The average reward price for domestic economy flights on six big U.S. airlines has increased by near 12 points more than the rate of inflation since the pandemic, according to a new survey.
According to IdeaWorksCompany, so-called “reward payback”—the value provided per dollar spent on base fares—dropped overall by about half over the past six years.
An exception, per the report: An award redemption for an American Airlines domestic economy flight now costs 18,690 miles, 21% fewer than in 2019.
Since the pandemic, the cost of a domestic award flight has done nothing but rise—except at American Airlines (AAL), according to new research.
The average reward price for domestic economy flights across six big U.S. airlines has increased nearly 12 points more than the rate of inflation during that time, according to a report from IdeaWorksCompany.
The firm’s survey assessed “the most popular basic reward type offered” by American, Delta Air Lines (DAL), United Airlines (UAL), Southwest Airlines (LUV), Alaska Air (ALK), and JetBlue Airways (JBLU), finding that “reward payback”—the value provided per dollar spent on base fares—dropped overall by about half in 2025 from 2019. (It determined this by making hundreds of queries in February 2025 for comparable reward flights this June to October with distances of 251 miles to 2,500 miles.)
Over the past six years, the cost of an average domestic economy reward flight has surged, according to the report. At Southwest, for example, what cost rewards members 7,367 miles on average for a free flight in 2019 now costs 18,673 miles—a more than 150% increase. Delta (26%), JetBlue (25%), and Alaska (23%) also saw sizable jumps. United’s increase was more modest, at 9%.
An exception: An award redemption for an American domestic economy flight now costs 18,690 miles, 21% fewer than it did in 2019 (23,700), according to the report. American uses a dynamic awards pricing system, according to Gary Leff, proprietor of travel site View From the Wing, meaning “cheap domestic coach awards are plentiful.”
Four-time Formula 1 World Champion Max Verstappen makes millions from F1.
Verstappen has an estimated net worth of $200 million, according to Celebrity Net Worth.
Verstappen was the highest-paid F1 driver in 2024, according to Forbes.
Formula One driver Max Verstappen stops for no one.
The reigning champion after winning his fourth straight Formula One World Championship title in 2024, the 27-year-old is set to kick off the 2025 Formula One season for team Red Bull in the opening race at the Australian Grand Prix on Sunday.
Verstappen makes millions from his career on the track: He was ranked both the highest-paid F1 driver in 2024 and one of the world’s highest-paid athletes by Forbes.
Verstappen has an estimated net worth of $200 million, according to Celebrity Net Worth. Here’s how Verstappen makes his millions.
Formula One and Endorsements
Verstappen was F1’s youngest-ever competitor when he joined F1 team Toro Rosso at the age of 17 in 2015. The following year, he became F1’s youngest-ever winner during his debut race for Red Bull. Verstappen became the first F1 champion from the Netherlands when he won his first F1 championship title in 2021, beating seven-time champion Lewis Hamilton.
Formula 1 drivers make money through their base salary, earn bonuses based on their performance on the track, and earn money from sponsorships and endorsements.
Verstappen earned an estimated $75 million in salary and bonuses in 2024, making him the highest-paid F1 driver for the third year in a row, according to Forbes. Verstappen earned $60 million in salary and $15 million in performance-based bonuses, per Forbes.
In 2023, Verstappen signed an endorsement deal with Heineken, as an ambassador for the Dutch beverage brand’s non-alcoholic beer, Heineken 0.0. Verstappen also has a partnership with sports video games developer, EA Sports.
Real Estate
The multi-millionaire F1 driver owns a penthouse in Monaco worth an estimated 16 million euros ($17.4 million U.S. dollars), according to Architectural Digest.
It’s not every day that a single announcement sends an entire group of stocks surging by double digits.
Editor’s Note: The market may be turbulent, but innovation never stops — and that’s exactly why InvestorPlace Senior Analyst Louis Navellier remains confident.
