Business
US stocks drift lower after expectations rise for the Fed to hike rates to get handle on inflation
New York (AP) – U.S. stock prices are falling Friday as expectations grow that the Federal Reserve will soon raise interest rates to bring the country’s inflation back under control.
S&P 500 dropped 0.3%, after alternating between gains and losses throughout the morning. As of 12:30 p.m. eastern time, the Dow Jones Industrial Average had fallen 50 points or 0.1% and Nasdaq was 0.5% down.
Bonds had a greater reaction after Kevin Warsh made his first speech as Fed chairman at the annual Jackson Hole economic symposium. In the past, the mountain backdrop has served as the setting for important Fed policy announcements. Warsh was under pressure.
There were growing concerns that the Fed may not be able to back up its tough talk by taking action. It could raise short-term rates in order to control inflation, but the Fed may be deterred by this because it would hurt investment prices and slow down the economy. Warsh was appointed by President Donald Trump who has expressed a desire for lower interest rates.
Warsh reiterated on Friday his desire to provide the financial markets with fewer clues as to what the Fed will do to keep inflation low while maintaining a strong job market. Warsh has stated that he would rather the markets react to the incoming data about the economy, inflation and the Fed than to its statements.
Warsh said that the Fed’s primary tool to accomplish its mission is “short term interest rates”. He also said that he would have a hard time describing the financial climate as “restrictive”, implying that short-term rates are not high enough to dampen down inflation and slowdown of the economy.
Before the speech, the yield on two-year Treasury bonds, which tracks closely what is expected of the Fed in terms of its federal funds rates, had jumped from 4.22% to 4.34%.
CME Group data shows that traders are now betting 60% on the likelihood of the Fed raising its federal funds rates as early as next month. This is up from 35% the day before.
The longer-term yields were mixed, as they are more influenced by expectations about the future of inflation and economy. The yield on the 10-year Treasury rose from 4.67% to 4.72% late Thursday.
Late Thursday, the 30-year Treasury rate was 5.20%. Bond investors may be less concerned about inflationary pressures in the future if they see a smaller increase in yields over long periods.
The yields on these longer-term debts were so high that last week, the U.S. Treasury Department took an unprecedented step and announced it would purchase more bonds. Analysts said this move will have a relatively limited impact.
Brian Jacobsen is the chief economist at Annex Wealth Management. He said that the Warsh approach could clash with Treasury interventions on the bond markets.
Warsh stated Friday that he would rather use the Fed’s “predominant” tool, short-term rates of interest to accomplish its job than buy bonds and add them to Fed’s holdings as it has done in the past since 2008.
Gap’s stock soared 12.9% on Wall Street after it reported a higher profit than expected for its latest quarter. Michael Francis, a retail veteran with a career that began on the sales floor of stores, has been named as Old Navy’s new store manager.
Marvell Technology’s stock fell by 10.1%, despite the fact that the company had reported a profit and revenue in the last quarter which exceeded analysts’ estimates. CEO Matt Murphy said its business related to artificial-intelligence technology is strong, and it raised its forecasts for upcoming revenue growth.
Analysts said that much of this optimism was baked into Marvell stock, which had soared 184% in the first half of the year.
Stocks across industries are facing a skepticism about their high prices, and the fact that the AI revolution may not be as profitable as expected.
Indexes in Europe rose after a mixed performance in Asia. South Korea’s Kospi dropped 1.8% and France’s CAC40 rose 1%, two of the biggest moves in the stock market.
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This report was written by AP Business writers Michelle Chapman, Elaine Kurtenbach and Elaine Kurtenbach.
Business
Labor Day sales are live: Shop expert-approved deals from Amazon, Apple, Hoka, Patagonia and more up to 75% off
Labor Day is the unofficial ending of summer. Whether you are sad to say goodbye or excited for autumn, everyone can agree that finding great deals will make any season more enjoyable. We can help. We have a team of experts who spend hours scouring retailer sales so that you know what to buy now, and what is better to hold off on. We’ve found markdowns up to 75% this Labor Day on homewares, clothing staples, tech gear, and much more from Apple, Kate Spade and Patagonia. We’ve put together a list of all the Labor Day deals you shouldn’t miss.
Labor Day Deals: The Best Labor Day Offers
Hanes Men’s Hoodie (originally $27): A Rare 70% Discount
Patagonia Men’s Nano Puff jacket ($160, originally $229): rare sale on a editor’s pick
Apple AirTag 4 Pack ($80, originally $99): lowest price ever seen
Ninja Flip Toaster Oven & Air Fry ($150, Was $250): Get $100 off
Dyson V8 Cyclone cordless vacuum cleaner ($300 instead of $400): rare deal
New Labor Day deals
Neutrogena Dry Touch Sunscreen 70 SPF 50 ($5, used to be $13): lowest price in months
Bose QuietComfort headphones ($199, originally $349): rare 45% discount
Levi’s Women’s Ribcage straight Jeans (45 dollars, originally $85): Lowest price for 30 days
How to pick up the best Labor Day deals
We only highlight markdowns that we think will save you real money. Some sales are not good; prices may be inflate to appear larger, or some products will cost less elsewhere. What we would skip on Labor Day
Apple iPhone: Wait — there will be a new iPhone model soon. Prices on the existing model typically drop when it launches.
