Stocks End Mixed Day Before Fed Decision on Interest Rates

Updates From Two Big Tech Firms Land This Week. What It Could Mean for the AI Trade

1 hour ago

Two tech giants shocked Wall Street with their earnings reports in September. Now they’re under pressure to do it again.

Software giant Oracle (ORCL) will report quarterly results after the market closes on Wednesday, followed by semiconductor firm Broadcom (AVGO) on Thursday afternoon. Their shares are up 32% and 72%, respectively, since the beginning of the year—but the stocks, have diverged in recent months, reflecting the anxieties driving a shift in the AI investor debate. 

Wall Street is generally optimistic about both Oracle’s and Broadcom’s upcoming earnings reports. Analysts expect both companies, among the biggest in the S&P 500, to show signs that AI demand will remain strong into next year. But recent Goldman Sachs research suggests that sector stocks may not all be pulled higher by industry-level forces in the months ahead.

Oracle in early September supplanted Nvidia as the hottest AI play on Wall Street. The stock skyrocketed 36% the day after Oracle said its cloud computing backlog more than quadrupled to nearly $500 billion. Wall Street lauded the results, calling them evidence of a “truly historic” quarter that confirmed “a seismic shift happening in computing.” 

But then reports indicated that nearly all of Oracle’s backlog growth spawned from a $300 billion, multi-year deal with OpenAI, the ChatGPT-maker that is expected to burn through more than $100 billion before turning a profit at the end of the decade. That raised concerns that too many of Oracle’s eggs were in one big, risky basket.

Read the full article here.

–Colin Laidley

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

1 hr 28 min ago

Broadcom (AVGO) is slated to release its fiscal fourth-quarter results after the market closes on Thursday, with traders expecting the chipmaker’s stock could hit fresh record highs after the report.

Based on current options pricing, Broadcom stock is expected to rise or fall by up to 6% by the end of the week. Based on Monday’s closing price, that would lift Broadcom’s stock to around $425 on the high end, further past the intraday record of $407 the stock set on Monday, or push it down to about $377.

Last quarter, Broadcom’s revenue hit a record $15.95 billion as the company topped estimates, prompting some analysts to call Broadcom a “Magnificent 8” stock that could continue to grow alongside Nvidia (NVDA) if the AI industry keeps expanding. Broadcom stock rallied following the report, setting multiple record highs in the months since.

Analysts from Bank of America and Morgan Stanley each recently raised their price targets for Broadcom stock, but noted that the chip designer faces long-term risks. The analysts said that Alphabet’s (GOOGL) Google is looking to design its own future generations of AI chips in house, rather than the current generation that it has designed in partnership with Broadcom. That could put Broadcom’s market share at risk if Google is successful and eventually looks to sell its designs to other current Broadcom customers.

Read the full article here.

–Aaron McDade

Black and Hispanic Families Are Getting Left Behind in the Wealth Race

1 hr 48 min ago

The average white American household added roughly $85,000 in wealth this year, compared to an increase of about $25,000 for average Black and Hispanic households, thanks primarily to surging stock values.

That’s according to an analysis out this week from economists at Oxford Economics, who found that Black and Hispanic families are falling behind their white counterparts on a raft of economic metrics.

What’s most remarkable, according to Oxford’s lead U.S. economist Bernard Yaros, is the fact that white households on average accumulated more than three times the household wealth of Black and Hispanic households this year.

“White households hold more than 80% of the nation’s wealth, and the average white household has accumulated substantially more net wealth over the past year than the average Black or Hispanic household,” Yaros wrote.

White households tend to be more heavily invested in stocks, so they’ve benefitted from 2025’s AI-fueled equities boom. Black and Hispanic households, on the other hand, tend to have more wealth tied up in their homes, the values of which have risen more slowly recently.

Read the full article here.

–Diccon Hyatt

High Food Prices Got You Down? Some Companies Are Cutting Them

2 hr 40 min ago

Shoppers are turning up their noses at pricier provisions. That pushback is prompting some major players to regroup.