Just days ago, a little-known quantum computing called D-Wave Quantum’s announced a breakthrough in the quantum computing space. As a result, quantum stocks surged, with some gaining double digits in a single day.
Now, quantum computing today is where AI was back in 2016. So, it is an exciting investment opportunity that you won’t want to miss out on.
But let’s be honest: Quantum computing is complex, and understanding its real impact on the market can be challenging. That’s why Louis Navellier held an urgent briefing this past Thursday just one week before Nvidia’s big “Quantum Day” announcements – which could be a game-changer for the industry.
And as it turns out, our timing was perfect with this event.
Because while NVIDIA’s Q Day is still a week away, quantum computing stocks surged on Wednesday on some fresh news that I need to share with you…
Why Everyone Is Talking About Quantum Supremacy
It’s not every day that a single announcement sends an entire group of stocks surging by double digits.
But that’s exactly what happened on Wednesday when a little-known quantum computing company revealed a stunning breakthrough that shocked the market.
The company – D-Wave Quantum Inc. (QBTS) – released a statement saying that one of its quantum computers completed a complex materials-science simulation in just 20 minutes.
In fact, it was a task that would have taken Frontier, of today’s most powerful classical supercomputers, nearly a million years to finish.
What’s more, the company claims it is the first problem of real scientific importance to be solved with quantum computing. The results were published in the peer-reviewed journal Science.
In other words, D-Wave has achieved what quantum researchers and folks in the industry call “quantum supremacy”… using the technology to do something useful that no classical supercomputer could do.
This is a big deal, folks. Because if you’ve been following along with our quantum computing coverage this week, you know that up until recently, this stuff was constrained to government labs and universities.
To briefly recap, quantum computing operates at the subatomic level, using cutting-edge technology like ultracold superconducting chips. Quantum computers perform calculations with quantum bits, or “qubits,” which encode information differently than classical computers. This gives quantum computers the potential to solve problems far too complex or time-consuming for even the best classical supercomputers.
In this case, D-Wave used an “annealing” quantum computer, which specializes in optimization problems. These types of quantum computers find the optimal or most efficient solution by rapidly exploring a massive number of possibilities simultaneously.
In its groundbreaking test, D-Wave partnered with an international team of scientists to simulate “spin glasses,” a type of complex magnetic material with critical business and scientific applications. The simulations were performed on both D-Wave’s Advantage2 prototype annealing quantum computer and on Frontier, a classical supercomputer at the Department of Energy’s Oak Ridge National Laboratory.
The results were astonishing.
D-Wave’s quantum computer completed the hardest simulation in just minutes, delivering accurate data on complex lattice structures and magnetic behaviors. As I mentioned earlier, the same simulation would have taken nearly 1 million years on the Frontier supercomputer – and it would have required more electricity than the entire world consumes in one year.
The bottom line is that it seems like this was practical, tangible proof that quantum computing is nearly ready for real-world use.
As a result, on Wednesday, D-Wave’s shares popped 11% on the news…
D-wave’s shares got another boost Thursday after reporting fourth-quarter and year-end results for 2024, rallying another 18%.
For the year, it reported an adjusted net loss of $75.6 million, or $0.39 per share. That’s a decrease of $7.3 million, or $0.21 per share from the previous year. Revenue was essentially flat year over year, but bookings were up 128% over the previous year ($23.9 million vs. 10.5 million).
Now, the key quantum computing players in this space are quite small. Most of them are trying to build up revenue, narrow their losses and achieve critical breakthroughs to commercialize quantum computing – all at the same time.
That’s a tough feat to pull off, but the upside is worth it. Because quantum computing has the potential to:
Help biopharma companies discover breakthrough drugs faster than ever before.
Automakers develop driverless car systems that really work.
Chemical companies to develop materials we can’t even imagine.
And so much more.
Quantum Computing Continues to Advance
D-Wave’s breakthrough isn’t an isolated event, either. Quantum advances are happening at a rapid clip, folks.
