Fed Holds Rates Steady, Nasdaq Slightly Up
The major averages finished the day mostly unchanged, with the Nasdaq marginally higher after the Federal Reserve left the federal funds rate unchanged at 3.50%-3.75%, as was expected. In a statement on the move, the Fed cited unemployment stabilization as a reason to hold rates steady, noting that Fed governors Miran and Waller wanted to cut rates. Meanwhile, investors are positioning ahead of after-hours earnings releases from big tech names including Meta, Microsoft and Tesla, which could set the tone for risk appetite once those reports start rolling in.Looking to commodities, gold continued to surge to record highs, while oil was also on the rise.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Seagatereportedand provided guidance for Q3Texas Instrumentsreportedbut provided an upbeat outlook for Q1AT&Treportedand issued its outlook for 2026-2028Amazonannounced plans toamid "organizational changes"The Federal Reserve left the federal funds rate2. WALL STREET CALLS:Visato Buy from Neutral at Rothschild & Co RedburnKorro Bioto Overweight at Cantor Fitzgerald and to Outperform at OppenheimerCircle Internetto Neutral at Mizuho with Polymarket as a "looming catalyst"PayPalto Sell at Rothschild & Co RedburnBJ's Wholesaleto Hold at Jefferies3. AROUND THE WEB:Blackstoneis mulling a debt investment in Oracle'sdata center project in Michigan, Bloomberg reportsC3 AIis in talks to merge with startup Automation Anywhere, The Information saysTeslaCEO Elon Musk is targeting mid-June for the timing of SpaceX's initial public offering, IPO, FT reportsSoftBankis in talks to invest up to an additional $30B in OpenAI, WSJ saysDeutsche Bank'soffices in Frankfurt and Berlin have been raided by German authorities as part of a money laundering probe that is looking at past dealings by staff with firms linked to the now-sanctioned Roman Abramovich, Bloomberg reports4. MOVERS:Palladynehigher after being awarded a contract by theStrideincreases afterand providing guidance for Q3 and FY26Nextpowerrises afterand raising its guidance for FY26Regenxbiofalls after the FDA placed aRichtech Roboticslower after announcing a5. EARNINGS/GUIDANCE:Starbucksreportedand provided guidance for FY26Corning, with EPS and revenue beating consensusExtreme Networksand provided guidance for Q3 and FY26Scotts Miracle-Gro, with EPS beating consensusBrinkerand raised its guidance for FY26INDEXES:The Dow rose 12.19, or 0.025%, to 49,015.60, the Nasdaq gained 40.35, or 0.17%, to 23,857.45, and the S&P 500 declined 0.57, or 0.0082%, to 6,978.03.
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Bridge Secures Conditional Approval for National Trust Bank Charter
- Regulatory Approval Progress: Bridge announced it has secured conditional approval from the Office of the Comptroller of the Currency to establish a federally chartered national trust bank, indicating that its stablecoin products and services will be under direct federal oversight, thereby enhancing market trust.
- Compliance Framework Advantage: The company stated that its compliance framework is already positioned to meet the requirements of the GENIUS Act, and once the national trust bank charter is achieved, it will be able to offer services such as stablecoin issuance, digital asset custody, and reserve management, thereby boosting customer confidence and facilitating scalable operations.
- Industry Trend Response: This move reflects the increasing trend of cryptocurrency firms pursuing banking licenses, and Bridge's approval will enable it to comply with the recently passed GENIUS Act standards, promoting the issuance and operation of dollar-backed stablecoins.
- Market Outlook: As the regulatory environment becomes clearer, Bridge's development will lay the groundwork for its expansion in the stablecoin market, expected to attract more customers and enhance its competitive position.
Cathie Wood Discusses Bitcoin's Recent Weakness
- Algorithmic Trading Impact: Cathie Wood argues that Bitcoin's recent weakness reflects algorithmic trading effects rather than deteriorating fundamentals, indicating that market sentiment towards cryptocurrencies remains risk-oriented.
- Bitcoin vs. Gold Comparison: She notes Bitcoin's underperformance relative to gold as a result of systematic algorithm-driven trading models, suggesting skepticism about Bitcoin's value, which could affect its long-term investment appeal.
