Happy Thursday! The timing of the Fed’s next interest rate cut remains a hot topic as investors eagerly await the Fed’s next move amid mixed signals and mounting pressures. What will ultimately drive the decision, and how could it reshape the market? Read on to get the latest insights that could impact your portfolio.

Also, Tesla and SpaceX are some of the most exciting names in innovation today, but their growth stories are heading in different directions. Renowned investor Cathie Wood shares her latest valuation projections on where these companies could be in 2030.

Plus, if you’re looking for a sports investment with growing momentum across Latin America and the U.S., check out today’s sponsor.

In Today's Edition

• MARKET RECAP

• FIVE ZINGERS

• MARKET HISTORY

• ONE FOR THE ROAD

Will The Fed Cut Rates In 2025? Powell Says It All Depends On This

When will the Fed cut rates? It’s the million-dollar question on every investor’s mind.

Fed Chair Jerome Powell has hinted that rate cuts may be coming, but not just yet. Inflation has eased from last year’s peaks but remains stubbornly above the Fed’s target, prompting the central bank to hold steady for the moment.

It has been anticipated that two rate cuts will be coming later this year, but according to Fed officials, it all depends on whether economic signals fall into place. Faced with pressure from President Trump, some Fed officials have started embracing cutting rates sooner rather than later.

But for Powell, the biggest wild card is tariffs. The Fed Chair singled out recent trade measures as a key uncertainty in the inflation outlook. The impact could be “short-lived” or potentially “more persistent" depending on the impact on supply chains and consumer costs.

Will Powell fold to Trump and hasten the Fed’s next move — or will the Fed stay data dependent despite calls for cuts? Read on for more insights and analysis to stay ahead of the curve.

Sportradar Group AG (NASDAQ: SRAD) recently opened an office in Brazil, a country in which it has been operating for nearly a decade and where government regulation of gambling could help accelerate sports betting. The move also signals the company’s intention to expand throughout Latin America and beyond. And its opportunities may be expanding dramatically as scores of countries regulate legal gaming and dozens more remain potential markets in the future. Given that the majority of states in America have legal sports betting, will proposed new regulation create even more opportunity in the U.S.?

Learn more about Sportradar here.

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Yesterday: U.S. stocks ended mostly flat Wednesday as markets took a breather following early-week gains fueled by easing geopolitical tensions. Growth sectors led the way, with technology and communication services outperforming, while most other sectors were flat or lower. New home sales for May missed expectations, reinforcing signs of a cooling housing market. Treasury yields were mostly steady, with the 10-year closing just below 4.3% and the 2-year slipping to 3.77%. Investors are now focused on Friday’s release of the Fed’s preferred inflation gauge, PCE, which is expected to show modest monthly increases. Despite concerns over tariffs, recent CPI data showed minimal price pressures, supporting expectations for one to two rate cuts in the second half of the year.

On Our Radar: Analysts will be watching the home sales report — due this morning — for clues on the state of the housing market. On the earnings front, all eyes will be on Nike (NKE) as the company is set to report earnings after the bell today.

Golden Cross: Shares of Nvidia just set a new 52-week high, and the momentum doesn’t appear to be slowing down — technical analysts have spotted a “golden cross,” a bullish technical cue that’s historically sent shares soaring. Read on for all the details.

Lockheed & Loaded: BlackRock is going all-in on U.S. defense and tech firms as rising global tensions push national security to the top of the investment agenda. From AI to missiles, see which stocks are in the crosshairs — and how you can position your portfolio before the next move.

Globe on Hold: Travel plans are taking a detour, and Visa and Mastercard will likely feel the brunt of it as travelers tighten their wallets and cut back on overseas spending. Discover how this shift in travel habits could impact your portfolio.

Breaking Out: Geopolitical jitters and shaky consumer sentiment haven’t stopped markets from climbing to highs, and a select group of small-cap stocks is starting to heat up. Check out these five undervalued names that are flashing breakout signals.

Gold Rush: U.S. Gold Corp. is polishing its portfolio with a cash boost, glittering gold prices and a shiny new feasibility study for its flagship CK Gold Project. With index inclusion around the corner and analyst upping their price targets, dig into why this stock might be a golden opportunity.

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On This Day In 2024…

Shares of FedEx soared nearly 15%, marking its best single-day performance in nearly four decades (1986), and hitting a three-year high ($295) in the process. The surge followed a strong Q4 earnings beat and outlook. Investors also cheered news that FedEx was exploring a spin-off of its Freight division, a move analysts say could unlock significant shareholder value. This, combined with a $2.5 billion buyback plan and a 10% dividend boost, helped FedEx send a clear message to Wall Street. It was a textbook case of everything going right — earnings, strategy and investor sentiment all aligning to deliver a historic rally. Shares went on to nearly hit an all-time high before tumbling over the past year. As of today, shares are $222, down 14% from exactly a year ago.

QUOTE OF THE DAY

“In investing, what is comfortable is rarely profitable.”

— Seth Klarman

Tesla vs. SpaceX: Cathie Wood Reveals Her Surprise Pick For 2030 Dominance

Tesla and SpaceX are the twin engines powering Elon Musk’s empire.

Both continue to push the boundaries of innovation, but each on a very different trajectory. While both companies offer massive potential, the real question for investors is: which one is poised to deliver the bigger return going forward?

According to Cathie Wood, the projected gap between Tesla and SpaceX by 2030 is bigger than most people would anticipate. One is on track to dominate markets and headlines, while the other is quietly gaining ground, operating largely out of view — and potentially offering a stealthier, higher-upside opportunity.

Both are aiming for the stratosphere, but only one may define the next decade of growth. And if you're looking to capitalize, you’ll need to know where to look — and how to get in.

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