Earlier this year, Google announced its quantum chip, Willow, which can execute calculations millions of times faster than traditional supercomputers. (We covered that here.) Amazon also recently unveiled its Ocelot quantum processor, and Microsoft recently launched Majorana 1, another quantum computing milestone. (I gave an overview of these chips here.)
Each of these breakthroughs confirms something critical: Quantum computing is rapidly transitioning from theory to practical application.
Big Tech recognizes this. And so does NVIDIA, the undisputed leader in generative AI chips. In fact, it’s already moving aggressively into quantum computing – even before its Q-Day event:
It launched CUDA-Q, a quantum-classical hybrid platform, to help bridge the gap between traditional computing and quantum. The platform is specifically designed to integrate quantum processing units (QPUs) with NVIDIA’s graphics processing units (GPUs). As such, it could be the bridge to NVIDIA’s future beyond this decade.
It’s actively developing quantum simulation tools, giving developers access to quantum-like environments before real hardware is widely available.
And major industry players are already lining up to integrate NVIDIA’s tech into their quantum programs.
NVIDIA knows quantum computing will become essential once traditional computing hits its limits later this decade. And that’s why I hosted my Next 50X NVIDIA Call summit on Thursday.
But here’s the thing. As this news from D-Wave demonstrates, quantum computing isn’t just the future – it’s happening right now.
And while I like D-Wave, it is NOT my No. 1 pick in this space.
On March 20, I expect NVIDIA to make a MAJOR announcement with my No. 1 pick. And I covered all the details you need to know in my Next 50X NVIDIA Call summit.
The Future Is Happening NOW
It’s important to understand that as more (and bigger) groundbreaking advances are made, so too will the headlines.
Quantum computing today is where AI was back in 2016, right before NVIDIA’s historic 7,000% surge to its peak.
Remember, when I came across NVIDIA in May 2016, this was well before ChatGPT came along. That didn’t happen until November 2022. Now, NVIDIA has returned more than 600% since then… but the reality is most people missed out on the 6,400% gains before that.
The fact is, at some point, quantum computing will have its “ChatGPT moment.”
It could happen at NVIDIA’s Q-Day on March 20. But even if it doesn’t, you’ll want to get in on this before the crowd, and time may be running out…
And by the time the mainstream public catches on to quantum computing, the truly massive gains will already be made.
That’s why I’ve been urging investors to position themselves early.
And one way to do that is by investing in the small-cap quantum computing stock perfectly positioned to profit from NVIDIA’s quantum push. This company holds 102 patents and already works closely with NVIDIA, Microsoft, Amazon, and NASA.
Don’t wait until the market fully catches on. Watch the replay of my Next 50X NVIDIA Call now for all the details – before it’s taken down.
Louis hereby discloses that as of the date of this email, Louis, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: NVIDIA Corporation (NVDA)
Recession fears reignited this week as a stock market sell-off put the S&P 500 into a correction.
However, many economists and analysts feel that a full blown recession is still unlikely. Instead, they see a moderate slowdown ahead.
Forecasters are keeping an eye on tariffs and consumer spending as they could signal slower than expected economic growth.
The sell-off in stock markets this week brought back recession chatter, but that doesn’t necessarily mean one is coming soon.
A full-blown recession is certainly possible and seems likelier after this week, particularly if spending from more cautious U.S. consumers plummets and prompts employers to lay off workers. But right now, the more likely scenario seems to be weaker growth, according to several economists and market analysts. Rather than firing on all cylinders, the U.S. economy may rise at a lackluster pace instead—which isn’t great news but is far from a panic signal.
“We believe the economy will avoid slipping into recession,” Wells Fargo economists wrote in a research note, pointing to “solid fundamentals” such as healthy household balance sheets as a buffer.
Even so, they noted the economy has already “lost some steam in early 2025,” which, combined with tariff uncertainty and federal government job cuts, could take a toll.
How Should You Think About the Stock Sell-Off?
