Stock market dip expected, Starbucks sees gains – Indianapolis News | Indiana Weather | Indiana Traffic

INDIANAPOLIS (WISH) — Here’s a look at Friday’s business headlines with Jeff Vaughn, who has the latest on AI’s impact on stock prices and good news for Starbucks.

Stocks expected to trade lower Friday

Stocks are coming off record highs as investors are weighing a powerful rally driven by artificial intelligence, but are expected to trade lower on Friday. Tensions involving Iran are worrying investors and have pushed oil prices back above $100 a barrel. That’s raising concerns over inflation and could signal a future interest rate cut at next week’s Fed meeting.

Tesla tumbles, IBM drops

IBM was down 9% in trading on Thursday despite a good quarter. Traders disliked that the company refused to revise its growth expectations, so the stock was one of the losers on Wall Street.

Shares of Tesla were down more than 3% after the EV maker announced a massive $25 billion spending plan, which was much bigger than expected. The investment will expand EV production, scale up AI, robo-taxing, optimize robot capacity, and build out infrastructure and those data centers supporting artificial intelligence.

Google rides AI wave

Google says 3/4 of its new code is being generated by AI. That number has been steadily increasing as the company pushes staff to adopt AI tools. Its CEO says a recent code migration was done six times faster thanks to AI agents. The company expects 95% of code to be generated by AI within five years.

Starbucks booming due to revamped rewards

Loyal Starbucks customers seem to be the key to its turnaround. CNBC reports that the coffee chain’s revamped rewards program, which includes free Mod Mondays and double points for using a reusable cup, is bringing customers back.

In 2025, transactions linked to the loyalty program accounted for 60% of Starbucks’ revenue.