia University class of 2020 graduates pose for photographs on Commencement Day on Wednesday, May 20, 2020, in New York. After three years, the pandemic-era freeze on student loan payments will end in late August. (AP Photo/Frank Franklin II, File)

After three years, the pandemic-era freeze on student loan payments will end in late August. It might seem tempting to just keep not making payments, but the consequences can be severe, including a hit to your credit score and exclusion from future aid and benefits.

More than 40 million Americans will have to start making federal student loan payments again at the end of the summer under the terms of a debt ceiling deal approved by Congress.

Millions are also waiting to find out whether the Supreme Court will allow President Joe Biden’s student loan forgiveness plan to go ahead. But payments will resume regardless of what justices decide.

POLITICS

Federal student loan interest to resume in September, payments in October

The US Department of Education intends to end its suspensions on federal student loan interest accumulation and resume mandatory student loan payments.

Disgraced Theranos CEO Elizabeth Holmes, center, is escorted by prison officials into a federal women's prison camp on May 30, 2023, in Bryan, Texas. (AP Photo/Michael Wyke, File)

Federal prosecutors want Elizabeth Holmes to pay $250 each month to victims of her failed blood testing startup after she leaves prison, but her attorneys are pushing back citing “limited financial resources” available to the disgraced founder of Theranos.

U.S. District Judge Edward Davila ordered Holmes and her former partner, Ramesh “Sunny” Balwani, to pay $452 million in restitution to victims last month.

Federal prosecutors argue that Holmes should be required to pay at least $250 each month — or 10 percent of her earnings, whichever is greater — in criminal monetary penalties upon supervised released. But Holmes’ lawyers pushed back on the proposed requirement.

Gov. Roy Cooper signs House Bill 347: Sports Wagering/Horse Racing Wagering into law on Wednesday, June 14, 2023 at Spectrum Center in Charlotte, N.C. Regulated sports betting and horse racing should begin across North Carolina in the first half of next year after Gov. Roy Cooper signed into law Wednesday legislation that greatly expands gambling opportunities in the ninth-largest state.(Melissa Melvin-Rodriguez/The Charlotte Observer via AP)

Regulated sports betting and horse racing should begin across North Carolina in the first half of next year after Gov. Roy Cooper signed legislation that greatly expands gambling within the state's borders into law.

The Democratic governor held a bill-signing ceremony Wednesday at Spectrum Center, home to the NBA’s Charlotte Hornets. It could house one of several anticipated sportsbooks allowed at or near professional sports venues as part of the law.

The Republican-controlled General Assembly finalized the bill last week. The new law says betting could begin as early as next Jan. 8 but as late as mid-June 2024.

North Carolina will become the 28th state where mobile sports betting occurs or has been authorized, according to the American Gaming Association. The law also authorizes the commission to set rules for live horse racing.

Chinese workers unload a train at port. REUTERS

A Canadian public relations manager for a Chinese-founded development bank has announced his resignation in a statement that accused it of being dominated by “Communist Party hacks” and said Canada’s interests weren’t served by being a member. 

Bob Pickard, who worked for Asian Infrastructure Investment Bank (AIIB) for 15 months, said in a statement on Twitter that resigning was his only course as a “patriotic Canadian.” He complained that the bank was dominated by “Communist Party hacks” who were “like an in-house KGB or Gestapo or Stasi”.

The Beijing-headquartered bank “has one of the most toxic cultures imaginable,” Pickard wrote. “I don’t believe that my country’s interests are served by its AIIB membership.” Pickard said he was “concerned for my security” and didn’t post his announcement until he arrived in Japan.

The AIIB confirmed in an email that Pickard resigned as its director general of global communications and rejected his criticism as unfounded.

This July 13, 2010, file photo, shows an entrance to the Advanced Micro Devices Inc. (AMD) headquarters in Sunnyvale, Calif. (AP Photo/Paul Sakuma, File)

Advanced Micro Devices has revealed a new artificial intelligence chip in its race to compete with fellow chipmaker Nvidia in supplying the foundation for a boom in AI-fueled business tools.

The Santa Clara, California-based semiconductor company described its new MI300X chip as “the world’s most advanced accelerator for generative AI.”

It’s expected to attract interest from big cloud providers such as Amazon or Microsoft, but AMD hasn’t specified which cloud provider might use it.

AMD CEO Lisa Su demonstrated the new technology at a showcase event in San Francisco on Tuesday.

A hydrogen fueling station in Hamburg, Germany. Hydrogen is produced onsite through electrolysis and stored in two large tanks. Eric Shambroom/SHELL PLC

Shell plc. announced today that stronger capital and cost discipline will underpin higher shareholder distributions.

Through a combination of dividends and share buybacks Shell will raise the dividend per share by an expected 15%, effective from the Q2 2023 interim dividend, payable in September, and commence share buybacks of at least $5 billion for the second half of 2023, subject to Board approval.

“We are investing to provide the secure energy customers need today and for a long time to come, while transforming Shell to win in a low-carbon future. Performance, discipline, and simplification will be our guiding principles as we allocate capital to enhance shareholder distributions, while enabling the energy transition,” said Shell Chief Executive Officer, Wael Sawan.

Toyota vehicles on display via REUTERS

Toyota's shareholders have rejected demands from some investors that the automaker do a better job on fighting climate change. They also endorsed Akio Toyoda's reappointment as chairman of the automaker.

The investor proposal was initiated by AkademikerPension, a $20 billion Danish investment fund. It accused Toyota Motor Corp. of lobbying to weaken efforts by governments around the world to phase out gas and diesel-fueled internal combustion engines.

The rejection at the meeting in Toyota city, central Japan, was expressed by applause and was widely expected. The majority of Toyota shares are held by the company and its group companies, retired employees and others sympathetic to the company’s perspective.

MARKETS

A Fed pause likely won’t help struggling consumers

While investors are optimistic the Federal Reserve will pause interest rates this month, the move is unlikely to bring relief to stretched consumers holding credit card debt and variable rate loans.

The Federal Reserve is expected to pause after 10 straight rate hikes but the move is likely to help consumers struggling with higher borrowing costs.

A Google sign is shown at the company's office in San Francisco, on April 12, 2023. European Union antitrust regulators on Wednesday, June 14, 2023, took aim at Google's lucrative digital advertising business, ordering the tech giant to sell off some of its ad services to address competition concerns. (AP Photo/Jeff Chiu)

European Union antitrust regulators are taking aim at Google’s lucrative digital advertising business, saying the tech giant must sell off some of its ad business to address competition concerns.

The European Commission said Wednesday that its preliminary view after an investigation is that “only the mandatory divestment by Google of part of its services” would satisfy the concerns.

The European Union has led the global movement to crack down on Big Tech companies but rather than splitting up businesses it has previously issued blockbuster fines. That includes three antitrust penalties for Google worth more than 8 billion euros, now $8.6 billion.

MARKETS

Bud Light sales slump continues amid Dylan Mulvaney controversy

The backlash against Bud Light continues to sink the beer brand's sales following the Dylan Mulvaney controversy, as sales were down by nearly a quarter for the week ending June 3.

Bud Light has lost its title of America's top selling beer creating more headwinds for parent Anheuser-Busch.

ECONOMY

Fed likely to skip interest rate hike for first time in 15 months

The Federal Reserve will likely pause its 15-month interest rate hike campaign Wednesday after government data pointed to a sharp slowdown in inflation.

The Federal Reserve is expected to make a dramatic policy shift after 10 straight months of interest rate hikes.