The S&P 500 stock index officially fell into a correction—identified as a decline of at least 10% from a recent closing high—on Thursday, as investors grew increasingly concerned about President Trump’s unpredictable tariff announcements. The swiftness of the decline has been noteworthy—the benchmark index was trading at an all-time high just over three weeks ago.
The U.S. stock market rebounded on Friday with its best one-day performance of the year, but it wasn’t enough to keep the S&P 500 from posting a weekly loss for the fourth consecutive week as investors continue to fret about the potential economic consequences of the tariffs.
A steep drop in stock markets is a “classic recipe for a slower pace of spending by the wealthy, who drive household consumption,” Joe Brusuelas, chief economist at the accounting firm RSM US LLP. When stock markets rise, the so-called wealth effect makes upper-income households feel wealthier and thus spend more, giving a boost to the rest of the economy.
Lower stock prices have the opposite effect, and wealthier households are likely to tamp down their spending this quarter, Brusuelas said. However, the U.S. economy can absorb some slowing without entering an extended contraction.
“The current growth scare is overstated,” Brusuelas said. “My sense here: We’re just seeing a classic late-cycle business slowdown.”
He expects the economy to grow at an annual rate of 1.5% this quarter, weakening from the pace of 2.5% or more in the last few years. But that’s not unusual, he said, noting that growth dipped into negative territory at the start of 2022 before continuing to power through.
Tariffs Could Make Chances of a Recession Greater
The economy also faces risks over the next month as President Donald Trump weighs whether to proceed with tariffs on Canada and Mexico plus impose new reciprocal tariffs on goods from across the globe.
“If there are other tariffs that are put on, then we may need to take a step back and reassess the forecast on growth and consumption,” Brusuelas said, adding that the “waiting is the hardest part.”
For his part, Treasury Secretary Scott Bessent told CNBC on Thursday that he’s “not concerned about a little bit of volatility over three weeks.” The administration’s focus is on improving “the real economy” in the longer term, he said.
Satyam Panday, chief U.S. and Canada economist at S&P Global Ratings, sees a 25% chance of a U.S. recession in the next year as uncertainty takes a bite.
“There’s an increasing risk that supply-side shocks from tariffs, decelerating immigration growth trends, and curbs on the federal government workforce will create a lasting negative feedback loop,” Panday wrote in a research note.
The latest jobs report showed U.S. employers added 151,000 jobs in February, and the unemployment rate stayed low at 4.1%. But analysts and investors are increasingly brushing aside data they view as dated and looking ahead at whether they’ll deteriorate soon.
CEOs had been remarkably bullish after Trump’s election, raising hopes of a corporate investment boom, but that seems to have eased too. In its quarterly survey, the Business Roundtable said its CEO Economic Outlook Index returned to last year’s levels of 84 after rising to 91 following Trump’s victory in November.
“The survey results signal that our members are cautious about the next six months but also see opportunities to improve growth,” said Chuck Robbins, the CEO of Cisco and chair of the Business Roundtable.
A separate survey of economists from the American Bankers Association also cited rising downside risks, but it nonetheless forecasted GDP growth of 2.1% in 2025 and 2026. The group sees a 30% chance of recession this year and next.
“The consensus forecast for positive economic growth and low recession risk is based on the expectation that new tariffs won’t stay in place for all of 2025,” said Luke Tilley, chief economist at Buffalo, New York-based M&T Bank and chair of the ABA’s advisory panel of economists. “The longer the tariffs stay on, the more the risk of recession grows.”
UPDATE—March 15, 2025: This article has been updated with the latest information about the performance of the stock market.
The Senate passed a bill Friday funding the federal government through September, cutting off the threat of a shutdown.
Though in the minority, Senate Democrats could have blocked the budget using the Senate’s filibuster rule. Ten Democrats sided with the Republicans to avert a shutdown.
Some Democrats wanted to use a shutdown threat to restrain President Trump and his cost-cutting advisor, Elon Musk, from slashing federal programs without Congress’s approval.
The Senate passed a bill Friday funding the federal government through September, averting a government shutdown.
