Archives May 2025

Editor’s note: “Stay Profitable in a Wild Stock Market, Even in Bearish Conditions” was previously published in February 2025 with the title, “An Expert Method to Overcome a Turbulent Stock Market“. It has since been updated to include the most relevant information available.

When it comes to the stock market, it can be a bit like a hurricane at sea: powerful, unpredictable, and capable of turning calm waters into chaos in an instant.

We’ve been enduring our fair share of market chaos lately, with the S&P 500 seemingly up one week and down the next. Investors are practically begging for monotony. But wilder price action like this may be our new normal…

You see; historically speaking, the stock market averages about one bear market every five or six years. But in the past six years, we’ve had not one… not two… but three different bear markets. 

There was the flash crash of late 2018, which saw stocks briefly fall into a bear market right before the holidays. There was also the COVID crash of 2020, wherein stocks plunged in the fastest market crash in history. And then there was the inflation crash of 2022, when tech stocks were obliterated by sky-high interest rates. 

Three unforeseen bear markets in the past six years – that is wild. 

But, of course, on the other hand, we’ve also seen some huge stock market successes, too.

What’s Driving These Wild Swings? Algorithmic Trading

On average, the stock market rises about 10% per year. But in 2024, stocks climbed 23%. They rose around 27% in 2021. And in 2019, stocks rallied about 29%.

In other words, over the past six years, the S&P 500 has achieved three different years with nearly 30% returns. As a matter of fact, of the stock market’s 10 best years since 1950, three have occurred since 2018. 

Three different bear markets and three of the best years ever for stocks – all within the past six years.

So, if the stock market has felt wild to you lately, that’s because it has been. 

But this wildness could be the new norm for Wall Street going forward. 

We can thank technology for that – at least, that’s my opinion. 

Why? Because algorithms run the market now. 

These days, algorithmic trading accounts for approximately 60- to 75% of total trading volume in the U.S. stock market. That means most trades are automatic, executed by bots adhering to pre-set parameters. 

And, unlike humans, robots don’t really ask why. They just do what they are programmed to. 

So, when something bad happens, all the algorithmic-driven systems rush toward an exit. And when something good happens, they race to get involved. That’s why, in my view, algorithmic trading creates crowding. 

As a result, we get wild swings in the market – both up and down. The algorithms drive momentum one way or the other, and the market follows. 

We get flash crashes and fast recoveries; big bear markets and massive bull runs; major meltdowns and momentous melt-ups. 

We get stock market volatility.

Cloudflare (NET) shares took off Friday, a day after the provider of cloud services beat revenue estimates as it signed a pair of big contracts.

The company reported first-quarter revenue jumped 27% year-over-year to $479.1 million, beating Visible Alpha estimates by about $10 million. However, adjusted earnings per share of $0.16 came in a penny below forecasts. 

CEO and co-founder Matthew Prince said Cloudflare scored the largest contract in its history, a more than $100 million deal driven by its Workers developer platform. It also signed its longest-term secure access service edge (SASE) contract ever. 

Prince added that Cloudflare has “the scale, the technology, and the team to capture the massive opportunity ahead of us.”

The company sees full-year adjusted EPS of $0.79 to $0.80, and revenue of $2.090 billion to $2.094 billion. Analysts surveyed by Visible Alpha were looking for $0.80 and $2.095 billion, respectively. 

Shares of Cloudflare surged 9% and are up about 25% in 2025.

Tom Yeung here with your Sunday Digest.

Ever wonder why the stock market seems to hibernate during summer?

The most likely explanation comes from 18th-century England. At the time, wealthy British investors often sold their stocks before moving to their country homes for the summer. The seasonal fire sales supposedly caused markets to slump.

Fast forward to today, and much like afternoon tea and handlebar mustaches, this centuries-old habit seems to live on.

According to a study by LPL Financial, the May to October stretch has been a financial dead zone, delivering just 1.8% annual returns since 1950. Trading volumes typically dry up as traders go on vacation, and there’s simply not enough buying demand to power stocks higher.

Meanwhile, the November to April months have rewarded investors with a much stronger 7% return, as shown in the graph below.

