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Scientists Studying Earth's Trees Issued a Stark Warning to Humanity

Scientists Studying Earth's Trees Issued a Stark Warning to Humanity

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From towering coastal redwoods to dinosaur-era Wollemi pines and firs that make the perfect Christmas trees, even our most revered woody plants are in grave danger.
But the loss of these species isn't just a blow to local forests – it threatens entire ecosystems, research shows.
In 2021, the State of the World's Trees report revealed a startling finding: one-third of all tree species are on the brink of extinction, totaling around 17,500 endangered tree species.
This is more than double the number of all threatened mammals, birds, amphibians, and reptiles combined.
Some tree species are so rare that only a single known individual remains, such as the solitary palm, Hyophorbe amaricaulis, in Mauritius.
In a subsequent study from 2022, the same researchers issued a "warning to humanity" about the far-reaching consequences of losing these trees, backed by 45 other scientists from 20 different countries.
Conservation biologist Malin Rivers from Botanic Gardens Conservation International and colleagues outline the many impacts these losses will have on our economies, livelihoods, and food.
Most of our fruit comes from trees, as do many nuts and medicines, with non-timber products amounting to about US$88 billion worth of trade.
In the developing world, 880 million people rely on firewood for fuel, and 1.6 billion people live within 5 kilometers (3 miles) of a forest, relying on them for food and income.
All up, trees contribute about US$1.3 trillion annually to the global economy, yet we're destroying billions of them every year – clearing massive tracts of land for farming and development.
Trees are each their own little worlds, teeming with all sorts of single- and multicellular-life forms, including other plants, fungi, bacteria, and animals. Lose a tree, and this entire world dies too. They often form the supportive base for the whole web of life around them.
In fact, half of all the world's animals and plants rely on treed habitats.
"Habitat loss is frequently tree loss, it is at the root of that when we look at extinction concerns for animals or birds," Rivers told Nature World News in 2022.
"There is no way we can take care of all the other creatures there if we don't take care of the trees."
As with all living systems, losing diversity makes the whole jumble of living connections more vulnerable.
This is because less variation means less diversity in immune response, in genes, and responses to environmental conditions, meaning lower chances of surviving the many threats battering the complex web of interactions that is life on Earth.
Some tree species provide unique interactions and can't be replaced by other species.
This includes the distinctive dragonsblood trees (Dracaena cinnabari), leftover from the ancient Oligocene woodlands, which are host to many other species that are entirely dependent on them, including many other plants and the gecko that pollinates them.
So the extinction of a single species can cause a massive domino effect across everything else that interacts with it, even if they're already rare.
Species that rely on our dwindling forests have already declined by around 53 percent since 1970, and more forests around the world are showing signs of increasing stress.
This doesn't just impact the other life trees interact with either.
Trees are interwoven with Earth's soil, atmosphere, and weather, too – cleaning our air, producing oxygen, and making it rain. They store three-quarters of the world's accessible freshwater and more than half its problematic carbon dioxide.
Lose enough trees and our planet's cycling of carbon, water, and nutrients will be thrown into disarray.
"We're showing that diverse forests store more carbon than monocultures," Rivers told The Guardian.
"That's true for many ecological functions, not just carbon capture, but providing habitat to animals, soil stabilization, resilience to pests and diseases, resilience to storms and adverse weather. By losing tree diversity, we'll also lose diversity in all organisms: birds, animals, fungi, microorganisms, insects."
A few tree species are getting lucky and are able to take advantage of the rapid environmental changes we've caused, like those creeping into territory that fires have cleared. But many more are being obliterated by the same processes.
Much needs to be done to combat this at a collective level, but we all can play a part by recognizing the importance of trees and fighting our own plant blindness. In 2022, researchers pointed out that fewer people than ever are taking up botanical education in the UK at a time when we need plants more than ever.
We must all think of the trees.
The research was published in Plants, People, Planet.
An earlier version of this article was published in September 2022.
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Abercrombie & Fitch (NYSE:ANF) Reports Mixed Q1 2025 Earnings With Sales Up To US$1097 Million
Abercrombie & Fitch (NYSE:ANF) Reports Mixed Q1 2025 Earnings With Sales Up To US$1097 Million

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Abercrombie & Fitch (NYSE:ANF) Reports Mixed Q1 2025 Earnings With Sales Up To US$1097 Million