PepsiCo (PEP) is the latest food and staples seller to announce price cuts. Sales improved where the New York-based company tested lower price points with retailers, who gave its snacks more shelf space, CEO Ramon Laguarta said on a conference call Tuesday.

Activist investor Elliott Investment Management had a hand in creating Pepsi’s new strategy. Pepsi unveiled a strategy to improve its U.S. performance and lift its stock, lowering prices but also attempting to lure shoppers with more natural snacks and reducing costs by cutting 20% of its product lineup.

“We’re choosing to invest in everyday values or reset the price, the consumer prices, from our key brands,” Laguarta said, according to a transcript made available by AlphaSense.

Pepsi didn’t respond to Investopedia’s request for details about price and selection cuts in time for publication. The announcement from the maker of Cheetos and Sabra dips comes after a number of food manufacturers and merchants publicized selective price rollbacks, including General Mills (GIS), Walmart (WMT), Target (TGT) and Kroger (KR).

Read the full article here.

–Sarina Trangle

The Fed’s Two-Day Meeting Starts Today—Here’s What You Need to Know

3 hr 21 min ago

The Federal Reserve seems likely to cut interest rates again this week, but it probably won’t do so as a united front.

Fed officials are split on whether the economy needs lower interest rates, a debate that starts Tuesday and will also be on display when the Federal Open Market Committee’s decision comes out at 2 p.m. ET Wednesday. 

The more dovish FOMC officials are likely to prevail. The Fed is widely expected to cut its benchmark rate by 25 basis points to a range of 3.5% to 3.75%, amid signs that the job market is softening.

Analysts don’t expect it to be a complete defeat for the FOMC’s hawks, a couple of whom are likely to vote against a rate cut.

Read the full article here.

–Polo Rocha

JPMorgan Chase Stock Leads Dow Decliners After Executive Says ‘Fragile’ Consumer Environment

3 hr 42 min ago

Comments by a JPMorgan Chase (JPM) executive sent the stock and the Dow lower Tuesday afternoon.

Marianne Lake, JPMorgan Chase’s CEO of Consumer & Community Banking, said at the Goldman Sachs U.S. Financial Services Conference that she “would characterize the environment as being a little bit more fragile.”

JPMorgan Chase stock, which had been marginally higher on the day, fell sharply on the comments and was down about 4.5% in recent trading, the worst performer and the blue-chip index.

Even with today’s declines, the bank’s shares have risen by more than 25% this year.

SAVE Plan Agreement Triggers New Repayment Decisions for 7.7M Student Loan Borrowers

4 hr 24 min ago

The Department of Education announced early Tuesday that it has moved one step closer to shutting down the Saving for a Valuable Education repayment plan.

On Tuesday morning, the Department of Education announced a joint agreement with the State of Missouri and several other states that had filed a lawsuit to block the SAVE plan last year. Pending court approval, the agreement will end the SAVE plan.

The SAVE plan, an income-driven repayment plan created by former President Joe Biden’s administration, has been embroiled in several lawsuits for more than a year. Since July 2024, the plan’s millions of borrowers have been in an administrative forbearance, where payments are not due, but they are unable to make progress toward forgiveness.

The Department of Education announced that it will no longer allow borrowers to move to the SAVE plan and will deny any pending transfer applications. It also said it will transition the more than 7.7 million borrowers still in the SAVE plan to one of the existing repayment plans.3

“The Department, through its Office of Federal Student Aid (FSA), will provide support to borrowers currently enrolled in the illegal SAVE Plan in selecting a new, legal repayment plan,” the Department said in a press release. “The Department will begin direct outreach to impacted borrowers to provide guidance about how to repay their student loans in the coming weeks.”

Read the full article here.

–Elizabeth Guevara

Nvidia Wins Trump’s Approval to Sell H200 AI Chips to China, But There’s a Catch

4 hr 44 min ago

Nvidia could be set to sell more of its advanced chips to China, with some conditions.

President Trump posted on Truth Social Monday that Nvidia (NVDA) will be allowed to sell its H200 AI chips to “approved customers” in China, in exchange for a 25% cut of revenues going to the U.S. government.

