Latest news with #JeremySchwartz
Yahoo
25-05-2025
- Business
- Yahoo
'Unsustainable fiscal situation': Wall Street braces for more bond market turmoil as Trump tax bill stirs up deficit concerns
The bond market is once again flashing warning signs. Long-term Treasury yields surged this week as investors grew increasingly uneasy about the ballooning US deficit and the fiscal outlook tied to President Trump's proposed tax legislation. The sell-off in bonds, typically a safe haven in uncertain times, runs counter to traditional flight-to-safety behavior and has stoked fears of a broader "sell America" trade taking hold across global markets. "Clearly, the market is very focused on two key things: the tariff news and this policy framework of debt and deficits with interest rates," WisdomTree Global chief investment officer Jeremy Schwartz told Yahoo Finance on Thursday. "If interest rates blow out because there's fear about the deficit [and] we don't actually bring down spending ... that's one of the [key] downside risks." While ballooning deficits have long been a concern, the latest wave of investor unease reflects a collision of both new and familiar threats, with fiscal fears, stubborn inflation, and political uncertainty top of mind. At the center of it all is Trump's newly advanced tax bill, which cleared the House this week and is now headed to the Senate. "We have an unsustainable fiscal situation that is leading to very challenging dynamics in the bond markets where we are having to pay higher interest rates to service our debts," Shai Akabas, director of economic policy at the Bipartisan Policy Center, told Yahoo Finance on Friday. "That ultimately is leading to higher interest rates across the economy and feeding the inflation that we've seen in past years, and that we might continue to see from the tariff dynamic that's going on." The legislation proposes sweeping cuts to individual and corporate tax rates and is projected to add $4 trillion to the national debt over the next decade. Despite its scale, the bill lacks swift and substantial spending cuts, fueling investor anxiety over the US's already fragile fiscal situation. "The House bill is probably the floor for what deficits look like," Deutsche Bank senior US economist Brett Ryan said. "The Senate is going to have its say, and that's probably going to mean even less in terms of spending cuts." Ryan noted that while the bill claims over $1 trillion in savings, most of that is backloaded beyond the current presidential term. "Will it ever happen?" he asked, casting doubt on whether the proposed fiscal tightening will materialize. Read more: What are bonds, and how do you invest in them? The bond market's reaction to the legislation has been swift. The 30-year Treasury yield (^TYX) surged as high as 5.15% this week, marking its biggest intraday move since 2023 and approaching closing levels not seen since 2007. These moves were driven not only by renewed fiscal concerns at home but also by a weak Treasury auction and escalating fiscal turmoil in Japan. Prime Minister Shigeru Ishiba's warning on the country's finances triggered a bond sell-off and stoked global fears about waning demand for US Treasurys. "The long end of the curve, there's a tremendous amount of uncertainty," Asterozoa Capital chief investment officer Joe Hegener said on Friday, describing recent market moves as a "material risk" to stocks and the broader US economy. "We're starting to see investors get a little spooked," he continued. "What's going on in Japan and abroad is only exacerbating that risk." While short-term yields have stayed relatively anchored amid expectations that the Fed will hold interest rates steady, longer-term yields have climbed more sharply as investors demand greater compensation for mounting fiscal and policy uncertainties. Heather Boushey, who served on President Joe Biden's Council of Economic Advisors, said the recent surge in yields may signal mounting fears of stagflation and deeper economic strain. "There is not good news here," she said, adding that the bond market's message is clear: "Let's not go down this path." Allie Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Business
- Yahoo
'Unsustainable fiscal situation': Wall Street braces for more bond market turmoil as Trump tax bill stirs up deficit concerns
