The Federal Reserve kept its fed funds rate steady at 4.25%-4.50% on Wednesday, a widely expected move that marks the third consecutive <a href="https://www.benzinga.com/topic/federal-reserve">pause in interest-rate policy. </a>



"Uncertainty about the economic outlook has increased further," the Fed noted in its post-meeting statement. 



The May meeting was the first since President Donald Trump's early April announcement of new trade tariffs.



The Federal Reserve noted that recent indicators point to continued solid growth in economic activity, while hinting that volatility in net exports has distorted the data, a reference to the negative GDP reading in the first quarter.



Yet, the Committee emphasized that "risks of higher unemployment and higher inflation have risen," introducing this new language into the May policy statement.



The Fed reiterated its data-dependent stance, emphasizing that future policy actions will be assessed "meeting by meeting," based on economic data, the evolving outlook, and balance of risks. This measured approach suggests that policymakers remain flexible in their response to shifting economic conditions.



Attention now turns to Fed Chair Jerome Powell, who is scheduled to hold his presser at 2:30 p.m. ET. Powell is expected to field questions on the implications of the Trump tariffs, recession risks, inflation trajectory, and the growing political pressure from Trump, who has publicly called for lower interest rates.



Read also: <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45258146/all-eyes-on-powell-what-betting-markets-expect-him-to-say-wednesday">All Eyes On Powell: What Betting Markets Expect Him To Say Wednesday</a>



Leading into the decision, futures markets were pricing in a 28% probability of a 25-basis-point rate cut by the June meeting, rising to 73% by July. Traders currently anticipate approximately 65 basis points of easing by the end of 2025, equivalent to nearly three standard rate cuts.



Minutes prior to the Fed statement, speaking at the swearing-in ceremony for the new U.S. ambassador to China, President Trump said he has no intention of rolling back the 145% tariffs on Chinese goods and is not seeking a broad range of tariff exemptions.



<h3 class="wp-block-heading">Market reactions </h3>



Stocks remained broadly unchanged minutes after the Federal Open Market Committee statement. 



The S&amp;P 500 index – as tracked by the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – was trading at 5,608 points, flat on the day. 



The U.S. dollar index – followed by the  Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – fell slightly.



Treasury yields trended lower, with yields on the 10-year Treasury note falling from 4.29% to 4.26%. 



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45224205/will-powell-defy-trump-again-heres-what-the-fed-chair-might-say-on-wednesday">Will Powell Defy Trump Again? Here&#8217;s What The Fed Chair Might Say On Wednesday</a></li>
</ul>



Photo: RozenskiP / Shutterstock.com

Macro Economic Events

Broad U.S. Equity ETFs

Econ #s

Economics

Federal Reserve

ETFs

Fed Keeps Rates Steady, Warns Of Rising 'Uncertainty About The Economic Outlook'

Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) announced on Wednesday that it will build its seventh theme park in Abu Dhabi. CEO Bob Iger gave more insight on Disneyland Abu Dhabi on the company's <a href="https://www.benzinga.com/25/05/45251203/disney-rides-strong-subscriber-growth-and-movie-hits-lifts-forecast-with-1-billion-streaming-goal">earnings call.&nbsp;</a>



Iger joined the conference call from the United Arab Emirates and opened with prepared remarks highlighting the company's expansion into the region.&nbsp;



"Disneyland Abu Dhabi will be authentically Disney and distinctly Emirati …&nbsp; blending wonderful Disney stories and characters with the cultures and tastes of this country and this region," Iger shared.&nbsp;



Read Next: <a href="https://www.benzinga.com/news/legal/25/05/45226604/president-trump-wants-to-reopen-alcatraz-heres-what-it-would-take?utm_source=articleShare">President Trump Wants To Reopen Alcatraz: Here&#8217;s What It Would Take</a>



The Disney CEO pointed to Abu Dhabi as the ideal location for the company's next <a href="https://www.benzinga.com/pressreleases/25/05/b45249979/the-walt-disney-company-and-miral-announce-plans-for-disney-theme-park-and-resort-on-yas-island-ab">theme park</a> with an addressable tourism market of 500 million people living within four hours of the destination and 120 million people expected to travel through Dubai and Abu Dhabi in 2025.&nbsp;



"It will serve as an oasis of extraordinary Disney entertainment for millions and millions of people in this crossroads of the world connecting travelers from The Middle East and Africa, India, Asia, Europe and beyond," Iger said.&nbsp;



Disney will not be investing capital in the project, but will license its intellectual property to Miral in exchange for royalties. Iger said Disney will be responsible for design and development and will maintain significant oversight of Miral's operations with embedded employees.&nbsp;



"Our Imagineering team is already hard at work designing this large and very special destination that will become a source of joy and inspiration for generations to come," Iger teased on the call, but did not offer a specific construction timeline or opening date.&nbsp;



"We're not pinning down a date yet," Iger said, in an<a href="https://www.cnbc.com/2025/05/07/disney-abu-dhabi-theme-park.html"> interview</a> with CNBC on Wednesday.&nbsp;



"It typically takes us between 18 months and two years to design and fully develop and approximately five years to build but we're not making any commitments right now."



DIS Price Action: Walt Disney shares were up 10.2% at $101.55 at the time of publication, according to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>. 



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/general/biotech/25/05/45239803/sarepta-therapeutics-stock-plummets-after-q1-results-heres-why?utm_source=articleShare">Sarepta Therapeutics Stock Plummets After Q1 Results: Here&#8217;s Why </a></li>
</ul>



Photo: Shutterstock

Earnings

News

Travel

Management

Movers

General

Disney's New Abu Dhabi Theme Park Will Be 'Authentically Disney And Distinctly Emirati,' CEO Bob Iger Says

U.S. Treasury Secretary Scott Bessent told lawmakers on Wednesday that the United States should position itself as the global leader in digital assets, reinforcing the administration's support for establishing a clear <a href="https://www.benzinga.com/markets/cryptocurrency/25/04/44850021/fed-chair-powell-says-crypto-and-banking-rules-will-loosen-as-sector-matures">regulatory framework for the crypto industry</a>.



What Happened: During testimony before the House Financial Services Committee, Bessent <a href="https://www.theblock.co/post/353482/treasury-secretary-scott-bessent-says-us-should-be-the-premier-destination-for-digital-assets?utm_source=rss&amp;utm_medium=rss">said</a>, "We believe that the United States should be the premier destination for digital assets," adding that Congress is making progress toward shaping a solid market structure that could help promote American standards globally.



Bessent, confirmed to the Treasury post in January after being nominated by President Donald Trump, has been vocal in backing crypto as a permanent fixture in the financial system. 



He also serves on the President's Working Group on Digital Asset Markets, created through an executive order signed earlier this year.



Although much of Wednesday's hearing centered on trade and tariff policy, lawmakers also discussed ongoing efforts to regulate crypto markets. 



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45248184/bitcoin-is-no-longer-just-digital-gold-native-staking-yield-are-redefining-its-role-says-core-dao">Bitcoin Is No Longer Just Digital Gold — Native Staking, Yield Are Redefining Its Role, Says Core DAO</a>



House Republicans recently circulated a draft bill that proposes dividing oversight responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), while also laying out disclosure requirements for digital asset issuers.



Why It Matters: Tensions over crypto legislation have grown in recent months, particularly among Democrats, who remain concerned about Trump's personal involvement in the space.



His launch of a meme coin and the debut of a stablecoin by his affiliated firm, <a href="https://www.benzinga.com/news/legal/25/04/45077156/trump-affiliated-world-liberty-financial-defies-ethics-concerns-raises-550-million">World Liberty Financial</a>, have raised ethical questions about influence and conflicts of interest.



Some Democratic members walked out of a scheduled crypto hearing earlier this week in protest. 



However, others, including Rep. Angie Craig (D-Minn.), opted to remain, calling for bipartisan collaboration on digital asset policy.



Meanwhile, a separate Senate bill aimed at regulating stablecoins is due for a vote on Thursday but has encountered pushback. Over the weekend, a group of Democratic Senators, among them Ruben Gallego, Raphael Warnock, Mark Warner, and Lisa Blunt Rochester, voiced opposition to the current version, citing unresolved legal and operational issues.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/25/05/45242623/ripple-commits-25m-to-us-teachers-and-classrooms-via-rlusd-stablecoin">Ripple Commits $25M To US Teachers And Classrooms Via RLUSD Stablecoin</a></li>
</ul>



Image: Shutterstock

Cryptocurrency

Treasury Sec Scott Bessent: US Should Be The 'Premier Destination For Digital Assets'

President Donald Trump recently passed the 100-day milestone for his second presidential term after <a href="https://www.benzinga.com/general/entertainment/25/01/43139381/how-many-people-watched-donald-trumps-2025-inauguration-spoiler-less-than-biden-four-years-ago">winning the 2024 election.</a>



A new Benzinga reader poll shows Trump&#8217;s approval rating for his first 100 days in the White House and how that compares to a survey from his first 52 days.



What Happened: Presidents are often scored on their first<a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/04/45069781/trumps-first-100-days-what-he-delivered-where-he-fell-short-how-markets-reacted"> 100 days in office</a> as a milestone figure used to show what has been accomplished in terms of campaign promises, laws passed and voters&#8217; feelings about the candidate after they officially take office.



A new Benzinga reader poll shows Trump's approval rating after his first 100 days in the White House.



&#8220;How do you feel about Donald Trump&#8217;s first 100 days back in office?&#8221; Benzinga asked.



The results were:



<ul>
<li>I didn&#8217;t vote for Trump: 46%</li>



<li>I voted for Trump and approve of his first 100 days in office: 34%</li>



<li>I voted for Trump but disapprove of his first 100 days in office: 14%</li>



<li>I voted for Trump but have no strong opinion: 6%</li>
</ul>



After stripping out the 46% of voters who did not vote for Trump, the president&#8217;s approval rating from people who voted for him in the poll looks like this:



<ul>
<li>Favorable: 63.1%</li>



<li>Unfavorable: 25.4%</li>



<li>No opinion: 1%</li>
</ul>



The poll shows a strong favorable rating for Trump, but it comes with the caveat that this is voters who selected him in the 2024 presidential election.



Trump's favorable rating is also down from a Benzinga survey that asked the same question <a href="https://www.benzinga.com/politics/25/03/44362774/exclusive-reader-poll-shows-strong-approval-rating-for-president-donald-trumps-first-52-days-in-office-but-theres-a-catch">after 52 days </a>back in March. In the previous poll, 37% said they approved Trump's first 52 days, while 15% disapproved. Forty-four percent said they didn't vote for Trump, and 4% said they voted for Trump and had no strong opinion.



In that previous poll, Trump had a favorable rating of 69.4% and an unfavorable rating of 28.6% when the respondents who did not vote for him were removed.



This means that Trump's approval rating has gone down, while his unfavorable rating also went down with more voters undecided on their approval level of the current president.



