Stock Indexes Close Little Changed After Fed Holds Interest Rates Steady, Ahead of Big Tech Earnings

Meta, Microsoft, Tesla Kick Off Mag 7 Earnings Season

FROM 1 hr 57 min ago

Three of the world’s most valuable companies just reported earnings, providing important clues on the state of the AI boom.

Meta Platforms (META), Microsoft (MSFT) and Tesla (TSLA) issued their quarterly results after the stock market closed Wednesday. They are the first members of the Magnificent Seven group of major technology companies to report in the current earnings cycle.

The Mag 7 have an outsized influence on major U.S. equity indexes, together accounting for about a third of the S&P 500’s weighting. Even if you don’t hold the stocks individually, their moves could still affect your portfolio if you’re exposed to funds that track them. 

Meta shares were up 7% in recent after-hours trading, while Tesla shares added about 3% as the companies’ results topped Wall Street expectations. Microsoft stock was down about 7%, despite beating analysts’ estimates on the top and bottom lines, as slowing growth in its cloud business weighed on sentiment.

“Tonight’s a big night for AI if people are positive on AI,” Gene Munster, managing partner at Deepwater Asset Management, said in an interview on CNBC, citing big increases in capital spending. “These companies are still saying ‘we’re early,’ so even though Microsoft (stock) is having a tough time here, I think that—for someone who is positive on AI—this is like an all-you-can-eat buffet in terms of good news.”

Read our Big Tech earnings blog for complete coverage of the latest results from Meta, Microsoft and Tesla.

Carvana Stock Plummeted Today, Erasing Its 2026 Gains. Here’s Why.

FROM 4 hr 22 min ago

A lengthy runup in the price of a used-car stock got stuck at a red light today.

Shares of Carvana (CVNA) plummeted on Wednesday, recently falling 15%—they were earlier down even more—after short-seller Gotham City Research accused it of artificially inflating its profits to create the illusion of a successful turnaround and enrich its largest shareholder.

The drop erased the shares’ year-to-date gains and put them on track to close at their lowest price since early December.  

Read the full article here.

–Colin Laidley

Fed Keeps Key Interest Rate Steady As Inflation, Job Market Worries Persist

FROM 4 hr 44 min ago

Borrowing costs are set to hold steady for the time being, as the Federal Reserve has returned to a wait-and-see mode to determine whether inflation or unemployment poses the greater threat to the economy.

The Fed’s policy committee voted to keep its key interest rate flat Wednesday at a range of 3.5% to 3.75%, keeping borrowing costs stable. The committee cut the rate by a quarter-point at each of its last three meetings. The Federal Open Market Committee voted 10-2 to stand pat, with Fed Governors Stephen Miran and Christopher Waller dissenting in favor of another rate cut.

Fed officials have debated cutting rates to boost the job market after a sharp slowdown in hiring in recent months, and the need to keep rates higher for longer to push down inflation that’s run above the Fed’s 2% annual target for more than four years.

“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the committee said, repeating language from its most recent statement in December.

Read the full article here.

–Diccon Hyatt

You May See Big Tax Savings This Year—But It’s Coming Out of Your Social Security

FROM 5 hr 32 min ago

When taxpayers file with the IRS this year, most will see either a lower tax bill or a higher refund. While the increased tax savings will feel good for now, the consequences will affect future Social Security benefits.

Lower tax brackets originally established under the 2017 Tax Cuts and Jobs Act would have expired in 2025. However, the ‘One Big Beautiful Bill‘ made these lower tax brackets permanent and created new tax breaks or boosted already existing ones. It also increased the standard deduction and added an additional deduction for seniors.

These changes are expected to lower most taxpayers’ bills and increase 2025 tax refunds by about 15% to 20% on average, according to Morgan Stanley economic analysts. In the short term, this will provide tax savings and additional income through refundable tax credits. But in the long term, it could divert funds from the Social Security program.

The Social Security Administration said the changes from the ‘One Big Beautiful Bill’ will accelerate the depletion of two main trust funds that pay for benefits from the third quarter of 2034 to the first quarter of 2034. After this date, benefits will be cut by about 20%.

Read the full article here.

–Elizabeth Guevara

Gold Broke Past $5,300. The Hot Haven Asset Is the Dollar’s ‘Biggest Challenger.’