The bond market is once again flashing warning signs. Long-term Treasury yields surged this week as investors grew increasingly uneasy about the ballooning US deficit and the fiscal outlook tied to President Trump's proposed tax legislation. The sell-off in bonds, typically a safe haven in uncertain times, runs counter to traditional flight-to-safety behavior and has stoked fears of a broader "sell America" trade taking hold across global markets. "Clearly, the market is very focused on two key things: the tariff news and this policy framework of debt and deficits with interest rates," WisdomTree Global chief investment officer Jeremy Schwartz told Yahoo Finance on Thursday. "If interest rates blow out because there's fear about the deficit [and] we don't actually bring down spending ... that's one of the [key] downside risks." While ballooning deficits have long been a concern, the latest wave of investor unease reflects a collision of both new and familiar threats, with fiscal fears, stubborn inflation, and political uncertainty top of mind. At the center of it all is Trump's newly advanced tax bill, which cleared the House this week and is now headed to the Senate. "We have an unsustainable fiscal situation that is leading to very challenging dynamics in the bond markets where we are having to pay higher interest rates to service our debts," Shai Akabas, director of economic policy at the Bipartisan Policy Center, told Yahoo Finance on Friday. "That ultimately is leading to higher interest rates across the economy and feeding the inflation that we've seen in past years, and that we might continue to see from the tariff dynamic that's going on." The legislation proposes sweeping cuts to individual and corporate tax rates and is projected to add $4 trillion to the national debt over the next decade. Despite its scale, the bill lacks swift and substantial spending cuts, fueling investor anxiety over the US's already fragile fiscal situation. "The House bill is probably the floor for what deficits look like," Deutsche Bank senior US economist Brett Ryan said. "The Senate is going to have its say, and that's probably going to mean even less in terms of spending cuts." Ryan noted that while the bill claims over $1 trillion in savings, most of that is backloaded beyond the current presidential term. "Will it ever happen?" he asked, casting doubt on whether the proposed fiscal tightening will materialize. Read more: What are bonds, and how do you invest in them? The bond market's reaction to the legislation has been swift. The 30-year Treasury yield (^TYX) surged as high as 5.15% this week, marking its biggest intraday move since 2023 and approaching closing levels not seen since 2007. These moves were driven not only by renewed fiscal concerns at home but also by a weak Treasury auction and escalating fiscal turmoil in Japan. Prime Minister Shigeru Ishiba's warning on the country's finances triggered a bond sell-off and stoked global fears about waning demand for US Treasurys. "The long end of the curve, there's a tremendous amount of uncertainty," Asterozoa Capital chief investment officer Joe Hegener said on Friday, describing recent market moves as a "material risk" to stocks and the broader US economy. "We're starting to see investors get a little spooked," he continued. "What's going on in Japan and abroad is only exacerbating that risk." While short-term yields have stayed relatively anchored amid expectations that the Fed will hold interest rates steady, longer-term yields have climbed more sharply as investors demand greater compensation for mounting fiscal and policy uncertainties. Heather Boushey, who served on President Joe Biden's Council of Economic Advisors, said the recent surge in yields may signal mounting fears of stagflation and deeper economic strain. "There is not good news here," she said, adding that the bond market's message is clear: "Let's not go down this path." Allie Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at
Yahoo
22-05-2025
- Business
- Yahoo
Medicare audits, Advance Auto Parts, solar: Trending Tickers
The US Centers for Medicare & Medicaid Services have announced Medicare Advantage audits on health insurers, with this news sending shares of Humana (HUM), UnitedHealth Group (UNH), and CVS Health (CVS) lower. Advance Auto Parts (AAP) stock skyrockets by over 40% on Thursday after the car parts retailer reaffirmed its full-year earnings guidance alongside its first quarter beat on estimates. Solar companies Sunrun (RUN), Enphase Energy (ENPH), and SolarEdge Technologies (SEDG) are taking a stock hit after the House advanced President Trump's tax bill to the Senate, the spending package outlining plans to eliminate clean energy tax credits. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. Now time for some of today's trending tickers. We're watching health insurers, advanced auto parts, and solar stocks. First of all, let's talk about health insurance stocks. The Centers for Medicare and Medicaid Services announcing an expansion of Medicare advantage audits. Humana is taking the biggest hit of the big insurers. It's down about 4%. United Health down slightly, but of course, it has been tumbling as of late. CVS down a little more than 2%. This increases and broadens the scrutiny that these plans had already been under here. Um, you know, United Health, some of its plans under investigation. Jeremy Schwartz is still with me here. Insurance stocks, I mean, obviously, it's been led mostly by United Health. Yeah. But it's been a tough slog for many of them. Yeah. You know, they've had all sorts of idiosyncratic stories with the CEO issues as well. The, you know, they came under fire also from Trump when he talked about trying to cut prescription drug prices, these big numbers, like 30 to 80%. And it's like the pharmacy benefit managers, the PBMs are Yeah. for United a bigger source of revenue than for Humana, but it's as much as a third of their revenue might come from some of these PBMs. And if they're, who's going to be hurt if they actually can get avoid some of the PBM managers that's trying to lower the prices? They are coming under attack from that element within the administration. Right. So, sort of multiple fronts at this point when it comes to um the regulatory scrutiny of these companies. Next up, we're also watching Advanced Auto Parts. Those shares are soaring after the company reaffirmed its full-year guidance. The car part retail parts retailer also topping first quarter expectations. The CEO says tariffs have created a quote highly dynamic economic environment, but the company is expecting to make progress on mitigation um options. Now, I don't know about you, Jeremy, whenever I see a move like this Yeah. in response to earnings which seems so outsized, I go straight to short interest. And indeed, Advanced Auto Parts, according to Bloomberg data, has about 18% of its float is shorted, which is high for those of you out there, so you could be seeing a short squeeze in addition to whatever underlying move there is. Yeah. You think about some of the prime stocks that are at the risk of tariffs, and car parts have been a key discussion. If you have these 25% tariffs and where they produce around the world, this could be one of those key areas. Uh and then you get the actual results and now Yeah. it's we haven't seen the actual tariffs yet. The tariffs are just starting to come in, and you'll start to see them from you know, the next few weeks is actually when you're going to start to see some of that. But it's one of those stocks that was prime focus Right. hit because of that expectation, but you could beat you beat earnings and you're a Yeah. Yeah. I mean, this company's been trying to turn itself around. They've closed some poorly performing stores. Comparable sales still fell by 6/10 of 1%, but that was a lot better than the 2% decline that analysts had been anticipated. And finally, let's look at solar stocks. They are falling after the house passed that tax bill. It terminates clean key clean energy credits a little bit sooner than had been anticipated. The legislation ending those tax credits for installers that lease equipment to customers. Some analysts call the bill worse than fear. Now they don't phase out right away, but they will phase out sooner than had been anticipated. If this bill goes through as this current draft is showing here, you see Sunrun taking a tumble, 38%. Enphase down about 15%. Solar Edge down about 25%. Now these companies sit at different parts of the stack. Sunrun is the installer. Enphase, um, its equipment basically helps transmit the solar power through batteries into the electricity of the house. Solar Edge also. So they sort of are affected differently depending on where you're looking. We could see changes to the bill, as our Ben Worshkow said earlier. Some of the states that are red states actually have depended on these credits, and that's where the solar companies are. So we'll see how it turns out, but those are big, big moves. Well, tying back to the lead off of this section, which was Nvidia, you know, what the number one story is AI power demand. What do you need for these chips? You need power. You need energy. So there's this trade where the utilities, we're trading a lot like AI plays, and you have a lot of the big energy companies needing solar as part of the it's not a substitution, it's an an. It's we call it not just energy transition, it's energy addition. You need more energy. So how I I think some of the case for solar is actually there for the long run. Now, how do how does administration support it? What are the credits versus the demand and needs? But whether it's nuclear, solar, natural gas, all sorts of energy, we're going to need a lot more of it. Right. And um, you know, to your point there, um, I was also looking, by the way, some of the nuclear companies because there are some provisions in the bill related to them. And we're seeing some increases there. So we'll see how it all turns out when the Senate gets the bill back. And you can scan the QR code below to track the best and worst performing stocks with Yahoo Finance's Trending Tickers page.