Abercrombie & Fitch recently posted mixed financial results for Q1 2025, which included a year-over-year sales increase to $1,097 million, but a decrease in net income. The company also adjusted its fiscal 2025 guidance downward, alongside updates to its stock buyback program. These financial movements coincided with a 9.5% price rise over the past month, reflecting broader market trends that have seen modest gains amid favorable trade discussions between the U.S. and China. This market optimism likely added weight to Abercrombie's price performance, despite its mixed earnings report and reduced income projections. Be aware that Abercrombie & Fitch is showing 1 weakness in our investment analysis. This technology could replace computers: discover the 22 stocks are working to make quantum computing a reality. The recent developments surrounding Abercrombie & Fitch have mixed implications for the company's outlook. The increase in Q1 2025 sales to US$1.1 billion contrasts with a decline in net income, which has led to a downward adjustment to its fiscal 2025 guidance. This downturn, despite a 9.5% share price rise over the past month, suggests that market optimism, possibly stemming from favorable U.S.-China trade discussions, temporarily bolstered investor sentiment. Looking at a broader horizon, Abercrombie & Fitch's total shareholder returns, including dividends, skyrocketed by a very large percentage over the past five years, indicating robust long-term value creation. However, the company has underperformed relative to the US Specialty Retail industry over the past year, which returned 12.3%. Despite strong historical returns, short-term challenges in international market conditions and elevated costs could impact revenue and earnings forecasts. Analysts now anticipate revenue growth of 3.1% per year, with earnings forecasted to reach US$559 million by May 2028. Although the stock has experienced recent gains, it's still priced significantly below the analyst consensus price target of US$121.47, indicating potential upside. The current share price remains at a 42.7% discount to this target, reflecting analyst confidence in future prospects despite present setbacks. Investors should weigh these analyst expectations against their understanding of the company's capacity to manage ongoing risks. Evaluate Abercrombie & Fitch's prospects by accessing our earnings growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:ANF. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data

Stock market today: Dow, S&P 500, Nasdaq wobble as Trump's Xi talk, Musk feud take focus
Stock market today: Dow, S&P 500, Nasdaq wobble as Trump's Xi talk, Musk feud take focus

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Stock market today: Dow, S&P 500, Nasdaq wobble as Trump's Xi talk, Musk feud take focus

