The Week's Top Stories is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
More than six months into a bear market, the stock market got a brief reprieve Monday with a short-lived rally across the major indices. Investors appeared hopeful that financial troubles in the United Kingdom and other signs of declining economic activity might cause the Fed to flinch on rate hikes. This narrative didn't last long though. A series of strong job reports revived the consensus that the Fed is lining up another wallop, and stocks slid throughout the week. It ended up being a mixed week for markets, with the Dow and S&P closing the week up slightly and the Nasdaq landing just in the red. Meanwhile, a decision from oil cartel OPEC and its allies to curb production stoked fears of higher energy prices, and even led to a jump in the price of gasoline in the U.S.
The embattled Peloton stock made a smooth climb this week, rising 22 percent over the last five days after the company revealed a partnersip with Hilton that will put at least one fitness bike in every one of the chain's 5,400 branded hotels. The company followed this up with the announcement that it was laying off another 500 employees, which is roughly 12 percent of its workforce. Peloton CEO Barry McCarthy said the decision was a "necessary step" to save the firm, and that the bulk of its admittedly painful restructuring process was now complete. In related news, Amazon announced a hiring freeze, following in the footsteps of Meta and other tech firms that are slimming down their workforces to deal with economic headwinds.
Twitter's stock rocked up more than 22 percent earlier this week on reports that Tesla CEO Elon Musk might move ahead with his acquisition of the social media platform, rather than move ahead with difficult legal proceedings to untangle himself from the deal. The Delaware judge presiding over the case then paused the proceedings and ordered Musk to complete the acquisition by October 28 to avoid returning to court. While nothing is set in stone, this looks like good news for Twitter, which sought to force Musk to finish what he started. In other Musk-related news, Tesla's stock dropped at the beginning of the week following reports of disappointing third quarter deliveries.
CANNABIS PARDON PUSH
Outside the world of tech, President Joe Biden announced plans to pardon thousands of Americans convicted of cannabis possession as well as review federal drug laws. The news gave a boost to cannabis companies such as Canopy Growth and Tilray Brands, which saw their stocks soar more than 20 percent. However, those gains faded Friday amid continued uncertainty over what a federal review of cannabis laws might mean for the industry.