Black Friday is the best time to buy video games and high-ticket technology.
Winter clothing: The new season collection is now in stores, but wait until November to get the biggest discounts on winter staples such as coats and booties.
Best Labor Day deals: Top picks
Best Labor Day deals: Rare deals
Best Labor Day deals: Style
Our style expert says that retailers are clearing summer stock to make way for the fall and winter. So, you can expect steep discounts over Labor Day on items like sundresses and sandals. I recommend shopping for the current season. Stock up now on lighter (and cheaper) clothes, and then grab the discounted styles of fall when the next round of sales comes around in October. Browse more style deals here.
Best Labor Day deals: Home
Our home expert says that now is the time to buy the outdoor furniture you have been wanting. Keep an eye on deals for pillows and mattresses. Mattress prices are usually at their lowest around Presidents’ Day. However, you may still be able to find some great discounts during this period. If you’re looking for new bedding and towels that are luxurious, I recommend waiting until the “white sales” in January. These items usually have even greater discounts. Click here to see more deals on home products.
Best Labor Day deals: Kitchen
Our kitchen expert says that as the seasons change, deals on kitchen equipment start to appear. Many of these products are useful all year round. Air fryers and cookware are great for summer, but also useful as we move into the fall. Black Friday is when you’ll see the biggest price cuts on larger appliances like refrigerators and ranges. If you can wait until November, then it might be worth buying one. Browse more kitchen deals here.
Best Labor Day deals: Tech
Our tech expert says that if you have been waiting to upgrade your tablet or laptop, it may now be time. The AI industry is creating a huge demand for components and memory chips, so the low prices we experienced in late 2017 and early 2018 are not returning. What’s the exception? Amazon devices. Prime Day is coming up, so I would wait to buy Kindles or Echo devices until they are heavily discounted. Find more deals on tech here.
Live4 Updates
These reviews are the latest versions available at the moment of publication.
Business
US fuel prices hit record high for Labor Day weekend
Filling up your tank to go on a last trip for the summer over Labor Day Weekend is more expensive than ever before in the U.S.
According to AAA, the average cost of gas for regular was $4.14 per gallon before the Labor Day holiday. This is nearly $1 higher than the previous year, and more than double the Labor Day Weekend record price of $3.82 in 2012.
Nicole Collins was planning to travel from Philadelphia to South Carolina in order to see friends. However, she explained that her family had spent the majority of summer at home because it is so costly to drive.
Gas is expensive right now. Collins added, “It doesn’t matter that we have a child, we have to also pay for this.” Collins was speaking outside of a Claymont gas station, Delaware where the price per gallon is $4.199.
The prices have risen since the U.S., Israel and other countries attacked Iran on February 22nd. The flow of crude oil through the Strait of Hormuz, a vital waterway for the transportation of crude oil to the world market, has plummeted. Iran refuses to open the Strait.
Tom Seng is a Texas Christian University professor of energy and finance. He said, “Everything pointed to the Iran War” and the Strait of Hormuz.
The Energy Secretary Chris Wright gave few details on the date when drivers could expect to see a reduction in gas prices, but acknowledged that the price is higher than Labor Day 2025.
Wright stated on ABC’s This Week that “yes, the prices are higher, but we will do everything to bring them back down.”
Gas prices are still below the national average of $5.02 per gallon, set by June 2022.
Diesel is another story. It reached a new record Friday of $5.85 per gallon, the national average.
Diesel is used by trucks and other systems for freight delivery. This increased cost of transportation, which can be passed onto consumers at grocery stores or package delivery services, increases the price.
Collins stated that “it doesn’t seem as if there is an end” to the situation.
As the driving season in summer ends, gas prices tend to drop. Refineries then switch over to a winter blend that is cheaper.
Seng added that there were other factors, even outside the unstable situation in the Middle East this year, which make the future price of oil unpredictable. U.S. refining plants are operating at 98% of their capacity. Many in Texas’s unusually hot heat. Prices will be hard to lower if there are any problems or hurricanes knock some systems off line.
It’s not just an issue in the Middle East. Diesel supplies are being squeezed by Ukrainian drone attacks against Russian refineries. Matthew Metzgar is a clinical economist at UNC Charlotte and he said that Chinese refiners also see a decline in output.
Metzgar stated that “there is just less fuel coming out of these refineries.”
