Table of Contents

• Alphabet

• The Fed

Top Stories Today

Alphabet

Alphabet’s stock dropped sharply after Apple’s services head, Eddy Cue, suggested that AI-based tools may soon displace traditional search engines like Google. While testifying in a federal antitrust trial over Google’s dominance in online search, Cue revealed Apple may integrate AI options like OpenAI, Anthropic, and Perplexity into Safari. This raised doubts about the durability of Google’s deal with Apple, which currently brings in billions for both companies. Cue noted search traffic on Safari declined recently, possibly due to users favoring AI tools. Alphabet fell over 7%, and Apple slipped 2% amid concerns about their long-term search partnership.

The Fed

The Federal Reserve chose to maintain interest rates at their current level amid mounting uncertainty over U.S. trade policy and mixed economic signals. In its latest policy update, the central bank emphasized rising risks to both inflation and employment, hinting at concern over a potential stagflation scenario fueled by President Trump's new tariffs. While Chair Jerome Powell noted that the economy remains resilient for now, he acknowledged growing challenges, including weak GDP growth, volatile trade dynamics, and inflation pressures linked to import costs. The Fed opted for a cautious stance, offering no clear signal of imminent rate cuts but stressing attentiveness to evolving conditions as trade negotiations unfold.

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