US stocks wiped out gains on Thursday after President Trump confirmed a phone conversation between himself and China's Xi Jinping, lifting investor optimism that a strained US-China relationship could be thawing. Trump's spat with Tesla (TSLA) CEO Elon Musk also burst into the open Thursday after days of Musk-led criticism of his giant tax-and-spending bill working its way through Congress. The Dow Jones Industrial Average (^DJI) was little changed after the blue-chip index snapped a four-day win streak on Wednesday. The S&P 500 (^GSPC) lost 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) was down 0.3%. Trump confirmed a phone call with China's Xi after Chinese state media said the two leaders spoke on Thursday at Trump's request. "The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries," Trump wrote on social media on Thursday morning. "Our respective teams will be meeting shortly at a location to be determined." Meanwhile, Tesla shares sank more than 8% as the spat between Musk and Trump boiled over. Trump finally responded to days of public criticism from Musk over his giant tax-and-spending bill working its way through Congress, saying he was "disappointed" in Musk. The Tesla CEO, in turn, blasted what he called Trump's so-called "ingratitude" for Musk's political help. Read more: The latest on Trump's tariffs Department of Labor data out Thursday showed weekly claims for unemployment benefits hit their highest level in eight months during the final full week of May. Meanwhile, the tally of continuing claims continued to hover near the highest level in nearly four years, as the US labor market continues to show signs of slowing. Investors now await Friday's release of the closely watched May jobs report, which economists say will offer the "first real look at how the labor market is faring under a rapidly changing trade environment." In other corporate news, stablecoin firm Circle (CRCL) saw its shares explode higher in its market debut. Yahoo Finance's Pras Subramanian reports: Tesla (TSLA) stock slumped again on Thursday as the very public fallout between its CEO Elon Musk and President Trump escalated. "I'm very disappointed, because Elon knew the inner workings of this bill better than almost anybody sitting here, better than you people," Trump said to reporters in the Oval Office on Thursday. "All of a sudden he had a problem, and he only developed the problem when he found out that we're going to have to have to cut the EV mandate." "Elon and I had a great relationship. I don't know if we will anymore. I was surprised," Trump added. Musk posted on X, the social media platform he owns, in apparent response to Trump's comments: "Whatever." Tesla stock fell to session lows on Thursday afternoon as Musk reacted in real-time to Trump's comments, falling as much as 9%. Read more here. Stablecoin issue Circle Internet Group (CRCL) shares are soaring just after the company began trading at $69. The stock quickly hit $92 after several trading halts. Shares are now up more than 200% from the companies IPO price of $31 per share. The S&P 500 (^GSPC) came close to touching 6,000 on Thursday, its highest level since February. The broad-based index touched a session high of 5,999.70 after President Trump said he had a "very good phone call" with his Chinese counterpart, Xi Jinping, about trade. Stocks have roared back roughly 20%, or more than 1,000 points, from their April lows after President Trump's "Liberation Day" tariff policy reveal. The president has since rolled back the broad-based reciprocal tariff plan he unveiled on April 2, announcing a 90-day pause on many countries, a framework deal with the UK, and a temporary trade truce with China. Yahoo Finance's Jen Schonberger reports: Read more here. Trump Media and Technology (DJT) took a key step toward launching a publicly traded crypto investment product Thursday morning. The newly formed Truth Social Bitcoin ETF business trust filed its S-1 with the US Securities and Exchange Commission to register the new exchange-traded fund licensing Trump Media's social media brand. The ETF will trade on the NYSE Arca. Thursday's filing is a significant step for Trump Media's move into the cryptocurrency space. Shares of DJT were down just over 1% late Thursday morning. Read the full story here. President Trump posted on social media that he had a 'very good phone call' with Chinese leader Xi Jinping over trade. "I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal," Trump wrote on Truth Social on Thursday morning. "The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries," he added. Trump said each country's respective teams will be meeting shortly at a location to be determined. The president also said there "should no longer be any questions respecting the complexity of Rare Earth products." The issue of rare earth minerals, crucial components for manufacturing, has come to the forefront in recent weeks as China has made moves to restrict their exports to the US, in retaliation against US trade policy. This week, a group representing US auto suppliers called on Wednesday warned that the issue could quickly disrupt auto parts production Read more here. Tesla (TSLA) stock fell more than 5% on Thursday, extending declines from the previous session following an increasingly public policy blowout between President Trump and Tesla CEO Elon Musk "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL," Musk posted on X on Wednesday. Musk added, "If the massive deficit spending continues, there will only be money for interest payments and nothing else!" EV tax credits could also be at risk after a report from Bloomberg suggests that Musk's new tack to destroy the bill comes after his lobbying to save the tax credits was unsuccessful. Amazon (AMZN) stock gained as much as 2% on Thursday morning after Chinese state media said President Trump and Chinese leader Xi Jinping spoke on Thursday, at the request of the US president. Amazon, which sells many products sourced in China, rose following the announcement. US stocks opened higher on Thursday after Chinese media reported a conversation between President Trump and Chinese leader Xi. This raised investor hopes that the two countries could be coming closer to a lasting trade agreement. The Dow Jones Industrial Average (^DJI) was little changed, while the S&P 500 (^GSPC) rose slightly. The tech-heavy Nasdaq Composite (^IXIC) also gained 0.2%. Chinese state media said Trump and Chinese leader Xi Jinping spoke on Thursday at the US president's request. Tesla (TSLA) stock slumped more than 3% in premarket trading as CEO Elon Musk continued his public feud with policymakers over President Trump's tax and spending bill. "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL," Musk posted on X on Wednesday. Some have