- Advisory Role at LayerZero: Wood has joined the advisory board of LayerZero, emphasizing the cross-chain protocol's potential in the AI-driven digital economy, capable of handling millions of transactions per second, surpassing existing networks like Ethereum.
- Ark Invest's Crypto Investment: Ark Invest recently invested approximately $18 million in crypto-related equities, including $2 million in Bullish and $12 million in Robinhood, demonstrating ongoing confidence and strategic positioning in the crypto market.
Market Dynamics and Company Updates
- Inflation Data Decline: The January Consumer Price Index (CPI) rose 2.4% year-over-year, below the expected 2.5%, indicating easing inflationary pressures that could influence the Federal Reserve's monetary policy decisions, thereby positively impacting market sentiment.
- Tariff Adjustments: President Trump plans to roll back some tariffs on steel and aluminum, causing shares of U.S. steelmakers like Nucor and Cleveland-Cliffs to drop in premarket trading, reflecting market sensitivity to policy changes and their potential impact on related industries.
- Strong Performance from Applied Materials: The semiconductor equipment maker reported sales and earnings that exceeded expectations, with shares jumping 10%, indicating robust industry demand that may attract more investor interest in the sector's growth potential.
- DraftKings Performance Decline: The sportsbook operator's shares plunged over 15% after providing a disappointing 2026 revenue outlook, reflecting market concerns about its future growth, which may lead investors to reassess their investment strategies.
Anthropic's Valuation Reaches $380 Billion as AI Thrives Amid Software Struggles
Software vs. AI: The article discusses the ongoing competition between traditional software and artificial intelligence, highlighting that software is struggling to keep up with advancements in AI technology.
Impact on Industries: The rise of AI is transforming various industries, leading to a shift in how tasks are performed and potentially displacing traditional software solutions.
Future of Development: As AI continues to evolve, the future of software development may increasingly rely on integrating AI capabilities, changing the landscape of programming and application design.
Challenges for Software: The article emphasizes the challenges faced by software developers in adapting to the rapid changes brought about by AI, which may require new skills and approaches to remain relevant.
Lighter Collaborates with Circle to Distribute Yield from USDC Deposits on Its Platform
- Partnership Announcement: Perp DEX has partnered with USDC issuer Circle to enhance their platform's offerings.
- Interest Generation: The collaboration aims to share the interest generated from approximately $9.2 billion in USDC deposits on the platform.
Stablecoin Market Analysis: Comparing USDC and RLUSD
- Market Value Comparison: USD Coin boasts a market cap of $73.3 billion, making it the second-largest stablecoin globally, while Ripple USD's market cap is only $1.5 billion, ranking ninth, highlighting significant differences in market acceptance and investor confidence between the two.
- Transparency and Security: USD Coin is backed 1:1 by U.S. dollars and short-term Treasuries, with regular independent audit reports ensuring its transparency and security, whereas Ripple USD relies on the reputation of multiple issuing gateways, introducing certain risks.
- Investor Preference: For most conservative investors, USD Coin is viewed as the superior choice due to its straightforward structure and independence from individual issuers, while Ripple USD's decentralized, trust-based model, although innovative, may lead to less stability.
- Use Cases and Yields: The rapid cross-border transfer capabilities and yields exceeding traditional bank savings make stablecoins particularly valuable in hyperinflationary countries, with both USD Coin and Ripple USD catering to different investor needs, especially for privacy-conscious users.
Bridge Secures Conditional Approval for National Trust Bank Charter
- Regulatory Approval Progress: Bridge announced it has secured conditional approval from the Office of the Comptroller of the Currency to establish a federally chartered national trust bank, indicating that its stablecoin products and services will be under direct federal oversight, thereby enhancing market trust.
- Compliance Framework Advantage: The company stated that its compliance framework is already positioned to meet the requirements of the GENIUS Act, and once the national trust bank charter is achieved, it will be able to offer services such as stablecoin issuance, digital asset custody, and reserve management, thereby boosting customer confidence and facilitating scalable operations.
- Industry Trend Response: This move reflects the increasing trend of cryptocurrency firms pursuing banking licenses, and Bridge's approval will enable it to comply with the recently passed GENIUS Act standards, promoting the issuance and operation of dollar-backed stablecoins.
