Inflation cools more than expected in June as gas costs fall, underlying prices ease

WASHINGTON (AP) — U.S. inflation cooled last month as the cost of gas, clothes, and used cars fell, providing some relief to consumers, though much of the progress could be reversed if the Iran war keeps worsening. Prices dropped 0.4% in June from May, the largest monthly drop in four years, the Labor Department said Tuesday. On a yearly basis, inflation declined to 3.5%, down from a year-over-year gain of 4.2% in May and lower than many economists expected. Yet oil prices jumped Monday as the United States renewed attacks on Iran. And many Americans have soured on the economy after five years of elevated inflation, posing a risk to Trump and Republicans in the upcoming midterm elections.

Warsh says Fed has 'no tolerance' for high inflation but provides no hints on next move

WASHINGTON (AP) — Federal Reserve Chair Kevin Warsh pledged to make high inflation “a thing of the past” in his first congressional testimony Tuesday, yet provided no signal about the central bank’s next steps. Yet about half of the 19 members of the Fed’s interest rate-setting committee expect they will have to raise the central bank’s key rate by the end of the year to defeat inflation, while nearly half have penciled in no change or even a rate cut. Warsh faces a stiff challenge in reconciling the divided committee while navigating a rapidly-changing economic outlook.

JPMorgan Chase profit hits $16.9 billion in the second quarter, boosted again by market volatility

WASHINGTON (AP) — JPMorgan Chase said Tuesday that it earned $16.9 billion in the second quarter as its equities trading division again took advantage of market volatility triggered by the war in Iran. The nation’s largest bank by asset size, JPMorgan said that revenue in every line of its business hit record levels in the quarter, including its markets division, where revenue grew 35% over the same period last year. Revenue in its equity markets division skyrocketed 86%. JPMorgan earned $6.14 per share in the period, beating analyst estimates of $5.59 per share and 2025’s $5.24. Managed revenue came in at $58 billion, also topping the estimates of analysts surveyed by FactSet.

Buffett omits gift to Bill Gates' foundation after Microsoft cofounder's Epstein ties disclosed

OMAHA, Neb. (AP) — Billionaire Warren Buffett omitted Bill Gates′ foundation from his annual donations this year after disclosures of the Microsoft co-founder’s ties to convicted sex offender Jeffrey Epstein. He'll donate about $6 billion to four family foundations, but didn’t mention Gates. Buffett also said in his statement that he wants all of his remaining Berkshire Hathaway stock worth nearly $146 billion donated to charity by the end of 2034. Most of Buffett’s donations since 2006 have gone to the Gates Foundation. Buffett told CNBC in March that he hadn’t talked to Gates since before the Epstein files were released in 2025. They used to be exceptionally close friends. Gates denies any knowledge of Epstein’s crimes and hasn't been accused of any wrongdoing.

US stocks hold steadier, even as IBM plunges toward its worst day ever

NEW YORK (AP) — Stocks are ticking higher after a report showed U.S. inflation is getting less bad. Tuesday's gains came even though oil prices continue to swing on worries that the United States and Iran may return to all-out war. The S&P 500 rose 0.5%, the Dow Jones Industrial Average added 14 points and the Nasdaq composite gained 1.1%. Stocks got a lift from easing yields in the bond market, which fell following the better-than-expected inflation data. Chip stocks and other AI winners rebounded, while big U.S. banks reported stronger profits than expected. IBM was an outlier and fell toward its worst day in history.

New York won't build big data centers for a year as it weighs energy and climate risks

NEW YORK (AP) — New York is blocking new large data centers that fuel artificial intelligence for up to a year to protect the environment and energy grid. Gov. Kathy Hochul signed an executive order Tuesday for the country's first statewide moratorium on hyperscale data centers. These facilities require massive amounts of energy and water to cool thousands of servers. The governor's order pauses state permitting and directs regulators to create standards addressing environmental impacts and energy demand. Tech companies argue this could hurt job growth and cede ground to China in AI development. The decision also carries political significance for Hochul's reelection campaign and the state's congressional races.

An experimental Alzheimer's drug shows promise targeting a different brain protein, new study shows

WASHINGTON (AP) — An experimental drug might help slow early Alzheimer's disease in a markedly different way than current treatments — by lowering the brain's production of a protein called tau. Today two Alzheimer's drugs can modestly slow cognitive decline by clearing away buildup of a different protein, amyloid. But tau plays a role, too, and there are no tau-targeting drugs. Researchers at the Alzheimer's Association International Conference reported new findings Tuesday suggesting Biogen's experimental drug diranersen also might offer that benefit. The company plans a larger study to tell. It's one of multiple novel, but early-stage, attempts to fight the mind-robbing disease.

12 states challenge Paramount's takeover of Warner, say merger would 'extinguish competition'

NEW YORK (AP) — Twelve states are suing to block Paramount’s takeover of Warner Bros. Discovery. They argued in a lawsuit Monday that the $81 billion merger would “extinguish competition” in Hollywood and lead to fewer choices for consumers across the U.S. The office of California’s attorney general is leading the coalition. It alleges that the proposed merger would lead to higher prices, lower quality, and less content for movies and the television landscape. Paramount maintains that merging with Warner will be good for competition. The company says it will “vigorously defend” the transaction.

Earthquake aid keeps flowing from Florida to Venezuela, as volunteers unite to help recovery

Eighteen-year-old Alessandra Izaguirre is part of a massive grassroots effort to help Venezuela after devastating earthquakes. From Doral, Florida, she joins thousands at the nonprofit Global Empowerment Mission (GEM) to send aid to Caracas. Nearly three weeks after the disaster, hundreds of volunteers still pack aid packages daily. The U.S. State Department facilitates the supply chain, allowing GEM to operate independently. The effort highlights a shift in U.S.-Venezuela relations since President Trump’s actions against Nicolás Maduro. GEM aims to deliver 100,000 boxes monthly for the next three to six months as Venezuela's recovery begins.

Judge says Trump IRS lawsuit was filed for 'improper purpose,' refers lawyer for possible discipline

WASHINGTON (AP) — A federal judge says President Donald Trump’s lawsuit against the IRS over his leaked tax returns was filed for an “improper purpose” as she referred one of his attorneys for possible disciplinary action. The ruling from U.S. District Judge Kathleen Williams on Monday amounts to a stinging rebuke of the Republican president’s lawsuit, characterizing it as an exercise in self-dealing in which he sued an entity that is effectively under his control. The suit concluded in May with a settlement agreement that created a since-abandoned $1.776 billion fund meant to compensate allies of the president, as well as immunity from tax audits.