FROM 5 hr 37 min ago

One asset’s weakness can be another’s strength. That concept has added fresh complexity to rising investor demand for gold.

Case in point: Spot gold prices continue to rally, breaking past $5,300 on Wednesday following a drop in the greenback yesterday. While it has regained some ground today, the Dollar Index—which tracks the currency against a basket of foreign counterparts—recently dropped to its lowest level in four years after seemingly sanguine comments from President Donald Trump about a weaker buck.

Those comments may be helping gold’s recent rise, already aided by the perception of increased geopolitical risk, inflation, government debt levels and the expectation of lower interest rates. Traders now appear to be working in the possibility that the slide in the greenback was the Trump administration’s goal, not just a consequence of increased uncertainty about U.S. policy.

Read the full article here.

–Crystal Kim

Anthropic CEO Warns of AI’s Threat to Jobs: ‘Unemployed or Very-Low-Wage Underclass’ Looms

FROM 5 hr 44 min ago

The CEO of Anthropic—the AI company valued at about $350 billion—warns that AI could create a permanent underclass of workers.

Dario Amodei wrote in a 20,000-word essay out Monday that the AI systems his company is helping to build could leave less-skilled workers with nowhere to go—”an unemployed or very-low-wage ‘underclass.'”

AI’s takeover of jobs will advance, he wrote, “from the bottom of the ability ladder to the top,” making scores of jobs obsolete. The changes will thus leave these workers nowhere else to go, he argued.

Read the full article here.

–Peter Gratton

AI Stocks Pick Up Steam—and the Nasdaq Tests Records—Ahead of Big Tech Earnings

FROM 6 hours ago

The Nasdaq Composite came within a hair’s breadth of a new high on Wednesday when several earnings reports suggested the AI infrastructure boom isn’t slowing down anytime soon—and with several more big ones right around the corner.

The Nasdaq jumped 0.7% at the open to trade at 23,986, its highest price since early November. (The index was about flat in recent trading.) Its last record closing high—23,958.47—came on Oct. 29, right before earnings reports from tech giants amplified the debate on Wall Street about an AI bubble, dragging on tech stocks. 

Why are we back here? Because this year, investors have put those concerns aside to focus on the booming businesses of the companies supplying the technology that enables AI.

A shortage of memory and data storage technology has boosted the earnings and shares of chip makers like Micron (MU) and storage device makers like Sandisk (SNDK) and Western Digital (WDC). That shortage—plus seemingly insatiable demand for advanced semiconductors—has also lifted the stocks of chip manufacturing equipment suppliers like Lam Research (LRCX) and Applied Materials (AMAT). 

Read the full article here.

–Colin Laidley

Amazon Is Laying Off 16,000 Workers, In Latest Round of Cuts

FROM 6 hr 5 min ago

Amazon’s corporate ranks are about to get smaller.

The tech giant said Wednesday that it is laying off another 16,000 corporate employees, after cutting 14,000 jobs in October.

Amazon Senior Vice President of People Experience and Technology Beth Galetti said in a statement that the move is part of the company’s ongoing efforts to “strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy.”

The timing of the cuts aren’t meant to reflect a “new rhythm” of reductions every few months, according to Galetti, but she didn’t rule out the possibility of future layoffs. “Just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate,” Galetti wrote.

Read the full article here.

–Aaron McDade

Intel Shares Soar; Report Says Nvidia Shifting Some 2028 Chip Production Its Way

FROM 6 hr 29 min ago

On a day when chip stocks were rising, lifted by strong orders and a rosy outlook from semiconductor-equipment maker ASML (ASML), Intel (INTC) shares appeared to also have been helped by a report that Nvidia (NVDA) may be shifting some 2028 chip production its way from Taiwan Semiconductor Manufacturing Co. (TSM).

Shares of Intel, which already received a $5 billion investment from Nvidia back in September, soared more than 10% Wednesday after DigiTimes, citing “recent supply chain reports,” said that Nvidia plans to partner with it on its next-generation Feynman GPU chip, “contingent on yield improvements.”

“Supply chain insiders note that major American chipmakers have long explored collaboration with Intel under US manufacturing mandates and tariff pressures,” DigiTimes added.

