Amazon is set to face higher costs under the Trump administration’s new tariffs, which could tighten the online retail giant’s profit margins, Bank of America analysts wrote Wednesday.
The analysts see Amazon gaining market share in the retail sector as consumers are forced to prioritize value.
Amazon’s “rapidly growing essentials business” could also benefit as discretionary spending falls, the analysts wrote.
Amazon (AMZN) is likely to face pressure on its profit margins as it feels the effect of the President Donald Trump’s tariffs, but the online retail giant also has advantages, Bank of America analysts wrote Wednesday.
The analysts cut their price target to $225 from $257 to reflect headwinds to profit margins and sales volumes, but expects Amazon to record retail share gains as consumers seek lower prices. Trump on Wednesday said he would institute a 90-day pause for all the tariffs except those placed on Chinese products, which have been lifted to 125%.
The analysts said Amazon’s first-party products and third-party sellers could see lower sales volumes and smaller margins as tariffs increase their costs. Higher prices should help offset some of the cost burden, but could also lead to consumers shifting more of their spending to essentials and away from discretionary items.
Growing Essentials Business Could Benefit Amazon
“We would expect retail share gains for Amazon given a low-price 1P (first party) strategy, and robust 3P (third party) seller selection as consumers shop for lower prices,” the analysts wrote. “Amazon should also benefit from its rapidly growing essentials business and leverage in Cost to Serve.”
Amazon Web Services (AWS) shouldn’t face much impact from tariffs, the analysts wrote, but “a broader economic slowdown is a risk to IT spend.”
Apple (AAPL) stock rebounded from its worst 4-day stretch since 2000 on Wednesday as investors bought the dip in big tech stocks.
Apple shares were up 5% in recent trading, leading a rebound for the Magnificent Seven stocks after days of being hammered by President Trump’s sweeping tariffs.
Apple lost its title of the world’s most valuable company to Microsoft (MSFT) when shares fell 5% yesterday, putting the stock down nearly 25% since Trump’s “Liberation Day” tariff announcement last Wednesday. Wednesday’s rebound put the two companies neck-and-neck in terms of market value, with each hovering around $2.68 trillion. Read Investopedia’s live coverage of today’s trading here.
Apple’s reliance on China, where it assembles an estimated 90% of its products, is expected to be a headwind for the iPhone maker. The Trump administration has hit Chinese goods with tariffs totaling 104% this year, threatening to significantly increase Apple’s costs and potentially weigh on consumer demand. Apple won an exemption from the first Trump administration during its 2018 trade war with China, but no such reprieve has materialized this time around.
The company is reportedly planning to send more iPhones to the U.S. via India, which as of Wednesday is subject to a 26% tariff rate. Apple, in an effort to diversify its supply chain, has been ramping up its manufacturing and assembly operations in India for years.
Bank of America on Monday maintained its “buy” rating on Apple stock, citing its stable cash flows, “earnings resiliency,” and potential to benefit from AI. The firm’s $250 price target represents 45% upside from Tuesday’s close.
In a separate note on Tuesday, BofA analysts called Apple stock’s pullback “a particularly enhanced buying opportunity for investors to own a high-quality name.”
Every Thursday, Freddie Mac, a government-sponsored buyer of mortgage loans, publishes a weekly average of 30-year mortgage rates. Last week’s reading inched down a single basis point to 6.64%. Last September, the average sank as far as 6.08%. But back in October 2023, Freddie Mac’s average saw a historic rise, surging to a 23-year peak of 7.79%.
Freddie Mac’s average differs from what we report for 30-year rates because Freddie Mac calculates a weekly average that blends five previous days of rates. In contrast, our Investopedia 30-year average is a daily reading, offering a more precise and timely indicator of rate movement. In addition, the criteria for included loans (e.g., amount of down payment, credit score, inclusion of discount points) varies between Freddie Mac’s methodology and our own.
Calculate monthly payments for different loan scenarios with our Mortgage Calculator.