- Market Outlook: As the regulatory environment becomes clearer, Bridge's development will lay the groundwork for its expansion in the stablecoin market, expected to attract more customers and enhance its competitive position.
Cathie Wood Discusses Bitcoin's Recent Weakness
- Algorithmic Trading Impact: Cathie Wood argues that Bitcoin's recent weakness reflects algorithmic trading effects rather than deteriorating fundamentals, indicating that market sentiment towards cryptocurrencies remains risk-oriented.
- Bitcoin vs. Gold Comparison: She notes Bitcoin's underperformance relative to gold as a result of systematic algorithm-driven trading models, suggesting skepticism about Bitcoin's value, which could affect its long-term investment appeal.
- Advisory Role at LayerZero: Wood has joined the advisory board of LayerZero, emphasizing the cross-chain protocol's potential in the AI-driven digital economy, capable of handling millions of transactions per second, surpassing existing networks like Ethereum.
- Ark Invest's Crypto Investment: Ark Invest recently invested approximately $18 million in crypto-related equities, including $2 million in Bullish and $12 million in Robinhood, demonstrating ongoing confidence and strategic positioning in the crypto market.
Market Dynamics and Company Updates
- Inflation Data Decline: The January Consumer Price Index (CPI) rose 2.4% year-over-year, below the expected 2.5%, indicating easing inflationary pressures that could influence the Federal Reserve's monetary policy decisions, thereby positively impacting market sentiment.
- Tariff Adjustments: President Trump plans to roll back some tariffs on steel and aluminum, causing shares of U.S. steelmakers like Nucor and Cleveland-Cliffs to drop in premarket trading, reflecting market sensitivity to policy changes and their potential impact on related industries.
- Strong Performance from Applied Materials: The semiconductor equipment maker reported sales and earnings that exceeded expectations, with shares jumping 10%, indicating robust industry demand that may attract more investor interest in the sector's growth potential.
- DraftKings Performance Decline: The sportsbook operator's shares plunged over 15% after providing a disappointing 2026 revenue outlook, reflecting market concerns about its future growth, which may lead investors to reassess their investment strategies.
Anthropic's Valuation Reaches $380 Billion as AI Thrives Amid Software Struggles
Software vs. AI: The article discusses the ongoing competition between traditional software and artificial intelligence, highlighting that software is struggling to keep up with advancements in AI technology.
Impact on Industries: The rise of AI is transforming various industries, leading to a shift in how tasks are performed and potentially displacing traditional software solutions.
Future of Development: As AI continues to evolve, the future of software development may increasingly rely on integrating AI capabilities, changing the landscape of programming and application design.
Challenges for Software: The article emphasizes the challenges faced by software developers in adapting to the rapid changes brought about by AI, which may require new skills and approaches to remain relevant.
Lighter Collaborates with Circle to Distribute Yield from USDC Deposits on Its Platform
- Partnership Announcement: Perp DEX has partnered with USDC issuer Circle to enhance their platform's offerings.
- Interest Generation: The collaboration aims to share the interest generated from approximately $9.2 billion in USDC deposits on the platform.
Stablecoin Market Analysis: Comparing USDC and RLUSD
- Market Value Comparison: USD Coin boasts a market cap of $73.3 billion, making it the second-largest stablecoin globally, while Ripple USD's market cap is only $1.5 billion, ranking ninth, highlighting significant differences in market acceptance and investor confidence between the two.
- Transparency and Security: USD Coin is backed 1:1 by U.S. dollars and short-term Treasuries, with regular independent audit reports ensuring its transparency and security, whereas Ripple USD relies on the reputation of multiple issuing gateways, introducing certain risks.
- Investor Preference: For most conservative investors, USD Coin is viewed as the superior choice due to its straightforward structure and independence from individual issuers, while Ripple USD's decentralized, trust-based model, although innovative, may lead to less stability.
- Use Cases and Yields: The rapid cross-border transfer capabilities and yields exceeding traditional bank savings make stablecoins particularly valuable in hyperinflationary countries, with both USD Coin and Ripple USD catering to different investor needs, especially for privacy-conscious users.
