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Rising long-term interest rates are posing the latest threat to a US economic ‘soft landing’
WASHINGTON (AP) — Surging interest rates are intensifying the challenges for the U.S. economy and threatening to derail the Federal Reserve’s drive to tame inflation without causing a deep recession. Since mid-summer, the yield on the 10-year Treasury note has steadily climbed, causing a spillover rise in other borrowing costs. The costs of mortgages, auto loans and credit card debt have all risen in response. The collective impact of higher rates across the economy could also weaken the government’s own finances. The jump in longer-term rates coincides with other threats, from higher gas prices and this week’s resumption of student loan payments to autoworkers’ ongoing strike and the risk of a government shutdown next month.
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Auto worker strike highlights disparities between temporary and permanent employees
TOLEDO, Ohio (AP) — Among the many changes being sought by striking United Auto Workers is an end to a system that pays workers much different wages for doing the same job. The biggest disparity is with temporary workers employed by the Detroit automakers who are making roughly half of what their co-workers bring home. The UAW says eliminating the uneven wage scales is a big priority because companies are abusing the system to save money. GM and Jeep maker Stellantis have made offers to increase temporary worker starting pay and Ford is offering to make temporaries full-time workers after 90 days of work.
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Stock market today: Wall Street edges lower ahead of a highly anticipated jobs report
NEW YORK (AP) — Wall Street drifted slightly lower as pressure from the bond market remains high due to worries about a too-hot U.S. job market. The S&P 500 slipped 0.1% Thursday. The Dow edged down 9 points and the Nasdaq composite fell 0.1%. Stocks have struggled since the summer as Treasury yields have soared. Yields wavered up and down Thursday after a report showed fewer workers applied for unemployment benefits last week than economists expected, which could be a signal of upward pressure on inflation. A more impactful and comprehensive report on the job market is coming on Friday.
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The US government seems ready to order a recall of millions of air bag inflators for safety concerns
WASHINGTON (AP) — The U.S. government appears poised to order a recall of millions of air bag inflators due to a manufacturing flaw that could send metal shrapnel rocketing through a car interior. The National Highway Traffic Safety Administration held a public hearing Thursday on air bags made by ARC Automotive of Tennessee. At least 25 million vehicles containing ARC-made air bags could be affected. ARC has refused to issue a full-scale recall, setting the stage for the possible court fight. Thursday’s hearing was one of the final steps before the agency can issue a formal recall order and take the case to court for enforcement. The company maintains that no safety defect exists.
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Meta and X questioned by lawmakers over lack of rules against AI-generated political deepfakes
WASHINGTON (AP) — US Sen. Amy Klobuchar of Minnesota and U.S. Rep. Yvette Clarke of New York sent a letter Thursday to Meta CEO Mark Zuckerberg and X CEO Linda Yaccarino expressing “serious concerns” about the emergence of AI-generated political ads on their platforms and asking each to explain any rules they’re crafting to curb the harms to free and fair elections. The pressure on the social media companies comes as both lawmakers are helping to lead a charge to regulate AI-generated political ads. A House bill introduced by Clarke earlier this year would amend a federal election law to require disclaimers when election advertisements contain AI-generated images or video.
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US regulators seek to compel Elon Musk to testify in their investigation of his Twitter acquisition
SAN FRANCISCO (AP) — The Securities and Exchange Commission says it is seeking a court order that would compel Elon Musk to testify as part of an investigation into his purchase of Twitter, now called X. The SEC said in a Thursday filing in a San Francisco federal court that Musk failed to appear for testimony on Sept. 15. The agency said that was despite Musk being served an investigative subpoena by the SEC and having raised no objections at the time it was served. X, which is based in San Francisco, didn’t immediately return a request for comment.
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X removes article headlines in latest platform update, widening a rift with news media
SAN FRANCISCO (AP) — X, formerly known as Twitter, has stopped showing headlines on articles shared on the platform. Now, X only displays an article’s lead image and a link to the story. Plans for the change were first reported by Fortune in August, when owner Elon Musk confirmed in a tweet that he thought the change— which came from him “directly” — would “greatly improve the esthetics” of posts. Linked articles now appear as an image, and includes text in the left-hand corner noting the domain of the link. Users must click on the image if they wish to visit the full article.
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The average long-term US mortgage rate surges to 7.49%, its highest level since December 2000
LOS ANGELES (AP) — The cost of financing a home surged again this week as the average long-term U.S. mortgage rate climbed to its highest level since December 2000, further dimming the affordability outlook for many would-be homebuyers. The average rate on the benchmark 30-year home loan rose to 7.49% from 7.31% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.66%. High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already out of reach for many Americans.
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US applications for jobless benefits inch up but layoffs remain historically low
WASHINGTON (AP) — Slightly more Americans applied for jobless claims last week, but layoffs remain low and the labor market continues to show resiliency amid elevated interest rates imposed by the Federal Reserve. The Labor Department reported Thursday that applications for unemployment benefits ticked up by 2,000 to 207,000 for the week ending Sept. 30. Jobless claim applications are considered a proxy for the number of layoffs in a given week. The four-week moving average of claims, a less volatile measure, fell by 2,500 to 208,750. Overall, 1.67 million people were collecting unemployment benefits the week that ended Sept. 23, about 5,000 fewer than the previous week.
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The S&P 500 fell 5.56 points, or 0.1%, to 4,258.19. The Dow Jones Industrial Average dropped 9.98 points, or less than 0.1%, to 33,119.57. The Nasdaq composite shed 16.18 points, or 0.1%, to 13,219.83. The Russell 2000 index of smaller companies rose 2.50 points, or 0.1% to 1,731.51.
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