The effect is also noticeable across other countries. A 2002 study by LPL found that 36 of the 37 markets they studied showed lower returns in May to October. The one outlier was Australia, which experiences seasons opposite to those in the Northern Hemisphere.

Still, selling your entire investment portfolio in May isn’t just terrible from a tax perspective. It also causes people to miss out on potential recoveries.

For example, the S&P 500 rose 12% in the summer of 2024 after the Federal Reserve cut interest rates. An investor too distracted by the “sell in May” mantra would have missed out on those gains. The 2008 financial crisis and 2020 COVID-19 pandemic also saw incredible resurgences the following summers.

In today’s Digest, we’d like to give nine other reasons (i.e., stocks primed for success) to stay invested in the summer. Well… I’ll give you two here…

And InvestorPlace Senior Analyst Luke Lango will reveal another seven in a special portfolio he built using his new powerful stock algorithm. It’s designed to do one thing… help you beat the markets and volatility, month after month, by helping him find the best stocks at the best time. You can learn more about how that tool works – and that special seven-stock portfolio – in Luke’s new free broadcast here.

Now, let’s get to the two stocks I’m looking at this summer – and take a quick peek at Luke’s special portfolio and how these seven stocks all represent even more reasons to stay invested this summer…

1. Seasonal Effects Can Dominate

Some companies naturally do well during the warmer months.

Outdoor sportswear makers… ice cream parlors… summer camps…

Then there’s my favorite example, Intuit Inc. (INTU). (You can tell I’m popular at parties).

Sunday Digest readers will recognize this tax and accounting firm as one of my top growth picks for 2025. America’s current tax laws expire at the end of this year, and the Trump administration and Congress are lining up a new “big, beautiful bill” that will change everything from the state-and-local tax (SALT) deduction to the way tips are taxed.

Intuit stands to do well because it serves the individuals and small businesses affected by these changes. Do-it-yourself filers are far more likely to use Intuit’s TurboTax software on a major tax overhaul, and INTU’s shares surged 80% during the last major change in 2017.

The software firm also benefits from a significant summer effect. Most of Intuit’s profits happen during the tax filing season that ends on April 15, and markets seem consistently surprised by the 10X jump in operating profits once they’re reported in late May.

“Seasonal” investing software from our corporate partners, TradeSmith, finds that shares of the TurboTax owner typically rise 10% between May 13 and August 11 as these financial figures are announced and digested. The green line in the graph below shows the typical path INTU shares have taken over the past 20 years.

We’re within 48 hours of the best day of the year to buy.

source

In addition, TurboTax has several secular tailwinds in its sails. The company will benefit from the end of the IRS Direct File program, which previously offered free tax filing software. And the firm is also a leader in AI-powered accounting, which is helping sales of its popular QuickBooks product.

Though the average firm typically does poorly during summer months, tax firms like Intuit and H&R Block Inc. (HRB) prove that there are some notable exceptions to this rule.

2. Last November-April Returns Were Poor

Last year’s November to April returns were mediocre at best. The S&P 500 dropped 2.8% over this period, compared to its long-term average gain of 7%.

That means markets are unusually cheap for this time of year. The median S&P 500 company now trades at 17.9X forward earnings – 5% lower than last November, and 7% below the 19.2X level seen in the past five Mays.

That’s made several high-quality firms incredibly attractive long-term buys. And one that stands out is Corning Inc. (GLW).

Corning is an upstate New York firm that’s developed high-end glassware since 1851. It invented Pyrex in 1915, the low-loss fiber optic cable in 1970, and the iPhone’s “Gorilla Glass” in 2007.

Today, the firm is a leader in liquid-crystal display (LCD) panels, smartphone screens, and the fiber optic cable used in broadband connections. It’s an up-market manufacturer that’s survived outsourcing and offshoring thanks to decades of innovation.

Perhaps most excitingly, Corning also manufactures the high-end fiber optics used in data centers to link servers. This essential technology allows AI-focused data centers to send more data across tighter spaces. It’s become one of Corning’s greatest growth drivers.

“Our growth is primarily driven by powerful secular trends and more Corning content in our customers’ offerings,” CEO Wendell Weeks said in prepared first-quarter earnings call remarks. “We continue to see and hear reconfirming evidence that our secular trends are intact and remain relevant. We see it in our results and we see it in our order books, and we hear it in our detailed dialogues with our customers.”