If the 46% of the poll who said they didn't vote for Trump were included, the approval rating would likely be significantly lower. The 63.1% favorable rating is based only on the Benzinga readers who answered the poll and voted for Trump in the 2024 election.



Read Also<a href="https://www.benzinga.com/general/education/25/04/45111571/trump-100-days-if-you-invested-1000-in-spy-qqq-bitcoin-when-trump-was-inaugurated-heres-how-much-youd-have-today">: Trump 100 Days: If You Invested $1,000 In SPY, QQQ, Bitcoin When Trump Was Inaugurated, Here&#8217;s How Much You&#8217;d Have Today</a>



Why It's Important: Other 100-day polls show low approval ratings for Trump. An Emerson College poll <a href="https://emersoncollegepolling.com/trump-100-days/" target="_blank" rel="noopener">shows </a>a 45% approval rating and a 45% disapproval rating. The remaining 10% are neutral on the current president.



This approval rating is down two percentage points from Trump's first 50 days, while the disapproval rating stayed the same.



One item likely weighing on the minds of Benzinga readers in the poll is the performance of the S&amp;P 500 during Trump's first 100 days in office.



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) tracks the S&amp;P 500. It was down 7.8% from the closing price on Jan. 17, before Trump's inauguration, to the closing price on Trump's 100th day.



According to&nbsp;<a href="https://www.cnbc.com/2025/04/28/trumps-first-100-days-are-the-worst-for-the-stock-market-since-nixon.html" target="_blank" rel="noreferrer noopener">CNBC</a>, the drop in the S&amp;P 500 was the worst start to a four-year term since&nbsp;Richard Nixon&nbsp;in 1973, citing data from CFRA Research.



In 1973, the S&amp;P 500 fell 9.9% in the first 100 days of Nixon's presidency. For comparison, the S&amp;P 500 has an average return of 2.1% in the first 100 days of a presidency, dating back to 1944.



Also, keep in mind that recent presidents had some of the best stock market performances in their first 100 days in office. Here are the recent returns and their rating since 1944:



<ul>
<li>2009:&nbsp;Barack Obama, +8.4%, fourth best</li>



<li>2013:&nbsp;Barack Obama, +7.5%, sixth best</li>



<li>2017:&nbsp;Donald Trump, +5.0%, seventh best</li>



<li>2021:&nbsp;Joe Biden, +8.5%, third best</li>



<li>2025:&nbsp;Donald Trump, -7.9%, twentieth and second worst</li>
</ul>



Markets traded higher in November and December after Trump&#8217;s win, with some of the largest companies in the world hitting new all-time highs. January and February also saw gains after Trump took office.



In March and April, attention shifted towards economic and foreign policies, with markets diving in April after Trump&#8217;s tariff announcement.



While voters have different reasons why they voted for a candidate and different criteria they score a favorable or approval rating on, Benzinga readers could be knocking Trump's rating down due to the poor stock market performance during his first 100 days.



The stock market saw strong returns during Trump's last presidential term, which <a href="https://www.benzinga.com/25/01/43059744/exclusive-can-sp-500-repeat-large-gains-from-donald-trumps-first-term-a-second-time-around-readers-say-this-return-range-most-likely" target="_blank" rel="noopener">included</a> his first year in office and the four-year term.



Trump&#8217;s first 100 days represent a portion of the 1,461 days the president would have under his current term, or roughly 6.8%.



Did You Know?



<ul>
<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent050725">Get Tips On What They Bought And Sold With Our Easy-to-Use Tool</a></li>
</ul>



The study was conducted by Benzinga from April 30, 2025, through May 2, 2025. It included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 225 adults.



Photo: Shutterstock

Politics

Exclusives

EXCLUSIVE: Trump's Approval Rating Drops In Reader Survey After 100 Days, Could Stock Market Be To Blame?

As Wall Street gears up for Federal Reserve Chair Jerome Powell's press conference on Wednesday at 2:30 p.m. ET, all eyes are on his messaging rather than the <a href="https://www.benzinga.com/topic/federal-reserve">central bank&#8217;s policy action. </a>



The Fed is widely expected to hold interest rates steady at 4.25%-4.50% for a third consecutive meeting, but what Powell says could move markets.



<h2 class="wp-block-heading">Tariffs, Trump, Trade: A Shifting Backdrop</h2>



Market participants are closely watching for Powell's tone on the recent trade-related developments. President Donald Trump's announcement in April of new tariffs has stirred speculation about potential inflationary pressures and global economic retaliation. 



The Fed chair may address how these policies could disrupt the inflation trajectory or weigh on consumer sentiment, which has shown signs of softening.



The first quarter of 2025 brought a puzzling contrast: a strong labor market and solid corporate earnings alongside a negative GDP print, driven largely by a surge in imports.



Powell is likely to clarify whether this contraction is more of a technical than cyclical factor, a point that may be emphasized to ease market concerns.



<h2 class="wp-block-heading">Trump's Shadow Over The Fed</h2>



Powell is also navigating the increasingly loud political pressure from Trump, who last month called him <a href="https://www.benzinga.com/markets/cryptocurrency/25/04/44861571/donald-trump-blasts-too-late-and-wrong-fed-chair-powell-but-polymarket-traders-doubt-his-termination-will-come-fast-enough">&#8220;too late and wrong&#8221;</a> and <a href="https://www.benzinga.com/economics/macro-economic-events/25/04/44875406/hell-be-out-if-i-ask-him-can-trumps-threat-to-oust-powell-shake-the-fed">hinted at removing him</a>—though later walked back those comments. 



While markets are discounting the possibility of a premature dismissal—Kalshi betting odds show only a 13% chance Powell is fired by the end of 2025, down from 30% last month—the long game is telling.



Odds of Powell being reappointed in May 2026 are minimal, sitting at just 4%. Former Fed Governor Kevin Warsh currently leads the betting boards with a 58% chance of succeeding him, suggesting markets are preparing for a policy shift in the post-Powell era.



<iframe loading="lazy" src="https://kalshi.com/external-widgets/events/KXFEDCHAIRNOM-29?color_scheme=light&#038;widget_size=medium&#038;variant=a&#038;ids=KXFEDCHAIRNOM-29-KW&#038;ids=KXFEDCHAIRNOM-29-CWAL&#038;ids=KXFEDCHAIRNOM-29-KH&#038;utm_campaign=benzinga_widget" width="488px" height="196px" style="border:0"></iframe>



<h3 class="wp-block-heading">What Powell Is Most Likely To Say On Wednesday: Betting Markets Weigh In</h3>



Kalshi data provides a statistical lens into what themes are likely to dominate Powell's speech.



According to bettors, Powell is almost guaranteed to mention "tariff" (98% chance), underscoring how central the trade issue has become in economic discussions. 



Terms like "Good Afternoon" (97%), "energy" (95%), "expectation" (95%) and "balance sheet" (91%) also have high odds of appearing. 



Also likely to feature prominently are terms that hint at cautious Fed messaging: "balance of risk" (87%), "recession" (86%), and "restrictive" (84%).



The 64% probability of him mentioning "China" ties into both the trade narrative and broader global economic uncertainties. 



It&#8217;s highly unlikely—just a 12% chance—that Powell will directly mention the President by name, highlighting the Fed Chair's consistent effort to maintain political neutrality and avoid inflaming tensions with the White House.



A $100 bet on Powell mentioning "China" would return $154, while the same wager on him saying "Trump" would yield a staggering $784. 



It's also unlikely that Powell will use the phrase "trade war" directly, as he tends to favor more measured, academic language such as "trade tensions" or "trade uncertainty." A $100 bet on him saying "trade war" would return a hefty $892.



<iframe loading="lazy" src="https://kalshi.com/external-widgets/events/KXFEDMENTION-25MAY?color_scheme=light&#038;widget_size=medium&#038;variant=a&#038;ids=KXFEDMENTION-25MAY-TARIFF&#038;ids=KXFEDMENTION-25MAY-GOODAFTERNOON&#038;ids=KXFEDMENTION-25MAY-ENERGY&#038;utm_campaign=benzinga_widget" width="488px" height="196px" style="border:0"></iframe>



<h3 class="wp-block-heading">Words You&#8217;re Likely To Hear From Powell (Odds ≥ 50%)</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Term</th><th>Kalshi Odds</th></tr></thead><tbody><tr><td>Tariff</td><td>98%</td></tr><tr><td>Good Afternoon</td><td>97%</td></tr><tr><td>Energy</td><td>95%</td></tr><tr><td>Expectation</td><td>95%</td></tr><tr><td>Balance sheet</td><td>91%</td></tr><tr><td>Balance of risk</td><td>87%</td></tr><tr><td>Recession</td><td>86%</td></tr><tr><td>Restrictive</td><td>84%</td></tr><tr><td>China</td><td>64%</td></tr><tr><td>Credit</td><td>58% </td></tr></tbody></table><figcaption class="wp-element-caption">Data: Kalshi</figcaption></figure>



<h3 class="wp-block-heading">Unlikely Terms In Powell's Speech (Odds &lt; 50%)</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Term</th><th>Kalshi Odds</th></tr></thead><tbody><tr><td>Projection</td><td>40%</td></tr><tr><td>QT / Quantitative Tightening</td><td>39%</td></tr><tr><td>Median</td><td>38%</td></tr><tr><td>Real wage</td><td>35%</td></tr><tr><td>Consumer confidence</td><td>44%</td></tr><tr><td>Yield curve</td><td>27%</td></tr><tr><td>Dot plot</td><td>23%</td></tr><tr><td>Gas / Gasoline / Natural Gas</td><td>19%</td></tr><tr><td>Michigan</td><td>18%</td></tr><tr><td>Crypto / Cryptocurrency</td><td>17%</td></tr><tr><td>Default</td><td>16%</td></tr><tr><td>Fuel</td><td>15%</td></tr><tr><td>R&#x2A;/R-star / R star</td><td>13%</td></tr><tr><td>Trump</td><td>12%</td></tr><tr><td>Soft landing</td><td>12%</td></tr><tr><td>Trade war</td><td>10%</td></tr><tr><td>Bitcoin</td><td>10%</td></tr><tr><td>EU / European Union</td><td>10%</td></tr><tr><td>Egg</td><td>6%</td></tr><tr><td>Fort Knox</td><td>3%</td></tr></tbody></table><figcaption class="wp-element-caption">Data: Kalshi</figcaption></figure>



<h3 class="wp-block-heading">What Powell Said In Past Conferences</h3>



"Expectation" stood out as the most frequently used term, mentioned 18 times in March and nine times in January, highlighting the central bank's focus on consumer forward-looking inflation perceptions.



&#8220;Balance sheet&#8221; was also a recurring theme, with nine mentions in March, up from just two in January.



Terms like "median" and "projection," which didn't appear in January, were mentioned seven and six times, respectively, in March, as that meeting showed the Federal Reserve&#8217;s Summary of Economic Projections with the dot plot.



