BUSINESS HEADLINES

Wall Street’s record-setting run halts as AI stocks slump and oil prices rise

A sudden halt for technology stocks put the brakes on Wall Street’s record-setting run. The S&P 500 dipped 0.2% Tuesday from its all-time high set the day before. The Dow Jones Industrial Average added 0.1%, and the Nasdaq composite sank 0.7% from its own record. Stocks that had roared higher in the artificial-intelligence boom were some of the market’s heaviest weights. The pullback began in Asia, where South Korea’s Kospi index tumbled 2.3% on worries that the government may redistribute windfall AI profits to its citizens. Oil prices meanwhile rose more than 3% as the war with Iran threatens to drag on.

Trump set to meet with Xi in Beijing as war and inflation weigh on his presidency

BEIJING (AP) — President Donald Trump is set to land in Beijing on Wednesday for a state visit with Chinese leader Xi Jinping. Trump told reporters that trade will be the main focus of their discussions. The Trump administration hopes to establish a “Board of Trade” with China to address differences and prevent further trade conflicts. The visit comes at a delicate moment for Trump, with his popularity affected by the U.S. and Israel’s war with Iran and rising inflation. Trump also plans to discuss Taiwan and an $11 billion weapons package. He expressed optimism about future relations with China.

Musk, Cook and other prominent US executives invited to join Trump on trip to China

Prominent U.S. executives from Big Tech, agriculture as well as aerospace and defense have been invited to join President Donald Trump on his trip to China this week. Trump leaves Tuesday for Beijing to meet with President Xi Jinping. Aside from discussions about Iran, Trump and Xi are expected to discuss trade and artificial intelligence. Executives that have been invited include Tim Cook of Apple, Goldman Sachs’ David Solomon, and Elon Musk, who heads Tesla and SpaceX.

US hotel operators say promised boon from hosting World Cup hasn’t materialized yet

NEW YORK (AP) — U.S. hotels say the promised economic boon from the World Cup hasn’t materialized yet for them. The American Hotel & Lodging Association recently released a report that found room bookings are lighter than expected in most of the 11 U.S. host cities with roughly a month to go before the start of the most watched sports tournament in the world. The group’s survey found that in Boston, Philadelphia, San Francisco, and Seattle, nearly 80% of hotels responding reported the pace of bookings was tracking behind a typical summer. Experts say the weaker-than-expected demand shouldn’t have come as a surprise to hotel operators.

What a US gas tax suspension could mean for drivers and the prices they see at the pump

NEW YORK (AP) — President Donald Trump wants to suspend the federal gas tax to ease financial strain from high fuel prices during the war with Iran. It’s a move he can’t do on his own, but lawmakers on both sides of the aisle are already pushing for such a pause. Supporters believe a suspension could provide relief for struggling families and businesses. But the tax accounts for a small portion of what consumers pay for gas — and critics argue it won’t significantly lower costs. The federal gas tax also funds highway and public transit programs, and some warn that suspending it could carry longer-term ramifications for funding.

OpenAI chief Sam Altman makes a high-stakes appearance in his court bout with Elon Musk

OAKLAND, Calif. (AP) — OpenAI CEO Sam Altman took the witness stand Tuesday to defend his business record in a trial pitting him against Elon Musk, rebutting testimony that disparaged his leadership at a pivotal time for the ChatGPT maker. Musk, the world’s richest man, is seeking Altman’s second ouster from the company leadership as part of a civil lawsuit accusing him of betraying their shared vision for OpenAI. Altman testified to a number of concerns he had about Musk’s attempts to gain more control over OpenAI, which was aiming to safely build a better-than-human form of AI called artificial general intelligence.

Shipping industry fears fuel shortages as Iran war squeezes bunker fuel supply

BANGKOK (AP) — The global maritime industry is facing a looming shortage of the fuel that powers ships as the Iran war chokes off a key shipping lane in the Strait of Hormuz. About 80% of globally traded goods are transported by sea. Ship operators rely on a sludgelike substance known as bunker fuel to move those goods. The world’s largest ship refueling hub is Southeast Asia, which places the region at the center of growing concerns as prices skyrocket. Experts say consumers and companies should brace for price spikes to shipping costs and impacts to bottom lines. Interest in “green” fuels could grow.

Trump’s FDA chief is out after angering pharma CEOs, vaping lobbyists and anti-abortion activists

WASHINGTON (AP) — Marty Makary is resigning as President Donald Trump’s Food and Drug Administration chief. The surgeon and health researcher’s tenure had drawn complaints from pharmaceutical executives, anti-abortion activists and other Trump allies. The President said Tuesday that Makary “was having some difficulty” but ”he’s going to go on and he’s going to do well.” Makary came to prominence as an outspoken critic of public health measures during the COVID pandemic, when he appeared on Fox News Channel. But at the FDA, Makary failed to win the staff’s confidence after mass layoffs, leadership changes and a series of controversies involving vaccines, drugs and electronic cigarettes.

Trump and Hegseth claim ‘control’ over Iran and the Strait of Hormuz as ceasefire talks are stalled

DUBAI, United Arab Emirates (AP) — Kuwait has accused Iran of launching a failed attack earlier this month on an island where China is helping build a port in the Gulf Arab nation. Tuesday’s accusation came just before U.S. President Donald Trump was to depart for Beijing for talks with Chinese President Xi Jinping, a high-stakes visit over the war and other issues. Kuwait said a team of six armed members of the paramilitary Revolutionary Guard tried to infiltrate Bubiyan Island to carry out “hostile acts.” Kuwait said that it detained four of the men while two escaped. Iran didn’t immediately acknowledge the allegation by Kuwait. With ceasefire negotiations between Iran and the U.S. at a standstill, ongoing attacks threaten to reignite open warfare.

The Iran war is hitting home as gasoline prices fuel inflation surge of 3.8% in the US

WASHINGTON (AP) — U.S. consumer prices climbed a sharply again last month as the 10-week war with Iran pushed energy prices higher. The Labor Department reported Tuesday that its consumer price index rose 3.8% from April 2025. On a month-to-month basis, April prices were up 0.6% from March as gasoline prices rose 5.4%. Excluding volatile food and energy costs, so-called consumer core prices were up 0.4% last month from March and 2.8% from April 2025, relatively modest readings that suggest the energy price burst isn’t yet spilling over much into other prices.