Stocks rise, Amazon CEO says AI will shrink workforce, Circle jumps
All three of the major indexes (^DJI, ^GSPC, ^IXIC) are trading higher as Wall Street awaits the Fed decision and developments on the conflict between Iran and Israel.
OpenAI (OPAI.PVT) CEO Sam Altman says Meta (META) was offering $100 million bonuses in a bid to poach the AI firm's employees.
Amazon (AMZN) CEO Andy Jassy says AI will reduce the size of his company's workforce.
Shares of Circle (CRCL) are jumping after the Senate passed the GENIUS Act.
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16 minutes ago
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Circle Leads the Stablecoin Revolution: What you Need to Know
Bitcoin's launch in 2009 changed the world forever and triggered the crypto revolution. The world's first cryptocurrency rose from obscurity, once primarily used for nefarious purposes like buying drugs off the dark web off websites like 'The Silk Road,' to the mainstream. Today, Bitcoin is a $2.08 trillion asset and is larger than some of America's largest companies like Meta Platforms (META) and Broadcom (AVGO). Bitcoin's undeniable success has bred further innovations and new products. Depending on how you count, there are approximately 10,000 cryptocurrencies in existence. Few could have possibly predicted that, Blackrock (BLK), the world's largest asset manager and once a Bitcoin skeptic, would launch the iShares Bitcoin Trust ETF (IBIT). Still, there have been many booms, busts, and too many failures to count. For example, non-fungible tokens, or NFTs, caught fire a few years ago, only to plunge in value and become irrelevant. That said, stablecoins are a rare and often overlooked crypto innovation that is likely to stay. Better yet, the stablecoin revolution is in its infancy and will only grow from here. What is a Stablecoin? When most investors think of cryptocurrencies, they think of rampant speculation and volatility. To most, these attributes are a feature, not a bug. However, a stablecoin is a cryptocurrency that is built to have low volatility and 'peg' its value to a stable asset such as the fiat currency (like the US dollar) or a commodity like silver. Stablecoin operators back their stablecoins by holding fiat currency or T-bills in bank accounts. What is the Benefit of Stablecoins? Beyond bringing low volatility to crypto, stablecoins bridge the gap between crypto and legacy finance. The primary benefit of using stablecoins is that they allow for far cheaper and more rapid transactions than traditional banks. In addition, these stablecoins allow for much easier international transactions and wait times. Why Stablecoin Adoption is Increasing Rapidly On 'The All-In Podcast,' venture capitalist Chamath Palihapitiya laid out two reasons stablecoin usage will surge in 2025: 1. Stablecoin usage decoupled from crypto volatility for the first time in 2024. In other words, stablecoins are being used for wholesale useful functions in running a business. 2. In the first half of 2024, stablecoins ($8.5T) had more than double the transaction volume of Visa (V) (~$3.5T). Chamath continued, 'I think we're going to finally attack the duopoly of Visa and Mastercard (MA). I think you're going to see an innumerable number of use cases that sit and use stablecoin rails. Judging by the performance of recent IPO Circle (CRCL), operator of the second largest stablecoin USDC (a stablecoin pegged to the dollar), the Wall Street investors believe the hype. CRCL shares are already up 79% since going public earlier this month! Image Source: Zacks Investment Research Meanwhile, while stablecoin demand is already impressive, a new bill advancing through congress can accelerate that demand. Senate Passes GENIUS Stablecoin Act After years of running into regulatory hurdles, mostly from the Democrats, the US Senate has approved stablecoin legislation in a bipartisan vote. The bill would finally put a regulatory framework around issuing and operating stablecoins, lending credibility to the industry. Next, the bill will move to the US House of Representatives, where the Republicans hold a majority. Finally, it will go to President Trump's desk, where it will likely be signed (based on Treasury Secretary Scott Bessent's comments). Stablecoin Winners & Losers As mentioned, CRCL is a big winner based on its (COIN), which has a revenue share program with CRCL, is another big card companies like Mastercard and Visa as well as legacy banks, are potential (JPM) is looking to move into the industry after filing a patent for a stablecoin-like token called JPMD. Bottom Line The stablecoin revolution is more than a fleeting trend; it's a fundamental shift in how we approach digital transactions in the broader financial landscape. With its efficiency, low cost, and legislative support, demand for stablecoins is set to soar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report BlackRock (BLK) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
16 minutes ago
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Play Short-Term Market Volatility With These ETFs
The Trump administration's chaotic tariff policies and escalating geopolitical tensions in the Middle East are making investors anxious, pushing them toward safe-haven assets. The S&P 500 has faced increased volatility in 2025, with the broad market index falling 2.7% and then rebounding 4.1% over the past month. The index fell about 1.1% on June 13, driven by intensifying protests and mounting Iran-Israel tensions. According to SP Global, U.S. investors remained risk-averse for the fifth consecutive month, even as equity market concerns have been easing. Per an investor sentiment survey, according to the S&P Global Investment Manager Index, the risk appetite of investors has been gradually increasing since April. Yet, June's reading has remained negative, highlighting continued caution. Even with easing in risk aversion, according to SP Global, investors continue to forecast net market losses in the month ahead. The survey's Equity Returns Index fell to -32% in June from -29% in May, reflecting a modest decline in investor confidence and a slightly more pessimistic outlook compared to the previous month. According to Kathryn Rooney Vera, chief market strategist at StoneX Group, as quoted on Reuters, with the market being highly sensitive to headlines and short-term events, short-term market swings have intensified. Struggling with escalating tensions in the Middle East after renewed military strikes between Israel and Iran, concerns over potential supply disruptions are a headwind. According to Rooney Vera, a possible closure of the Strait of Hormuz