"Recession" was cited four times in March, reflecting increased market sensitivity to downside risks, while "QT" (Quantitative Tightening) appeared twice.



The term "restrictive" dropped sharply from nine uses in January to just one in March. References to "China," "crypto," and "Bitcoin" were absent in March, while they appeared in January.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Term</th><th>March Count</th><th>January Count</th></tr></thead><tbody><tr><td>Expectation</td><td>18</td><td>9</td></tr><tr><td>Balance sheet</td><td>9</td><td>2</td></tr><tr><td>Median</td><td>7</td><td>0</td></tr><tr><td>Projection</td><td>6</td><td>0</td></tr><tr><td>Recession</td><td>4</td><td>0</td></tr><tr><td>Balance of risk</td><td>2</td><td>2</td></tr><tr><td>QT / Quantitative Tightening</td><td>2</td><td>1</td></tr><tr><td>Good Afternoon</td><td>1</td><td>1</td></tr><tr><td>Energy</td><td>1</td><td>1</td></tr><tr><td>Restrictive</td><td>1</td><td>9</td></tr><tr><td>Michigan</td><td>1</td><td>0</td></tr><tr><td>China</td><td>0</td><td>1</td></tr><tr><td>Crypto / Cryptocurrency</td><td>0</td><td>3</td></tr><tr><td>Bitcoin</td><td>0</td><td>1</td></tr></tbody></table></figure>



Read now: 



<ul>
<li><a href="https://www.benzinga.com/25/05/45205432/opec-just-created-the-income-trade-of-the-decade">OPEC Just Created The Income Trade Of The Decade</a></li>
</ul>



Powell will be speaking at 2:30 p.m. ET. Watch below.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534;WATCH LIVE: FOMC Rate Decision &#x7C; Fed Chair Powell Press Conference &#x7C; May 7, 2025" width="500" height="281" src="https://www.youtube.com/embed/xpIaAwIGoIA?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Image created using artificial intelligence via Midjourney.

All Eyes On Powell: What Betting Markets Expect Him To Say Wednesday

U.S. stocks traded mixed at midday Wednesday, as investors remained cautious ahead of the Federal Reserve&#8217;s upcoming policy decision, with Chair Jerome Powell set to <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45258146/all-eyes-on-powell-betting-markets-reveal-what-the-fed-chair-is-most-likely-to-say-on-wednesday">speak at 2:30 p.m. ET.</a>



Trade developments continued to influence market sentiment. During a Senate hearing, Treasury Secretary Scott Bessent confirmed that initial talks with China will begin in Switzerland later this week, though he emphasized they are only preliminary.



Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) led notable decliners, plunging over 7% after a Bloomberg report indicated an Apple executive's testimony suggested AI may be eroding traditional search market share.



The Dow Jones outperformed, while tech-heavy indexes like the Nasdaq 100 and S&amp;P 500 lagged under pressure from Alphabet&#8217;s sharp decline. Sector performance was positive overall, with modest gains led by financials.



In commodities, U.S. natural gas prices at the Henry Hub surged over 5% to $3.640 per million British units, driven by recovering feedgas flows to Freeport LNG and forecasts for early-season heat boosting demand.



Gold retreated 1.5% after a strong two-day rally, while oil dipped 1.2% to $58.30 following a brief spike to $60 overnight.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) held steady at around $96,800.



<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %</td></tr><tr><td>Dow Jones</td><td>41,115.49</td><td>0.7%</td></tr><tr><td>Russell 2000</td><td>1,993.68</td><td>0.5%</td></tr><tr><td>S&amp;P 500</td><td>5,619.12</td><td>0.2%</td></tr><tr><td>Nasdaq 100</td><td>19,781.12</td><td>-0.1%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 12:10 p.m. ET </figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched 0.2% up to $559.98.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.7% to $410.96.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;fell 0.2% to $480.71.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 0.6% to $197.89.</li>



<li>The&nbsp;Financials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) outperformed, up 0.9%; the&nbsp;Communication Services&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) lagged, down 0.8%.</li>
</ul>



<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>



Stocks reacting to earnings included:



<ul>
<li>Arista Networks Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) down 6.84%</li>



<li>Gen Digital Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GEN#NASDAQ">GEN</a>) up 9.16%</li>



<li>Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) up 0.89%</li>



<li>International Flavors &amp; Fragrances Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IFF#NYSE">IFF</a>) down 6.09%</li>



<li>Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>) up 0.41%</li>



<li>Mosaic Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOS#NYSE">MOS</a>) up 3.58%</li>



<li>Corpay Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPAY#NYSE">CPAY</a>) down 1.80%</li>



<li>Wynn Resorts Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WYNN#NASDAQ">WYNN</a>) up 0.56%</li>



<li>Jack Henry &amp; Associates Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JKHY#NASDAQ">JKHY</a>) down 0.67%</li>



<li>Devon Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVN#NYSE">DVN</a>) down 0.16%</li>



<li>Super Micro Computer Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) down 6.04%</li>



<li>Coty Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COTY#NYSE">COTY</a>) down 9.09%</li>



<li>Rivian Automotive Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) down 2.90%</li>



<li>The Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) up 11.46%</li>



<li>Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) down 2.02%</li>



<li>Emerson Electric Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EMR#NYSE">EMR</a>) up 2.72%</li>



<li>Johnson Controls International plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JCI#NYSE">JCI</a>) up 1.52%</li>



<li>Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>) down 4.78%</li>



<li>Verisk Analytics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRSK#NASDAQ">VRSK</a>) up 4.22%</li>



<li>Rockwell Automation, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ROK#NYSE">ROK</a>) up 12.29%</li>



<li>Cheniere Energy Partners, L.P. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CQP#NYSE">CQP</a>) down 0.82%</li>



<li>CDW Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDW#NASDAQ">CDW</a>) up 6.90%</li>



<li>NiSource Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NI#NYSE">NI</a>) up 3.13%</li>
</ul>



Stocks slated to report earnings after the close include Fortinet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>), Axon Enterprise Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAXN#NASDAQ">AAXN</a>), Corteva Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTVA#NYSE">CTVA</a>), Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), Texas Pacific Land Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>), Atmos Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ATO#NYSE">ATO</a>), Fidelity National Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FNF#NYSE">FNF</a>), and Western Gas Partners LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WES#NYSE">WES</a>).



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45257429/michael-saylor-calls-bitcoin-the-corporate-survival-strategy-for-96-of-companies">Michael Saylor Calls Bitcoin The &#8216;Corporate Survival Strategy&#8217; For 96% of Companies</a></li>
</ul>



Powell will be speaking at 2:30 p.m. ET. Watch below.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534;WATCH LIVE: FOMC Rate Decision &#x7C; Fed Chair Powell Press Conference &#x7C; May 7, 2025" width="500" height="281" src="https://www.youtube.com/embed/xpIaAwIGoIA?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Photo: Shutterstock

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Wall Street Mixed Ahead Of Fed Meeting, Alphabet Sinks: What's Driving Markets Wednesday?

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is the driving factor for Strategy's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) turnaround from $6 to $400 in five years only, according to <a href="https://editorial.benzinga.com/wp-admin/post.php?post=905639&amp;action=edit">executive chairman Michael Saylor</a>.



What Happened: Speaking at the Bitcoin for Corporations 2025 conference, Saylor <a href="https://www.youtube.com/watch?v=3-vBBYEXv6M">delivered</a> a compelling case for Bitcoin adoption, especially for companies outside the elite tier of U.S. tech giants.



"Bitcoin is for the rest of us, it's for the 96%," Saylor stated, noting that only a small fraction of public companies consistently create value for shareholders. 



The remaining majority are left competing in a structurally unfavorable environment dominated by the "Magnificent Seven" —Apple, Google, Microsoft, and other tech titans.



Saylor shared data showing that, 85% of U.S.-listed firms underperform the S&amp;P 500, 75% trade under $10 million in daily volume and 96% deliver returns comparable to Treasury bills.



In his view, Bitcoin offers a solution: a non-dilutive, high-performing asset that levels the financial playing field.



Also Read: <a href="https://in.benzinga.com/markets/cryptocurrency/25/05/45191302/corporations-will-pour-330-billion-into-bitcoin-by-2029-bernstein">Corporations Will Pour $330 Billion Into Bitcoin By 2029: Bernstein</a>



Why It Matters: Saylor positioned Bitcoin as &#8220;digital capital,&#8221; pairing it with AI's "digital intelligence" to create a strategic edge. 



He cited Strategy's transformation from a struggling software firm trading at $6 in 2020 to a market darling nearing $400 per share, as proof of concept.



Since adopting a Bitcoin-centric treasury model, the company has raised $37.5 billion, starting from an initial $250 million BTC allocation. 



Instead of returning capital through dividends or buybacks, MicroStrategy attracts capital by offering indirect exposure to Bitcoin.



Saylor described Bitcoin as a "universal, perpetual, profitable merger partner" that any company can integrate. 



For those interested, he announced that MicroStrategy has open-sourced its Bitcoin24 treasury model on GitHub, offering a practical toolkit for businesses exploring BTC strategies.



He ended with a challenge to corporate leaders: "Does your company have a need to know? What will your Bitcoin story be?"



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45192498/bitcoins-key-level-is-96500-analyst-warns-but-heres-what-could-trigger-a-breakdown">Bitcoin&#8217;s Key Level Is $96,500, Analyst Warns, But Here&#8217;s What Could Trigger A Breakdown</a></li>
</ul>



Image: Shutterstock

MSTR

Michael Saylor Calls Bitcoin The 'Corporate Survival Strategy' For 96% of Companies

Walt Disney Co&nbsp;(NYSE:&nbsp;DIS)&nbsp;reported <a target="_blank" href="https://www.benzinga.com/pressreleases/25/05/b45247764/the-walt-disney-company-reports-second-quarter-and-six-months-earnings-for-fiscal-2025" rel="noreferrer noopener">fiscal second-quarter&nbsp;2025</a> results on Wednesday. The company reported quarterly revenue growth of 7% year-on-year to $23.62 billion, beating the&nbsp;analyst consensus of $23.14 billion driven by its Entertainment and Experiences businesses. Adjusted EPS of $1.45 beat the&nbsp;analyst consensus of $1.20.



The stock price gained after the earnings were released.



Disney ended the quarter with 180.7 million Disney+ Core and Hulu subscriptions, up by 2.5 million over the prior quarter. The company reported 126.0 million Disney+ Core paid subscribers, an increase of 1.4 million over the preceding quarter.



