✋ Why the Fed is on a Holding Pattern

Plus, invest right now in the innovators of tomorrow, and more

January 29, 2025

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Happy Wednesday! The Federal Reserve is expected to maintain its cautious stance, signaling no urgency to cut rates despite market hopes for easing. Stay ahead of the Fed’s next move — and what it means for stocks, bonds and the broader economy. Also, discover the innovations of tomorrow, today.

—Josh Enomoto

Plus, if you’re interested in getting seeing how AI can help you trade, check out today’s sponsor.

MARKET RECAP

Last week: Stocks rose Tuesday, led by a rebound in technology shares after Monday’s sell-off sparked by competition from Chinese AI startup DeepSeek. Bond yields edged higher, and attention now turns to the Fed’s FOMC meeting and key tech earnings reports from Microsoft, Meta, Apple and Amazon later this week. Investors remain focused on broadening market leadership beyond the tech sector, highlighting opportunities for diversification.

On Our Radar: Following Fed Chair Jerome Powell’s comments, the market’s attention will turn to the Q1 GDP report and initial jobless claims. On the earnings front, analysts will be eager to assess Eagle Materials’ results.

TOP STORY
Where the money is made!

The Fed is likely to hold rates steady while hinting at a higher threshold for future cuts amid strong growth and sticky inflation.

SPONSORED CONTENT

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Back then, while the world marveled at its first taste of the digital revolution, savvy traders were already relying on VantagePoint’s cutting-edge A.I. for market predictions.

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Please note examples are from past data and are success stories. Trading involves financial risk and is not suitable for all investors. Past results do not guarantee future performance.

FIVE ZINGERS

Bouncing Back: Tech stocks rebounded following Monday's implosion, which was triggered by China's DeepSeek. Discover the names benefiting the most from the recovery effort.

Green Light: The FDA approved Novo Nordisk's weight-loss drug Ozempic for the treatment of chronic kidney disease in patients who also suffer from type 2 diabetes. Learn about the wider implications of this approval.

Kill Joy: Melius Research analyst Ben Reitzes downgraded semiconductor giant AMD from Buy to Hold, while also lowering the price target to $129. Read the non-DeepSeek reason why.

Going Under: LendingClub posted its Q4 results, missing the consensus EPS target of 9 cents by a penny but beating on revenue. Here's what management had to say regarding key metrics like loan originations.

Side Eye: Tech giants Microsoft and Amazon could raise the ire of U.K. regulators due to a lack of competition. Read about the companies' response to the allegations.

SPECIAL OFFER

Editor’s Note: Every week, Benzinga Edge members receive the Insider Report. It’s a rundown of what to expect from the markets in the week to come, which sectors are outperforming and why, and most importantly, a selection of hand-picked stocks that are poised to move up because of that week’s trends. Here’s a sneak peek:

Investing in companies with high revenue growth rates that are under-owned by institutions is a tried-and-true way to score big returns. Institutional ownership often signals that a stock is already on the radar, but the real money is made when you spot it before the big players do. These overlooked companies often hold incredible potential, and savvy individual investors can enter early to reap the rewards.

Let us dig into this strategy and take a closer look at three companies that fit the bill: Hippo Holdings (HIPO), Cleanspark (CLSK), and GigaCloud Technology (GCT).

High-growth companies are usually at an exciting stage in their journey. They are expanding rapidly thanks to innovative business models, cutting-edge technologies, or solutions to problems no one else has resolved. Yet many of these companies go unnoticed by institutional investors, often because they are smaller or do not have enough Wall Street attention. That is where individual investors can step in and find the gems before the crowd does.

To keep reading and to find out how investors can prepare for the coming oil price rollercoaster, sign up for Benzinga Edge here.

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