Meanwhile, the firm’s profitability is excellent. Corning has earned positive operating earnings for the past two decades (even through two recessions), and analysts expect return on equity to surge to 17% this year – roughly twice as high as market averages. Shares additionally trade at just 19X forward earnings given the November-April selloff.

Now, you might be thinking there must be something wrong. How can a firm have it all? And you’d be right to worry.

Corning supplies many of the world’s top TV makers, which are now facing enormous tariffs on exports to the United States. Public funding for broadband expansion may also get cut in the upcoming federal budget. Both factors have contributed to a 15% selloff since February.

However, it’s becoming increasingly clear that the market’s “sell first, ask questions later” approach has turned Corning into an irresistible “Buy.” Shares still trade 20% below their February peaks, and we believe this firm is an opportunity too good to pass up this summer.

3. The 7 Short-Term Trades

Finally, Luke Lango has long maintained that there’s always a bull market somewhere. Last year, 60 of the S&P 500 companies saw shares rise more than 30%, and this group included names like Iron Mountain Inc. (IRM) (up 58%) and Nvidia Corp. (NVDA) (up 60%).

At first glance, Iron Mountain and Nvidia seem to have little in common. The former is a blue-chip warehousing firm known for safekeeping corporate documents and Prince’s unpublished music. The latter is a hypergrowth chipmaker at the bleeding edge of artificial intelligence.

Nevertheless, the two do have some commonalities.

On the fundamental side, both firms saw accelerating growth in the fiscal year leading up to 2024. Iron Mountain came from a relatively low base to notch 24% growth in earnings before interest and taxes from the previous year, while Nvidia’s earnings quadrupled to $37 billion.

Meanwhile, the technical factors were also on their side. Iron Mountain’s shares had risen 40% the previous year, while Nvidia’s had surged 240%. History tells us that rising stocks tend to keep going up. The two companies also saw significant analyst upgrades, another sign of gains to come.

Luke and his team have spent over a year assembling these insights into a single system called Auspex. This monthly process now screens over 8,000 stocks on the last day of each month and helps them identify “perfect” stocks with strong growth momentum for shorter holding periods.

In a new presentation, Luke reveals the secrets behind this system and shows how it has now selected seven elite stocks that look set to buck the summer doldrums.

But don’t wait long.

For Luke’s special Project Auspex presentation and insights into his Auspex portfolio picks, simply click here.

The Trouble With Selling in May

Studies have found it’s hard to outperform the stock market by selling in May and rebuying in October. Transaction costs and taxes tend to erase any potential gains even if you put the money into yield-returning T-bills.

In addition, this year has seen some incredible first-quarter results. According to FactSet, the average S&P 500 firm reported a 12.8% increase in earnings per share. We’re seeing firms like The Walt Disney Co. (DIS) surge 16% on strong earnings figures. Selling now would leave people missing out on the typical post-earnings bump.

That’s why we’ve been broadly recommending investors stay in the market. There’s a great deal of opportunity for those who know where to look, and that’s why I urge you to watch Luke’s free Auspex presentation to learn more.

Until next week,

Tom Yeung

Market Analyst, InvestorPlace.com

The market turmoil caused by President Trump’s 2025 tariff announcements has experts reassessing a longstanding maxim: “The stock market is not the economy.”

Brenton Harrison, a certified financial planner, founder of New Money New Problems, and a member of Investopedia’s Advisor Council, pointed to reasons to rethink the dictum. Many investors now trade for themselves via apps like Robinhood Markets Inc. (HOOD) and other platforms, which has “increased Main Street’s interest in Wall Street,” he said. “By having skin in the game, Main Street investors are more attuned to activities on Wall Street that impact their daily lives and portfolios.”

So, is this part of a narrowing of the supposed gap between Wall Street and Main Street? We suggest possible answers below.

Market Signals and Economic Reality

The notion that the stock market isn’t the economy is decades old. Kai Ryssdal of “Marketplace” popularized the phrase just before the 2008 Financial Crisis, emphasizing that one shouldn’t confuse what’s happening in one with the other. The stock market tracks the value and expected future earnings of publicly traded companies, while the economy comprises all U.S. production, consumption, employment, and commerce.

