Happy Wednesday! Investor Ray Dalio is sounding the alarm amid a stark warning from Moody's about elevated U.S. deficits. Here's what this could mean for investors — and how they should respond. Also, investors may consider these less-heralded market opportunities.

—Josh Enomoto

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MARKET RECAP

Yesterday: Stocks rose Tuesday as easing tariff concerns and sector strength in communications and consumer discretionary lifted sentiment. Bond yields dipped, while international markets gained on trade optimism and automotive momentum. Markets now look ahead to inflation data and housing signals for further direction.

On Our Radar: After reviewing durable goods orders, analysts will check in on Thursday’s initial jobless claims. On the earnings front, analysts will be dissecting Dollar Tree’s financial print on Wednesday before the open.

TOP STORY

Debt Alarm Bells Ring In Washington As Moody's, Ray Dalio Call For Urgent Fiscal Discipline

Investment expert Ray Dalio has grown desperately concerned about the latest Moody's report pointing to elevated U.S. deficits.

Here's what this means for the market — and how investors can respond.

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FIVE ZINGERS

Trump Trade: President Trump has taken a softer approach when it comes to tariffs. Discover why Goldman Sachs analysts are unmoved.

Bronze Star: Industrial metal copper saw a significant pop on Tuesday, reaching new highs. Read about what is fueling this demand surge.

Zig Zag: While 2025 has been a tricky arena to extract capital gains, it's not impossible. Here's one contrarian approach to elevated success.

Good Vibes: Although Nvidia has struggled amid a challenging environment for tech this year, there could be room for upside. Discover the technical catalyst that could send shares higher.

Heating Up: Chinese AI startup DeepSeek released its upgraded model, offering enhanced reasoning and coding abilities. Learn how this is impacting the tech ecosystem.

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Peter Lynch, who managed Fidelity’s Magellan Fund from 1977 to 1990, achieved legendary status by generating an average annual return of 29.2% during his tenure. His ability to identify growth stocks before they caught Wall Street’s attention was a key factor in his extraordinary success. Here’s how Lynch developed and applied his growth stock-picking strategy.

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When Lynch’s wife brought home Hanes’ L’eggs pantyhose, he recognized the product’s innovative packaging and distribution model. This personal observation led him to investigate the company, ultimately investing in Hanes before Wall Street fully appreciated its growth potential.

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