(NEW YORK) — The S&P 500 hit an all-time record high on Friday, extending breakneck gains achieved in recent weeks as investors shrugged off concerns about newly imposed tariffs and war in the Middle East.
The S&P 500 climbed 0.3%, clocking in for the first time ever at 6,156.
Over the past month — even as U.S.-China trade tensions resurfaced and conflict grew in the Middle East — the S&P 500 climbed more than 5%.
In all, the S&P 500 has soared more than 20% since an April low in the wake of President Donald Trump’s “Liberation Day” tariff announcement. Over that period, the tech-heavy Nasdaq has climbed 28%, while the Dow Jones Industrial Average has jumped 12%.
Concern among investors about topsy-turvy economic policy has given way to cautious optimism about a dialed-back tariff posture and continued economic growth, some analysts previously told ABC News.
In recent weeks, Trump has rolled back some of his steepest levies, easing costs imposed upon companies and alleviating concern about a sharp surge of inflation.
A trade agreement last month between the U.S. and China slashed tit-for-tat tariffs between the world’s two largest economies and triggered a surge in the stock market. Within days, Wall Street firms softened their forecasts of a downturn.
The downshift of tariffs has coincided with data demonstrating a healthy economy.
Fresh inflation data earlier this month showed a slight acceleration of price increases, but inflation remains near its lowest level since 2021. Hiring slowed but remained sturdy in May as the uncertainty surrounding on-again, off-again tariffs appeared to curtail hiring less than some economists feared, a government report this month showed.
The outbreak of tit-for-tat strikes between Iran and Israel earlier this month sent stocks falling and hiked oil prices. Those challenges proved short-lived, however, as stocks resumed their gains and oil prices eased amid a ceasefire.
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(LONDON) — The Nintendo Switch 2 is off to a turbo-charged start, thanks to a little help from Mario and his friends in Mario Kart World, smashing its own sales record by becoming the fastest selling Nintendo game system ever with more than 3.5 million units sold in just four days.
Nintendo sold an estimated 2.7 million units of the original Nintendo Switch in its first month when it launched in March 2017, but have now managed to move over 3.5 million units in just 96 hours, an almost 30% increase in sales in a much shorter period, the company said.
The Japanese company released the latest sales numbers on Wednesday and are aiming to sell 15 million units by March next year, putting them on track to meet or exceed expectations in the coming weeks and months. “Fans around the world are showing their enthusiasm for Nintendo Switch 2 as an upgraded way to play at home and on the go,” said Nintendo of America President and Chief Operating Officer Doug Bowser. “We are thankful for their response and happy to see the fun they are already having with Nintendo Switch 2 as they explore new features and games that bring friends and family together in new ways.”
The Nintendo Switch 2 is the next generation console for the company, its first new system release in eight years, and features a larger screen capable of full 1080p high-definition display, a faster processor that allows for enhanced graphics and performance, as well as redesigned magnetic Joy-Con 2 controllers with mouse functionality, Nintendo said. The system also debuts the new GameChat2 feature where players can voice or video chat and share game screens with friends online.
“You’ll probably see a first batch of people who can’t live without it,” van Dreunen said. “If you’re a die-hard [Switch] fan, it’s like standing in line for the new Harry Potter book or movie,” Joost van Dreunen, a professor at New York University’s Stern School of Business and writer of the SuperJoost Playlist, a games industry-focused newsletter, told ABC News last week.
“Nintendo is making a carefully calculated bet with the Switch 2 that will pay off,” van Dreunen continued. “While some might have hoped for a more revolutionary device, Nintendo’s evolutionary approach shows deep market understanding … The console’s focus on accessible and social gaming — rather than competing with Microsoft and Sony on technical specs — underscores Nintendo’s commitment to shared experiences for all ages.”
The Nintendo Switch 2 system launched alongside the first brand new Mario Kart game in 11 years called Mario Kart World, featuring an interconnected world where you can drive virtually anywhere with dynamic weather conditions, new game modes and up to 24 drivers at once — the most in the 33-year-old series history.
Nintendo is hoping to build a base, as well as excitement for its new system, ahead of next month’s launch of a new 3D platforming game starring Donkey Kong called Donkey Kong Bananza, which Nintendo says will let players “unleash their inner Kong as they smash and bash their way through a wild, mayhem-packed action adventure.”
After its global launch last Thursday, Nintendo Switch 2 is now available for the retail price of $449.99, and is also available as a bundle with a digital download of “Mario Kart World” for $499.99.
(WASHINGTON) — President Donald Trump late Sunday proposed a 100% tariff on foreign-made films, saying the policy would counteract financial incentives that have drawn Hollywood productions overseas.
“WE WANT MOVIES MADE IN AMERICA, AGAIN!” Trump said in a post on social media.
Movie studios have increasingly moved production abroad in recent years as a means of cutting costs, industry analysts told ABC News, but it remains unclear how adding a tariff would succeed in boosting domestic production.
Instead, it could send costs soaring, the analysts said. It could also reduce the number of Hollywood films produced each year and potentially increase ticket prices, they explained.
“Essentially what Trump is trying to do is make it untenable for U.S. movie studios to produce movies abroad — and the whole idea is that will stimulate production in the U.S.,” said S. Mark Young, an accounting professor at the University of Southern California’s Marshall School of Business who studies the movie industry.
“But it would cost more money for film production in the U.S.,” Young added. “Where’s that going to come from?”
