How Trump's Debt Ceiling Elimination Proposal Could Impact TLT and Long-Term Bonds
In September, the Federal Reserve's decision to lower interest rates by 50 basis points was expected to lead to a decrease in bond yields. However, contrary to expectations, the yield on the 10-year U.S. Treasury bond rose instead. This unexpected increase continued even after the Fed's recent meeting, where further rate decisions were made, leading to a complex situation for bond investors who are now facing significant losses attributed to this rate cut announcement. Looking back , they were projecting a 4-rate cut in 2025. The dot plot is updated every three months, and the previous one was fairly dovish, as they anticipated a 2-rate cut in one move and the dot plot suggested 4 cuts for next year. However, after three months, the outlook has shifted to a more hawkish stance. My adv
Yesterday, stock market fluctuations were quite dramatic, with most of my favourite stocks falling more than 5% in premarket trading. Media outlets and social media have been fueling fear by heavily emphasizing the risk of a U.S. government shutdown tonight, which has heightened risk-averse sentiment among investors. As a result, stock futures have dropped significantly, with Nasdaq 100 futures declining over 1.7% in pre-market trading. This article is written by Shernice if you like my article please hit the like button or do a repost. However, at 8:30 AM, the Federal Reserve's key inflation indicator, the Personal Consumption Expenditures (PCE) index, was released. The U.S. PCE index for November showed a year-over-year increase of 2.4%, which is below the expected 2.5% but hi
Initiated monitoring position for Credo. Credo makes a unique cable product called an active electrical cable (AEC), which connects data center servers to networking switches. The company claims its AECs take up 75% less space than Direct Attach Copper (DAC) cables and offer 50% more power efficiency versus active optical cable (AOC) alternatives. As power and space are becoming scarce commodities in power-hungry AI data centers, Credo's proprietary technology seems to be finding favour with large AI customers. In its fiscal third quarter, Credo delivered 63.6% revenue growth to $72.0 million, beating estimates by $5.2 million, while adjusted (non-GAAP) earnings per share came in at $0.07, beating estimates by $0.02. But the biggest story with Credo was its third quarter revenue guid
On December 19, 2024, U.S. stock markets faced sharp declines as the Federal Reserve's tempered outlook on future interest rate cuts unsettled investors. The S&P 500 dropped 2.95% to 5,872.16, the Dow Jones Industrial Average fell 2.58% to 42,326.87, and the Nasdaq Composite saw the steepest decline, closing 3.65% lower at 21,198.28. This sell-off largely stemmed from concerns over the Fed's cautious approach, with institutional investors driving the downturn to capitalize on market volatility. The Federal Reserve, under Jerome Powell's leadership, reduced interest rates by 25 basis points to a target range of 4.25%–4.5%, marking a 1% total reduction since September 2024. Despite persistent inflation, Powell signaled only two more rate cuts in 2025, halving previous projections of four
$Innodata(INOD)$ Innodata is a little-known artificial intelligence play that investors don't want to miss, according to Wedbush. On 19 Dec 24, Senior Analyst Daniel Ives initiated coverage of the data engineering stock at an outperform rating with a $48 price target. That target suggests shares can surge 40.4% over Wednesday's closing level. Ives pointed to the Innodata's work on custom large language models, which can be utilized by industries looking for a precession within Al that he said broadly used GPT can't completely offer. He said these special models can instead provide sectors with unique products that are "tailored" to their nuances and challenges. "We believe Innodata's expertise in data annotation and AI over its decades
Innodata's stock has recently dropped significantly from $55 to $37.57, but the company has successfully tripled its valuation to around $1.39 billion. Over the past year, it has delivered a remarkable 72% revenue growth, reflecting strong performance despite challenging market conditions. Innodata has strategically pivoted to position itself as a provider of AI applications, focusing on generative AI and data engineering services for major tech firms, while also expanding its business within the federal government sector. On December 18, Elon Musk posted in X: "Please stop using hashtags. The system doesn't need them anymore, and they look ugly." This statement highlights a shift in AI data engineering , suggesting that searching for messages no longer requires hashtags. AI can now c
Root Inc. Achieves Net Income Profitability for the First Time in Q3 2024 Overview $Root, Inc.(ROOT)$ Root Inc., the parent company of Root Insurance, has reached a historic milestone by achieving net income profitability in the third quarter of 2024. This achievement underscores the company’s strong performance, driven by cutting-edge data science, machine learning advancements, a modern technology stack, and a relentless focus on customer experience. Despite these successes, Root’s stock faced a steep decline of about 27%, dropping from a high of $104.99, due to the fallout from UnitedHealthcare's collapse. A wave of consumer backlash against high insurance costs and denied claims spilled over from the healthcare insurance sector into non