Associated Press
04-04-2025
- Business
- Associated Press
WisdomTree Announces Equity Premium Income Fund (WTPI)
WisdomTree, Inc. (NYSE: WT), a global financial innovator, today announced the name and ticker change of the WisdomTree PutWrite Strategy Fund (PUTW) to the WisdomTree Equity Premium Income Fund (WTPI). The Fund remains listed on the NYSE Arca exchange and has an expense ratio of 0.44%. WTPI seeks to track the price and yield performance, before fees and expenses, of the Volos U.S. Large Cap Target 2.5% PutWrite Index 1. 'Elevated market valuations have tempered expectations for outsized upside for the S&P 500 in 2025, especially with ongoing policy-related economic uncertainties. We believe WTPI provides an attractive strategy for this environment, particularly for income-seeking investors,' said Jeremy Schwartz, Global Chief Investment Officer at WisdomTree. 'Our strategy is designed to provide consistent income by capitalizing on the volatility premium in the options market.' WTPI is designed to perform relatively well versus traditional equity strategies in flat-to-down markets. The Fund aims to generate consistent income by selling put options 2 bi-weekly on the S&P 500 Index 3, targeting a 2.5% premium. By increasing its sensitivity to equity market movements, the Fund offers greater income potential, making it a compelling solution for investors navigating volatile market environments. Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. For a prospectus or, if available, the summary prospectus containing this and other important information about the fund, call 866.909.9473 or visit Read the prospectus or, if available, the summary prospectus carefully before investing. There are risks associated with investing, including possible loss of principal. The Fund will invest in derivatives, including S&P 500 Index put options ('SPX Puts'). Derivative investments can be volatile, and these investments may be less liquid than securities, and more sensitive to the effects of varied economic conditions. The value of the SPX Puts in which the Fund invests is partly based on the volatility used by market participants to price such options ( i.e., implied volatility). The options values are partly based on the volatility used by dealers to price such options, so increases in the implied volatility of such options will cause the value of such options to increase, which will result in a corresponding increase in the liabilities of the Fund and a decrease in the Fund's net asset value (NAV). Options may be subject to volatile swings in price influenced by changes in the value of the underlying instrument. The potential return to the Fund is limited to the amount of option premiums it receives; however, the Fund can potentially lose up to the entire strike price of each option it sells. Due to the investment strategy of the Fund, it may make higher capital gain distributions than other exchange-traded funds (ETFs). Please read the Fund's prospectus for specific details regarding the Fund's risk profile. WisdomTree Funds are distributed in the U.S. by Foreside Fund Services, LLC. Foreside Fund Services, LLC, is not affiliated with the other entities mentioned. Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC. 1 Volos U.S. Large Cap Target 2.5% PutWrite Index: Tracks the value of a cash-secured (i.e., collateralized) put option sales strategy, which consists of selling (or 'writing') put options on the SPDR S&P 500 ETF Trust (SPY) and a cash collateral account that accrues interest at a theoretical three-month Treasury bill rate. 2 Put options: An option to sell assets at an agreed price on or before a particular date. 3 S&P 500 Index: Market capitalization-weighted benchmark of 500 stocks selected by the Standard and Poor's Index Committee designed to represent the performance of the leading industries in the United States economy. About WisdomTree WisdomTree is a global financial innovator, offering a diverse suite of exchange-traded products (ETPs), models and solutions, as well as digital asset-related products. Our offerings empower investors to shape their financial future and equip financial professionals to grow their businesses. Leveraging the latest financial infrastructure, we create products that emphasize access, transparency and provide an enhanced user experience. Building on our heritage of innovation, we offer next-generation digital products and services related to tokenized real world assets and stablecoins, as well as our blockchain-native digital wallet, WisdomTree Prime ® and institutional platform, WisdomTree Connect™.* WisdomTree is a global financial innovator, offering a diverse suite of exchange-traded products (ETPs), models and solutions, as well as digital asset-related products. Our offerings empower investors to shape their financial future and equip financial professionals to grow their businesses. Leveraging the latest financial infrastructure, we create products that emphasize access, transparency and provide an enhanced user experience. Building on our heritage of innovation, we offer next-generation digital products and services related to tokenized real world assets and stablecoins, as well as our blockchain-native digital wallet, WisdomTree Prime ® and institutional platform, WisdomTree Connect™.* * The WisdomTree Prime digital wallet and digital asset services and WisdomTree Connect institutional platform are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, in select U.S. jurisdictions and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit the WisdomTree Prime mobile app or for more information. WisdomTree currently has approximately $116.5 billion in assets under management globally, as of April 3, 2025. The products and services available through the WisdomTree Prime app and WisdomTree Connect are not endorsed, indemnified or guaranteed by any regulatory agency. View source version on CONTACT: Media Relations WisdomTree, Inc. Jessica Zaloom +1.917.267.3735 Natasha Ramsammy +1.917.267.3798 KEYWORD: UNITED STATES NORTH AMERICA NEW YORK INDUSTRY KEYWORD: FINANCE CONSULTING BANKING PROFESSIONAL SERVICES ASSET MANAGEMENT SOURCE: WisdomTree, Inc. Copyright Business Wire 2025. PUB: 04/04/2025 08:00 AM/DISC: 04/04/2025 08:03 AM