Also Read: <a href="https://www.benzinga.com/media/25/05/45199354/disney-marvels-thunderbolts-opens-to-162-million-globally" target="_blank" rel="noreferrer noopener">Disney Marvel&#8217;s Thunderbolts Opens To $162 Million Globally</a>



According to the report:



<ul>
<li>Entertainment revenue (including traditional TV networks, direct-to-consumer streaming, and films) increased by 9% Y/Y to $10.68 billion.</li>



<li>Sports revenue (mostly comprised of ESPN) rose 5% Y/Y to $4.53 billion. Experiences revenue (including Disney&#8217;s theme parks and consumer products) climbed 6% Y/Y to $8.89 billion.</li>



<li>Linear Networks revenue declined by 13% Y/Y to $2.42 billion.</li>



<li>Direct-to-Consumer revenue climbed 8% Y/Y to $6.12 billion.</li>



<li>Content Sales/Licensing and Other revenue grew by 54% Y/Y to $2.15 billion.</li>



<li>The combined DTC streaming businesses improved their profitability with an operating income of $336 million on revenue of $6.12 billion.</li>



<li>Consolidated operating income grew 15% Y/Y to $4.44 billion, led by the Entertainment segment&#8217;s $1.26 billion, Sports segment&#8217;s $687 million, and the Experiences segment&#8217;s $2.49 billion.</li>



<li>The movie division benefited from &#8220;Moana 2&#8221; and &#8220;Mufasa: The Lion King,&#8221; Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-05-07/disney-raises-profit-forecast-as-parks-streaming-beat-estimates?sref=TBDibEcD" target="_blank" rel="noreferrer noopener">reported</a> on Wednesday. </li>



<li>Disney generated a quarterly operating cash flow of $6.75 billion (up 84% Y/Y) and a free cash flow of $4.89 billion (up by over 100% Y/Y).</li>
</ul>



CEO Bob Iger remains optimistic about the company&#8217;s direction and outlook for the remainder of the fiscal year.



Disney&#8217;s experiences division benefited from visitors to parks in California and Florida, holiday package sales, and the launch of the Disney Treasure ship in December. The entertainment division also benefited from recent price hikes across the company&#8217;s streaming services, including Disney+ and Hulu.



Outlook:&nbsp;For fiscal 2025, Disney projected an adjusted EPS&nbsp;of $5.75, an increase of 16% over fiscal 2024 versus a $5.44 analyst estimate (compared to the prior estimate of high-single-digit&nbsp;growth).



It <a target="_blank" href="https://www.benzinga.com/25/02/43494650/disney-q1-earnings-powered-by-moana-2-and-mufasa-theme-parks-loses-streaming-subscribers" rel="noreferrer noopener">reiterated double-digit growth</a> in operating income for the Entertainment segment in fiscal 2025.



Disney maintained its Experience segment to see operating income growth of 6%-8% in fiscal 2025.



The company expects its Sports segment to grow 13% in fiscal 2025.



For the fiscal third quarter, Disney projected a modest increase in Disney+ subscribers compared to the second quarter of fiscal 2025 for the Entertainment Direct-to-Consumer segment.



Expansion: Disney and Miral, a creator of immersive destinations and experiences, <a href="https://www.benzinga.com/pressreleases/25/05/b45249979/the-walt-disney-company-and-miral-announce-plans-for-disney-theme-park-and-resort-on-yas-island-ab" target="_blank" rel="noreferrer noopener">announced a deal</a> to build a theme park resort on Yas Island in Abu Dhabi, United Arab Emirates.



Price Actions:&nbsp;DIS stock is up 6.98% at $98.67 premarket at&nbsp;the last check on Wednesday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/media/25/04/44721053/disney-cuts-prices-and-adds-perks-to-lure-families-back-to-orlando-parks" target="_blank" rel="noreferrer noopener">Disney Cuts Prices And Adds Perks To Lure Families Back To Orlando Parks</a></li>
</ul>



Image: Shutterstock

Entertainment

Guidance

Media

Disney Lifts Forecast With $1 Billion Streaming Goal, Abu Dhabi Park Deal And More

Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) on Wednesday reported first-quarter 2025 sales of roughly $10.89 billion (78.09 billion Danish kroner), missing the <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">consensus of $11.64 billion</a>.



Sales increased by 19% in Danish kroner and 18% at CER. In U.S. Operations, sales increased by 20% in Danish kroner and 17% at CER.



Sales in International Operations increased by 18% measured in Danish kroner and by 19% at CER. Sales growth has resulted in periodic supply constraints and related drug shortage notifications for certain products and geographies.



The weight loss drug maker <a target="_blank" href="https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=915255" rel="noreferrer noopener">reported</a> Q1 adjusted EPS of 92 cents, beating the consensus of 90 cents.



The company reported an adjusted net profit of 30.3 billion in the quarter, which was up 15% year over year.



Ozempic&nbsp;<a target="_blank" href="https://ml-eu.globenewswire.com/Resource/Download/5fa26f83-a579-42fc-a3bf-242fe76a5f3e" rel="noreferrer noopener">sales</a> increased 18% to 32.72 billion Danish kroner, and Wegovy sales jumped 85% to 17.36 billion Danish kroner.



The company added that the volume of compounded GLP-1s in the U.S. is estimated to have impacted the uptake of Wegovy prescriptions and the growth of the <a target="_blank" href="https://www.benzinga.com/topic/weight-loss" rel="noreferrer noopener">branded obesity market</a> during the first quarter of 2025.



Also Read: <a target="_blank" href="https://www.benzinga.com/general/biotech/25/05/45147328/cvs-caremark-to-place-novo-nordisks-wegovy-on-preferred-coverage-for-glp-1-weight-loss-treatment" rel="noreferrer noopener">CVS Caremark To Place Novo Nordisk&#8217;s Wegovy On Preferred Coverage For GLP-1 Weight Loss Treatment</a>



Insulin sales increased 4% to 14.9 billion Danish kroner, and Rare disease sales increased 5% to 4.62 billion Danish kroner.



Sales in Diabetes care increased by 10% and 8% at CER to 55.04 billion. Novo Nordisk&#8217;s global diabetes value market share decreased by 0.6% over the last 12 months to 33.3%, driven by market share losses in the U.S. and International Operations.



In IO countries, Eli Lilly And Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) tirzepatide is categorised under GLP-1 diabetes only in IQVIA data, despite having indications for Diabetes and Obesity in most launched countries.



In its earnings release, Novo Nordisk said it submitted a Supplemental New Drug Application (sNDA) to the U.S. FDA in February for the PDS290 device variant for Wegovy. The company expects the regulatory review to be completed around mid-year 2025.



In February 2025, Novo Nordisk submitted oral semaglutide 25 mg to the FDA, with the potential to be the first oral GLP-1 treatment for obesity.



The submission is based on OASIS 4, a 64-week efficacy and safety trial comparing once-daily oral semaglutide 25 mg to placebo in 307 adults with obesity or overweight with one or more comorbidities.



In adults with obesity or overweight, oral semaglutide 25 mg achieved a 16.6% weight loss from a baseline bodyweight of 105.9 kg compared to a 2.7% reduction with placebo.



Novo Nordisk expects the regulatory review to be completed around the turn of the year.



<h2 class="wp-block-heading">Guidance For 2025</h2>



Novo Nordisk lowered its 2025 sales <a target="_blank" href="https://www.benzinga.com/25/02/43491991/novo-nordisk-records-more-than-double-wegovy-sales-in-q4-seeks-regulatory-approval-for-hybrid-weight-loss-drug-in-2026" rel="noreferrer noopener">growth from 16%-24%</a> to 13%-21% at CER and operating profit growth of 16%-24%, down from 19%-27% at CER.



Sales and operating profit growth reported in Danish kroner is expected to be 3 and 5 percentage points higher than at CER, respectively.



The updated sales outlook reflects lower-than-planned penetration of branded GLP-1 treatments in the U.S., impacted by compounded GLP-1s.



Price Action: At the last check on Wednesday, NVO stock was up 5.49% at $69.93 during the premarket session.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/05/45234032/fda-expands-surprise-inspections-at-foreign-drug-and-food-facilities-targets-double-standards-in-overseas-manufacturing-oversight" target="_blank" rel="noreferrer noopener">FDA Expands Surprise Inspections At Foreign Drug And Food Facilities, Targets Double Standards In Overseas Manufacturing Oversight</a></li>
</ul>



Photo by Tobias Arhelger via Shutterstock

Biotech

Large Cap

Health Care

Novo Nordisk's Wegovy Sales Surge 85% But Compounded Weight Loss Drugs In US Impacts Annual Outlook

If you have been around the energy markets long enough, you know crude oil has a flair for the dramatic.



When it sells off, it does not just trickle down; it falls off a cliff.



The rebound is vicious, fast and usually overdue when it finally wakes up. The trick, as always, is understanding the cycles, not panicking in the downtrend, and positioning for the inevitable rebound.



That is especially true for one of my favorite corners of the energy market: mineral royalty trusts and non-operator oil and gas interests. These are the little guys who do not drill a thing but still get paid when the oil flows.



All this is happening again right now. 



It's setting you up for the best income trade in a decade.



Let us walk through the big oil busts of the last few decades in the late 1990s: the 2008 crash, the 2014 to 2016 wipeout, and, of course, the COVID collapse of 2020.



I want to talk about what happened, how long sentiment stayed sour and what eventually got prices off the mat. Then, we will dig into what all that meant for the royalty trusts and non-operators and how their dividends held up (or not), how the market treated them, and what happened when oil came roaring back.



<h2 class="wp-block-heading">1998: The Asian Flu And The $10 Barrel</h2>



In the late 1990s, OPEC had a problem. They pumped too much oil, thinking Asia would keep consuming it. However, when the Asian financial crisis hit, demand cratered, inventories ballooned, and prices dropped like a rock.



Brent went as low as $10, and nobody wanted to touch an oil stock with a ten-foot pole.



Royalty trusts got smashed. Cash flows dried up, distributions were cut, and unit prices plunged. Investors were left staring at trailing yields in the teens, but those payouts were not sticking around.



Most trusts saw 50% or more wiped off their market capitalizations. However, by late 1999, OPEC got its act together and cut production. Inventories fell, demand slowly came back, and oil doubled. Royalty trust distributions rebounded quickly, and anyone who had the courage to buy when it all looked hopeless got rewarded in a big way.



<h2 class="wp-block-heading">2008: Peak Oil Euphoria Meets Lehman Brothers</h2>



By mid-2008, oil was $147 a barrel and people were chanting "peak oil" like it was gospel.



Then, the financial system imploded.



Demand evaporated, oil crashed to $30 and panic spread. Trust distributions went over the cliff.



Sabine Royalty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SBR#NYSE">SBR</a>) cut payouts by more than 50% in a single month.



Prices followed. These income names saw unit values drop 70% or more.



Yields were sky-high on paper, showing 20% or even 30%, but those were based on past payouts that had already been slashed. For most of 2009, distributions were a shadow of their former selves.



However, when the smoke cleared, oil demand returned, OPEC slashed production, and oil started climbing again. Trust distributions bounced, unit prices doubled or tripled off the lows and yields normalized in the high single digits.



