MARKET RECAP

Yesterday: U.S. indexes finished higher Wednesday, snapping a two-day losing streak as news came out that China and the U.S. will hold trade talks this weekend — sparking hopes of de-escalation in the ongoing trade dispute. The U.S. dollar strengthened as bond yields fell, with the 10-year Treasury yield dipping to 4.28%, while oil prices dropped to a four-year low, fueled by ongoing concerns over an oversupply from OPEC+. The Federal Reserve held interest rates steady at 4.25%-4.5% during its May meeting, as expected, with policymakers acknowledging rising risks to both inflation and employment. The Fed's projections suggested two rate cuts later this year, with bond markets anticipating the first cut in July. Despite concerns about tariffs and inflation, the Fed’s stance indicates it is waiting for more clarity on their impact before adjusting policy further.

On Our Radar: Analysts will be monitoring the wholesale inventories report for clues on supply chain trends and inflationary pressures. On the earnings front, Cloudflare, DraftKings, Lyft and Expedia will headline a slate of major earnings reports after the market close. So far, 84% of S&P 500 companies have reported earnings, and 77% of those have beaten analyst expectations.

TOP STORY

Powell Flags Sharp Tariff Shock, Elevated Uncertainty: Fed Sticks To 'Wait-And-See' Mode

The Federal Reserve pressed pause on rate hikes for the third straight meeting, opting to hold the federal funds rate steady at 4.25%-4.50%. On the surface, it’s business as usual — but a deeper look at the Fed’s latest statement and comments by Fed chair Jerome Powell reveals a subtle but significant shift in tone. While the economy is still showing signs of strength, rising concerns over inflation, tariffs, and unemployment are clouding the outlook.

What’s more, the central bank’s added language about “rising uncertainty” and growing risks hints that policymakers are beginning to question whether the current trajectory can hold.

While the Fed remains cautious and unwilling to rush into action, Powell emphasized the need for more clarity on the long-term impact of these policy shifts before making any decisions. The central bank is adopting a "wait-and-see" approach, aware that inflation and employment are both moving in directions that may force difficult trade-offs down the road.

The Fed may be pausing, but your strategy shouldn't. Read on for the full story and what the Fed’s decision and outlook mean for your investments.

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FIVE ZINGERS

Growth Kingdom: Disney shares soared after the company not only crushed analyst estimates, but raised its full-year outlook too. Along with a new major theme park announcement, see if this is your ticket to the Magic Kingdom of long-term growth.

Off The Market: Zillow topped Q1 estimates with strong revenue and buybacks, but soft Q2 guidance send shares lower. Peek inside to see if this housing heavyweight is still a solid investment — or if cracks are starting to show.

Latin Boom: Shares of MercadoLibre are soaring after crushing analyst expectations. Discover what’s fueling this Latin American giant’s breakout.

Chip Rally: Semiconductor stocks jumped after reports that the Trump administration will likely reverse the Biden-era AI chip export restrictions. With Nvidia and AMD on the rise, see how this policy shift could reshape global tech trade.

Cyber Crash: Despite beating estimates, shares of Fortinet took a sharp dive following its Q1 results. Here’s a look at why the cybersecurity giant is falling.

ONE FOR THE ROAD

Apple, Alphabet Shares Tumble Amid Potential AI Search Shift

Wall Street is buzzing after a surprising ripple shook two of its biggest giants. Shares of both Apple and Alphabet took a noticeable hit, as reports show that Apple is quietly looking to move away from its long-standing search partnership with Google.

The tech giant is exploring AI-driven search tools — potentially setting the stage for a major shake-up in how users browse the web. Apple senior vice president Eddy Cue testified in a U.S. antitrust trial on Wednesday that the company is actively looking at integrating an AI-powered search engine into Safari, its default web browser.

AI tools continue to eat into traditional search traffic, with Apple reporting a drop in searches in Safari for the first time ever. Read on to see what this could mean for the future of tech.

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