Important
The rates we publish won’t compare directly with teaser rates you see advertised online since those rates are cherry-picked as the most attractive vs. the averages you see here. Teaser rates may involve paying points in advance or may be based on a hypothetical borrower with an ultra-high credit score or for a smaller-than-typical loan. The rate you ultimately secure will be based on factors like your credit score, income, and more, so it can vary from the averages you see here.
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are determined by a complex interaction of macroeconomic and industry factors, such as:
The level and direction of the bond market, especially 10-year Treasury yields
The Federal Reserve’s current monetary policy, especially as it relates to bond buying and funding government-backed mortgages
Competition between mortgage lenders and across loan types
Because any number of these can cause fluctuations simultaneously, it’s generally difficult to attribute the change to any one factor.
Macroeconomic factors kept the mortgage market relatively low for much of 2021. In particular, the Federal Reserve had been buying billions of dollars of bonds in response to the pandemic’s economic pressures. This bond-buying policy is a major influencer of mortgage rates.
But starting in November 2021, the Fed began tapering its bond purchases downward, making sizable reductions each month until reaching net zero in March 2022.
Between that time and July 2023, the Fed aggressively raised the federal funds rate to fight decades-high inflation. While the fed funds rate can influence mortgage rates, it doesn’t directly do so. In fact, the fed funds rate and mortgage rates can move in opposite directions.
But given the historic speed and magnitude of the Fed’s 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.
The Fed maintained the federal funds rate at its peak level for almost 14 months, beginning in July 2023. But in September, the central bank announced a first rate cut of 0.50 percentage points, and then followed that with quarter-point reductions in November and December.
For its second meeting of 2025, however, the Fed opted to hold rates steady—and it’s possible the central bank may not make another rate cut for months. At their March 19 meeting, the Fed released its quarterly rate forecast, which showed that, at that time, the central bankers’ median expectation for the rest of the year was just two quarter-point rate cuts. With a total of eight rate-setting meetings scheduled per year, that means we could see multiple rate-hold announcements in 2025.
Shares of Cal-Maine Foods fell 5% in premarket trading Wednesday, a day after the country’s largest egg producer said it had received a request for information from the U.S. Department of Justice.
Antitrust regulators are investigating whether egg companies raised prices more than necessary amid a bird flu outbreak.
Cal-Maine’s fiscal third-quarter profit more than tripled year-over-year, while sales more than doubled.
Shares of Cal-Maine Foods (CALM) fell 5% in premarket trading Wednesday as a request for information from the U.S. Department of Justice on egg prices outweighed surging fiscal third-quarter sales and profits.
Cal-Maine said Tuesday that it received a “civil investigative demand” last month from the DOJ’s antitrust division, as the department is investigating allegations of price gouging in the egg industry. An outbreak of bird flu has led to a sharp decline in egg supply, which has sent prices surging in recent quarters. Cal-Maine, the largest egg producer in the country, said it is cooperating with the DOJ’s investigation.
Cal-Maine earned $10.38 per share on revenue of $1.42 billion in its fiscal third quarter, more than triple the $3 per share and double the $703.1 million it generated a year ago. The company’s average selling price of a dozen eggs was $4.06 in the quarter, nearly double the $2.25 mark from a year ago. It said that as of March 1, the U.S. Department of Agriculture estimated the total egg-laying flock in the country was 285 million, the lowest level since September 2015.
The company also said it had agreed to acquire Echo Lake Foods, which makes ready-to-eat egg products and breakfast foods, for roughly $258 million.
The U.S. has imposed heavy tariffs on a multitude of trading partners around the world, dealing a heavy blow to the system of free trade built in the decades since WWII.
The “Liberation Day” tariffs, meant to restore U.S. manufacturing to its glory days, hit Asian countries the hardest, led by a cumulative 104% tariff against China.
Economists say the heavy tariffs will push up inflation and hinder the U.S. economy if they are not walked back soon.
President Donald Trump’s “reciprocal” tariffs against U.S. trading partners went into effect a minute after midnight Wednesday, raising import costs from China, the European Union, Japan, and many other trading partners.
The round of tariffs includes a punishing 104% tariff on China, one of America’s biggest trading partners and its biggest economic rival. The European Union was hit with a 20% tariff, Taiwan with a 32% tariff, Japan with a 24% tariff, South Korea with a 25% tariff, and Vietnam with a 46% tariff.