Patience paid off.



<h2 class="wp-block-heading">2014 To 2016: The Shale Tsunami</h2>



This one was different. It was not a demand crash. It was too much U.S. shale oil.



OPEC got tired of losing market share and let prices fall from $115 in mid-2014 to under $30 by early 2016. Oil was in freefall for almost two years.



That stretched the pain out.



It was Drill, Baby, Drill Gone Bad, The Prequel.



Royalty and non-op names bled out slowly. Distributions did not collapse all at once&#8230;they just shrank quarter by quarter.



Permian Basin Royalty Trust's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBT#NYSE">PBT</a>) payout dropped by two-thirds.



PrairieSky (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PREKF#OTC">PREKF</a>) and Freehold slashed their dividends.



The market priced them accordingly.



Yields dropped, unit prices got hammered, and by 2016, it was hard to find anyone still bullish.



Then OPEC and Russia teamed up and finally cut production in late 2016.



By 2017, oil was back in the $60s, and royalty trusts started increasing dividends again.



Trusts that had lost 70% of their value doubled or more over the next 18 months. Investors who stayed the course got paid.



<h2 class="wp-block-heading">2020: The Pandemic Panic And Negative Oil Prices</h2>



Then came COVID. Demand did not just shrink. It vanished.



Planes stopped flying, cars stopped driving, and suddenly, the world was drowning in oil.



Saudi Arabia and Russia decided to have a price war on top of it all, and in April 2020, WTI futures went negative.



Royalty trusts had a rough time. Distributions were suspended.



Permianville (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PVL#NYSE">PVL</a>) went 13 months without a single payout.



PrairieSky slashed its dividend by two-thirds.



Investors fled. Unit prices dropped 60% to 80% in weeks.



Trailing yields? Meaningless. Nobody was paying anything.



However, it did not last.



OPEC+ made historic cuts.



Demand started recovering.



When vaccines arrived in late 2020, the game changed. By mid-2021, Permianville was paying again. PrairieSky and Freehold started raising dividends.



Share prices doubled or tripled.



By 2022, Sabine's distribution hit $8.65, a monster rebound.



<h2 class="wp-block-heading">What It All Means</h2>



These downturns tell the same story every time: oil crashes, royalty and non-operator income disappear, and the market throws these stocks in the trash. Yields spike on trailing numbers, then vanish when dividends get cut. Sentiment stays ugly for too long.



However, when the oil price recovers, and it always has, these names come back fast. Distributions climb, unit prices follow, and investors who bought when everyone else was scared end up with huge yields on cost and big capital gains.



They are not for the faint of heart. You have to be willing to hold when there is blood in the oil patch.



It's a pain trade.



However, if you buy these things when oil is hated and the checks have stopped, you set yourself up for some of the most explosive total returns in the market.



This is deep value investing, oilfield-style.



And now, it's happening again.



Read the headlines:



<ul>
<li>OPEC is going to increase production.</li>



<li>Oil demand forecasts are being cut.</li>



<li>The much more energy-efficient AI from China will slash demand even further.</li>



<li>Nuclear energy plants are going to pop up like mushrooms with no regulatory delays or cost overruns and be built faster than Buc-ee's.</li>



<li>China will never import another drop of oil.</li>
</ul>



Negative sentiment is building, we&#8217;ve seen some distribution cuts and optimism is harder to find than a good book in a Blockbuster.



Royalty trusts and nonowner operators may go down before they go up, but when they do, they are going to go up a lot.



Those who buy in scale, with patience and a dash of courage, will be well rewarded.



<h2 class="wp-block-heading">Risk, Reward &amp; Reversals: Tactical Options Strategies for an Unstable Market</h2>



When markets get unpredictable, disciplined options strategies can give you an edge. Join Ryan Faloona, Anne-Marie Baiynd and Tim Melvin live on May 6 to learn how they're using risk reversals, 0DTE plays, and hedging tactics to stay nimble and generate income. Save your spot now to learn how to trade smarter this week.



Editorial content from our Expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.



Photo: Shutterstock

Opinion

Trading Ideas

PREKF

OPEC Just Created The Income Trade Of The Decade

U.S. stock futures rose on Wednesday after two days of decline on Tuesday. Futures of major benchmark indices were higher in premarket.



The upmove comes after the U.S. and China <a href="https://www.benzinga.com/25/05/45242461/donald-trumps-trade-war-sparks-first-major-us-china-talks-scott-bessent-jamieson-greer-to-meet-chinese-delegation-in-geneva">agreed to hold high-level trade talks</a> in Switzerland this weekend, their first major meeting since President Donald Trump initiated the trade war, amid growing U.S. market concerns over tariff impacts. 



Investors will await the Federal Reserve&#8217;s decision on interest rates, which is slated to be announced by Fed Chair Jerome Powell today afternoon.



Meanwhile, the 10-year Treasury bond yielded 4.32% and the two-year bond was at 3.80%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing a 95.6% likelihood of the Federal Reserve keeping the current interest rates unchanged in its May meeting. 



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>-0.50%</td></tr><tr><td>S&amp;P 500</td><td>-0.50%</td></tr><tr><td>Nasdaq 100</td><td>-0.51%</td></tr><tr><td>Russell 2000</td><td>-0.91%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell in premarket on Wednesday. The SPY was down 0.63% to $562.30, while the QQQ declined 0.65% to $484.55, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



Only utilities and energy sectors advanced on Tuesday, while health care, industrials, and consumer discretionary sectors led the declines.



Fueled by businesses and consumers rushing to import goods before President Trump&#8217;s sweeping tariffs took effect, the U.S. trade deficit ballooned to a record $140.5 billion in March, according to the data released on Tuesday. Federal data revealed significant stockpiling, particularly of pharmaceuticals.



It approximately doubled from $68.6 billion in March 2024.



After Tuesday, the S&amp;P 500 index was out of the correction zone, just down 8.79% from its record high of 6,147.43 points, scaled on Feb. 19. Dow Jones was 9.42% lower than its 52-week high of 45,073.63 points, and Nasdaq 100 was 10.94% lower than its previous high of 22,222.61 points.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.87%</td><td>17,689.66</td></tr><tr><td>S&amp;P 500</td><td>-0.77%</td><td>5,606.91</td></tr><tr><td>Dow Jones</td><td>-0.95%</td><td>40,829.00</td></tr><tr><td>Russell 2000</td><td>-1.50%</td><td>1,983.19</td></tr></tbody></table></figure>



Insights From Analysts:



Ed Yaderni from Yardeni Research wrote in his QuickTakes memo that &#8220;A short bout of stagflation is likely.&#8221;



&#8220;We reckoned that the economy would remain resilient. We still think so, but Trump&#8217;s Tariff Turmoil (TTT) is stress-testing the resilience of the economy. It will probably slow economic growth and boost inflation. A short bout of stagflation is likely,&#8221; he added.



Nathan Peterson, director of derivatives analysis at the Schwab Center for Financial Research, said that the AI-led optimism was booming again despite tariff woes.



&#8220;The sentiment around the AI secular growth story feels like it&#8217;s been resurrected, and the market seems more sanguine around companies&#8217; ability to navigate the potential impact of tariffs,&#8221; he said.



According to Cooper Howard, director, fixed income strategy at the Schwab Center for Financial Research, &#8220;The Fed will likely try to signal they are on hold for the time being and want to wait for more clarity about how tariffs will or won't impact the economy,&#8221; said &#8220;The market's projecting three cuts this year, which has been pared back from earlier expectations.&#8221;



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Wednesday:



<ul>
<li>The FOMC meeting will begin at 2:00 p.m., and Fed Chairman Jerome Powell will deliver the verdict at a press conference at 2:30 p.m. ET.</li>
</ul>



<ul>
<li>Consumer credit for March will be out by 3:00 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) rose 0.87% in premarket on Wednesday as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings of $1.20 per share on revenue of $23.14 billion.</li>



<li>Uber Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) was up 0.54% as Wall Street expects it to report earnings of 50 cents per share on revenue of $11.62 billion before the opening bell.</li>



<li>Owens Corning (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OC#NYSE">OC</a>) was 0.021% below the flatline ahead of its earnings before the opening bell. Analysts expect a quarterly earnings of $2.87 per share on revenue of $2.51 billion.</li>



<li>Johnson Controls International PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JCI#NYSE">JCI</a>) was 0.35% higher as Wall Street expects it to report earnings of 80 cents per share on revenue of $5.66 billion before the opening bell.</li>



<li>Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) rose 2.43% as it reported stronger-than-expected first-quarter financial results Tuesday after the bell. AMD said it expects second-quarter revenue of approximately $7.4 billion, plus or minus $300 million. Analysts are currently forecasting second-quarter revenue of $7.24 billion.</li>



<li>Arista Networks Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) declined 4.37% after posting mixed first-quarter results after Tuesday's closing bell. It reported quarterly earnings of 65 cents per share, which beat the analyst consensus estimate of 60 cents. Quarterly revenue came in at $2 billion, which missed the consensus estimate of $2.02 billion.</li>



<li>Corpay Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPAY#NYSE">CPAY</a>) rose 1.44% after AvidXchange agreed to be acquired by TPG in partnership with Corpay for $2.2 billion.</li>



<li>TPG Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TPG#NASDAQ">TPG</a>) jumped 4.96% as it announced the acquisition of Acquire Peppertree Capital Management.</li>



<li>Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) dropped 4.21% after it postponed its investor day, citing the macroeconomic environment.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 0.80% to hover around $59.56 per barrel.



Gold Spot US Dollar fell 1.59% to hover around $3,376.07 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was higher by 0.28% at the 99.5120 level.



Asian markets ended higher on Monday except Japan's Nikkei 225. India's S&amp;P BSE Sensex, Australia's ASX 200, China&#8217;s CSI 300, Hong Kong's Hang Seng, and South Korea's Kospi index rose. European markets were falling in early trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/05/45245696/smci-issues-strong-q4-revenue-outlook-expects-nvidias-blackwell-to-fuel-growth">SMCI Issues Strong Q4 Revenue Outlook, Expects Nvidia&#8217;s Blackwell To Fuel Growth</a></li>
</ul>



Photo courtesy: Shutterstock

Equities

Market Summary

Futures

Treasuries

Pre-Market Outlook

Markets

MRVL

US Stocks Likely To Open Higher Ahead Of Fed's Verdict On Interest Rates: 'A Short Bout Of Stagflation Is Likely,' Says Expert

On Tuesday, billionaire investor Bill Ackman suggested that Donald Trump implement a gradual, escalating China tariff strategy to encourage fair trade negotiations and help U.S. companies adjust without triggering sudden economic disruption.



What Happened: Taking to X, formerly Twitter, Ackman laid out a detailed proposal for how Trump could reshape U.S.-China trade relations.