speculated that these outbursts may in part have to do with Musk's concern that Congress will do away with the federal EV tax credit, which helped the company by making its cars more affordable to consumers. Though Musk has also downplayed Tesla's reliance on the tax credit in the past. Yahoo Finance's Pras Subramanian reports: Read more here. Weekly claims for unemployment benefits hit their highest level in more than seven months during the final full week of May while the number of Americans filing for unemployment insurance on an ongoing basis continued to hover near its highest level in nearly four years as the US labor market continues to show signs of slowing. Data from the Department of Labor released Thursday morning showed 247,000 initial jobless claims were filed in the week ending May 231, up from 239,000 the week prior and above economists' expectations for 235,000. Meanwhile, 1.904 million continuing claims were filed, down slightly from 1.907 million the week prior and near the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Silver surged to its highest level since February 2012, rising about 4% to above $36 an ounce on Thursday morning. Gold also rose 0.5% as demand for the metals remained strong. Bloomberg reports: Read more here. As millions of people flooded into the stock market over the past few years, understanding of the things that move markets seems to have made noticeable progress. Not, however, for bonds, notes Yahoo Finance's Hamza Shaban: Read more here in today's Morning Brief. Earnings: Broadcom (AVGO), DocuSign (DOCU), Lululemon (LULU), Cracker Barrel (CBRL), Duluth Trading (DLTH), Land's End (LE), Petco (WOOF), Rubrik (RBRK), Victoria's Secret (VSCO) Economic data: Initial jobless claims (week ending May 31); Continuing claims (week ending May 24); Challenger job cuts (May); Nonfarm productivity (first quarter final); Unit labor costs (first quarter final) Here are some of the biggest stories you may have missed overnight and early this morning: Bonds are 'boring' — but they're critical to focus on right now US plans wider China tech curbs targeting subsidiaries 401(k) savings rate hit a record in first quarter: Fidelity US business optimism slumps in 'clear pivot' from Trump election Tesla: Musk may be changing his tune on EV tax credits Trump tariffs: China's rare-earth broadside hits its target Tide maker Procter & Gamble is slashing 7,000 jobs Amazon tests humanoid robots to replace delivery workers: Report Procter & Gamble (PG) said Thursday it will cut 7,000 jobs — or around 6% of its global workforce — as it grapples with rising tariff-related costs and shifts in demand from penny-watching shoppers. The consumer products giant's two-year restructuring plan also calls for the dropping of certain product categories and brands, Reuters reported. Shares in P&G were little changed in premarket trading as investors assessed the news from the world's largest consumer goods company. Yahoo Finance's Brian Sozzi reports: Read more here. Here are some top stocks trending on Yahoo Finance in premarket trading: Tesla (TSLA) stock fell over 1% in premarket trading on Thursday following CEO Elon Musk's latest attack on President Trump's tax bill. Musk said: "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL," Musk posted on X. PVH Corp (PVH), the owner of designer brand Calvin Klein, stock dropped 8% before the bell after cutting its profit outlook for the year, citing weakness in the US, China and tariffs. Zac Coughlin, Chief Financial Officer, said, 'We are reaffirming our revenue guidance for the year but are decreasing our outlook for profitability and earnings per share to reflect that backdrop and the current performance of our business." Robinhood (HOOD) stock rose 1% following Bank of America (BAC) saying the online brokerage is a "prime candidate" to enter the S&P 500 Index in the rebalancing set to be announced Friday. Broadcom (AVGO) stock rose 1.4% in premarket trading ahead of second-quarter earnings report, due for release later today. Optimism in the current state of the US economy and of US businesses has seen a rapid decline throughout 2025. After a sharp peak following President Trump's reelection, hope for a stable economy has been in free fall, dropping 40% in less than six months. Bloomberg reports: Read more here. Yahoo Finance's Pras Subramanian reports: Tesla (TSLA) stock slumped again on Thursday as the very public fallout between its CEO Elon Musk and President Trump escalated. "I'm very disappointed, because Elon knew the inner workings of this bill better than almost anybody sitting here, better than you people," Trump said to reporters in the Oval Office on Thursday. "All of a sudden he had a problem, and he only developed the problem when he found out that we're going to have to have to cut the EV mandate." "Elon and I had a great relationship. I don't know if we will anymore. I was surprised," Trump added. Musk posted on X, the social media platform he owns, in apparent response to Trump's comments: "Whatever." Tesla stock fell to session lows on Thursday afternoon as Musk reacted in real-time to Trump's comments, falling as much as 9%. Read more here. Stablecoin issue Circle Internet Group (CRCL) shares are soaring just after the company began trading at $69. The stock quickly hit $92 after several trading halts. Shares are now up more than 200% from the companies IPO price of $31 per share. The S&P 500 (^GSPC) came close to touching 6,000 on Thursday, its highest level since February. The broad-based index touched a session high of 5,999.70 after President Trump said he had a "very good phone call" with his Chinese counterpart, Xi Jinping, about trade. Stocks have roared back roughly 20%, or more than 1,000 points, from their April lows after President Trump's "Liberation Day" tariff policy reveal. The president has since rolled back the broad-based reciprocal tariff plan he unveiled on April 2, announcing a 90-day pause on many countries, a framework deal with the UK, and a temporary trade truce with China. Yahoo Finance's Jen Schonberger reports: Read more here. Trump Media and Technology (DJT) took a key step toward launching a publicly traded crypto investment product Thursday morning. The newly formed Truth Social Bitcoin ETF business trust filed its S-1 with the US Securities and Exchange Commission to register the new exchange-traded fund licensing Trump Media's social media brand. The ETF will trade on the NYSE Arca. Thursday's filing is a significant step for Trump Media's move into the cryptocurrency space. Shares of DJT were down just over 1% late Thursday morning. Read the full story here. President Trump posted on social media that he had a 'very good phone call' with Chinese leader Xi Jinping over trade. "I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal," Trump