Economists have warned that the import taxes will likely push up the cost of living, reignite high inflation, and send the U.S. economy into a nosedive. If they are not soon walked back, this could potentially cause the loss of millions of jobs.
The Trump administration indicated Tuesday that multiple countries were negotiating deals with the U.S., potentially leading to reduced tariffs. However, none had yet been struck when the deadline passed.
Trump has said the tariffs are meant to reverse the loss of manufacturing jobs in the U.S. over the past three decades, force other countries to lower their own trade barriers to U.S. companies, and raise revenue to run the government in place of income taxes.
CD shoppers have a total of 22 choices offering 4.50% APY or more for terms up to 18 months.
Want a longer rate lock? The leading 4- and 5-year guarantees of 4.40% are available from Vibrant Credit Union and Transportation Federal Credit Union, respectively.
After holding interest rates steady in March, the Fed is in “wait-and-see” mode regarding 2025 rate cuts. But in today’s uncertain economy, it’s smart to snag one of today’s best CD rates while you can.
Below you’ll find featured rates available from our partners, followed by details from our ranking of the best CDs available nationwide.
Rates of 4.50% to 4.65% You Can Guarantee as Long as 2026
The nation’s leading CD rate held its ground today at 4.65%, and you have your choice of two offers for that APY. With terms of 5 or 7 months, you can secure that guaranteed return until this fall.
If you want to extend your rate lock until 2026, two top CDs pay 4.60%. Abound Credit Union offers that rate for a 10-month duration, while Vibrant Credit Union matches that APY for 13 months.
A total of 22 nationwide certificates are paying at least 4.50%, with the longest term among these being 18 months. That offer, from XCEL Federal Credit Union, would guarantee your rate until October of next year.
To view the top 15–20 nationwide rates in any term, click on the desired term length in the left column above.
All Federally Insured Institutions Are Equally Protected
Your deposits at any FDIC bank or NCUA credit union are federally insured, meaning you’re protected by the U.S. government in the unlikely case that the institution fails. Not only that, but the coverage is identical—deposits are insured up to $250,000 per person and per institution—no matter the size of the bank or credit union.
Consider Longer-Term CDs To Guarantee Your Rate Further Into the Future
CD shoppers who want an even longer guarantee might like the leading 4-year or 5-year certificates. Vibrant Credit Union is paying 4.40% APY for 48 months, while Transportation Federal Credit Union promises that same rate for 60 months—ensuring you’d earn well above 4% all the way until 2030.
Multiyear CDs are likely smart right now, given the possibility of Fed rate cuts in 2025 and perhaps 2026. The central bank has so far lowered the federal funds rate by a full percentage point, and this year could see additional cuts. While any interest-rate reductions from the Fed will push bank APYs lower, a CD rate you secure now will be yours to enjoy until it matures.
Today’s Best CDs Still Pay Historically High Returns
It’s true that CD rates are no longer at their peak. But despite the pullback, the best CDs still offer a stellar return. October 2023 saw the best CD rates push above 6%, while the leading rate is currently down to 4.65%. Compare that to early 2022, before the Federal Reserve embarked on its fast-and-furious rate-hike campaign. The most you could earn from the very best CDs in the country then ranged from just 0.50% to 1.70% APY, depending on the term.
Jumbo CDs Top Regular CDs in Two Terms
Jumbo CDs require much larger deposits and sometimes pay premium rates—but not always. In fact, the best jumbo CD rates right now are worse or the same than the best standard CD rates in all but two terms we track. In the 2-year term, Lafayette Federal Credit Union pays 4.33% vs. the leading 4.30% among standard CDs, while Hughes Federal Credit Union is offering 4.34% for a 3-year jumbo CD vs. 4.32% for the highest standard rate.
That makes it smart to always check both types of offerings when CD shopping. And if your best rate option is a standard CD, simply open it with a jumbo-sized deposit.
*Indicates the highest APY offered in each term. To view our lists of the top-paying CDs across terms for bank, credit union, and jumbo certificates, click on the column headers above.