The report also said Apple (AAPL) was in discussions with Intel “on an entry-level M-series processor for MacBook models currently produced by TSMC.”

TSMC shares advanced more than 1% as well. DigiTimes noted that “for TSMC, the anticipated order diversions to Intel may represent more opportunity than threat,” as such moves could reduce regulatory scrutiny and U.S. political pressure.

Intel did not comment on the report. Its shares have added nearly a third of their value thus far this year.

Starbucks Stock Is Getting Another Lift Wednesday—The Next Catalyst Could Come Tomorrow

FROM 7 hr 44 min ago

People are going, if you’ll forgive the joke, back to Starbucks.

The phrase is doing triple duty there: It’s the name of the coffee giant’s turnaround plan, but it’s also what was visible in the company’s latest financial results, reported earlier today. And it’s what investors are doing—today, but also this year—with the stock, too.

Starbucks (SBUX) earlier today reported fiscal first-quarter (ended Dec. 28) global and North American comparable-store sales that rose 4% year-over-year, as well as a 3% rise in transactions. That served as further signal that the company’s “Back to Starbucks” effort to get people into its cafes again is working.

The results are helping shares of Starbucks on Wednesday: They were recently up more than 2%, rising on a broadly quiet day for stocks ahead of a Federal Reserve interest-rate decision and highly anticipated earnings reports from major tech companies.

The move has Starbucks shares well into market-beating territory for 2026 and in the neighborhood of flat for the past 12 months—which may not sound like much, but today’s highs above $100 look pretty good compared to 12-month lows in the $70s.

Read the full article here.

–David Marino-Nachison

Would You Pay for Facebook? Get Ready for More Social Media Subscription Plans

FROM 9 hr 8 min ago

You’re likely one of the billions who use social media. But would you pay for the privilege?

More changes to do so may soon come your way. Meta Platforms (META), parent company of Instagram, Facebook, and WhatsApp, is looking to test new subscription plans for premium experiences on the trio of apps, according to a TechCrunch report later confirmed to Investopedia by a Meta spokesperson.

The report said the plans would give users access to features that could include AI capabilities, as well as more control over their actions on the platform; it has fueled speculation that some tools and features that are currently free could move behind a paywall.

Many of Meta’s social media peers already have ‘freemium’ models, with paid subscriptions offering premium versions of products that are also offered free of charge. Elon Musk’s X, formerly known as Twitter, has long offered paid premium subscription options. So has Microsoft’s (MSFT) LinkedIn and Snap’s (SNAP) Snapchat. 

Read the full article here.

–Kara Greenberg

Nvidia’s Plans to Sell More Chips in China Just Cleared a Major Hurdle

FROM 9 hr 28 min ago

America’s AI chip leader Nvidia is getting closer to being able to sell more chips in China.

China’s government has given clearance to a few big tech companies in the country including ByteDance and Alibaba (BABA) to start placing orders for Nvidia’s (NVDA) H200 AI chips, The Wall Street Journal reported Wednesday.

The initial approval would allow the companies to buy hundreds of thousands of chips worth around $10 billion, according to the Journal. Nvidia did not respond to a request for comment in time for publication.

Read the full story here.

–Aaron McDade

Tech Sector Leads S&P 500 Again, Although Amphenol Shares Sink

FROM 9 hr 39 min ago

For a second straight day, technology stocks were leading the S&P 500 higher.

The S&P 500 Information Technology Sector was the top performer of the 11 industries tracked by the benchmark index, up about 0.6% Wednesday morning.

Seagate Technology Holdings (STX), Intel (INTC), and Western Digital (WDC) were the top individual stocks in the sector, with gains of about 18%, 9.5%, and 8.5%, respectively.

However, sector component Amphenol (APH) was the worst-performing stock in the S&P 500, with shares down 14% even though the maker of coaxial cables reported strong results and issued an upbeat outlook.

Six of the 11 sectors were in the green in recent trading as the S&P 500 ticked 0.1% higher.

Average 401(k) Withdrawal Rate for Retirees in 2026 Revealed—What Does It Mean for You?

FROM 10 hr 43 min ago

December 2025 research from Morningstar raised its recommended safe withdrawal rate to 3.9%, up from 3.7% the prior year. But actual retiree behavior tells a different story.