Ryssdal still stresses the point, though in a manner that’s somehow both blunter and more nuanced. For example, in March 2025, he seconded a Bluesky post by noted economist Paul Krugman, who repeated the phrase three times, then wrote, “Nonetheless, holy sh*t,” citing market fears about Trump administration tariffs.

What the Phrase Means

As Krugman put it a few years ago, “The relationship between stock performance—largely driven by the oscillation between greed and fear—and real economic growth has always been somewhere between loose and nonexistent.” This means, as a March 2025 Economic Policy Institute report put it, “More often what is happening to stock prices gives us no insight into the wider economy.”

The market is also not very representative of the U.S. economy:

• The main index, the S&P 500, has just 500 companies out of America’s 33 million businesses.
• Data noting that over 60% of Americans own stock can be misleading, since those in the top 10% by wealth own 87.2% of equities and mutual fund shares.
• S&P 500 companies earn almost a third of their revenue overseas.

Still, some argue for using the market’s ups and downs as an economic barometer. For example, during his first administration, President Donald Trump invoked a rising stock market as evidence of his economic stewardship, suggesting policies doing the opposite should be abandoned.

That would mean a  “stock market veto,” largely by the wealthiest Americans (and not a few foreigners). Policy shifts from the New Deal to the Affordable Care Act (ACA) in 2010 and beyond have caused market drops. Yet, regarding the ACA, the market reaction wasn’t even a good barometer of how healthcare stocks would fare. For example, we calculate that despite an initial price drop, the Health Care SPDR ETF (XLV) rose about 387% between the ACA’s passage and April 2025—higher than the S&P 500 index‘s impressive 354%.

Updating the Relationship Status

There’s a saying among investors and analysts that in a crisis, everything is correlated, which means that everyone is selling everything. In this context, perhaps it’s helpful to add that, while in ordinary times the stock market does not reflect the economy, in times of crisis both are greatly affected.

For example, Wolfers said there’s good reason to take heed of the market’s reaction to Trump’s tariffs. The turmoil in equities and bonds is evidence that Wall Street isn’t buying Trump’s argument that his tariffs, which would fundamentally restructure global trade, will lead to greater profitability and a more robust American economy, he says.

“Ordinarily, I have a lot of sympathy for the statement that the stock market is not the economy,” Wolfers said. “But I think this time it’s more central to understanding what’s going on in the economy.”

Crucially, plunging markets can hit the economy by damaging consumer sentiment. Even though most stocks are held by wealthier families, when markets and the value of 401(k)s are falling, this dominates news broadcasts, Main Street takes notice, with people often quickly cutting their spending, which in turn slows economic growth.

“This month’s market activity shows that companies and governments recognize how fast consumer sentiment can change an economy,” Harrison said. “In past times of turbulence—the Great Recession, the early 2000s tech bubble—some of the market forces that led to a crash were in motion for years before Main Street was aware of them. …Recent market events have shown that the time between a Wall Street activity and Main Street’s reaction to it has whittled down to days.” 

The Bottom Line

“The stock market is not the economy” is a reminder that stock market troubles don’t necessarily lead to slowing economic growth—hence economist Paul Samuelson‘s joke in 1966 that “Wall Street indexes [have] predicted nine out of the last five recessions.”

That said, markets can influence the economy. They help businesses fund growth, offer investments for millions of Americans, and perhaps, as Wolfers suggests, provide important insights about certain policies. The relationship is thus more nuanced than screaming headlines about stock market crashes might lead one to believe.

Inflation data, scheduled for Tuesday, may claim the spotlight early this week. But investors will also be evaluating the outcome of the weekend meetings between U.S. and Chinese trade officials after a quiet Friday session that left stocks down for the week.

Traders will also follow Thursday’s remarks from Fed Chair Jerome Powell as he comes under pressure from President Donald Trump over the Fed’s interest rate policy. And retail sales data will be closely watched on Thursday, the same day as retailer Walmart (WMT) reports earnings. 