Where Are CD Rates Headed in 2025?
In December, the Federal Reserve announced a third rate cut to the federal funds rate in as many meetings, reducing it a full percentage point since September. But in January and March, the central bankers declined to make further cuts to the benchmark rate.
The Fed’s three 2024 rate cuts represented a pivot from the central bank’s historic 2022–2023 rate-hike campaign, in which the committee aggressively raised interest rates to combat decades-high inflation. At its 2023 peak, the federal funds rate climbed to its highest level since 2001—and remained there for nearly 14 months.
Fed rate moves are significant to savers, as reductions to the fed funds rate push down the rates banks and credit unions are willing to pay consumers for their deposits. Both CD rates and savings account rates reflect changes to the fed funds rate.
Time will tell what exactly will happen to the federal funds rate in 2025 and 2026—and economic policies from the Trump administration have the potential to alter the Fed’s course. But with three Fed rate cuts already in the books, today’s CD rates could be the best you’ll see for some time—making now a smart time to lock in the best rate that suits your personal timeline.
Daily Rankings of the Best CDs and Savings Accounts
We update these rankings every business day to give you the best deposit rates available:
Important
Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often five, 10, or even 15 times higher.
How We Find the Best CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), the CD’s minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
I once had a client who made many trips to the post office when she was going through a divorce. She wasn’t mailing legal documents to her attorney. Rather, she was seeking comfort from the pain of the breakup through online spending sprees, and ultimately returning many of the purchases she bought that overspent her budget.
As financial planners, we frequently detect emotional influences behind our clients’ decisions—when they turn to money to react to feelings of stress, sadness, or even joy. Thankfully, there are ways we can put them back on the right financial track.
Key Takeaways
Goal setting, like creating a financial plan, empowers clients to stay on track and resist impulse purchases.
Budgeting tools can help clients identify “for fun” purchases and help them have a clearer vision of their spending.
The 24-hour rule encourages clients to pause before making non-essential purchases, helping them align spending with their financial goals.
Seeking professional support from financial therapists can significantly improve clients’ financial behaviors and well-being.
What I’m Telling My Clients
Here are the key steps I use with clients to navigate these delicate conversations:
1. Start With Goal Setting
Work with clients to help them establish financial goals. By mapping out these, clients can better resist impulse purchases, knowing they have financial markers to reach. For instance, understanding the number you need to save for retirement or your child’s college education can help dissuade against purchases that detract from that.
Note
According to Schwab’s 2024 Modern Wealth Survey, of the people who reported having a written financial plan, 76% said they’re more in control of their finances because of it.
2. Use Spending Management Tools
Budgeting tools are a great way to keep clients on track. By knowing how much they have allotted towards “for fun” purchases, they will better understand when it’s time to splurge and when to hold off.
3. Practice The 24-Hour Rule
I suggest the 24-hour rule, whereby clients should wait 24 hours before making non-essential purchases. This allows clients to consider whether the purchase supports their financial goals. One of my clients was able to eliminate a $900 monthly budget deficit using this practice!
Tip
I encourage clients to replace the short-term relief of spending with physical exercise, mindfulness practices, or hobbies. These can also provide bonus effects, like helping boost self-esteem and overall fitness.
The Bottom Line
Not only do we help our clients make more rational decisions by acknowledging the psychological aspects of spending, but we also promote their overall well-being.
By mapping out their goals, offering budgeting and time management tactics, and knowing when to offer professional support, we can help clients combat their emotional spending. This ultimately paves the way towards greater financial security and independence they can carry throughout their lives.
Movers spend close to $20,000 to set up their new homes, according to a survey by Realtor.com.
These costs include updated home and auto insurance, refreshed furnishings, appliances, and new cars.
Moving can also change the way people shop, with Realtor.com finding increased use of grocery delivery, among other services.
Moving to a new home is expensive. The costs don’t end once the moving truck pulls out of the driveway.
A new Realtor.com survey found that movers spend almost $20,000 setting up their new homes, often feeling motivated to update their lifestyles with new items and services.