The Morningstar figure comes close to the 4% rule, which is one of the best-known in personal finance: it’s the percentage of your retirement savings you should withdraw in your first year. Every year afterward, you adjust the percentage for inflation, and, if you have enough saved, your money should last for your retirement. But recent research shows many retirees aren’t even close to this traditional guideline.

A 2025 study in Financial Planning Review by David Blanchett and Michael Finke found that married 65-year-olds with at least $100,000 in assets withdraw just 2.1% per year from their retirement accounts. Single retirees take out even less, about 1.9%. Meanwhile, retirees spend about 80% of their guaranteed income, like Social Security, but only ever expend about half of their retirement savings.

The result is that while most people fear they won’t have enough to retire on, many retirees are living more frugally than they might need to, potentially missing out on experiences they spent a lifetime saving for. But for others, a lower withdrawal rate isn’t unfounded—it’s prudent based on the math of trying to float a retirement with less.

Read the full article here.

–Peter Gratton

Warren Buffett Reveals the Key Mindset You Must ‘Leave at the Door’ To Succeed as an Investor

FROM 10 hr 51 min ago

If you’ve ever bought a stock during a market boom, only to panic and sell at a loss, you already know emotions can be costly. With recent headlines full of stock market swings, it’s natural for investors to be nervous, but Buffett has stayed calm, slowly amassing a record cash pile for potential future purchases. Why is he so steady when others panic?

Buffett told those assembled at Berkshire Hathaway Inc.’s (BRK.A, BRK.B) 2025 shareholder meeting—his last as CEO—that stock market drops are “really nothing” if your plan is sound. The key to sticking with your plan is emotional intelligence.

Buffett is not immune to emotion. “People experience emotions,” he said. “However, you must leave those at the door when making investment decisions.” Even as the market dropped and then rebounded this year, Buffett reminded investors not to expect the world to change for them.

Emotional intelligence—the ability to recognize and manage your own emotions—is what separates successful investors from those who chase trends. While other cognitive skills can help you read balance sheets, emotional intelligence keeps you from panic-selling or buying into bubbles. Buffett has built his fortune on this skill.

Read the full article here.

–Tobi Opeyemi Amure

A New Tax Break for Business Owners Could Deliver Big Savings

FROM 11 hr 50 min ago

If you bought equipment, buildings, furniture, or a vehicle for your business in 2025, you may be able to deduct the entire purchase from your taxes this filing season.

The ‘One Big Beautiful Bill’ made many significant changes to tax laws, which are expected to increase refunds and lower tax bills for many Americans. One of these changes allows business owners to deduct the full cost of qualified business purchases in a single tax year. Previously, business owners could only deduct the full cost of an item if they spread the deduction over several years.

This tax deduction, called the additional first-year depreciation, but typically referred to as the bonus depreciation, was hiked during the COVID-19 pandemic from 50% to 100% of the qualifying business purchase. However, starting in 2023, bonus depreciation began to phase out. In 2025, taxpayers could deduct only 40% of business purchases in a single tax year, and the deduction was scheduled to be eliminated by 2027.

The ‘One Big Beautiful Bill’ brought back the 100% deduction, allowing business owners to deduct the full amount of any property acquired and put into service anytime after January 19, 2025. The law also made the 100% bonus deduction permanent.

“I think the bonus depreciation is a huge, huge opportunity for taxpayers,” said Michael Mofsa, founder of Prosperity Tax Advisors. “It is one of the biggest pieces in this One Big Beautiful Bill.”

Read the full article here.

–Elizabeth Guevara

How Long Will it Take to Recover If AI Displaces Your Job?

FROM 12 hr 15 min ago

If AI comes for your job, how long of a recovery should you expect? 

Workers in industries disrupted by artificial intelligence (AI) may require an average of one month longer than others to find work, according to research Goldman Sachs published this month. Generally, unemployed workers are out of a job for a median of 11.4 weeks, according to the most recent Bureau of Labor Statistics data.

Workers displaced from shrinking fields may also see less income once they return to work. Their earnings may decline more than 4%–or double the rate of other displaced workers–when they do land a full-time role, Goldman Sachs analysts said. Their analysis was based on outcomes for workers in “disrupted occupations”—those in the bottom quintile of employment growth—from 1990 to 2024, excluding the Great Recession.

