CNN is planning to lay off hundreds of employees in a strategic move aimed at reducing production costs and consolidating teams. Despite the significant number of layoffs, the network assures that its more recognizable names will remain unaffected. Similarly, NBC News is preparing for job cuts, though these are expected to be relatively modest, numbering well under 50.
These developments come as Electronic Arts (EA) faces its own challenges. EA has attributed a shortfall in performance to underperforming games, specifically within its soccer franchise, which experienced a slowdown during the December quarter. As a result, EA has lowered its full-year guidance for net bookings, now anticipating $2.215 billion for the fiscal third quarter. This news has impacted investor confidence, with EA shares dropping 15% before the market opened on Thursday.
In contrast, the S&P 500 reached a new all-time high on Wednesday. The index achieved its third consecutive winning session, closing up 0.61% thanks in part to gains in the tech sector and strong earnings reports from companies like Netflix and Procter & Gamble. Optimism surrounding AI also bolstered stocks such as Oracle and Nvidia.
The broader market also witnessed positive movements with the Nasdaq Composite rising by 1.28% and the Dow Jones Industrial Average increasing by 130.92 points, or approximately 0.3%. These gains reflect investor confidence even amidst concerns about potential inflationary pressures from tariffs.
JPMorgan Chase CEO Jamie Dimon commented on these concerns, downplaying the potential inflationary impact of looming tariffs under the Trump administration:
"If it's a little inflationary, but it's good for national security, so be it. I mean, get over it." – Jamie Dimon