Earnings releases from Cisco Systems (CSCO), Alibaba Group (BABA), Deere & Co. (DE), Applied Materials (AMAT), and video game maker Take-Two Interactive (TTWO) are among the week’s other top scheduled results.

Consumer and small business sentiment surveys, along with homebuilder and manufacturing sector data, could also attract attention.  

Monday, May 12

• Monthly federal budget (April)
• Federal Reserve Gov. Adriana Kugler is scheduled to deliver remarks
• Simon Property Group (SPG), NRG Energy (NRG), Fox Corp. (FOX), and Monday.com (MNDY)

Tuesday, May 13

• NFIB Small Business Optimism Index (April)
• Consumer Price Index (April)
• JD.com (JD), On Holding (ONON), Tencent Music Entertainment (TME), and Oklo (OKLO)

Wednesday, May 14

• Federal Reserve Vice Chair Philip Jefferson, Federal Reserve Gov. Christopher Waller and San Francisco Fed President Mary Daly are scheduled to speak
• Sony Group (SONY), Cisco Systems, CoreWeave (CRWV), Dynatrace (DT), and Alcon (ALC)

Thursday, May 15

• Initial jobless claims (Week ending May 10)
• U.S. retail sales (April)
• Producer Price Index (April)
• Industrial production (April)
• Capacity utilization (April)
• Business inventories (March)
• Homebuilder confidence (May)
• Federal Reserve Chair Jerome Powell and Gov. Michael Barr are scheduled to speak
• Walmart, Alibaba, Deere & Co., Applied Materials, Mizuho Financial Group (MFG), Take-Two Interactive, and Cava Group (CAVA)

Friday, May 16

• Import/export price index (April)
• Housing starts (April)
• Building permits (April)
• Consumer sentiment – preliminary (May)
• Richmond Fed President Tom Barkin is scheduled to speak

Inflation, Retail Sales Reports Come As Investors Watch Data Amid Tariff Developments

The weekend meetings on trade between U.S. and Chinese officials are likely to capture market watchers’ attention to start the week, with investors hopeful that trade tensions between the two nations could be easing.

Inflation will be in focus as investors get their first look at April prices with the Tuesday release of the Consumer Price Index (CPI). At last week’s Federal Reserve meeting, officials said they were looking for more improvement on inflation before moving to lower interest rates from their current levels.

Federal Reserve Chair Jerome Powell is scheduled to speak on Thursday; last week, President Trump was critical of the Fed for failing to act on interest rates. Federal Reserve Vice Chair Philip Jefferson, Federal Reserve Gov. Christopher Waller, and San Francisco Fed President Mary Daly are among the other officials expected to deliver remarks this week.

March’s CPI report indicated that inflation dropped unexpectedly to a rise of 2.4%, while other recent indicators have shown that price increases are slowing. Investors are also expecting updates on import and export prices, as well as April’s Producer Price Index, which shows inflation at the wholesale level. 

Retail sales data, scheduled for Thursday, comes as consumer spending has been strong while shoppers rush to buy items before tariffs take hold. Economists are looking for signs of change in spending levels, with recent consumer sentiment surveys showing that feelings about the economy are worsening. 

On Friday, the latest sentiment report is expected to offer May’s first look at how consumers feel about current and future economic conditions. The survey offers insights into spending patterns that can help support the economy. It follows several months of surveys showing declining consumer sentiment amid worries over the administration’s tariffs’ impact on prices. Tuesday’s expected small business sentiment report could further signal the economy’s direction.

The homebuilders’ confidence survey, scheduled for Thursday, and Friday’s expected housing starts data, will highlight inventory supply trends during a period in which housing scarcity is helping drive affordability problems.

Investors will also be looking at Thursday’s scheduled industrial productivity report for data on the manufacturing sector. Monday’s planned release of the monthly federal budget for April will provide an update on government debt levels.

Walmart Earnings Come as Investors Watch for Consumer Spending Trends

Walmart’s scheduled quarterly report on Thursday leads the weekly earnings calendar, as market watchers seek information on consumer spending and economic conditions amid uncertain U.S. trade policy.

The retail giant reported prior-quarter earnings per share and revenue that came in ahead of analyst expectations, but its outlook was weaker than expected as the company said it was evaluating the impact of tariffs on its business.