could restrict global oil supply chains, driving up prices and accelerating inflationary pressures. Planned protests across major U.S. cities are drawing investor attention. According to Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, as quoted on Reuters, the ongoing protests could dampen investor confidence, from a psychological perspective. Any blow to investor sentiment or risk appetite could further weigh on the S&P 500, adding to the headwinds it already faces in the near term. In periods of rising uncertainty, increasing exposure to volatility ETFs in the short term can be a winning move for investors. These funds have delivered short-term gains during periods of market chaos and could climb further if volatility endures. In the current economic environment, volatility-focused funds and strategies are ideal to reassess volatility exposure and for investors with a short-term horizon. With volatility rising due to trade tensions, policy uncertainty, geopolitical conflict and technical market breakdowns, increasing exposure to the below-mentioned funds can be a good strategic move (See: all Volatility ETFs here). iPath Series B S&P 500 VIX Short-Term Futures ETN seeks to track the performance of the S&P 500 VIX Short-Term Futures Index Total Return and has amassed an asset base of $375.1 million. The index offers exposure to a daily rolling long position in the first and second month VIX futures contracts. VXX charges an annual fee of 0.89% and has a one-month average trading volume of about 4.39 million shares. iPath Series B S&P 500 VIX Short-Term Futures ETN has gained 17.87% over the past three months and 16.56% over the past year. ProShares VIX Short-Term Futures ETF seeks to track the performance of the S&P 500 VIX Short-Term Futures Index and has amassed an asset base of $179.5 million. The index measures the movements of a combination of VIX futures and is designed to track changes in the expectation for one month in the future. The fund is ideal for investors looking to gain from an increase in expected volatility of the S&P 500. VIXY has a one-month average trading volume of about 1.1 million shares. ProShares VIX Short-Term Futures ETF has gained 17.48% over the past three months and 14.66% over the past year. The fund charges an annual fee of 0.85%. ProShares VIX Mid-Term Futures ETF seeks to track the performance of the S&P 500 VIX Mid-Term Futures Index and has amassed an asset base of $21.4 million. The index measures the movements of a combination of VIX futures and is designed to track changes in the expectation for VIX five months in the future. The fund is ideal for investors looking to gain from an increase in expected volatility of the S&P 500. VIXM has a one-month average trading volume of about 98,000 shares. ProShares VIX Mid-Term Futures ETF has gained 12.64% over the past three months and 22.03% over the past year. The fund charges an annual fee of 0.85%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX): ETF Research Reports ProShares VIX Short-Term Futures ETF (VIXY): ETF Research Reports ProShares VIX Mid-Term Futures ETF (VIXM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
16 minutes ago
- Yahoo
The Fed holds interest rates steady again as officials wait for the effects of Trump's tariffs
The Federal Reserve held interest rates steady again Wednesday as officials continue to wait for the fallout of President Donald Trump's sweeping policy changes and tensions in the Middle East. The central bank left its benchmark lending rate unchanged at a range of 4.25% to 4.5%, where it has been since January. Economists widely expect Trump's erratic trade war to push up prices and eventually cause unemployment to climb. So far, Trump's tariffs have resulted in a surge of imports into the US, which has taken a toll on economic growth. However, inflation has been tame and the labor market remains in decent shape. Still, Fed officials don't expect that to last: New economic projections show that officials expect unemployment to rise this year more than estimated in March — and for prices to pick up more than they previously thought. Fed policymakers overall continue to expect two rate cuts this year, according to the median projection, though seven of them expect no rate cut at all, up from four back in March. Whenever the Fed deems it appropriate to deliver a rate cut, it'll likely be because of rising unemployment — what investors refer to as a 'bad news rate cut.' That's because American consumers and businesses are expected to soon feel the sting of Trump's tariffs, economists say, and there are already some potential signs of consumers becoming cautious with their spending. Retail sales, which comprise a sizable chunk of overall spending, dropped sharply last month as car purchases plummeted. That's key because consumer spending accounts for about two-thirds of the US economy. For now, Fed officials are inclined to wait longer for some clarity, not just on tariffs, but also to see whether a brewing conflict in the Middle East spirals out of control. The economy's future largely depends on what happens with trade policy. The Trump administration has so far brokered two trade agreements — with the United Kingdom and China — but the administration still has more than a hundred to go. Bilateral trade agreements typically take years of detailed discussions between countries, but Trump identified July 8 as his deadline to hash out deals with every US trading partner, before the massive tariff hikes he unveiled in early April go back into effect. Treasury Secretary Scott Bessent last week said Trump will likely delay his tariffs even more for countries that are actively negotiating with the administration. The Fed is patiently watching the trade situation continue to play out, but now it's also keeping an eye on what's going on in the Middle East. The Israel-Iran conflict that erupted last week has escalated in recent days, with the United States mulling military involvement. The conflict has already resulted in surging global oil prices, which could translate into higher prices in the US if there continue to be disruptions to global energy supply. And even if energy prices in the US climb, it's a high bar for the Fed to go back to hiking interest rates. Fed officials are also keeping tabs on the president's tax and spending bill, currently being reviewed by the Senate. The provisions in the version of Trump's megabill that passed the House would would boost the economy 0.8% over about three decades — compared to its estimate of 1.7% for the 2017 bill, the right-leaning Tax Foundation estimates. This story is developing and will be updated.
