What’s News in Markets: Markets Digest Shocks, Tokenized Stocks, Buffett Steps Down

Warren Buffett stepped down as chairman of Berkshire Hathaway on Friday, handing the role to his son Howard after more than six decades at the helm of the trillion-dollar conglomerate. That was just one of several major developments that moved markets this week, alongside a Federal Reserve rate hike, a surprise call from AI leaders to slow development, and a landmark regulatory decision on tokenized stocks.

Markets Digest a Shock-Heavy Week

Markets opened the week on shaky ground after damage to Saudi Arabia’s crucial East-West pipeline stoked fears of oil shortages and inflation, sending oil prices and bond yields higher. Stocks skidded further after the leaders of three of the biggest AI companies called for a slowdown in the technology’s development. Then the Fed raised interest rates for the first time in three years. Fed Chairman Kevin Warsh said after the vote that “inflation is too high and has been for too long.” Stocks fell and treasury yields rose back above 5%, ending the day there for the first time in 19 years. By Friday’s close, the 10-year yield was over 5% again, and the two-year yield ended at 4.74%, its highest level since July 2024. Overall, the Nasdaq was up 0.7% for the week, the S&P 500 edged lower by about 0.1%, and the Dow fell 1.7%. Brent crude ended the week down 0.7% to around $104 a barrel.