Senators voted 62-38, with 10 Democrats joining Republicans to put the bill over the 60-vote threshold needed to bypass a filibuster. The vote ended the possibility of the government shutting down Saturday after a stopgap funding measure was set to expire. The new stopgap bill then passed on a vote of 54-46. The bill now moves to President Donald Trump’s desk. He is reportedly expected to sign it.
This new bill clears the way for Republican lawmakers to hammer out a new federal budget that includes trillions of dollars in tax cuts.
The vote thwarted an effort by some Democratic lawmakers who had wanted to use a shutdown threat to curtail President Donald Trump’s mass firing of federal workers.
Some Democrats, including Alexandria Ocasio-Cortez, a representative from New York, had urged Senate Democrats to use the threat of a government shutdown as leverage to demand concessions from the majority GOP.
Ocasio-Cortez and other House Democrats, who nearly unanimously voted against the continuing resolution, argued that it empowered Trump and his influential advisor, Elon Musk, to continue their campaign of firing federal workers and canceling government grants and contracts, bypassing the authority of Congress to control the government’s spending levels.
The fizzling out of the shutdown confrontation removes one X-factor from a federal policy outlook full of uncertainty amid Trump’s rapidly changing trade efforts.
Update, March 15, 2025: This article has been updated to include the passage of the bill.
The stock market has been stuck on a roller coaster for months now, zooming up and down ever since November’s U.S. presidential election.
But over the past few weeks, stocks have been experiencing a particularly painful rout, with the S&P 500 crashing more than 10%, the Nasdaq falling about 15%, and the Russell 2000 collapsing nearly 20%.
But amid this Wall Street chaos, we see a fantastic buying opportunity unfolding.
In fact, we think stocks may have bottomed this past week – and they could soar from here over the coming months.
There are four critical tenets to our bull thesis…
The Stock Market Is Washed Out, But the Economy Isn’t
First, things feel washed out.
As we mentioned, the major indices have taken a plunge, dropping between 10% and 20%. All three have now fallen into oversold territory.
Meanwhile, valuations on a lot of individual stocks have dropped to 2- or 5-year lows. The University of Michigan’s Consumer Sentiment Index has crashed to one of its lowest levels in the last 50 years. And investor sentiment in the American Association of Individual Investors’ (AAII) weekly survey has only been this consistently bearish once before – back in March 2009.
Across the board, things are just really washed out. When conditions are this dour, stocks can rebound furiously as they climb the proverbial ‘wall of worry.’
Second, the economic reality is not so bleak.
We understand Americans’ concerns about tariffs, federal spending cuts, policy uncertainty, and their potential impacts on consumer spending and business investment.
But as of now, at least, those impacts are still contained.
As we noted in yesterday’s issue, U.S. gross domestic product (GDP) growth is still positive at 2.3%. Consumer spending is steady. Unemployment is low at 4.1%. Inflation is falling, currently hovering around 2.8%. At about 4.3%, according to the Federal Reserve Bank of Atlanta, wage growth is strong and running above inflation. And as the fourth-quarter earnings season illustrated, corporate profits are still growing, with more than 75% of the S&P 500 exceeding consensus estimates.
So… sentiment and market conditions are washed out, but the economy is not. This divergence is not sustainable.
Either the economy becomes just as washed out, or sentiment and market conditions rebound. We don’t see the economy nose-diving anytime soon, and therefore, we think a rebound is coming.
Calling the Bottom
Third, multiple technical signals suggest this could be the bottom for stocks, as we’ve detailed over the past week.
The Nasdaq 100 just fell below its 200-day moving average for the first time in a year. Similarly, the S&P 500 dropped below its 250-day moving average for the first time in a year. The market has become oversold, again for the first time in a year.
All this happened this past week. And historically speaking, when these things have occurred before, the market usually went on to soar over the next 12 months, so long as stocks stabilized around these major technical levels…
Which also happened this week.