wrote on Truth Social on Thursday morning. "The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries," he added. Trump said each country's respective teams will be meeting shortly at a location to be determined. The president also said there "should no longer be any questions respecting the complexity of Rare Earth products." The issue of rare earth minerals, crucial components for manufacturing, has come to the forefront in recent weeks as China has made moves to restrict their exports to the US, in retaliation against US trade policy. This week, a group representing US auto suppliers called on Wednesday warned that the issue could quickly disrupt auto parts production Read more here. Tesla (TSLA) stock fell more than 5% on Thursday, extending declines from the previous session following an increasingly public policy blowout between President Trump and Tesla CEO Elon Musk "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL," Musk posted on X on Wednesday. Musk added, "If the massive deficit spending continues, there will only be money for interest payments and nothing else!" EV tax credits could also be at risk after a report from Bloomberg suggests that Musk's new tack to destroy the bill comes after his lobbying to save the tax credits was unsuccessful. Amazon (AMZN) stock gained as much as 2% on Thursday morning after Chinese state media said President Trump and Chinese leader Xi Jinping spoke on Thursday, at the request of the US president. Amazon, which sells many products sourced in China, rose following the announcement. US stocks opened higher on Thursday after Chinese media reported a conversation between President Trump and Chinese leader Xi. This raised investor hopes that the two countries could be coming closer to a lasting trade agreement. The Dow Jones Industrial Average (^DJI) was little changed, while the S&P 500 (^GSPC) rose slightly. The tech-heavy Nasdaq Composite (^IXIC) also gained 0.2%. Chinese state media said Trump and Chinese leader Xi Jinping spoke on Thursday at the US president's request. Tesla (TSLA) stock slumped more than 3% in premarket trading as CEO Elon Musk continued his public feud with policymakers over President Trump's tax and spending bill. "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL," Musk posted on X on Wednesday. Some have speculated that these outbursts may in part have to do with Musk's concern that Congress will do away with the federal EV tax credit, which helped the company by making its cars more affordable to consumers. Though Musk has also downplayed Tesla's reliance on the tax credit in the past. Yahoo Finance's Pras Subramanian reports: Read more here. Weekly claims for unemployment benefits hit their highest level in more than seven months during the final full week of May while the number of Americans filing for unemployment insurance on an ongoing basis continued to hover near its highest level in nearly four years as the US labor market continues to show signs of slowing. Data from the Department of Labor released Thursday morning showed 247,000 initial jobless claims were filed in the week ending May 231, up from 239,000 the week prior and above economists' expectations for 235,000. Meanwhile, 1.904 million continuing claims were filed, down slightly from 1.907 million the week prior and near the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Silver surged to its highest level since February 2012, rising about 4% to above $36 an ounce on Thursday morning. Gold also rose 0.5% as demand for the metals remained strong. Bloomberg reports: Read more here. As millions of people flooded into the stock market over the past few years, understanding of the things that move markets seems to have made noticeable progress. Not, however, for bonds, notes Yahoo Finance's Hamza Shaban: Read more here in today's Morning Brief. Earnings: Broadcom (AVGO), DocuSign (DOCU), Lululemon (LULU), Cracker Barrel (CBRL), Duluth Trading (DLTH), Land's End (LE), Petco (WOOF), Rubrik (RBRK), Victoria's Secret (VSCO) Economic data: Initial jobless claims (week ending May 31); Continuing claims (week ending May 24); Challenger job cuts (May); Nonfarm productivity (first quarter final); Unit labor costs (first quarter final) Here are some of the biggest stories you may have missed overnight and early this morning: Bonds are 'boring' — but they're critical to focus on right now US plans wider China tech curbs targeting subsidiaries 401(k) savings rate hit a record in first quarter: Fidelity US business optimism slumps in 'clear pivot' from Trump election Tesla: Musk may be changing his tune on EV tax credits Trump tariffs: China's rare-earth broadside hits its target Tide maker Procter & Gamble is slashing 7,000 jobs Amazon tests humanoid robots to replace delivery workers: Report Procter & Gamble (PG) said Thursday it will cut 7,000 jobs — or around 6% of its global workforce — as it grapples with rising tariff-related costs and shifts in demand from penny-watching shoppers. The consumer products giant's two-year restructuring plan also calls for the dropping of certain product categories and brands, Reuters reported. Shares in P&G were little changed in premarket trading as investors assessed the news from the world's largest consumer goods company. Yahoo Finance's Brian Sozzi reports: Read more here. Here are some top stocks trending on Yahoo Finance in premarket trading: Tesla (TSLA) stock fell over 1% in premarket trading on Thursday following CEO Elon Musk's latest attack on President Trump's tax bill. Musk said: "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL," Musk posted on X. PVH Corp (PVH), the owner of designer brand Calvin Klein, stock dropped 8% before the bell after cutting its profit outlook for the year, citing weakness in the US, China and tariffs. Zac Coughlin, Chief Financial Officer, said, 'We are reaffirming our revenue guidance for the year but are decreasing our outlook for profitability and earnings per share to reflect that backdrop and the current performance of our business." Robinhood (HOOD) stock rose 1% following Bank of America (BAC) saying the online brokerage is a "prime candidate" to enter the S&P 500 Index in the rebalancing set to be announced Friday. Broadcom (AVGO) stock rose 1.4% in premarket trading ahead of second-quarter earnings report, due for release later today. Optimism in the current state of the US economy and of US businesses has seen a rapid decline throughout 2025. After a sharp peak following President Trump's reelection, hope for a stable economy has been in free fall, dropping 40% in less than six months. Bloomberg reports: Read more here. 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BofA stays bearish on the U.S. dollar
BofA stays bearish on the U.S. dollar