“The Department of Commerce is finalizing the details, and the same approach will apply to AMD, Intel, and other GREAT American Companies,” Trump said in his post.

The H200, which is a generation behind Nvidia’s Blackwell line, had been banned for sale to China previously on national security concerns, and its approval comes just months after Nvidia’s less advanced H20 was greenlighted by President Trump in exchange for a 15% revenue-sharing deal.

The move is expected open the door for more approvals for Nvidia and other chipmakers like rival Advanced Micro Devices (AMD), though Chinese limitations on purchases based on security concerns could still hold back sales.

William Blair analysts told clients Monday it “remains unclear” if any sales will be made, given China’s government may discourage firms from buying H200 chips, as it has with the H20.

Nvidia shares were little changed in recent trading. They’ve gained close to 40% since the start of the year.

–Aaron McDade

AutoZone Stock Drops on Weaker-Than-Expected Profit, Sales

5 hr 25 min ago

AutoZone (AZO) shareholders did not like what they saw from the retailer’s fiscal 2026 first-quarter results.

The Memphis-based auto parts chain was the worst performer in the S&P 500, with shares down nearly 7% after the company reported earnings of $31.04 per share on net sales that rose 8% year-over-year to $4.63 billion. Analysts surveyed by Visible Alpha were looking for $32.22 and $4.65 billion, respectively.

Gross profit margin was 51%, down 203 basis points from a year ago. The decrease “was driven by a 212 basis point non-cash LIFO impact, partially offset by other net margin improvements,” AutoZone said. Operating expenses rose to 34% of sales from 33.3% last year.

After today’s sharp declines, shares of AutoZone are up less than 10% this year.

AI vs. Human Advisors: What Americans Really Think About Retirement Planning

6 hr 24 min ago

Retirement is keeping Americans up at night. Almost 7 in 10 say financial uncertainty has made them feel depressed and anxious, up 8% from 2023, according to Northwestern Mutual’s 2025 Planning and Progress Study. Meanwhile, 51% told surveyors they’ll outlive their savings.

That anxiety is pushing people to seek help, as Americans are increasingly turning to human advisors and digital tools, including robo-advisors and AI-powered planning apps, to get their retirement on track.

The anxiety cuts deepest for younger Americans. Among Gen Z and Millennials, about 4 in 10 say they feel depressed or anxious about their finances on at least a weekly basis—up significantly from 2023.

There’s evidence that professional help works: three-quarters (76%) of Americans with a financial advisor describe their finances as “strong,” compared with just 44% without one. But only about 27% of Americans work with a traditional advisor, as fees and balance requirements put them out of reach for many.

That gap is driving experimentation. In a 2024 Ipsos/BMO poll, about 37% of Americans said they were already using AI to help them manage their money, most commonly to learn about personal finance, build budgets, or evaluate investment ideas.

Yet almost two‑thirds in the same survey said AI is incapable of understanding how emotions impact financial decisions—exactly the kind of subtlety that matters for decisions around retirement. In other words, people seem willing to let an algorithm run the numbers, but want a human being to double-check a financial plan and have the ability to adjust or override it.

Read the full article here.

–Isabel O’Brien

Walmart Shares Little Changed in Nasdaq Debut

7 hr 7 min ago

Walmart (WMT) shares moved to the Nasdaq Tuesday morning. They had a quiet debut in the opening minutes of trading.

Shares of the world’s largest retailer were little changed about 30 minutes into the session. They are up about 25% this year.

Walmart made its public debut on Oct. 1, 1972, when the firm listed on the New York Stock Exchange. The company decided to move to the Nasdaq following what it said was “an evaluation of several factors, including trading execution, brand alignment, and a shared focus on technology-driven innovation to support Walmart’s position as the world’s leading omnichannel retailer.”

“Nasdaq’s focus on technology and its support for companies driving digital transformation align perfectly with our strategic vision,” outgoing CEO Doug McMillon said. “This is an exciting next chapter as we continue building a frictionless future for our customers, members, associates, and shareholders.”

