DAILY UPDATE: OpenAI & Microsoft as Stock Markets Surge

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OpenAI is giving its employees a mandatory week long vacation to stave off a poaching spree launched by Meta.

Microsoft announced another round of layoffs—its largest in years—expected to impact thousands of workers across Xbox and other divisions, including 830 from its Redmond, Washington, HQ.

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The S&P 500 and NASDAQ Composite tallied fresh record closing highs on Thursday, buoyed by a stronger-than-expected jobs report that helped dampen expectations for a Federal Reserve interest-rate cut in July. But after lagging their trendier rivals earlier in the year, the Russell 2000 and Dow Jones Industrial Average are finally starting to play catch up. On Thursday, the Russell 2000 turned positive for 2025 for the first time since February, as a rally that started in June has accelerated in July.

Many investors have been waiting patiently for small-cap stocks to break out. But aside from a few false starts over the past two years, they have mostly continued to lag their large-cap rivals. However, some investors believe things could finally be changing.

A team of strategists at Barclays pointed out on Wednesday that a proposed increase to interest-expense tax deductions in President Trump’s budget bill could boost small-cap companies’ earnings by double digits, due to their higher interest burdens. “This market broadening out is a heathy sign,” said Craig Johnson, chief market technician at Piper Sandler, during an interview with MarketWatch on Thursday. More small-cap participation inevitably means investors are developing more of a taste for stocks beyond information technology, which powered much of the market’s gains in 2023 and 2024.

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Friday, July 4, 2025

  • All U.S. markets will be closed in observance of Independence Day.
  • There will be no Pre-Market or After-Hours trading sessions.

Visualize: How private equity tangled banks in a web of debt, from the Financial Times.

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DAILY UPDATE: Disney, MSFT and Lyft Down but US Markets Mixed

By Staff Reporters

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Nelson Peltz, the activist investor and head of Trian Fund Management, called a cease-fire after a month long proxy fight with Disney. Peltz said he was happy with the restructuring plan CEO Bob Iger announced and will no longer try to grab a seat on the board of directors. Along with his restructuring plan, Disney said that Toy Story, Frozen, and Zootopia will all get more sequels in an effort to boost the company’s streaming numbers.

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Microsoft Corp., implementing the layoff of 10,000 workers announced cut jobs in units including Surface devices, HoloLens mixed reality hardware and Xbox, according to Bloomberg and people familiar with the matter.

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Shares of ride-hailing firm Lyft plunged following a downbeat profit forecast. In fact, Lyft had its worst day ever after it shared a dismal outlook during its earnings call this week. Wedbush analyst Dan Ives called it “a Top 3 worst call” out of the thousands he’s listened in 22 years. The company’s shares fell about 36% after forecasting it’ll make between $5 million and $15 million this quarter—rather than the $85 million that analysts expected. Meanwhile, Uber is coming off its “strongest quarter ever,” according to CEO Dara Khosrowshahi.

Yields on the benchmark 10-year Treasury note rose to their highest in more than a month following an auction on Thursday of 30-year bonds that saw weak demand. [US].

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Finally the S&P 500 gained 8.99 points, or 0.22%, to end at 4,090.49 points, while the NASDAQ Composite lost 71.12 points, or 0.60%, to 11,718.46. The Dow Jones Industrial Average rose 169.88 points, or 0.50%, to 33,869.76. The NASDAQ posted its first weekly fall this year, while the S&P 500 ended the week lower in a week dominated by hawkish commentary from U.S. Federal Reserve officials and earnings reports from more than half of the S&P 500 constituents.

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