The Market News Today: S&P 500 Hits Record, Adobe Surges, Musk’s Pay Approved

S&P 500 Hits Record Close Amid Cooling Inflation Hopes

U.S. stock futures were mixed on Friday after the S&P 500 hit a record close, driven by hopes for continued cooling inflation. The S&P 500 and Nasdaq Composite are on track to end the week higher, with gains of 1.6% and 3.1%, respectively. Wholesale inflation unexpectedly decreased by 0.2% last month, contrary to expectations of a 0.1% increase. The market remains cautiously optimistic about a soft landing, though concerns persist about the Fed’s prolonged restrictive stance and overall market breadth.

Adobe Raises 2024 Revenue Forecast, Shares Surge Over 16%

Adobe raised its fiscal 2024 revenue forecast, expecting between $21.40 billion and $21.50 billion, up from its previous estimate. Shares of the company jumped over 16% in extended trading following the announcement. Increased adoption of Adobe’s AI-powered editing tools, such as Photoshop’s upcoming AI image generator, was a key driver. The company also raised its full-year adjusted earnings per share forecast to $18-$18.20. Second-quarter revenue reached $5.31 billion, with digital media revenue at $3.91 billion, both surpassing estimates.

Elon Musk Wins Shareholder Approval for $56 Billion Pay Package

Tesla shareholders approved CEO Elon Musk’s $56 billion pay package, affirming his leadership and securing his focus on Tesla. Despite opposition from large institutional investors, Musk enjoys strong support from retail investors. The approval underscores confidence in Musk’s vision for Tesla’s future, though legal challenges remain. At the annual meeting, Musk highlighted Tesla’s recent achievements and plans for autonomous vehicles. Tesla’s stock rose 2.9% following the approval, reflecting investor confidence in Musk’s continued leadership.

BOJ Holds Rates, Yen Weakens; Gold, Oil See Mixed Performance

The Bank of Japan kept interest rates unchanged, hinting at reducing Japanese government bond purchases in July. Following the decision, the yen weakened by 0.52%, and the Nikkei 225 rose 0.68%. Gold prices edged up, poised for a weekly gain, driven by softening U.S. inflation data. Crude oil prices fell on Friday but are set for their first weekly gain in four weeks, influenced by OPEC’s demand forecast and Russia’s production compliance. Both markets remain volatile amid economic uncertainties.

AI and Crypto Could Boost Global GDP by $20 Trillion by 2030

The crypto and AI industries could add $20 trillion to global GDP by 2030, according to Bitwise. Bitwise analyst Juan Leon highlights the collaboration between bitcoin miners and AI, noting the potential for mining infrastructure to support AI’s massive computational needs. CoreWeave’s $1.6 billion bid for bitcoin miner Core Scientific exemplifies this trend. AI’s growth has spotlighted Nvidia, while data centers face unprecedented demand. Bitcoin miners are diversifying post-halving to balance revenue and risk.