The S&P 500 fell multiple times toward the ultra-critical 5,500 level and never gave it up. It bounced every time. This past Tuesday, it bounced right above there and then did so again multiple times on Thursday. Then, stocks soared on Friday and – as of this writing – the S&P retook its 250-day moving average.
Stocks are stabilizing exactly where they should. From a technical perspective, that tells us that the market has found a bottom and that stocks will soar over the next few months.
We See Stock Market Stability Ahead
Finally, we see a pathway toward increased political stability in the coming months.
The more we dissect the seemingly endless parade of developments from Washington, the more we think that the Trump administration is purposefully front-loading this political chaos.
That is, we think D.C. is focusing so hard on tariffs and federal spending cuts right now to essentially get them out of the way, thereby setting the stage to refocus its attention on a massive tax cut package and more deregulation.
Now, we could be wrong about that. But that’s our working thesis. Trump promised tariffs and federal spending cuts all along the campaign trail. He’s delivering on that right now.
He also promised tax cuts and deregulation. He’ll deliver on that next. Get the tough stuff out of the way first to get the fun stuff done later without distraction.
Of course, if the fundamental and technical data shifts in the coming days or weeks, we will adjust our thesis. But as of right now, we’re feeling bullish.
As I told my team yesterday…
This just isn’t the “big one” – the bubble-popping recession that will send the economy into a 2008-like tailspin and cause a massive market crash.
That major meltdown will come. But we don’t think that’s happening yet.
But where should folks look for the best stocks to buy now?
Well, it’s no secret that we’re bullish on AI – the greatest technological revolution in three decades.
This breakthrough has already created fabulous investment opportunities, allowing investors to lock in ~990% gains in Palantir (PLTR) and 400% profits in Nvidia (NVDA) over the past two years. And so much more is yet to come.
But here’s the challenge: the broader AI trade is crowded. That’s why we’ve been hunting for the next big industry breakthrough…
And we’ve found it in what I call AI 2.0 – a development that could be an order of magnitude bigger than anything we’ve seen in the AI Boom so far.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.
Best Buy is slated to launch a U.S. online marketplace later this year, with CEO Corie Barry recently sharing more details about the retailer’s plans.
The company said the marketplace will help it give customers more choices without forcing it to grow its inventory.
Best Buy already operates a marketplace in Canada and said it is learning from that effort.
Another online marketplace is coming soon, this time from a big electronics retailer.
Best Buy (BBY) is joining Amazon.com (AMZN), Walmart (WMT) and other retailers, joining a space estimated to be worth hundreds of billions of dollars in sales. launching a third-party US marketplace management earlier this month said is slated to open this summer. CEO Corie Barry on Best Buy’s latest earnings conference call shared more details about the plan, saying she believes it can attract shoppers and boost profits.
This is the company’s second try at an American marketplace; a first attempt was closed down nearly a decade ago, with media reporting issues with product overlap and minimal revenue. A Canadian marketplace, launched in 2016, has been seen as more successful.
“We believe that as the trusted leader in [consumer electronics] we have an opportunity to leverage our positioning and assets to build a differentiated digital marketplace platform, thereby bringing our customers access to a much more expansive assortment and new categories,” Barry said on the call, according to a transcript provided by AlphaSense.
Barry said the new marketplace will allow Best Buy to give customers more choices without growing its own inventory. Sellers will go through a vetting process, the company said.
Among other details discussed by Best Buy:
The U.S. marketplace will offer an assortment of new products, while the current Canadian marketplace focuses more on refurbished items. The company said it’s seen demand in Canada for deeper product lineups, which the US version can offer, according to Barry. “Customers are searching our website and looking for a broader selection or looking for a broader quantity of products, and we just don’t have them there for them.”
US customers will be able to return marketplace items to stores, executives said.
Eventually, executives said, the company could offer fulfillment to marketplace sellers. “It is still early in the process and we are pleased with the strong interest from sellers and believe it indicates a promising launch,” Barry said.