Yahoo
04-04-2025
- Business
- Yahoo
WisdomTree Announces Equity Premium Income Fund (WTPI)
WTPI seeks to offer attractive income opportunities amid market uncertainty NEW YORK, April 04, 2025--(BUSINESS WIRE)--WisdomTree, Inc. (NYSE: WT), a global financial innovator, today announced the name and ticker change of the WisdomTree PutWrite Strategy Fund (PUTW) to the WisdomTree Equity Premium Income Fund (WTPI). The Fund remains listed on the NYSE Arca exchange and has an expense ratio of 0.44%. WTPI seeks to track the price and yield performance, before fees and expenses, of the Volos U.S. Large Cap Target 2.5% PutWrite Index 1. "Elevated market valuations have tempered expectations for outsized upside for the S&P 500 in 2025, especially with ongoing policy-related economic uncertainties. We believe WTPI provides an attractive strategy for this environment, particularly for income-seeking investors," said Jeremy Schwartz, Global Chief Investment Officer at WisdomTree. "Our strategy is designed to provide consistent income by capitalizing on the volatility premium in the options market." WTPI is designed to perform relatively well versus traditional equity strategies in flat-to-down markets. The Fund aims to generate consistent income by selling put options2 bi-weekly on the S&P 500 Index 3, targeting a 2.5% premium. By increasing its sensitivity to equity market movements, the Fund offers greater income potential, making it a compelling solution for investors navigating volatile market environments. Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. For a prospectus or, if available, the summary prospectus containing this and other important information about the fund, call 866.909.9473 or visit Read the prospectus or, if available, the summary prospectus carefully before investing. There are risks associated with investing, including possible loss of principal. The Fund will invest in derivatives, including S&P 500 Index put options ("SPX Puts"). Derivative investments can be volatile, and these investments may be less liquid than securities, and more sensitive to the effects of varied economic conditions. The value of the SPX Puts in which the Fund invests is partly based on the volatility used by market participants to price such options (i.e., implied volatility). The options values are partly based on the volatility used by dealers to price such options, so increases in the implied volatility of such options will cause the value of such options to increase, which will result in a corresponding increase in the liabilities of the Fund and a decrease in the Fund's net asset value (NAV). Options may be subject to volatile swings in price influenced by changes in the value of the underlying instrument. The potential return to the Fund is limited to the amount of option premiums it receives; however, the Fund can potentially lose up to the entire strike price of each option it sells. Due to the investment strategy of the Fund, it may make higher capital gain distributions than other exchange-traded funds (ETFs). Please read the Fund's prospectus for specific details regarding the Fund's risk profile. WisdomTree Funds are distributed in the U.S. by Foreside Fund Services, LLC. Foreside Fund Services, LLC, is not affiliated with the other entities mentioned. Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC. 1 Volos U.S. Large Cap Target 2.5% PutWrite Index: Tracks the value of a cash-secured (i.e., collateralized) put option sales strategy, which consists of selling (or "writing") put options on the SPDR S&P 500 ETF Trust (SPY) and a cash collateral account that accrues interest at a theoretical three-month Treasury bill rate.2 Put options: An option to sell assets at an agreed price on or before a particular date.3 S&P 500 Index: Market capitalization-weighted benchmark of 500 stocks selected by the Standard and Poor's Index Committee designed to represent the performance of the leading industries in the United States economy. About WisdomTreeWisdomTree is a global financial innovator, offering a diverse suite of exchange-traded products (ETPs), models and solutions, as well as digital asset-related products. Our offerings empower investors to shape their financial future and equip financial professionals to grow their businesses. Leveraging the latest financial infrastructure, we create products that emphasize access, transparency and provide an enhanced user experience. Building on our heritage of innovation, we offer next-generation digital products and services related to tokenized real world assets and stablecoins, as well as our blockchain-native digital wallet, WisdomTree Prime® and institutional platform, WisdomTree Connect™.* * The WisdomTree Prime digital wallet and digital asset services and WisdomTree Connect institutional platform are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, in select U.S. jurisdictions and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit the WisdomTree Prime mobile app or for more information. WisdomTree currently has approximately $116.5 billion in assets under management globally, as of April 3, 2025. For more information about WisdomTree, WisdomTree Connect and WisdomTree Prime, visit: Please visit us on X at @WisdomTreeNews. WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide. PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME: NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE |NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY The products and services available through the WisdomTree Prime app and WisdomTree Connect are not endorsed, indemnified or guaranteed by any regulatory agency. View source version on Contacts Media RelationsWisdomTree, Zaloom+1.917.267.3735jzaloom@ Natasha Ramsammy+1.917.267.3798nramsammy@ / wisdomtree@
