Stock Market Retreats as Tech Sector Slumps and Treasury Yields Rise Amid Trump-Xi Summit Outcomes Stocks across major U.S. indices fell sharply on Friday, driven by a sharp decline in technology stocks and a surge in U.S. Treasury yields. The S&P 500 dropped 1%, while the Nasdaq Composite lost 1.4%, and the Dow Jones Industrial Average fell 0.7% after a volatile trading session. The downturn followed a summit between President Donald Trump and Chinese President Xi Jinping, which failed to deliver significant policy breakthroughs, leaving investors wary of economic uncertainty. The tech sector was a key drag on the market, with major companies like Intel, Advanced Micro Devices, and Micron Technology all declining by around 5%. Nvidia and Cerebras Systems also saw steep losses, with the latter dropping 4% despite a 68% surge the previous day. Analysts noted that the tech sector had experienced an "extremely unsustainable move" in recent weeks, making it vulnerable to profit-taking. However, Microsoft stood out as an exception, rising nearly 2% after Bill Ackman of Pershing Square revealed the hedge fund had built a position in the company. Rising Treasury yields further pressured equities, with the 30-year Treasury rate surpassing 5.1%—its highest level since 2025. Higher yields, combined with concerns over inflation, raised fears about the impact on high-growth tech stocks. Reports indicated that inflation was rebounding, partly due to elevated oil prices linked to the Middle East conflict. Oil prices rose sharply on Friday, with U.S. West Texas Intermediate futures climbing 3% to $104 per barrel and international Brent crude gaining 2% to $108. The Trump-Xi summit also left investors disappointed, as no major deals were announced.#microsoft #gemini #xi_jinping #pershing_square #trump_donald
Taylor Swift UMG Deal May Get Artists Big Spotify Share Sale Payout Universal Music Group chairman and CEO Lucian Grainge announced on April 29 that the company’s board had approved the sale of half of UMG’s equity stake in Spotify. A portion of the proceeds from the transaction will be distributed to UMG artists, a move that aligns with a 2018 pledge by the company to share future Spotify divestment profits with its artists. This decision follows a broader industry trend, as Warner Music Group and Sony Music Group had previously made similar commitments. The deal gained attention due to Taylor Swift’s role in shaping the terms. In November 2018, Swift left her longtime label, Big Machine, to join UMG’s Republic Records. During her contract negotiations, she secured a clause ensuring that any payout from Spotify share sales would not be clawed back, a provision that now appears to benefit artists broadly. In a post on Instagram, Swift highlighted her request for the payout to be non-recoupable, stating that UMG had agreed to the terms, which she claimed would be more favorable than previous industry standards. The financial implications of the sale are significant. Pershing Square, a major UMG investor, had previously proposed a non-binding offer to acquire the company, estimating UMG’s Spotify stake at 2.7 billion euros ($3.1 billion). Under this proposal, Pershing would have sold the stake and allocated 750 million euros ($865.4 million) to artists, with the remaining 1.5 billion euros ($1.7 billion) used to fund the transaction. While UMG has not yet sold any shares, the board’s approval of the partial divestiture suggests the deal is moving forward. The potential payout could provide substantial relief to artists, particularly those still owing back advances to their labels.#taylor_swift #spotify #universal_music_group #pershing_square #lucian_grainge
Bill Ackman Kicks Off Roadshow for Combined IPO of Pershing Square, New Fund Bill Ackman’s Pershing Square launched a roadshow for the U.S. initial public offerings of his management company and a new fund on Monday, despite ongoing uncertainty surrounding the Middle East conflict. The move comes amid a volatile market following failed weekend talks between the U.S. and Iran to end a war now in its seventh week. Ackman aims to capitalize on market disruption by acquiring undervalued assets through the new fund, Pershing Square USA. The roadshow marks a significant step for the billionaire investor, who previously attempted to take the new fund public in 2024 but scrapped the plan days before its scheduled debut due to hurdles. Pershing Square USA expects to raise between $5 billion and $10 billion from the IPO and a private placement, with shares priced at $50 each. The fund has already secured $2.8 billion in commitments from investors, including family offices, pension funds, and insurance companies. These investors will receive 30 shares in Pershing Square for every 100 shares purchased in the new fund. Ackman’s strategy for Pershing Square USA mirrors his existing hedge fund, which invests in 12 to 15 undervalued North American-listed companies. The new fund offers quicker access to capital and avoids performance fees to attract a broader investor base. Ackman emphasized in a letter to investors that a successful IPO could bolster efforts to launch other closed-end investment companies. The combined IPO will list Pershing Square Capital Management under the symbol “PS” and Pershing Square USA under “PSUS” on the New York Stock Exchange. Global coordinators for the offering include Citigroup, UBS Investment Bank, BofA Securities, Jefferies, and Wells Fargo Securities.#citigroup #new_york_stock_exchange #bill_ackman #pershing_square #ubs_investment_bank