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time3 hours ago

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BofA stays bearish on the U.S. dollar

-- BofA Global Research reiterated its bearish stance on the U.S. dollar in a note Thursday, even as it acknowledged that the view is becoming increasingly mainstream. 'We remain bearish on the dollar, but recognize this is becoming an increasingly consensus view, posing risks,' analysts wrote. While BofA continues to expect medium- to long-term weakness in the greenback, the firm outlined several upside risks that could support the dollar in the short term. 'Upside USD risks: ongoing US data resilience, further cooling of trade tensions, & congress finding the fiscal 'sweet spot,'' the bank stated. Still, analysts cautioned that those scenarios, while plausible, do not alter the broader trajectory. 'We remain core dollar bears, but near-term upside risks cannot be ignored,' the firm wrote. The ongoing strength in U.S. economic data remains a key risk to that outlook, even if the trend proves temporary. 'The most likely near-term catalyst for USD upside lies in the ongoing US data resilience or even a reacceleration, even if temporary.' However, BofA maintained that the longer-term effects of escalating trade tensions would likely weigh on the dollar over time. 'We view the longer-term impacts of a US-induced global trade war as ultimately keeping the USD as the main relief valve for the economy, especially from a starting point of elevated valuations,' the analysts noted. Ultimately, the bank feels that any short-term gains in the dollar are expected to be fleeting. 'We would expect any near-term USD rallies to ultimately be seen as selling opportunities, barring major policy and economic shifts,' BofA said. Related articles BofA stays bearish on the U.S. dollar U.S. dollar dips as Trump delays EU tariff hike Dollar surges on US-China trade deal, but Deutsche Bank sees reason for caution Sign in to access your portfolio

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