Happy Wednesday! The Fed signaled no urgency in cutting rates, with Powell warning that easing too soon could derail inflation progress. Here’s what that means for investors — and how to navigate a market where high rates may stick around longer than expected. Also, discover undervalued stocks that other traders are ignoring.

—Josh Enomoto

Plus, if you’re interested in a smarter way to invest in biotech innovations, check out today’s sponsor.

MARKET RECAP

Last week: Stocks finished mixed Tuesday as investors braced for key inflation data, with the S&P 500 flat and the Nasdaq slightly lower. Energy stocks led gains, supported by rising oil prices, while bond yields climbed as markets adjusted to ongoing trade uncertainties.

On Our Radar: After digesting the core CPI report, the economic spotlight will next turn to Thursday’s initial jobless claims and the producer price index. On the earnings front, Cisco Systems will disclose its fiscal Q2 results after Wednesday’s close.

TOP STORY

Fed's Powell Reiterates No 'Hurry' To Cut Interest Rates As Inflation Remains 'Somewhat Elevated'

Policymakers reaffirmed their cautious stance, emphasizing that inflation remains "somewhat elevated" despite recent progress.

Here’s how that stance could reshape market expectations — and what investors can do to stay ahead.

SPONSORED CONTENT

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FIVE ZINGERS

Electric Vibes: Tesla CEO Elon Musk declared that he's not worried about President Trump stopping the rise of EVs. Learn why he's so confident about the mobility evolution.

Safety Net: While Social Security is a crucial lifeline for retirees, it faces a funding shortfall. Discover the potential solutions for the vexing problem.

Good Advice: Amazon and Google-backed AI company Anthropic has urged job seekers to not use AI when applying for positions it offers. Learn why the innovation is causing havoc in the job market.

Green Light: The White House negotiated the release of Marc Fogel, a legal medical marijuana patient, from Russia. Read how this news relates to the war in Ukraine.

Bank Run: Lending platform Upstart posted its Q4 earnings results following Tuesday's closing bell. Here are the stats that sent UPST stock flying during afterhours trading.

SPECIAL OFFER

Under The Radar: Uncovering Profitable, Undervalued Stocks

Editor’s Note: Every Tuesday, Benzinga Edge members receive the Under the Radar pick, detailing a very profitable stock or market trend that no one’s talking about. Here’s a sneak peek at yesterday’s:

One of the most valuable and profitable papers written during my career came from Professor Robert Novy-Marx, a professor at the University of Rochester’s Simon Business School. I was reminded of this paper when I sat down last week to read Dan Rasmussen of Verdad Capital’s new book “The Humble Investor.”

I highly recommend the book, by the way. It earns my highest praise: the label as a book that will make you money.

Novy-Marx's groundbreaking 2013 paper, “The Other Side of Value: The Gross Profitability Premium,” published in the Journal of Financial Economics, changed my view, and many others’, of finding and investing in great companies.

The core of Novy-Marx’s discovery lies in what he termed the “gross profitability premium.” His research demonstrated that profitable firms generate significantly higher returns than unprofitable firms.

While that sounds like common sense, look at the profitability of all the story, hopes and dreams stocks floated around today, and you are likely to find low or non-existent profitability.

Get all the details from yesterday’s Benzinga Edge-exclusive Under the Radar report. Click here to get a sneak peek.

SPONSORED CONTENT

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