Cisco is expected to report on Wednesday after the network infrastructure provider posted higher revenue in the prior quarter on increased AI orders and approved a $15 billion increase to the company’s stock repurchase program. Semiconductor maker Applied Materials’ report scheduled for Thursday comes after it said in its previous quarterly earnings report in February that sales could be negatively affected by recent limitations on chip exports.

Take-Two Interactive’s Thursday earnings report will drop as the video game maker builds excitement for its latest release in the Grand Theft Auto game franchise. Deere’s report on the same day will provide a look at the agricultural sector. 

Nuclear power startup Oklo’s report on Tuesday comes after it recently reported that its losses widened in 2024. Investors in the power provider include OpenAI’s Sam Altman, which has raised investor optimism that the company’s services could be used to meet energy demand for AI infrastructure projects.

Investors will also be following scheduled earnings reports from Chinese e-commerce companies Alibaba, JD.com, and Tencent Music Entertainment.

This weekend could be a turning point for the trade dispute between the world’s two largest economies.

U.S. and Chinese officials met in Switzerland starting on Saturday, and investors are optimistic about what could result. A thawing of the relationship between the two trading partners could provide some relief for businesses and consumers who have been bracing for higher prices and empty shelves.

“A very good meeting today with China, in Switzerland,” President Donald Trump posted on Truth Social after the first day of negotiations ended. “Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner.”

While no details of the negotiations have been released as they resume for a second day, here’s what we know about the discussions.

What’s the Status of the Trade Relationship?

The U.S. and China have been in a tit-for-tat trade dispute in recent weeks, resulting in high tariffs levied on both countries.

President Donald Trump has pushed tariffs on Chinese goods coming into the U.S. to 145%. In response, China’s government ratcheted up import taxes on U.S. goods coming to their country to 125%. Economists have said that duties that more than double the price of goods essentially amount to a trade embargo.

China is the U.S.’s third-largest trading partner, according to the most recent data available from the Census Bureau. America has brought in more than three times the amount of goods from China than it exported there so far this year.

Who Is Involved in the Trade Talks?

Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will negotiate on the U.S.’s behalf.

Bessent has been vocal about the trade spat between the two countries, saying that the current tariff levels are “unsustainable” and that de-escalation was likely in the cards. In a press release announcing his trip to Switzerland, Greer said he would be “negotiating with countries to rebalance our trade relations to achieve reciprocity.”

For China, Vice Premier He Lifeng will spearhead the discussions. He is reportedly close to Chinese President Xi Jinping and is expected to toe the government’s official line. China’s Ministry of Commerce has said, “whether through confrontation or negotiation, China’s determination to safeguard its development interests will not change.”

Will a US-China Trade Agreement Be Reached?

While Trump said Thursday that he expects talks to be “substantive”, it’s unlikely the delegations will be able to hammer out a complete trade agreement over the weekend.

U.S. trade agreements take an average of 18 months to negotiate and often even more time to implement, so de-escalation of the tariffs would be more likely. On Friday morning, Trump suggested that tariffs on Chinese goods could be lowered to 80% but said he would leave the final number up to Bessent.

The two countries could also discuss other trade barriers, such as the de minimis exemption that Trump excluded China from last week, affecting Chinese bargain shopping sites like Temu and Shein.

Students graduating this spring are entering an uncertain labor market, but experts say there are ways to navigate it.

Many of those graduating in the coming weeks are more stressed than usual about finding a job after graduation. They are entering an unpredictable economy where some businesses report holding back on investments like hiring because of tariff policies.

If you are one of those graduates feeling unsure, here are four tips from experts that could help you secure a job.

Grow and Open Your Network

As grads enter the job market, a crucial step is to let their network know they are looking for work.

More than 70% of professionals are having a difficult time getting an interview or even getting their resume seen, according to Robert Half. In some cases, former coworkers, classmates, or mentors can connect grads with jobs that aren’t listed online yet, said Brandi Britton, executive director at the human resources consulting firm.

“Make sure that everyone that you know knows that you’re looking for work, whether it’s a professor, mentor, your parents, or your parents’ friends,” Britton said.