Here’s what Trump’s proposed tariff on foreign-made films could mean for Hollywood and moviegoers:
Why are U.S. studios filming some movies overseas? The rise of streaming services over the past decade fostered a surge in demand for scripted television and movies, as well as a spike in spending among studios, London-based consulting firm Olsberg SPI found last year.
In 2022, 599 scripted series aired in the U.S., registering more than double the 288 scripted series aired in 2012, Olsberg SPI said, noting that growth ebbed in the aftermath of the COVID-19 pandemic but the overall production rate still surpasses what it was a decade ago.
Alongside that growth, the provision of production incentives worldwide surged nearly 40% over the past seven years, Olsberg SPI said, as nations vied for about $250 billion in global content spending.
But the incentives drawing production away from Hollywood aren’t all originating overseas; a slew of states have also boosted financial incentives to compete with moviemaking mainstays California and New York.
Financial incentives abroad have caused some productions to shift overseas, but they’re hardly the only reason, Jennifer Porst, a professor of film and media at Emory University told ABC News.
COVID-19 lockdowns sent studios seeking alternative locations, as did widespread labor strikes in 2023 and the increasingly global audience with streaming subscriptions, Porst said.
“There are a whole range of reasons for why production comes and goes,” Porst added. “Part of that is due to financial incentives.”
What is Trump’s proposed tariff on foreign-made films?
In a social media post on Sunday, Trump sharply criticized the production of Hollywood films overseas, claiming the trend had “devastated” parts of the U.S.
Trump claimed without evidence that the use of financial incentives abroad amounted to a “national security threat,” saying that — in his view — such productions involve “messaging and propaganda.”
Trump ordered the United States Trade Representative to begin the process of implementing a 100% tariff on foreign-made films.
In a statement on Monday, the White House said the policy hadn’t been finalized.
“Although no final decisions on foreign film tariffs have been made, the Administration is exploring all options to deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again,” White House deputy press secretary Kush Desai told ABC News.
The proposal of a tariff on an intangible product like films poses a challenge for policymakers, since the U.S. cannot impose a direct tax on a film as it would a durable good, Tejaswini Ganti, a professor of anthropology at New York University who studies global film, told ABC News.
“If it’s a tax on people going abroad to shoot, what is the tax on? Is it going to be, ‘Here’s the final budget and we’ll add a tax on it’?” Ganti said. “What is the thing being taxed?”
Ganti also questioned the notion of a national security risk posed by Hollywood productions made abroad.
“If a Hollywood film is shot, say, in the United Kingdom, I don’t understand how that is a national security threat,” Ganti said. “It’s still an American story, just shot somewhere else.”
What could Trump’s proposed tariffs mean for Hollywood and moviegoers?
It remains unclear whether Trump’s tariff proposal would bolster domestic movie production, analysts said. Instead, the policy may force movie studios to choose between the tax burden associated with foreign-made films or the elevated cost of U.S. production, resulting in more expensive projects, fewer overall films and even less domestic output, they said.
“President Trump figured out the fastest way to dramatically reduce the number of films produced each year in America,” Rich Greenfield, a media and technology analyst at LightShed Partners, said in a post on X.
Greenfield followed with multiple rocket ship emojis to indicate the anticipated rise in costs if the tariff plan moved forward.
“It would be a disaster,” Young said, noting the likely added cost burden of a potential 100% tariff. “You can’t wave a magic wand and expect more money to appear.”
In an effort to weather added costs, the film industry may become more reliant on big-budget franchise films, leaving less opportunity for midsize or small-budget movies, Young added.
The extra tax burden could even hit the pockets of U.S. moviegoers, Ganti said.
“Could it lead to higher ticket prices? Sure,” Ganti added.
(NEW YORK) — The U.S. trade deficit narrowed significantly in April as President Donald Trump sharply escalated tariffs before pausing a large swath of the levies, U.S. Commerce Department data on Thursday showed.
Trump touted the tariffs as an effort to slash the nation’s trade deficit, which the president has said he considers a threat to the nation’s economic prosperity. Many economists disagree, however, saying the trade deficit reflects the consumer-driven engine of the U.S. economy.
The trade gap fell by more than half in April as imports plunged, the data showed. The U.S. registered a trade deficit of about $61 billion in April, marking a sharp decline from a $140 billion trade gap a month earlier.
Imports dropped by 16% in April as some trade barriers took effect, the data showed. Imports had ticked upward a month earlier as some firms rushed to stockpile supply before the levies saddled them with additional costs.
The nation’s trade gap stands well below the $131 billion deficit recorded in January, the month Trump took office.
The outlook is murky for the Trump’s tariff policy and the wider economy.
Trump’s on-again, off-again approach to tariffs leaves in doubt their ultimate level. A pair of court rulings last week thrust Trump’s steepest tariffs into limbo, adding another layer of uncertainty as federal appeals court judges determine whether a significant number of the policies pass legal muster.
The uncertain policy environment facing businesses has coincided with an anxious moment for consumers. Consumer attitudes have soured for four consecutive months as tariffs have taken hold, according to a survey conducted by the University of Michigan.
Consumer spending, which accounts for about two-thirds of U.S. economic activity, could weaken if shopper appetites diminish and import prices rise.
So far, key measures of the economy have largely defied fears of a downturn. The unemployment rate stands at a historically low level and job growth remains robust, though it has slowed from previous highs. In recent months, inflation has cooled, reaching its lowest level since 2021.
The Organization for Economic Co-operation and Development, or OECD, forecast on Tuesday continued growth for the U.S. economy in 2025 and 2026, albeit at a slower pace than last year. Additionally, recession forecasts on Wall Street faded in recent weeks after Trump rolled back some tariffs.