Best Buy is partnering with enterprise marketplace company Mirakl on its marketplace launch, which operates its Canadian marketplace.
Best Buy has not publicly shared a launch date. The company did not respond to Investopedia’s request for comment in time for publication.
Shares of Best Buy fell 10% this week and are off about 17% so far this year.
We’ve been talking about quantum computing a lot lately – and rightfully so.
After all, Big Tech is making major investments in it, including Alphabet Inc. (GOOG), Microsoft Corporation (MSFT) and Amazon.com, Inc. (AMZN). They’re developing quantum chips that can perform computations in seconds that would normally take a classic computer thousands of years to complete.
But of all the Big Tech companies, I think NVIDIA Corporation (NVDA) is on the path to becoming the leader, which it will make clear to all the other quantum players next Thursday, March 20, when it hosts its Quantum Day, or “Q Day.”
This is where I predict NVIDIA will make a major announcement. Not only will it cause my No. 1 pick to take off like a rocket, but it will also fuel a fresh rally to help turn the entire market around. (For more details on the event, click here and watch a replay of my summit, The Next 50X NVIDIA Call.)
But the reality is we can’t take our eye off what else is going on in the markets right now.
You see, tariffs have continued to weigh on investors.
On Tuesday, March 4, Trump implemented 25% tariffs on Canada and Mexico, as well as the 20% tariffs on China. That sent the stock market spiraling lower. Even though President Trump backpedaled and postponed some of the tariffs on Canada and Mexico until April, it was too little, too late for many investors. And this week, he placed a 25% tariff on steel and aluminum, and threatened a 200% tariff on alcoholic products from the European Union (EU) if it doesn’t remove the tariff on imported American whiskey.
I know that a lot of investors are rattled by the ongoing “tit for tat” between President Trump and Canada, Mexico, China and Europe.
Obviously, a lot of people in the media aren’t fans of President Trump. And I will acknowledge that he can be a bit erratic. But the ultimate goal of all this is to have free trade.
For example, the European Union charges a 10% tariff on American cars imported into Europe. The U.S., on the other hand, charges 2.5%.
You get the idea.
The fact is this is really up to Commerce Secretary Howard Lutnick.
I know Howard Lutnick – my son went to school with his son, and I think he’s a wonderful guy. He’s going to be a cheerleader for America, and the ultimate goal is to have trillions in onshoring.
This “tit for tat” has certainly weighed on the markets, but thankfully, some positive data mid-week helped bring some investors off the sidelines. I’m talking about the latest Consumer Price Index (CPI) and the Producer Price Index (PPI) reports.
These reports were critical, because investors and consumers alike are beginning to feel pressured by all this tariff talk.
The Federal Reserve is feeling the heat as well. So, in today’s Market 360, let’s take a look at this week’s latest inflation reports and what they mean for future key interest rate cuts. Then, I’ll share more about how you can take advantage of the next investment opportunity that could turn the entire market on its head.
Consumer Price Index (CPI)
On Wednesday, the CPI report came in better than expected. Prices rose 0.2% in February, which beat expectations for 0.3%. On an annual basis, prices increased 2.8%, below January’s 3% annual gain and economists’ expectations for a 2.9% rise.
Core CPI, which excludes food and energy, showed a 0.2% increase over the prior month, compared to January’s 0.4% monthly gain. On an annual basis, core CPI went up 3.1% over last year. That’s down from 3.3% in January and marks the lowest yearly increase since April 2021.
Food costs are still somewhat elevated, largely due to eggs. According to the Department of Agriculture, egg prices are predicted to increase by 20% in 2025.
On the bright side, part of the drop in CPI last month can be attributed to a cooling in owners’ equivalent rent, or shelter costs. The CPI report showed that owners’ equivalent rent only rose 0.3% in February, down from a 0.4% pace in January.
This is critical, folks, because housing costs have been responsible for about half of the inflation in recent CPI reports. So, now that shelter costs are finally cooling, this bodes well for future reports.