McMillon will be retiring at the end of January, with John Furner set to become CEO on Feb. 1, 2026.

“We are excited for what lies ahead,” McMillon added. “With John Furner as CEO, Walmart will continue to innovate and evolve with a relentless focus on customers, technology, and data-driven decision making.”

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

8 hr 28 min ago

Oracle (ORCL) is set to report its latest quarterly results after the market closes on Wednesday, with traders expecting a big move in the tech giant’s stock following the report.

Options pricing suggests traders anticipate the stock could swing nearly 10% in either direction by the end of the week. A move of that size from Monday’s close could bring the stock to a new record above $240 at the high end, or drag it down to $199 at the low end, where it was late last month.

Oracle’s stock hit a record high following the database giant’s last quarterly report in September, impressing investors with a record backlog on booming AI demand. The stock has pulled back in recent months, however, amid worries about an AI bubble, with Oracle’s moves to take on new debt and its reliance on a few big customers adding to concerns.

Bullish analysts at Citi suggested ahead of Wednesday’s report that they view worries about Oracle’s debt health and recent sell-off as overdone, though they’ll be watching closely for more clarity from Oracle on its plans, along with evidence that AI-driven demand for its offerings is broad-based.

Oracle is seen reporting adjusted earnings per share of $1.65 on a 15% year-over-year jump in revenue to $16.18 billion for the fiscal second quarter, according to estimates compiled by Visible Alpha.

Among the 12 analysts with current ratings tracked by Visible Alpha, eight consider Oracle’s stock a “buy,” compared to three neutral ratings, and one call to sell. Their mean target around $317 would suggest over 40% upside. The stock has added about a third of its value in 2025 through Monday’s close.

–Aaron McDade

Ares Management Stock Pops on S&P 500 Inclusion

9 hr 8 min ago

Ares Management (ARES) will be joining the S&P 500. Investors are cheering the news.

After the bell yesterday, S&P Dow Jones Indices announced that Ares Management will replace Kellanova (K) in the benchmark index before markets open this Thursday, Dec. 11.

Kellanova, the parent of such brands as Pringles, Cheez-It, and Pop-Tarts, is being acquired by Mars Inc. in a deal expected to close Thursday after it received European Commission approval yesterday.

Ares shares surged 8% before the bell. Should they open with that percentage increase, they would be near flat for the year.

This Wall Street Expert Is Less Bullish on Big Tech Stocks Now. Here’s Why

9 hr 24 min ago

Why ask for the moon, when there are plenty of stars to go around? That’s the latest take from a Wall Street expert regarding the S&P 500.

Dr. Ed Yardeni, founder of Yardeni Research, said on Monday that his firm was ending its 15-year recommendation that investors be overweight the S&P 500’s tech and communications sectors—effectively meaning they should prefer them to the rest of the stocks in the index. The prominent Wall Street economist and market strategist joins other investment professionals who have recently turned sour on the tech behemoths that have have dominated the benchmark index.

What’s changed about the Magnificent 7—Nvidia (NVDA), Apple (AAPL), Alphabet (GOOG), Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), and Tesla (TSLA)—is that they’ve started to more “aggressively” compete with each other, and have rivals coming out of the woodwork regularly, Yardeni told media networks, including Bloomberg TV and CNBC.

The problem is that betting on the Mag 7 has worked too well, with the tech and comms sectors now accounting for a record 45% of the benchmark index’s market capitalization, Yardeni said. While that may be justified by their earnings share also climbing, their overall riskiness compared to the rest of the index has also risen.

“They used to just operate in their own moats and kind of leave each other alone, but I think we’re now having a competitive situation,” Yardeni said on CNBC. “Not only that but I think we’re going to find out startups are coming [to] challenge some of their technologies.”

Read the full article here.

–Crystal Kim

Stock Futures Tick Higher as Fed Meeting Begins

10 hr 2 min ago

Futures contracts connected to the Dow Jones Industrial Average were up 0.1%.

S&P 500 futures were 0.1% higher.

Nasdaq 100 futures were fractionally higher.