Happy Friday! We’re back after a day of closed markets. In case you missed it, the Fed held rates steady; however, the highly anticipated dot plot shows a reduction in cuts for 2026 and 2027 as inflation remains stubborn. Learn more about the debated decision.

Also, Elon Musk and top financial experts are sounding the alarm on America’s growing debt crisis and its potential impact on the economy. Read on for the full breakdown and what it means for the market and your portfolio.

Plus, if you’re looking to harness the power of leveraged and inverse ETFs in volatile markets, check out today’s sponsor.

In Today's Edition

• MARKET RECAP

• FIVE ZINGERS

• MARKET HISTORY

• ONE FOR THE ROAD

No Rate Cuts Yet: Fed Flags Slower Growth, Sticky Inflation

The Federal Reserve held interest rates steady at 4.25%-4.50% for a fourth straight meeting on Wednesday, aligning with market expectations while signaling slower growth and hotter inflation ahead compared to its March forecast.

New projections show core PCE inflation rising to 3.1% next year, up from 2.8% in March, while GDP growth for 2025 was cut to 1.4% from 1.7%.

The Fed’s tone was a bit more confident about the economy overall, saying uncertainty has “diminished,” but it dropped earlier warnings about risks from both inflation and unemployment. The labor market remains solid, with unemployment projected to tick up only slightly.

The median preference points to two cuts in 2025, unchanged from the March projection. However, the updated dot plot shows cuts for 2026 and 2027, and has gained a lot of attention on Wall Street. Read on for the full details.

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Yesterday: U.S. indexes finished mostly lower Wednesday after the Federal Reserve — as expected — left its key interest rate unchanged at 4.25–4.5%. The Dow and S&P 500 both finished down on the day; however, the Nasdaq was able to squeak out a positive gain. It was a mixed bag for investors, as the Fed maintained its projection for two rate cuts this year but also hinted at a potential stagflationary threat. Policymakers lowered their 2025 GDP growth forecast to 1.4% and raised the core inflation outlook to 3.1%, signaling a more cautious economic outlook. Technology and utility stocks led market gains, while energy and communication sectors declined. Treasury yields climbed, with the 10-year yield at 4.39%, and oil prices rose amid escalating tensions between Israel and Iran.

On Our Radar: Analysts will be paying attention to the U.S. leading economic indicators report — due later this morning — for insights into the health of the economy and potential changes in monetary policy. On the earnings front, all eyes will be on FactSet (FDS), which reports before the opening bell on Monday.

AI Takeover: Amazon CEO Andy Jassy warns that generative AI will make parts of the corporate workforce obsolete as the company rapidly integrates AI across Alexa, AWS, ads and customer service. Find out how Amazon’s AI push could redefine the future of work, and what it means for your career or investments.

Stable Surge: Shares of Circle soared more than 20% after the Senate passed the GENIUS Act, a landmark bill establishing clear rules for stablecoins. With stablecoins poised to go mainstream and Circle leading the way, see how this regulatory breakthrough could reshape the future of finance. To date, shares are up nearly 500% in just two weeks.

Coin Surge: Shares of Coinbase jumped more than 13% and hit a 4-month high after unveiling Coinbase Payments, a new system that lets anyone pay in stablecoins. With Shopify onboard and favorable regulation from lawmakers, click to see how Coinbase is building the future of global checkout.

McSlump: Shares of McDonald’s just dropped below its 200-day moving average, signaling a potential long-term downtrend despite the launch of its new UK burger, "The Big Arch." With momentum slipping and traders piling on downside bets, read on to see if the fast-food giant is headed for a value meal or a value trap.

Fool’s Gold?: Gold has dazzled investors with fresh 52-week highs, but some experts say the shine won’t last. Analysts at Citi are now forecasting a steep drop by 2026 — and their target may surprise you. Click to uncover the reasons behind the bearish call and how low they expect gold to fall.

With the Fed out of the way, traders are shifting focus to key macro data, tariff headlines and rising geopolitical risk. Join Matt Maley as he shares the real trades he’s targeting this week — including how he plans to repeat his recent wins on SQQQ and GDX by staying nimble, tactical, and tuned into market signals.

On This Day In 2019…

Slack went public on the New York Stock Exchange under the ticker symbol “WORK” via a direct listing, bypassing a traditional IPO. Shares opened at $38.50, significantly above the $26 reference price, and closed at $38.62, giving the company a market valuation of $19.5 billion. The strong debut underscored investor enthusiasm for enterprise software firms and validated the direct listing model, previously used by Spotify, as a viable alternative for tech companies entering public markets. Building on its early success, Slack continued to grow rapidly and was quickly acquired by Salesforce, which announced its acquisition of the company on December 1, 2020, in a landmark deal worth $27.7 billion.

QUOTE OF THE DAY

“The idea of investing in stocks without understanding the companies behind them is the same as taking your money to the casino.”

— Philip Fisher

Elon Musk Warns US Faces 'De Facto' Bankruptcy If $37 Trillion Debt Not Tackled, Peter Schiff Says, 'We Are Already Bankrupt'

Elon Musk is sounding the alarm — and this time, it’s not about AI or space travel.

As the U.S. national debt surges past $37 trillion, Musk warns the country is drifting toward “de facto bankruptcy” as interest payments alone now consume 25% of all federal tax revenue. Economist Peter Schiff isn’t mincing words either, declaring the U.S. is already bankrupt, saying: “It’s just a matter of time before it’s obvious to our creditors.”

Musk and Schiff are part of a growing chorus of leaders and Wall Street veterans — such as JPMorgan CEO Jamie Dimon — who continue to express frustration and unease with the mounting debt.

The idea that tax revenue could soon be entirely consumed by debt service isn’t just a hypothetical — it’s edging closer to reality. Are you prepared for what’s next? Read on to find out how to navigate the risk.

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