Wright, energy secretary Wright, stated that Trump administration is taking steps to increase the production, and the markets are forecasting lower prices for the next few months.
If you take a look at futures, you’ll see that if you buy gasoline in bulk today for November two months in advance, the price is $0.35 less than today. The marketplace believes that gasoline prices will be significantly lower in the future,” said he.
There is not much a motorist can do geopolitically to bring down the price of gas.
Metzgar says that price apps are a good way to save money on trips, particularly long ones. Gas prices along the Interstate could be up to 10 cents per gallon higher than in stations just a few miles away.
___
Mingson Lau, a videojournalist with Associated Press and Gary Fields, a reporter for the Associated Press contributed.
Business
Amazon cargo plane crashes after overshooting Miami airport runway; at least 5 killed
Officials said that at least five people died and five were injured Sunday when an Amazon cargo aircraft overran the runway and hit several cars. Emergency crews were called to the crash scene, which prompted an approximately 3-hour stop on the ground at Miami International Airport.
Officials said that the Prime Air aircraft, operated by North Carolina’s 21 Air, had overrun one of airport runways before coming to rest on a nearby field.
Miami-Dade Fire Rescue reported that the plane struck several vehicles in the area of the 2100 Block of Northwest 42nd Avenue. More than 60 units of the department responded to this crash. Miami-Dade Sheriff’s Office also said that it responded.
Miami-Dade Fire Rescue battles fire after plane crash, rescues victims
Three of the five injured people were transported to local trauma centers in critical conditions. The two other people were evaluated and transported to hospitals in the area. No one has been identified.
MDFR reported that when the crews reached the aircraft, it was ablaze and emitting heavy smoke.
MDFR chief Ray Jadallah stated, “What we discovered was a complex situation.”
MDFR reported that crews used foam as well as specialized firefighting equipment to fight the flames. MDFR reported that crews conducted rescue and search operations for both the co-pilot and pilot inside the cockpit as well as locating patients at the scene.
The officials did not give any further details on the crew’s condition. The officials have stated that it is too soon to determine if those killed on board the plane were also among the passengers.
Officials said that several people had been trapped in their cars and needed to be rescued by MDFR’s technical rescue staff.
Amazon crash site fuel leak confirmed
MDFR reported that a fuel leak was “occurring from the aircraft and is currently being mitigated.” Natalie Milian Orbis, commissioner of the MDFR said that residents and motorists should avoid the area between 67th Ave and 25th Street.
The officials said that there is no threat to the public’s safety.
Amazon reacts to cargo plane accident
Amazon has confirmed that one of their planes is involved in this crash.
We’re working with officials and local authorities to determine exactly what happened. Our absolute priority right now is to ensure the safety and well-being of all involved. Kelly Nantel said that Amazon was doing all it could to help those who were affected.
Nantel stated that the company is “heartbroken” to hear of five deaths in an incident today at Miami International Airport. We extend our deepest sympathy to all the affected families and loved ones.
Nantel said that Amazon “will cooperate fully” with any investigations.
Does Miami International Airport remain under ground stop?
Around 2:30 pm, the Air Traffic Control System Command Center of the Federal Aviation Administration issued the Ground Stop. ET. Greg Chin is the director of communications for Miami-Dade Aviation Department. He says that two runways at the airport have been reopened. After about three hours the ground stop ended, however, as of Sunday evening, an average flight delay was six and a half hours.
FAA confirms that the Boeing 767 300 that left San Juan Puerto Rico was at fault for this crash. According to Flightradar24, the 767 was 32 years old. It had flown for a number of airlines as a passenger aircraft before being converted into a freight plane in 2015.
The National Transportation Safety Board and FAA both investigate.
Sean Duffy of the U.S. Department of Transportation shared a short statement with X informing travelers of potential delays and cancellations.
Business
At least 5 dead after Amazon cargo plane crashed off runway at Miami airport
MIAMI, FL (AP) – An Amazon cargo jet slammed into a car and exploded in flames at Miami International Airport, killing five and wounding five more people, according to authorities.
Around 2 pm, the aircraft, which had arrived from San Juan in Puerto Rico, overran the runway and crashed into a road that was used by workers at the nearby airport and businesses. Miami-Dade County officials announced at a press conference that five people died, two were hospitalized for less serious injuries and three others suffered critical injuries.
The plane’s impact did not immediately reveal if any of the passengers survived, or if all the victims were in cars.
Miami-Dade Rescue Fire chief Ray Jadallah said that the crash trapped both the copilot and pilot in the cockpit, and other passengers in vehicles. Crews had to rescue a trapped person under a car, according to the agency.
Flights were halted at this busy hub of travel for most of the afternoon. The department reported that 200 emergency workers responded to the scene and found the aircraft with smoke and heavy flames from an engine compartment fire. The fire was extinguished by firefighters using foam supplied by specialized airport firefighting teams. Crews are still dealing with the fuel leak in the aircraft hours after the incident.
