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President Trump has declared he will pursue a Plan B in the wake of the U.S. Supreme Court’s decision to strike down his administration’s emergency tariff policy, citing overreach. The Nasdaq Composite remains fractionally higher.
The Atlanta Fed’s first read on the U.S. economy for early 2026 strikes an upbeat tone, with its GDPNow model projecting Q1 expansion at a solid 3.1% pace, an early signal that economic momentum may be holding up better than it seems.
The Nasdaq Composite is now up 1%.
Bank of America is striking a cautious note on the S&P 500, arguing that stocks continue to look pricey and the market may not be out of the woods yet. Strategists point out that the index appears expensive on 18 of 20 valuation yardsticks it tracks, with several lingering near historically stretched levels. That kind of setup, BofA suggests, can leave little margin for error, especially if earnings or the economic backdrop start to wobble, as today’s economic data proved. The firm is sticking with its year-end forecast of 7,100 for the S&P 500.
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The markets were lower out of the gate this morning in response to the latest economic data that shows a slight economic slowdown coupled with signals of rising inflation. A one-two punch of the tariff effect and a weary consumer sent economic growth two steps back. All three of the major stock market averages started in the red, but technology stocks are attempting a comeback. Google parent Alphabet (Nasdaq: GOOGL | GOOGL Price Prediction) and Micron Technology (Nasdaq: MU) are buoying sentiment.
The Commerce Department’s latest snapshot showed the U.S. economy losing some steam, with Q4 GDP growing at a 1.4% annualized pace, a clear miss versus expectations for 2.5%. For full-year 2025, growth came in at 2.2%, slowing from 2024’s 2.8% rate. Inflation reared its head again. December PCE data, the Federal Reserve’s preferred gauge, ran slightly hotter than forecasts, with headline PCE at 2.9% and core PCE hitting 3%. The uptick signals that price pressures are sticky, revisiting levels last seen in late 2023 and adding another layer of uncertainty to the Fed’s monetary policy outlook.
Here’s a look at where things stand as of morning trading:
Dow Jones Industrial Average: 49,251.46 Down 143.70 (-0.29%)
Nasdaq Composite: 22,725.44 Up 48.71 (+0.22%)
S&P 500: 6,863.69 Up 0.80 (+0.01%)
Blue Owl (NYSE: OBDC) could be the canary in the coalmine for the credit markets after unloading $1.4 billion in assets, sending the stock lower by nearly 2% today.
Sandisk (Nasdaq: SNDK) is a gainer, tacking on 3.2% in today’s session.
OpenDoor Technologies (Nasdaq: OPEN) is a bright spot, soaring by 17.2% today after revealing strengthening home sales in its latest earnings report.
Meanwhile, optical networking stock Ciena (NYSE: CIEN) is tacking on 4.4% today, boosting its year-to-date advance to 42%.
Privately held OpenAI has reportedly produced its version of a smart speaker that wouldn’t make its market debut until early 2027.
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Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
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