Be Flexible and Open to Jobs

Experts said graduates should be open to job opportunities, even if they don’t tick all the boxes.

Sam DeMase, job hunting site ZipRecruiter’s career expert, said that recent and soon-to-be graduates are encountering salaries that are significantly lower than what they expected and there is less remote work than they wanted.

“When you have an opportunity to interview, take it; you never know where that’s going to lead you,” Britton said. “It’s important to get your foot in the door, and then, as time progresses in that role, you can start to ask for more things like remote work or hybrid role, but really focus on getting that opportunity in the beginning and just be a little flexible right now.”

Consider Contract Work or (Another) Internship

About 40% of recent grads thought their internship would lead to a job. Yet, only 9.7% saw their internship turn into a full-time job, according to ZipRecruiter.

“Internships are not converting and not helping recent grads’ job plans the way they used to,” DeMase said.

Although an internship may not directly lead to a job, contingent work like internships and contract roles can still provide experience that some entry-level, full-time jobs require.

“A lot of times, what contract roles do is they give you exposure to industries that maybe you didn’t think of, or positions that you didn’t think of,” Britton said. “Because it’s a contract role, you’re getting to try it out.”

Emphasize Your Skills In The Interview

Being clear about how you will add value to the company you are interviewing at and potentially being up-front about your weaknesses, will likely make the decision to hire you easier for the interviewer, experts said.

“I think a lot of these rising grads and recent grads make the mistake of overstating why they want to work there, or why they want the job, and understating why they’re going to add value and how they’re going to add value,” DeMase said. “So just being really clear and saying, ‘I know you’re looking for someone who is a builder, and in my last role, I was able to build XYZ,’ or ‘In my internship, I innovated ABC.'”

Cisco Systems (CSCO) is slated to report fiscal third-quarter results after the market closes Wednesday, with earnings and revenue expected to tick up somewhat from a year earlier.

Analysts on average expect Cisco to report quarterly revenue of $14.06 billion, up more than 10% year-over-year, and adjusted net income of $3.66 billion, or 92 cents per share, up from $3.55 billion, or 88 cents per share, in the year-ago quarter.

Of the 10 analysts following Cisco who are tracked by Visible Alpha, three have a “buy” rating for the networking-equipment provider’s stock, and seven maintain “hold” ratings. Their consensus price target near $67 would suggest 12% upside from the stock’s closing price Friday. Shares of Cisco have gained about 2% in 2025.

Analysts will also be watching Cisco’s artificial intelligence infrastructure orders. In February, the company said second-quarter AI orders exceeded $350 million, bringing its total to roughly $700 million for the first half of the fiscal year.

Analysts could also ask Cisco about the quantum computing chip it unveiled last week, which the company claims “could accelerate impactful quantum computing and networking applications from decades away to just 5-10 years.”

Americans haven’t stopped spending despite broad economic uncertainty. But a close look at recent data and trends has fed concerns about a slowdown. 

The unemployment rate is relatively low, and job creation is holding steady. Retail spending shot up 6.8% year-over-year in April, the National Retail Federation said, exclusive of car and gas purchases.

But Americans are increasingly uneasy, several measures suggest. Consumer sentiment fell in April for a fourth straight month, according to the Michigan Consumer Sentiment Index. Quick-service restaurants and companies selling everything from lunch to laundry detergent say their customers seem squeezed. And while credit and debit card spending ticked up 1% last month, according to Bank of America, there was a pullback in big splurges like trips and hotels.

Two releases set for Thursday will offer fresh data: Walmart (WMT) is slated to hand in its first-quarter numbers, and the government is scheduled to publish April retail data. Trade negotiations, notably with China, ahve contributed to the uncertainty: Widespread “reciprocal” tariffs are not slated to take effect for weeks, but the NRFthinks the threat of higher import taxes has spurred consumers to stock up on some items, juicing retail spending in April. 

“There’s a real inconsistency in the vibe,” said Max Levchin, CEO of buy now, pay later provider Affirm (AFRM), on CNBC Friday. “People are stressed out about the economy, yet they’re shopping. They’re buying, and they’re paying their bills.” 