Rather than imposing large tariffs abruptly, Ackman suggests starting with a 20% tariff on Chinese goods and then gradually increasing it:



<ul>
<li>By 0.5% per month over the first year,</li>



<li>By 1% per month in the second year,</li>



<li>And by 1.5% per month in the third year, continuing in this pattern.</li>
</ul>



"To the extent that China modifies its unfair trade practices, the increases could stop and potentially be reversed depending upon the degree of improvement in its trade policies," Ackman explained.



See Also:&nbsp;<a href="https://www.benzinga.com/media/25/05/45216185/bill-gates-says-trumps-climate-rollbacks-may-have-slowed-progress-but-microsoft-co-founder-doesnt-think-thats-a-permanent-thing-as-americas-commitment-to-clean-energy" target="_blank" rel="noreferrer noopener">Bill Gates Says Trump's Climate Rollbacks May Have Slowed Progress, But Microsoft Co-Founder Doesn't Think ‘That's a Permanent Thing'</a>



He added, "This approach would incentivize companies to relocate their supply chains from China while enabling them to continue to operate profitably during the transition."



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">What if <a href="https://twitter.com/realDonaldTrump?ref_src=twsrc%5Etfw">@realDonaldTrump</a> were to announce that China tariffs would immediately be reduced to 20% and then escalate thereafter by 0.5% per month for next 12 months, and then by 1% per month for the next 12 months, and then by 1.5% per month for the next 12 months and so on? To…&mdash; Bill Ackman (@BillAckman) <a href="https://twitter.com/BillAckman/status/1919840513831973363?ref_src=twsrc%5Etfw">May 6, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Why It's Important: On the same day as Ackman's proposal, the Trump administration revealed that Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are set to meet with <a href="https://www.benzinga.com/25/05/45242461/donald-trumps-trade-war-sparks-first-major-us-china-talks-scott-bessent-jamieson-greer-to-meet-chinese-delegation-in-geneva">senior Chinese officials in Geneva</a>, Switzerland, this weekend.



China's Ministry of Commerce released a separate statement warning that if the U.S. were to act contrary to its stated intentions or use the dialogue as a cover for pressure tactics, <a href="https://www.benzinga.com/25/05/45246445/china-warns-us-not-to-use-coercion-and-extortion-tactics-ahead-of-first-major-trade-talks-in-geneva-says-it-will-never-accept-it-if-americans-use-dialogue-as-smokescreen">China would not tolerate</a> such behavior.



A recent poll shows that the trade war has <a href="https://www.benzinga.com/markets/25/05/45185792/young-americans-express-discontent-over-trumps-china-tariffs">negatively affected</a> President Trump's approval ratings among young Americans, who are frustrated by the price increases caused by tariffs.



The Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) has declined 5.65% so far this year, while the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) has dropped 4.42%, as ongoing uncertainty surrounding the U.S.-China trade conflict continues to dampen investor confidence.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/tech/25/04/45090992/mark-zuckerberg-warns-of-serious-disadvantage-as-chinas-data-center-blitz-could-let-deepseek-leapfrog-us-ai-labs" target="_blank" rel="noreferrer noopener">Mark Zuckerberg Warns Of ‘Serious Disadvantage' As China's Data-Center Blitz Could Let DeepSeek Leapfrog US AI Labs</a></li>
</ul>



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo courtesy: T. Schneider / Shutterstock.com

Bill Ackman Proposes Gradual China Tariff Escalation To Push Fair Trade And Avoid Economic Shock: 'This Approach Would Incentivize Companies...'

Leading cryptocurrencies spiked Tuesday on news that Treasury Secretary Scott Bessent <a href="https://www.benzinga.com/25/05/45242461/donald-trumps-trade-war-sparks-first-major-us-china-talks-scott-bessent-jamieson-greer-to-meet-chinese-delegation-in-geneva">will meet Chinese officials for trade talks</a>.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8:45 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>+2.82%</td><td>$97,197.36</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+1.03%</td><td>$1,834.96</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+1.90%</td><td>$0.1737</td></tr></tbody></table></figure>



What Happened: Following days of consolidation, Bitcoin recaptured $97,000 in the evening, reaching an intraday high of $97,625.81.



The rally also catalyzed Ethereum, pushing the second-largest cryptocurrency within touching distance of $1,850.



Over $326 million was liquidated from the cryptocurrency market in the last 24 hours, with nearly equal amounts of longs and shorts erased.



Speculative interest in Bitcoin soared, as evidenced by the 5% jump in Open Interest in the last 24 hours.



Meanwhile, the percentage of derivatives traders placing bullish long bets on Bitcoin increased to 53%, according to the Long/Short Ratio.



The market sentiment remained in the "Greed" zone, according to the Crypto Fear and Greed Index, suggesting a spike in buying pressure.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8:45 p.m. ET)</td></tr><tr><td>Litecoin (LTC)</td><td>+11.58%</td><td>$93.03</td></tr><tr><td>Pudgy Penguins (PENGU)</td><td>+8.17%</td><td>$0.0117</td></tr><tr><td>Worldcoin (WLD)</td><td>+7.69%</td><td>$0.9398</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3 trillion, following a 2% increase in the last 24 hours.



Stocks closed the second straight session in the red. The Dow Jones Industrial Average fell 389.83 points, or 0.95%, to end at 40,829.00. The S&amp;P 500 lost 0.77% to close at 5,606.91, while the tech-heavy Nasdaq Composite slid 0.74%, ending at 17,689.66.



The Fed's decision on interest rates is expected to come Wednesday, with traders pricing in a 97% chance that the 4.25%-4.50% range will remain unchanged, <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">according </a>to the CME FedWatch tool.



Meanwhile, stock futures spiked Tuesday overnight after the Donald Trump administration confirmed that Bessent will meet Chinese officials for trade negotiations this weekend in Geneva.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Blockchain analytics firm Santiment said Bitcoin's key stakeholders were "moving in the right direction" to justify the $100,000 target in the near future.



"Wallets with the highest correlation with crypto&#8217;s overall market health (10-10K BTC wallets) have accumulated a combined 81,338 more BTC (+0.61% of their holdings) during these past 6 weeks of volatility," the firm added.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">&#x1f433; As May progresses, Bitcoin&#39;s key stakeholders are mostly moving in the right direction if you&#39;re rooting for $100K <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> in the near future. Wallets with the highest correlation with crypto&#39;s overall market health (10-10K BTC wallets) have accumulated a combined 81,338 more… <a href="https://t.co/4DKhOwROgx">pic.twitter.com/4DKhOwROgx</a>&mdash; Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1919872169674461354?ref_src=twsrc%5Etfw">May 6, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Cryptocurrency analyst Michaël van de Poppe noticed Bitcoin's "solid" chart and expected the apex cryptocurrency to go further north.



"I think we&#8217;ll continue the grind on Bitcoin upwards, the key factor here is whether Gold starts to correct after FOMC tomorrow, indicating that there&#8217;s the start of the business cycle," Van De Poppe stated.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">A pretty solid chart on <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a>, which bounces back upwards. I think we&#39;ll continue the grind on Bitcoin upwards, the key factor here is whether Gold starts to correct after FOMC tomorrow indicating that there&#39;s the start of the business cycle. <a href="https://t.co/PGjLqgZ8Ow">pic.twitter.com/PGjLqgZ8Ow</a>&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1919760190175367654?ref_src=twsrc%5Etfw">May 6, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo Courtesy: Yalcin Sonat On Shutterstock.com



Read Next:    



<ul>
<li><a href="https://www.benzinga.com/25/05/45224972/xrp-drops-to-2-09-as-on-chain-activity-sputters-despite-etf-optimism">XRP Drops to $2.09 as On-Chain Activity Sputters Despite ETF Optimism</a></li>
</ul>

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Spike As Scott Bessent's Gears Up For Trade Talks With China: Key BTC Stakeholders 'Moving In The Right Direction' Towards $100,000 Target, Says Analytics Firm

On Tuesday, Cathie Wood&#8216;s Ark Invest made significant trades, notably selling shares of Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>). This move comes after Palantir&#8217;s stock faced pressure despite surpassing <a href="https://www.benzinga.com/news/earnings/25/05/45208000/palantir-q1-earnings-revenue-beat-eps-in-line-customer-count-up-39-company-raises-guidance-citing-surging-and-ferocious-growth">first-quarter earnings</a> expectations.



The Palantir Trade saw Ark Invest&#8217;s ARK Innovation ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#BATS">ARKK</a>) sell 376,874 shares of the AI-focused company. The trade was valued at $41.03 million. On Tuesday, Palantir shares closed 12.05% lower at $108.86.



This decision followed Palantir&#8217;s recent earnings report, which, despite exceeding analyst predictions, led to a stock decline. The stock&#8217;s drop is attributed to <a href="https://www.benzinga.com/25/05/45228456/whats-going-on-with-palantir-stock-tuesday">high investor expectations</a>. Palantir&#8217;s shares have surged 332% over the past year and 45% year-to-date, yet the post-earnings dip highlights market volatility.



Analysts remain divided on Palantir&#8217;s future. Some view it as a <a href="https://www.benzinga.com/25/05/45232694/palantir-stock-shows-momentum-with-q1-results-ai-opportunity-analyst-says-generation-tech-name-worth-1-trillion-in-future">key player in the AI sector</a>, predicting a potential $1 trillion market cap within three years. However, others, like Jefferies&#8217; Brent Thill, <a href="https://www.benzinga.com/25/05/45213810/palantir-stock-drops-925-after-earnings-beat-dan-ives-stays-bullish-but-jefferies-brent-thill-says-institutions-still-arent-interested">express skepticism</a> about institutional interest, emphasizing its retail-driven nature.



Palantir remains Ark&#8217;s second-largest holding, accounting for approximately 8.14% of the firm&#8217;s portfolio by weight, with a total value of $421.65 million.