“Workers displaced from occupations with contracting employment faced significantly higher probabilities of long-term unemployment, indicating greater difficulty re-entering the labor market and increased risk of permanent career disruption,” the report said.

As more employers adopt AI, concerns are growing about job losses. Some 6% to 7% of U.S. workers may be displaced by AI in the next decade, Goldman Sachs estimates. The shift could be particularly challenging for those 55 or older, given prior periods of disruption, Goldman Sachs said.

Another at-risk group may be those who work under supervisors and struggle to use AI, the Federal Reserve Bank of St. Louis said.

Read the full article here.

–Sarina Trangle

Here’s How Much Traders Expect Microsoft Stock to Move After Earnings

FROM 12 hr 32 min ago

Microsoft is scheduled to report its latest quarterly results after the market closes on Wednesday, with traders anticipating a big move in the tech giant’s stock following the results.

Options pricing suggests traders expect Microsoft’s (MSFT) stock could move close to 5% in either direction by the end of the week. A move of that size from Tuesday’s close near $481 could lift Microsoft shares above $502 at the high end, or drag them down to $459 at the low end.

The shares are down about 11% from when Microsoft last reported results in October, when the company topped estimates but said it would significantly boost its investments in AI infrastructure. Shares had closed at a record high around $542 the day before the results.

Amid lingering worries about the company’s AI spending, investors will likely be eager to hear what executives have to say about capital expenditures, along with projections for the “Intelligent Cloud” segment, which includes Azure.

Read the full article here.

–Aaron McDade

On the Fed’s Policy Committee, Dissenters Pay a Price

FROM 12 hr 46 min ago

If anyone on the Federal Reserve’s policy committee votes against the majority at the Fed’s meeting on Wednesday, they may regret it down the line.

That’s according to a research paper published last week by the National Bureau of Economic Research. The team of researchers at the University of California, Berkeley, the Fed, the NBER, and Hong Kong University of Science and Technology found that members who vote against the majority are less likely to get their way at subsequent meetings.

A majority of Fed officials voted to lower the rate by a quarter-point at its three most recent meetings, though, unusually, there were dissenting votes at all of them. Members who wanted to keep rates even and those who wanted steeper cuts voted against the action.

Given such varying viewpoints, researchers wondered why dissenting votes aren’t cast more often—after all, most FOMC votes are unanimous.

To find out, researchers pored over transcripts of Fed meetings and voting records. The chair was highly influential in steering the majority opinion and establishing unanimity, the researchers found. They also found that every time a member went against that consensus, their preferred interest rate policy was about one-third less likely to be adopted at a future meeting. In other words, they may be being punished for breaking the committee’s consensus.

The researchers considered another possible interpretation: “FOMC members only dissent when they realize the battle is lost and their viewpoint will not carry the day in future meetings,” they wrote.

Read the full article here.

–Diccon Hyatt

We’re All Worried About the Economy’s Future—But Some of Us Are Still Spending Anyway

FROM 13 hr 17 min ago

Consumer confidence plunged in January, but fears about the future aren’t stopping some people from spending.

The Conference Board’s Consumer Confidence Index is hitting its lowest levels since 2014 on Tuesday. It comes after another widely followed sentiment survey last week showed consumers remained in a poor mood in January, with a reading 20% below the same time a year ago. Consumers say they’re worried about jobs, inflation, tariffs, groceries and health insurance.

But with spending continuing at a robust pace, and data showing continued economic expansion, are consumers saying one thing and doing another?

“It is always worth taking consumer confidence readings in context and remembering that vibes are not always fully reflected in spending,” wrote Wells Fargo economists Tim Quinlan and Shannon Grein. “That said, it still bears noting that consumers felt more confident at the height of the pandemic than they do now.”

Read the full article here.

–Terry Lane

Stock Futures Point Higher Ahead of Fed Decision on Interest Rates, Big Tech Earnings

FROM 13 hr 42 min ago

Futures contracts connected to the Dow Jones Industrial Average were fractionally higher.

S&P 500 futures pointed up 0.4%.

Nasdaq 100 futures were 0.9% higher.