Shoppers Look for Lower Sticker Prices

Oppenheimer analysts on Wednesday said Walmart has historically performed well in recessionary periods. Still, they acknowledged the current outlook can be hard to read.

“We have seen potentially mixed consumer data-points lately with still healthy consumer spending trends overall,” they wrote. “But at the same time, [there has been] more downbeat [consumer packaged goods company] commentary.”

Consumers have “a lot to process” and a reason to “pause,” Procter & Gamble (PG) CFO Andre Schulten said last month. The parent company of brands like Tide and Febreze recently downgraded its outlook for the full fiscal year. So did another consumer goods giant, Church & Dwight (CHD).

Americans are watching their tabs at Applebee’s and IHOP and cutting back at Wendy’s (WEN) and McDonald’s (MCD), executives recently said. At grocery and convenience stores, some shoppers are focusing more on sticker prices than the cost-per-serving, which has prompted Pepsi (PEP) and Mondelēz International (MDLZ) to offer smaller packages at lower price points, executives said last month.

“While two, three years ago consumers would easily pay above $4 for a pack of biscuits, we’re now seeing that we need to be below $4, and ideally below $3,” said Dirk Van de Put, CEO of Mondelēz, which counts Ritz Crackers and Oreo cookies as parts of its biscuit category.

Demand hasn’t waned for international airfare or luxury clothing, companies said. Households with six-figure incomes have been flocking to Walmart’s delivery service in recent months.

“We’re seeing higher engagement across income cohorts, with upper-income households continuing to account for the majority of share gains,” CFO John David Rainey said this winter.

President Donald Trump’s tariffs could push inflation back to levels not seen since the post-pandemic price surge, according to an estimate from Goldman Sachs this week.

The sweeping import taxes President Donald Trump announced between February and April could have a seismic impact on the economy, and consumers could see it first at the checkout register. The tariffs could push annual inflation (as measured by core Personal Consumption Expenditures) as high as 3.8% by December, the highest since 2023, Goldman economists estimated in a commentary published this week. The Federal Reserve’s preferred measure of inflation rose 2.6% over the last year.

A wave of price increases could hit American consumers hard, especially if the job market slows down at the same time, as many economists have predicted. It would also be a setback for the Federal Reserve, which has kept its benchmark interest rate elevated since 2022 to suppress the post-pandemic surge of inflation.

Inflation has barely simmered down from around 3% at the beginning of 2024, but dipped significantly in March. Many economists predicted it would fade as the year went on, nearing the 2% goal by the end of 2025.

“I think the underlying inflation picture is good,” Fed Chair Jerome Powell told reporters at a press conference this week following the Fed’s decision to keep its key interest rate flat.

“On the eve of the implementation of large tariffs, the inflation problem in the U.S. appeared solved,” Ronnie Walker and Elise Peng, economists at Goldman Sachs, wrote in a commentary. “However, in the coming inflation readings, the impact of tariffs will reverse that progress.”

Other economists were more pessimistic about the trajectory of inflation absent tariffs. In a commentary this week, economists at Deutsche Bank said that underlying inflation was stubborn and that “progress in trend inflation had stalled out somewhat even prior to the tariff.”

Whether inflation would have gone down without the tariffs will never be known. On Thursday, Trump announced a trade deal with Britain that kept his 10% tariff in place, suggesting that tariffs will be part of U.S. economic policy to some extent, even if other countries negotiate.

How Tariffs Could Push Up Prices (Or Not)

Walker and Peng’s analysis took into account the direct effects of tariffs, which are likely to be passed on to consumers, as well as several indirect effects. The trade wars have unexpectedly weakened the dollar, which hurts the buying power of American consumers.

On top of that, some manufacturers may shift production from China, which faces especially harsh tariffs, to places where things cost more to make. As a result, U.S. consumers will pay a lot more for things brought in from overseas, especially things like consumer electronics and clothing.

A reporter asked about potential price increases at an Oval Office press conference on Thursday, and Trump said businesses would not pass the cost of the tariffs on to consumers.

“Oftentimes the country picks them up, oftentimes the company picks it up,” Trump said. “The people won’t pick that up.”

Goldman forecasters estimated companies would pass 70% of the tariff costs on to customers.