Other Key Trades:



<ul>
<li>Personalis Inc. — Ark Invest&#8217;s ARKG ETF acquired 318,741 shares.</li>



<li>Guardant Health Inc. — 237,374 shares were purchased by ARKK.</li>



<li>Twist Bioscience Corp. — ARKK bought 283,186 shares.</li>



<li>Natera Inc. — 55,623 shares were added to ARKK.</li>



<li>GitLab Inc. — 30,107 shares were acquired by ARKK.</li>
</ul>



Want to know about other buzzing AI Stocks? Benzinga Edge Stock Rankings has you covered. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">Click here</a> to find out more.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="433" height="271" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06210703/Screenshot-2025-05-07-at-10.06.47.png" alt="" class="wp-image-904617" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06210703/Screenshot-2025-05-07-at-10.06.47.png 433w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06210703/Screenshot-2025-05-07-at-10.06.47-300x188.png 300w" sizes="(max-width: 433px) 100vw, 433px" /></a></figure>



Read Next: 



<ul>
<li><a href="https://benzinga.com/general/market-summary/25/05/45218040/warren-buffett-expresses-disappointment-over-dollar-depreciation-dont-want-to-own-assets-i" target="_blank" rel="noreferrer noopener">Warren Buffett Expresses Disappointment Over Dollar Depreciation: Don&#8217;t Want To Own Assets In A Currency That Is &#8216;Really Going To Hell&#8217;</a></li>
</ul>



Photo Courtesy: Ira Lichi On Shutterstock.com



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

ARKK

PLTR

Cathie Wood Sells $41 Million Worth Of Palantir Shares Following Post-Earnings Plunge

On Tuesday, the Donald Trump administration announced that Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will <a href="https://www.benzinga.com/25/05/45160145/china-says-door-is-open-for-talks-while-it-is-assessing-us-trade-proposal-but-warns-coercion-and-extortion-wont-work">meet with senior Chinese</a> officials this weekend in Geneva, Switzerland.&nbsp;



What Happened: The gathering marks the first major face-to-face discussions between the two countries since the trade conflict began, <a href="https://apnews.com/article/trump-china-trade-switzerland-bessent-2a3335ed92989dc4b3a74ea550b79b3f?user_email=97d05b29432d778bbb1ffb8f16f2769451bf1d6125981f71ceccbe18ec8d01d8&amp;utm_medium=APNews_Alerts&amp;utm_source=Sailthru_AP&amp;utm_campaign=NewsAlert_May06_2025_06:55PM&amp;utm_term=AP%20News%20Alerts">reported</a> the Associated Press.



The Chinese Commerce Ministry confirmed that Vice Premier He Lifeng will represent Beijing during the talks.



The meetings are set to take place amid a backdrop of mounting tariffs, with the U.S. imposing duties of up to 145% on Chinese imports and China retaliating with tariffs of 125% on American goods.



In addition to their Chinese counterparts, Bessent and Greer are also scheduled to meet with Swiss President Karin Keller-Sutter, according to their offices, the report noted.



See Also: <a href="https://www.benzinga.com/media/25/05/45216185/bill-gates-says-trumps-climate-rollbacks-may-have-slowed-progress-but-microsoft-co-founder-doesnt-think-thats-a-permanent-thing-as-americas-commitment-to-clean-energy">Bill Gates Says Trump&#8217;s Climate Rollbacks May Have Slowed Progress, But Microsoft Co-Founder Doesn&#8217;t Think &#8216;That&#8217;s a Permanent Thing&#8217;</a>



Why It&#8217;s Important: In a note published Monday, veteran Wall Street investor Ed Yardeni said he's <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45192936/wall-street-veteran-investor-lowers-recession-risk-as-us-china-trade-war-cools">lowering his estimated probability</a> of a U.S. recession to 35%, down from 45% at the end of March.



The revised outlook, which returns to early March levels, signals increased optimism that tensions over tariffs between the U.S. and China may ease.



Last month, Morgan Stanley economists forecasted that the U.S. and China would initiate negotiations and steadily <a href="https://www.benzinga.com/markets/25/04/45065482/us-china-to-ease-tariffs-gradually-after-complex-talks-says-morgan-stanley-but-cuts-chinas-growth-outlook">reduce tariffs on Chinese imports</a> to 60% by the end of the second quarter. However, they do not anticipate a return to pre-Jan. 25 tariff levels.



The Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) has fallen 5.65% year-to-date, while the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is down 4.42%, as uncertainty over the U.S.-China trade war weighs on investor sentiment.



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Photo Courtesy: Tomas Ragina on Shutterstock.com



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Government

Scott Bessent To Meet Chinese Officials For Crucial Trade Talks In Switzerland: Trump Administration

Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) released its third-quarter results after Tuesday's closing bell. Here's a look at the details<a href="https://www.benzinga.com/pressreleases/25/05/b45235128/supermicro-announces-third-quarter-fiscal-year-2025-financial-results"> from the report. </a>



The Details: Super Micro Computer reported quarterly earnings of 31 cents per share, which missed the analyst consensus estimate of 50 cents by 38%. Quarterly revenue came in at $4.6 billion, which missed the analyst consensus estimate of $5.42 billion by 15.1%.



Non-GAAP gross margin was 9.7% with adjustments for stock-based compensation expenses of $7 million.&nbsp;



The company had <a href="https://www.benzinga.com/news/earnings/25/04/45086254/super-micro-computer-stock-is-tanking-after-hours-whats-fueling-the-sell-off">previously said </a>it expected to report third-quarter revenue of $4.5 billion to $4.6 billion, and adjusted earnings in the range of 29 cents to 31 cents per share. 



Read Next:&nbsp; <a href="https://www.benzinga.com/news/legal/25/05/45226604/president-trump-wants-to-reopen-alcatraz-heres-what-it-would-take?utm_source=articleShare">President Trump Wants To Reopen Alcatraz: Here&#8217;s What It Would Take</a>



&#8220;We continue to make great progress with our DCBBS (Data Center Building Block Solution), DLC (Direct Liquid Cooled-2) and AI technology leadership, but some customers delayed making platform decisions in the quarter,&#8221; said Charles Liang, CEO of Supermicro. 



&#8220;We do expect many of those commitments to land in the June and September quarters, reinforcing my confidence in our ability to meet our long-term targets, however, economic uncertainty and tariff impacts may have a short-term impact. We believe that we are well-positioned in the long term to capitalize on the growing market opportunity,&#8221; Liang added.



Outlook:&nbsp;Super Micro expects net sales of $5.6 billion to $6.4 billion for the fourth quarter and non-GAAP net income of 40 cents to 50 cents per diluted share.



SMCI Price Action: According to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Super Micro Computer stock was down 4.07% after-hours at $31.60 on Tuesday.  



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Photo: Shutterstock

After-Hours Center

Super Micro Computer Stock Slips After Q3 Results: 'Uncertainty And Tariffs May Have A Short-Term Impact,' CEO Says

U.S. utility stocks roared higher on Tuesday, notching fresh highs not seen since late 2024, as investors rotated toward defensive assets while Washington's trade policy <a href="https://www.benzinga.com/news/econ-s">outlook became increasingly muddled.</a>



The Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) climbed 1.8% during Tuesday trading, pushing the benchmark ETF to levels last seen in early December 2024. 



That gain cemented a 6.3% year-to-date advance, more of any other S&amp;P 500 sector. It outpaced technology stocks by 15 percentage points and the consumer discretionary sector by 18 percentage points.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>ETF Name </th><th>% Change YTD</th></tr></thead><tbody><tr><td>Utilities Select Sector SPDR Fund</td><td>+6.32%</td></tr><tr><td>Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td><td>+3.50%</td></tr><tr><td>Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td><td>+2.24%</td></tr><tr><td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td><td>+1.70%</td></tr><tr><td>Industrial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td><td>+1.28%</td></tr><tr><td>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td><td>+0.86%</td></tr><tr><td>Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</td><td>-0.51%</td></tr><tr><td>Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td><td>-2.42%</td></tr><tr><td>Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td><td>-6.05%</td></tr><tr><td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td><td>-8.15%</td></tr><tr><td>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td><td>-11.99%</td></tr></tbody></table><figcaption class="wp-element-caption">Performance as of May 6, 2025</figcaption></figure>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="528" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06155953/image-59-1024x528.png" alt="" class="wp-image-904364" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06155953/image-59-1024x528.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06155953/image-59-300x155.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06155953/image-59-768x396.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06155953/image-59-1536x792.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/06155953/image-59-2048x1056.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">Utilities Take The Lead</h3>



Still, the utilities sector remains one of the least crowded trades on Wall Street. Despite its 2024 outperformance, the lack of investor interest suggests an underownership of the sector.



In a note shared this week, Bank of America's latest Equity Client Flow Trends showed that utilities were the only sector to post outflows last week when institutional and retail clients alike bought into 10 out of 11 sectors—marking the widest sector participation in 10 months.



Tuesday's rally was driven in part by Constellation Energy Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>), which jumped 11.87%, brushing off weaker-than-expected first-quarter earnings thanks to an optimistic full-year forecast. Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>) gained 4.44%, ahead of its earnings release on Wednesday, while AES Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AES#NYSE">AES</a>) added 2.49%.



Looking at the 2025 performance, NRG Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>) leads the utilities sector with a 31.4% YTD gain, followed by Consolidated Edison Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ED#NYSE">ED</a>), up 25.6%, and Exelon Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXC#NASDAQ">EXC</a>), which has surged 24.5%.



Tuesday's market backdrop was shaped by fresh uncertainty surrounding U.S. trade relations. During a meeting with Canadian Prime Minister Mark Carney, President Donald Trump floated the idea of renegotiating the United States-Mexico-Canada Agreement (USMCA) and claimed China is eager to return to the negotiating table due to its economic weakness.



Trump said talks with China would happen &#8220;at the right time,&#8221; adding that the U.S. was not obligated to finalize any deals.



<h3 class="wp-block-heading">Fed Steady For Now, But All Eyes on Powell</h3>



Attention now turns to Wednesday's Federal Reserve meeting, where economists broadly expect the central bank to hold interest rates steady at the 4.25%-4.5% range.



There's a 97% probability that the Fed will make no changes to policy in May, according to CME Group's FedWatch Tool. 



Yet, markets are already looking ahead to potential rate cuts. Fed futures pricing implies a 31% chance of a 25-basis-point cut in June and 78% by July. By year-end, there's an 82% chance the Fed will have delivered three rate cuts.



The post-decision press conference is expected to focus on Fed Chair Jerome Powell's response to political pressure, particularly after Trump's public calls for lower rates, which have reignited concerns about the central bank's independence.



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</ul>



Photo: Shutterstock

XLRE

Utilities Hit Highest Levels Since 2024 As Trade Jitters Drive Investors To Safety

Gold&#8217;s latest surge, inspired by China&#8217;s safe-haven dash, a declining dollar and a geopolitical situation more knotted than a string of Christmas lights—has investors abuzz. While spot gold jumped 3.03% on Tuesday to $3,414.24, astute gold seekers are digging deeper. 



Meet the VanEck Merk Gold ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OUNZ#NYSE">OUNZ</a>), the golden child of <a href="https://www.benzinga.com/etfs" target="_blank" rel="noopener">physically backed ETFs that</a> offer a &#8220;just-in-case&#8221; delivery feature for those who prefer their portfolios to include physical bullion.



Merk Investments president and CIO Axel Merk told Benzinga that this golden opportunity is not coincidental. &#8220;In the current environment, tariffs may well alter the plumbing of the global financial system,&#8221; he said, citing increasing anxiety about monetary policy, recession fears and the potential for U.S.–China tariff disruption to divert global financial plumbing. &#8220;Add to this a highly leveraged financial system, and we see a growing number of investors turning to gold in anticipation of a range of potential unintended consequences, including pressure on the Federal Reserve to lower interest rates.&#8221;



An ETF Containing Actual Gold



What distinguishes OUNZ isn&#8217;t merely its paltry 0.25% expense ratio (comparable to iShares Gold Trust (ARCA: IAU), lower than SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>)), but its special benefit: <a href="https://www.benzinga.com/topic/gold">investors can receive physical gold</a>—whether London Bars or Maple Leafs. Merk&#8217;s patented conversion process enables these large bullion bars to be converted into investor-friendly coins, making OUNZ the ETF version of an alchemist with excellent logistics.



