Alphabet, the parent company of Google, has decided to scrap its diversity, equity, and inclusion goals. This move comes in the wake of President Donald Trump's election and marks a significant shift in the tech giant's strategy. Google Chief People Officer Fiona Cicconi stated,
"We'll continue to invest in states across the U.S. — and in many countries globally — but in the future we will no longer have aspirational goals."
Meanwhile, Ford Motor Company reported impressive fourth-quarter earnings and revenue, surpassing Wall Street's expectations. However, the automaker warned that the road ahead may not be smooth, particularly in 2025. Ford CFO Sherry House explained,
"We're going to let this run itself out so we can better understand the potential impacts on our business."
The company did not factor in additional tariffs imposed by the Trump administration in its forecast, adding another layer of uncertainty to its future outlook. Following these announcements, Ford's shares dropped more than 5% in extended trading.
In the pharmaceutical sector, Eli Lilly and Bristol Myers Squibb released their fourth-quarter results. Eli Lilly's outcomes aligned with preliminary figures shared earlier in January but had to slash its 2024 revenue guidance last month due to waning demand for its weight loss and diabetes drugs. In contrast, Bristol Myers Squibb saw its shares fall nearly 5% after its full-year guidance failed to meet analysts' expectations.
On Wall Street, the S&P 500 closed up by 0.39%, while the Nasdaq Composite saw a modest rise of 0.19% on Wednesday. The Dow Jones Industrial Average benefitted from a significant 5% gain by Nvidia, which contributed to a rise of 317.24 points, or 0.71%. In contrast, stock futures remained relatively unchanged on Thursday morning as investors anticipated upcoming earnings reports from companies like Peloton, Yum Brands, and Amazon.
Google also made headlines by opening its Gemini 2.0 AI model suite to everyone on Wednesday. This initiative underscores the tech giant's push to advance its virtual agent capabilities.
In economic commentary, Chicago Fed President Austan Goolsbee highlighted potential challenges for the Federal Reserve in the coming years:
"If we see inflation rising or progress stalling in 2025, the Fed will be in the difficult position of trying to figure out if the inflation is coming from overheating or if it's coming from tariffs."