Starbucks began as a coffee bean retailer before evolving into the café chain we know today.
Founded in 1971, Starbucks sold only high-quality beans and equipment for home brewing. The transformation into a café business began in the 1980s after inspiration from Italian espresso bars.
It’s a reminder that even iconic brands often start with a different focus before finding their true path.
Market Wrap
Tariff Timeout Sparks Broad Market Gains
U.S.–China Tariff Truce Boosts Markets:
The U.S. and China agreed to a 90-day reduction in tariffs, with U.S. duties on Chinese goods dropping from 145% to 30% and China's tariffs on U.S. goods falling from 125% to 10%. This temporary easing of trade tensions led to a substantial rally in U.S. stock markets. Investors welcomed the move as a positive step toward resolving the ongoing trade dispute.
Global Pharma Stocks Decline on U.S. Drug Pricing Plan:
U.S. President Donald Trump announced a proposal to reduce prescription drug prices by 30%–80%, aligning them with costs in other developed nations. This initiative led to a significant drop in pharmaceutical stocks globally, with major U.S. drugmakers like Pfizer and Merck, as well as European firms such as AstraZeneca and Roche, experiencing notable declines.
Fed’s Kugler Warns on Economic Indicators:
Speaking on May 12, Federal Reserve Governor Adriana Kugler highlighted that recent shifts in trade policies, particularly the imposition of tariffs, have led to front-loading behaviors by consumers and businesses. This has distorted economic indicators, such as GDP figures, making it challenging to accurately assess the underlying strength of the U.S. economy.
Amazon.com Inc. shares gained after the company announced a new AI-powered logistics optimization platform. Analysts called the move a potential margin booster as it may reduce delivery times and cut fulfillment costs.
Tesla Inc. shares gained despite disappointing delivery numbers from its Shanghai factory, which showed a 7% month-over-month drop in China. Analysts flagged concerns about intensifying competition from domestic EV makers.
Gilead Sciences Inc. shares rose after the company announced promising trial results for a new HIV treatment, raising optimism about the drug's future approval and commercial potential.
DocuSign Inc. shares increased after activist investor Elliott Management disclosed a sizable stake and urged the company to explore strategic alternatives, including a possible sale.
Upwork Inc. shares underperformed following weaker-than-expected guidance in its Q2 outlook. While revenue was in line, the company flagged soft demand from enterprise clients and a slowdown in international hiring activity.
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