The daily business briefing: June 21, 2019

(Image credit: JOHANNES EISELE/AFP via Getty Images)

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1. S&P 500 sets new closing record
2. Slack exceeds expectations in first day of public trading
3. Global airlines re-route flights to avoid Iranian airspace
4. Apple, Dollar Tree, Fitbit join list of companies opposing Trump tariffs
5. Walmart settles in bribery investigation

1. S&P 500 sets new closing record

U.S. markets surged on Thursday, with the S&P 500 setting a new all-time high upon closing. Markets climbed in the wake of the Federal Reserve's announcement indicating possible interest rate cuts in the future. The S&P 500 closed at 2,954.18, putting the index on track for its best June since 1955. The Dow Jones Industrial Average also enjoyed a 250-point bump, coming within 1 percent of its record. The stock market hit a low point in May, with potential trade conflicts spurred by President Trump hurting investors. But renewed hope for interest rate cuts, plus Trump's promise to meet with Chinese President Xi Jinping, has investors feeling optimistic.

Slack scored big on its opening day on the stock market, with stocks opening at $38.50 per share, more than $10 higher than its expected rate of $26 per share. Slack did not file an initial public offering, but opted rather to file a direct offering, following in the footsteps of Spotify. The direct offering means Slack had no banks underwriting the offering and did not sell any new shares. The stock was trading as high as $41 per share on Thursday and had a diluted valuation of around $25 billion.

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Several global airlines are avoiding Iranian airspace near the Gulf of Oman and the Strait of Hormuz after Iran shot down a U.S. drone flying in the area. Major airlines like British Airways, Qantas, Lufthansa, Singapore Airlines, and Air-France KLM all announced they would redirect flights to avoid Iranian-controlled airspace, citing increased safety concerns after escalating tensions between the U.S. and Iran. The U.S. Federal Aviation Administration issued an emergency order on Thursday prohibiting U.S. carriers from flying over the area until further notice, saying that the "misidentification of aircraft is possible." United Airlines announced it had suspended flights to Mumbai and India following the FAA's warning. Europe's travel and leisure stocks were down Friday after the announcement, and Germany's Lufthansa was one of the worst performing airlines on the market.

Apple Inc., Keurig, Dr Pepper Inc., Dollar Tree Inc., and Fitbit Inc. are the latest companies to press the Trump administration to ease-up on China tariffs. The companies are urging President Trump not to impose more tariffs, following reports that Trump would be willing to impose more than $300 billion in additional tariffs on Chinese goods. In a letter filed Thursday, Apple said more tariffs would reduce its competitiveness. Trump announced this week he'll be meeting with Chinese President Xi Jinping at next week's G-20 summit, where the two leaders will presumably discuss some sort of trade agreement.

Walmart will pay nearly $283 million to settle charges brought against the company by the Securities and Exchange Commission and the Department of Justice. Subsidiaries of the world's largest retailer operated without "sufficient anti-corruption oversight" in Brazil, China, India, and Mexico from 2000 to 2011, according to a court filing. Walmart allegedly allowed operators in these countries to employ third-party intermediaries who made payments to foreign government officials without ensuring the payments were not bribes. Walmart then did not sufficiently investigate the matter upon learning of these corruption risks. The settlement doles out more than $144 million to the SEC and $138 million to the DOJ to settle criminal charges.