Here are the most important news items that investors need to start their trading day:
1. Bonds surge
The three major averages are headed for a losing week on Wall Street after the Federal Reserve indicated that it could hike rates one more time this year. The S&P 500 and the tech-heavy Nasdaq Composite are down 2.7% and 3.5%, respectively, this week, on track for their worst weekly performance since March. It would also be the third negative week in a row for both indexes. The blue-chip Dow is down a more modest 1.6%. Bond yields surged on the news. The benchmark 10-year Treasury yield popped 15 basis points to hit a high of 4.498%, its highest level since 2007. Meanwhile, the 2-year rate topped 5.2%, reaching its highest level since 2006. Follow live market updates.
2. Rupert's reign
International media mogul Rupert Murdoch announced Thursday that he's stepping down as chairman of both Fox Corp. and News Corp. But he's not fully out of the game. The companies said he will be appointed chairman emeritus of each company, and the 92-year-old said he'll continue to be "engaged daily with news and ideas." His son Lachlan Murdoch will become the sole chairman of News Corp. and will continue as Fox Corp.'s executive chair and CEO. The move comes after a tumultuous year at Fox's TV network. The company agreed to pay a $787.5 million settlement in the Dominion Voting Systems defamation lawsuit and Fox News saw top talent Tucker Carlson exit unceremoniously earlier this year.
3. Microsoft's new tech
Microsoft unveiled new Surface computers and details about Windows 11 at an event in New York on Thursday. The company also said it will roll out a supplemental artificial intelligence tool for core apps such as Word and Excel. Among other features, the new operating system will include smarter snipping tools that allow users to pull text directly from a screenshot and redact sensitive information such as phone numbers. The Surface Laptop Studio 2 is the higher-end model of the new Surface computers and has a new chip, a 14.4-inch screen and can be used as a tablet; it starts at $1,999. The entry-level Surface Laptop Go 3, starting at $799, has a 12.4-inch touch screen and is lighter than previous models.
4. Cisco and cybersecurity
Cisco made its largest acquisition ever on Thursday. It is buying cybersecurity software company Splunk for $157 per share in a cash deal worth about $28 billion. The purchase price is equivalent to about 13% of Cisco's market cap and the deal is expected to close in the third quarter of 2024. Cisco is the world's largest maker of computer networking equipment and has been bolstering its cybersecurity business. Splunk, meanwhile, has technology that helps businesses monitor and analyze their data to reduce the risk of hacks and resolve technical issues faster. Splunk shares surged Thursday to close 21% higher, while Cisco shares ended the day down 4%.
5. More McMoney
McDonald's is raising royalty fees for its franchisees for the first time in nearly 30 years. Franchisees who add new restaurants will have to pay 5% in fees, starting Jan. 1, up from 4%. The bump doesn't apply to those maintaining their current restaurant footprint. Franchisees run about 95% of McDonald's roughly 13,400 U.S. restaurants and pay rent, monthly royalty fees and other charges. The company has had a rocky relationship with its U.S. franchisees in recent years, but its domestic business is booming this year.
— CNBC's Yun Li, Lillian Rizzo, Ashley Capoot, Jordan Novet, Rohan Goswami and Amelia Lucas contributed to this report.
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