Movers bought new furnishings, with 40% of Realtor.com users also getting new appliances. A third of movers also updated their home and auto insurance and made other changes to their spending habits. Movers, including renters, are three times more likely to buy or lease a car than people who stay put, according to the survey, with many getting larger vehicles than they had before.
A report released in January by moving company HireAHelper found that almost 26 million Americans moved in 2024, or about 8% of the population.
“It’s a moment of possibility—one where people are open to trying new things and spending both time and money to settle into their new homes,” said Laura Eddy, vice president of research and Insights at Realtor.com.
Moving alters how people shop, according to Realtor.com. Online grocery usage jumped from 37% to 67% for movers in their new homes. Similarly, 65% of users reported utilizing online pharmacy services, reflecting a more than 40% increase after moving.
More than 30% of movers also switched companies for their home or auto insurance, and a similar amount added a new type of coverage, such as flood or fire insurance.
Apple (AAPL) lost its title as the world’s most valuable public company on Tuesday after the stock slid the day before steep tariffs on Chinese imports were scheduled to take effect.
Apple shares fell 5% on Tuesday, pushing the iPhone maker’s market capitalization to less than $2.6 trillion, compared with software maker Microsoft’s (MSFT) $2.65 trillion.
Apple shares have lost over a fifth of their value in the four sessions since President Trump announced he would increase the tariff rate on Chinese goods by 34% starting April 9. After China responded last week with its own 34% tariff on U.S. goods, Trump said he would raise tariffs on Chinese goods an additional 50%.
Apple, which assembles an estimated 90% of its products in China, won exemptions during the first Trump administration’s U.S.-China trade war. It’s had no such luck this time around.
Worries about the company’s reliance on China have made its stock the worst-performing of the Magnificent Seven in the last week. Tesla (TSLA), the group’s second-worst performer, has declined about 21.5% since Trump’s tariff announcement. Amazon (AMZN), Nvidia (NVDA), and Meta Platforms (META) have all declined between 12% and 13% over the same period, while Alphabet (GOOG) and Microsoft have fallen 7.7% and 7.2%, respectively.
Apple’s slump has wiped nearly $775 billion off the company’s market value. That’s more than Tesla’s market cap and greater than those of all but seven U.S. companies (including Apple itself).
President Donald Trump’s reciprocal tariffs on imports from foreign countries have caused volatility in the stock market as traders consider how the tariffs will impact the economy.
Many Americans with a 401(k) retirement plan have seen their savings dwindle by thousands of dollars.
This could be a time for many to rebalance 401(k) portfolios to be more diverse.
As Americans with 401(k) retirement plans lose thousands of dollars due to a downturn in major stock indexes, financial planners say 401(k) savers should focus on diversification in their portfolio.
Some Americans on social media have said their retirement accounts have lost tens of thousands of dollars since tariffs were announced. It’s left many asking if they should rebalance their 401(k)s.
Market Volatility Serves As a Reminder Of How Important Diversification Is
The answer—as is often the case when it comes to retirement funds—depends on your situation.
The majority of savers who are further from retirement should be able to recover the money they lost once the market returns to normal. However, more than 4.1 million Americans who will turn 65, the conventional retirement age, this year may experience some interruptions when they try to enter retirement.
“You have time to recover from these downturns and generally, whether it’s quickly or it takes some time, the markets tend to move upward,” said Rob Williams, director of financial planning and wealth management at Charles Schwab. “If you’re a disciplined investor, or diversified in your portfolio, as most people would be, and you’re not retiring in the next two to four years, [you] should not panic.”
In the midst of stock market volatility, financial planners said 401(k) savers of any age should not completely change their investment plan or portfolio just because of market swings. However, they do advise reviewing 401(k) investments and potentially rebalancing portfolios to be more diverse.
“Some other international markets have actually performed better in this climate,” Williams said. “So this is a nice reminder and a highlight that in your stock portfolio, global diversification helps.”
Additionally, financial planners say this could be the time to build up your investments outside of the stock market. That could involve taking advantage of your employer match, buying real estate to build up equity, or placing money into high-yield savings accounts.