Year to date, the fund has experienced more than $150 million in inflows, according to Merk, marching in tandem with gold&#8217;s rising surge. While not all exchange their ETF shares for glittering coins, six deliveries have already been made this year, primarily by high-net-worth individuals seeking something more tactile than spreadsheets.



Also Read: <a href="https://www.benzinga.com/etfs/specialty-etfs/25/05/45229767/pltr-focused-etfs-down-whats-really-behind-palantirs-plunge-the-numbers-dont-tell-the-full-st">PLTR-Focused ETFs Down: What&#8217;s Really Behind Palantir&#8217;s Plunge? The Numbers Don&#8217;t Tell The Full Story</a>



Long-Term Mindset In A Short-Term World



OUNZ is not your typical trader&#8217;s sandbox. Most investors go in on its delivery option rather than the action. &#8220;Many investors are drawn to OUNZ because of the option to take physical delivery, even if they never exercise it. As a result, OUNZ tends to attract long-term holders rather than short-term traders. This was evident last year when other gold products saw outflows while OUNZ maintained steady inflows. We typically process a few deliveries each month; year-to-date, there have been six,&#8221; Merk said, crediting the ETF&#8217;s popularity with long-term holders who enjoy converting financial worry into something they can pile in a safe.



Tax-Smart And Apocalypse-Ready?



Receiving delivery of gold via OUNZ is not taxable since you&#8217;re technically not claiming anything you don&#8217;t already possess. It&#8217;s the gold version of grabbing a pizza you&#8217;ve already paid for online. Just don&#8217;t go for a Krugerrand, though. Its below-95% purity makes it a tax gray area, warns Merk.



Greater Appeal In An Unpredictable World



In the post-pandemic era, investor demand for physical gold has widened. The erstwhile niche &#8220;gold bug&#8221; segment has mainstreamed, with inflation anxiety and sovereign debt mountains rising. Merk assertively believes this is just the start. And while central banks continue to pile up gold, OUNZ&#8217;s inflows are less a product of panic buying and more a function of careful strategy.



However, sound retail interest is driving the success of the ETF. &#8220;While demand for OUNZ has increased, we have not seen signs of panic buying. Importantly, coin premiums have not spiked—typically a telltale sign of strong retail engagement. While retail interest has grown, much of the buying has come from institutions. In that sense, central bank gold purchases have not directly influenced retail appetite,&#8221; Merk explained.



The Bottom Line



As macro uncertainty simmers, Fed announcements loom and Trump hints at trade agreements, the OUNZ provides more than gold exposure. It provides flexibility, tranquility, and sure, real gold in your pocket if the mood (or market) strikes.



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Photo: Shutterstock

Specialty ETFs

Commodities

Interview

OUNZ

Exclusive: Expert Explains How This Gold ETF Lets You Physically Hold Your Wealth And Why Investors Are Quietly Rushing In

Treasury Secretary Scott Bessent told lawmakers Tuesday that the U.S. economy is showing strong signs of resilience, with job gains outpacing expectations and inflation finally easing across key consumer categories, championing the <a href="https://www.benzinga.com/topic/donald-trump">Trump administration&#8217;s policy actions.</a>



In testimony before the House Appropriations Committee, Bessent defended the Trump administration's economic playbook, calling it a "three-legged stool" of trade, tax and deregulation designed to accelerate domestic investment and push wages higher. 



&#8220;464,000 new jobs were added to the economy in the first 100 days,&#8221; he said. 



&#8220;In April alone, over 177,000 American jobs were added, which is more than 40,000 than economists predicted,&#8221; he added.



<h3 class="wp-block-heading">Tariff Talks Accelerate, Trade Deals on Deck</h3>



When questioned on the administration's international strategy, Bessent revealed that the U.S. is actively renegotiating tariffs with 17 of its 18 top trading partners a move that could yield significant progress in the coming months.



"I would be surprised if we don't have more than 80 or 90 percent of those wrapped up by year-end," Bessent said. "That may be much sooner… perhaps as early as this week."



He said many countries have submitted "very good offers" in the wake of Trump's sweeping tariff schedule announced April 2, which targeted all trading partners. A 90-day pause was introduced a week later to allow room for bilateral negotiations.



Bessent argued that tariffs are proving effective, not just economically but strategically. "They may not like the tariffs the president has put up, but they have them," he said.



&#8220;We are aiming for fair trade to bring back high paying precision, manufacturing jobs to the U.S.,&#8221; Bessent said. 



When Rep. Mark Pocan (D-WI) pressed Bessent on who ultimately pays for tariffs, the Treasury Secretary avoided a direct answer, saying "strategic uncertainty is part of negotiations."



<h3 class="wp-block-heading">No Signs Of Recession, Stronger GDP Expected</h3>



Asked whether the U.S. economy is heading toward a recession, Bessent said the data show no such signal.



"There is nothing in the data that indicates the U.S. is in a recession," he said, adding he expects first-quarter GDP figures to be revised higher. 



He also said that tax receipts should remain strong, citing improvements in collection efficiency due to artificial intelligence.



Still, Bessent called for greater fiscal discipline. "Last year, we had a 6.7% fiscal deficit — the largest ever during peacetime or non-recessionary times. The easy thing would be to keep spending to keep the economy running. But that path is unsustainable."



"We have set the table for a robust economy that allows Main Street to grow," Bessent added.



<h3 class="wp-block-heading">Push For Permanent Tax Cuts Gains Momentum</h3>



Bessent reiterated that the Trump administration's next priority is to make its tax cuts permanent. With House Speaker Mike Johnson expected to send a bill to the Senate by Memorial Day, Bessent said momentum is building.



"We look forward to working closely with the members of this committee to pass this bill into law," he said. "Together, we can build a stronger, safer and more prosperous America."



<h3 class="wp-block-heading">Market Reactions</h3>



The S&amp;P 500 index, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), pared losses during Bessent's testimony, rising 30 points or 0.6% between 10:00 and 11:00 a.m. ET.



The Nasdaq 100 also moved off session lows, climbing 150 points or 0.8% in the same period, narrowing its decline to 0.7%.



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Photo: Shutterstock

Regulations

Bessent Signals Imminent Trade Deals, Dismisses Recession Fears As Stocks Rebound

Although billionaire hedge fund manager&nbsp;Paul Tudor Jones&nbsp;believes AI can be a force for good, he also issued a stark warning on Tuesday suggesting it has the potential to <a href="https://www.benzinga.com/news/24/06/39319028/terminator-in-real-life-ai-godfather-warns-of-human-wipe-out-in-5-to-20-years">wipe out 50% of humanity</a>.



What Happened: Tuesday on CNBC&#8217;s &#8220;Squawk Box,&#8221; Jones, the founder and chief investment officer of&nbsp;Tudor Investment, warned of the negative potential of <a href="http://benzinga.com/topic/ai">AI</a> based on takeaways from a technology conference he attended two weeks ago. 



Although he acknowledged that he&#8217;s &#8220;not a tech expert,&#8221; he said the conference featured a panel of four of the &#8220;leading modelers&#8221; of the top AI models being used today, who all agreed that there is at least a small chance that AI could cause significant harm to the human race. 



There were three big takeaways from the panel, he said. First, AI can be a force for good and we are going to start seeing it in education and healthcare in the very near future. Second, these AI models are increasing their efficiency and performance by 25% to 500% every three or four quarters. Lastly, AI &#8220;clearly poses an imminent threat&#8221; to humanity, he said. 



When asked about what they were doing to prepare for the security threat that AI poses, one of the panel members said he was buying 100 acres in the Midwest and raising chickens and cattle. According to Jones, the panelist also said that the world is not likely to take the threat of AI really seriously until an &#8220;accident&#8221; occurs where &#8220;50 to 100 million people die. &#8221; He added that no one else on the panel pushed back against that idea.



&#8220;Afterwards, we had a breakout session, which was really interesting. All 40 people got up in a room like this and they had a series of propositions and you had to either agree with or disagree with the proposition,&#8221; Jones said. 



&#8220;One of the propositions was there&#8217;s a 10% chance in the next 20 years that AI will kill 50% of humanity &#8230; the vast majority of the room moved to the disagree side &#8230; all four modelers were on the agree side.&#8221;



Check This Out: <a href="https://in.benzinga.com/tech/25/05/45191784/elon-musk-wants-his-legacy-to-be-advancing-civilization-says-without-truth-seeking-ai-the-future-could-be-dangerous">Elon Musk Wants His Legacy To Be Advancing Civilization, Says Without &#8216;Truth-Seeking AI,&#8217; The Future Could Be &#8216;Dangerous&#8217;</a>



Jones told CNBC that the room then debated the proposition. One of the modelers suggested that it&#8217;s possible that someone could &#8220;bio hack&#8221; a weapon that could take out half of humanity, given how quickly the models are growing and commoditizing knowledge. 



&#8220;I don&#8217;t know, 10% seems reasonable to me,&#8221; Jones said. 



He emphasized that he&#8217;s not an expert in technology, but noted that he&#8217;s spent his entire life managing risk.



&#8220;We just have to realize, to their credit, all these folks in AI are telling us we&#8217;re creating something that&#8217;s really dangerous — it&#8217;s going to be really great too — but we&#8217;re helpless to do anything about it. That&#8217;s, to their credit, what they&#8217;re telling us, and yet we&#8217;re doing nothing right now and it&#8217;s really disturbing,&#8221; Jones said. 



Jones told CNBC that there was about $250 billion dollars spent on AI development among the <a href="https://www.benzinga.com/content/45185180/magnificent-7-stocks-send-a-dire-warning-to-markets">Magnificent Seven</a> tech giants in 2024. According to the four modelers at the tech conference, the AI spend on security was less than $1 billion, he said. 



To mitigate the potential downside of AI, the leading AI companies need to dramatically increase spending on AI security and President Donald Trump has to increase regulations on AI development, Jones said. 



&#8220;I just want to say one last thing. I&#8217;m really concerned about these open-source models and how they are commoditizing and making what were previously indecipherable pockets of knowledge easily accessible,&#8221; he said. 



&#8220;You can have a bad actor like Osama bin Laden take these things with his cult following somewhere down the road, or you can have innocent actors like hopefully those researchers in Wuhan laboratory make a mistake, who made a mistake, and they can be real threats to humanity.&#8221;



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Image created using artificial intelligence via Midjourney.

Paul Tudor Jones Warns AI Could 'Kill 50% Of Humanity' Without Proper Oversight: 'We're Creating Something That's Really Dangerous'

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