Producer Price Index (PPI)
Thursday’s Producer Price Index (PPI) showed that wholesale inflation is also cooling down. The PPI was flat in February, compared to expectations for a 0.3% increase. Excluding food and energy, “core” PPI decreased 0.1%. Economists were looking for a 0.3% rise.
Service costs were also down 0.2%, so this tells me that a strong U.S. dollar is helping to squelch wholesale inflation.
Now, January’s numbers were revised up to 0.6%. So, we’ll have to keep an eye on revisions, but it looks like there’s no wholesale inflation.
Why Does This Matter?
Now, by the looks of these reports, it’s clear that the inflation risk to the economy is lowering. However, this week’s inflation reports will not be enough evidence for the Fed to support cutting key interest rates at their meeting next week. But if there is a silver lining in the recent market chaos, it is that Treasury yields have plunged. So, I am expecting that the upcoming Federal Open Market Committee (FOMC) statement will be dovish and that the “dot plot” will signal two key interest rate cuts.
Now, I am also expecting a global crash in interest rates, led by China and followed by the rest of Asia as well as Europe. The U.S. will be the slowest to cut key interest rates, but since the Fed cannot fight market rates, it will have no choice other than to cut to get in line with market rates.
For that reason, I think we could see up to four rate cuts this year, folks.
The Next Opportunity That Will Turn the Market Around
With the latest inflation reports now behind us, I want you to get ready for a big market rebound, which could come as early as next week.
Now, not only is the second half of March a seasonally stronger period for the market, but I also think NVIDIA’s AI Developer’s Conference next week could be the next catalyst for the market.
As I mentioned, next Thursday, NVIDIA will be hosting an event called “Quantum Day”, or “Q Day,” where industry leaders will come together to talk about the future of quantum computing and what they plan to do with it.
The excitement for this event is already building into a fever pitch. Quantum computing stocks were up 17%, 28% and an eye-popping 46% on Friday!
But this is just the beginning, folks…
See, I predict NVIDIA will make a critical announcement related to its future in the quantum computing space. And it will involve my No. 1 pick in this space.
If you don’t position your portfolio now, by the time this announcement is made, it may already be too late.
That’s why I want to urge investors like you to get in on it early. I explain everything you need to know in my latest presentation, The Next 50X NVIDIA Call.
This presentation won’t be up for long, so you should take the time to watch it now before it’s gone for good.
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Infant formula makers Abbott and Reckitt saw their stocks decline Friday after a judge ruled plaintiffs could pursue a new trial against the companies.
A jury in October found the companies not liable in a case alleging their infant formula products caused necrotizing enterocolitis, a disease of the bowels.
Abbott and Reckitt both said they intend to appeal the judge’s ruling.
Abbott Laboratories (ABT) shares declined and Reckitt Benckiser shares ended the day lower in London after Reckitt said a state judge ruled plaintiffs could seek a retrial against the infant formula makers.
In October, a jury in Missouri cleared Abbott and Reckitt of liability in a case alleging their infant formula products caused necrotizing enterocolitis (NEC), a disease of the bowels. Abbott manufactures Similac brand formula, and Reckitt owns Mead Johnson.
“Twelve citizens of the City of St. Louis served on a jury for five weeks, heard all the evidence, including from leading experts, and unanimously found that Abbott’s formula does not cause NEC. Their verdict was correct. It was consistent with the consensus of scientists, governmental regulators, and the neonatologists who treat these vulnerable patients,” a spokesperson for Abbott stated to Investopedia Friday.
“We plan to file an immediate appeal, and we expect that the jury’s verdict will be reinstated,” said Abbott.
Reckitt said the judge’s decision to allow plaintiffs to seek a new trial is “at complete odds with the law and the facts,” in a statement on its website. The company also expressed its intent to appeal.
The development follows similar cases that brought rulings against the companies earlier in 2024.
Shares of Abbott slid 2.4% Friday in the U.S., and Reckitt shares closed about 2% lower on the London Stock Exchange.