Images showed that the Prime Air aircraft came to rest next to a road near two semi-trucks. Images showed that the aircraft was resting flat on its back and was still largely intact, despite being damaged by fire.
It was unclear if the weather played any role in this incident. According to the National Weather Service, the National Weather Service recorded thunderstorms in the region at that time and winds gusts of up to 48 kph (30 mph).
21 Air is a North Carolina-based cargo company that operated the flight. Flightradar24, a flight tracking site, reports that the 32-year old Boeing 767 originally was built for passenger transport and served for over two decades for various airlines. It then became a cargo aircraft in 2015.
FlightAware’s website, which tracks disruptions in flight, reported that more than 160 flights had been canceled, and 325 were delayed, as of late Sunday. Orlando International Airport officials, located more than 200 km (320 miles) north of Miami said that some flights had been diverted to their airport.
The National Transportation Safety Board announced that it would send a team led by Jennifer Homendy, its Chairwoman to Miami to conduct an investigation.
Amazon stated in a press release that they would be willing to cooperate with any investigations.
The company expressed its sorrow at the loss of five lives. Our deepest sympathy goes out to all the affected families and loved ones.
A UPS aircraft crashed last year after it lost its engine as it was accelerating along the runway of Louisville’s Muhammad Ali International Airport. All three pilots were killed in the crash, as well as 12 other people. 23 more people were also injured.
Steve Arroyo, an aviation safety expert, said that on domestic flights a 767-cargo aircraft is typically manned by only a copilot and pilot. For an international flight, a third pilot is required. A long-haul flight requires a fourth.
Arroyo is a long-time United Airlines veteran pilot who wants to know if the Amazon aircraft landed within the landing zone and, if not, why the plane didn’t abort the landing attempt and line up again for a second try. The landing zone usually lies within the first 3,014 feet of the runway.
He asked, “Did it land in the designated touchdown zone?” If it did, then what happened?
Mary Schiavo is a former Transportation Department inspector general and pilot. She said the video of the Amazon landing showed the plane lingering above the runway without raising the nose to push the landing gear down.
It didn’t land immediately, so by continuing to hover over the runway it wasted a great deal of valuable real estate. Schiavo stated that the plane was still literally flying.
The FAA has installed arresting systems at over 120 airports across the country to stop aircraft that go beyond the runway end. The FAA credits the beds of lightweight material that can be crushed at the end a runway with saving at least 497 planes from overrunning runways.
___
Funk reported on the story from Omaha, Nebraska. Associated Press journalists Tim Reynolds, Rio Yamat and Wufei Yo contributed from Miami.
Business
China’s export shock is pushing the global economy to a breaking point, and the U.S. may have to clean up the mess, former trade official says
He predicted that other countries would try to stop the Chinese exports as Beijing debated whether or not to adopt the necessary reforms to avoid disaster. Such moves would suddenly cut off China’s exports and its access to foreign markets. This could lead to an economic crisis in the world.
China’s fallout would be a mass failure of already fragile businesses, losses recorded by state-owned banking institutions on so-called “zombie companies”, cascading defaults for local government funding vehicles and a collapse in provincial revenue.
China’s raw material and intermediate product demand would also dry up. This could have a negative impact on developing economies that depend heavily on China.
Froman writes that China is unlikely to step in to save the day, as it has not shown much interest in taking over the U.S. role in the world economy.
He said that even if China is the source of the next crisis, cleanup will likely fall on the United States, and its institutions, which are often the ones to clean up the mess.
China shock 2
Other people have raised the alarm about the “China Shock 2.0,” such as Apollo Chief Economist Torsten Slok who stated last month that the country was increasingly exporting products which advanced economies had once assumed would dominate the domestic market.
Federal Reserve economists published a similar report in May. They found that China’s export boom has changed over the years from being driven by labor-intensive products in the early 2000s, to industries that are capital and technology-intensive.
They wrote: “These elements, taken together, suggest that ‘China Shock 2.0’ is not just a continuation or earlier trends but rather a new phase in global trade integration.”
Last year, Brad Setser, a former Treasury official, warned that China’s exports would be the biggest threat to global economic growth, surpassing even Trump’s tariffs.
In the past six years, imports of manufactured products into China have risen by only $15 billion per year on average. This is essentially flat after inflation. Exports to China have risen by over $150 billion.
Setser estimates that China can produce the equivalent of two thirds of all the cars required by the global market. China makes over half of the steel, aluminium, and ships that are used in the world.
In an op-ed in the New York Times, he wrote: “This shows that China does not need industrial inputs from other countries. This leaves those countries dependent upon Chinese goods and vulnerable to Beijing’s economic and political pressure.”
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