Markets were rocked this week by mounting tensions in the U.S. Treasury market after Moody's downgraded the nation&#8217;s credit rating, stripping it <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45500872/30-year-treasury-yields-hit-5-what-that-means-for-stocks">of its top-tier status.</a>



Investor sentiment weakened further midweek when a 20-year Treasury auction revealed soft demand, fueling concerns about <a href="https://www.benzinga.com/government/regulations/25/05/45550324/us-bond-market-flashing-red-30-year-yield-tops-5-prices-tank-to-october-2023-lows">future government borrowing needs.</a>



This sparked a sell-off in long-term bonds, sending the 30-year Treasury yield as high as 5.15%, before easing back toward 5% by Friday.



Adding to fiscal concerns, President Donald Trump, alongside Defense Secretary Pete Hegseth, announced a $175 billion initiative dubbed the "Golden Dome," a multi-layered missile defense project intended to shield the U.S. from foreign military threats, including <a href="https://www.benzinga.com/general/space/25/05/45584539/donald-trumps-175-billion-golden-dome-could-trigger-a-new-space-arms-race-expert-warns-its-opening-a-pandoras-box">hypersonic and ballistic missiles.</a>



On the political front, the House of Representatives passed what Trump called the "One, Big, Beautiful Bill" — a sweeping <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45564489/trumps-big-tax-bill-clears-the-house-30-year-yields-jump-to-515-as-bond-market-freaks">tax and spending package.</a> According to the Congressional Budget Office, the bill could increase the federal budget deficit by $3 trillion to $4 trillion over the next decade.



Trade tensions flared anew on Friday. Trump took to Truth Social to threaten Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) with 25% tariffs if it doesn't move production <a href="https://www.benzinga.com/government/regulations/25/05/45586328/itariff-threat-trump-turns-up-the-heat-but-apples-chart-still-holds-the-line">back to the U.S.</a>



Later, he announced 50% tariffs on goods from the European Union, effective June 1, as talks between <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45585283/trump-tariff-threat-hits-europe-stocks-sink-as-50-duties-loom">Washington and Brussels cooled.</a>



The move marks the sharpest escalation in transatlantic trade relations in years. In 2024, U.S. imports from the EU reached $687 billion, with a record goods trade deficit of $236 billion. In March 2025 alone, the U.S. imported $91.9 billion from the bloc, racking up a $47 billion monthly deficit, as firms accelerated shipments <a href="https://www.benzinga.com/government/regulations/25/05/45587689/trump-sparks-new-chapter-in-transatlantic-trade-war-what-the-us-buys-from-europe">ahead of the tariffs.</a>



On the economic front, May's Purchasing Managers' Index surveys delivered a mixed signal. Activity in both services and manufacturing sectors grew faster than expected, indicating underlying strength. However, the data also showed the sharpest rise in input prices in nearly three <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45567476/us-business-activity-rebounds-in-may-but-tariff-fueled-inflation-surges-at-fastest-pace-in-3-years">years, stoking inflationary fears.</a>



With stocks, the U.S. dollar and Treasuries all losing ground this week, investors sought protection against government instability and risks of currency debasement.



Gold prices — as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) — jumped more than 4% over the week, recovering all of last week&#8217;s losses and inching back toward record territory. Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) exploded past the $111,000 mark for the <a href="https://www.benzinga.com/25/05/45589015/bitcoin-rockets-to-record-highs-amid-trumps-commitment-and-swedens-corporate-treasury-move">first time in history.</a>



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Trump's Tariff Fireworks Resume, Treasury Yields Top 5% As Fiscal Concerns Grow: This Week In Markets

President&nbsp;Donald Trump&nbsp;announced on Friday that&nbsp;United States Steel&nbsp;Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) and&nbsp;Nippon Steel&nbsp;will enter a partnership, following the Japanese company&#8217;s blocked acquisition attempt due to <a href="https://www.benzinga.com/markets/equities/25/05/45510183/nippon-steel-pledges-14-billion-including-new-us-mill-to-win-trumps-approval-for-us-steel-deal-report">security concerns. </a>



The Details: Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114558783827880495">revealed on </a>Truth Social that the collaboration is projected to generate 70,000 jobs and inject $14 billion into the U.S. economy. The headquarters of U.S. Steel will stay in Pittsburgh, with most investments occurring in the next 14 months, <a href="https://www.cnbc.com/2025/05/23/trump-greenlights-nippon-merger-with-us-steel.html">according to</a> CNBC. 



Following the announcement, U.S. Steel&#8217;s stock soared over 20%, closing at $52.17 per share.



Earlier this year, President&nbsp;Joe Biden&nbsp;blocked Nippon Steel&#8217;s $14.9 billion acquisition of U.S. Steel, citing risks to critical supply chains. 



In April, Trump initiated&nbsp;a new review of the&nbsp;acquisition, instructing&nbsp;the Committee on Foreign Investment&nbsp;in the United States to&nbsp;assess the situation further.



Why It Matters: The partnership between&nbsp;U.S. Steel and Nippon Steel&nbsp;marks a significant shift in the U.S. steel industry landscape. The alliance is poised to bolster the domestic steel sector and enhance economic growth. 



The decision to keep U.S. Steel&#8217;s headquarters in Pittsburgh underscores Trump&#8217;s commitment to maintaining a strong industrial presence in the region.



See Also: <a href="https://benzinga.com/25/05/45580298/trumps-big-beautiful-bill-strips-key-retirement-benefits-from-federal-workers-in-razor-thin-house-vote" target="_blank" rel="noreferrer noopener">Trump&#8217;s &#8216;Big, Beautiful&#8217; Bill Strips Key Retirement Benefits From Federal Workers In Razor-Thin House Vote</a>



Furthermore, the partnership reflects a strategic move to balance national security concerns with economic interests. President Biden&#8217;s initial block on the acquisition highlighted the importance of safeguarding critical supply chains. 



However, Trump&#8217;s decision to approve the partnership <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/04/44847636/with-nippon-deal-in-trumps-court-jpmorgan-turns-cautious-on-us-steel">suggests a willingness</a> to explore alternative avenues for collaboration that align with national security priorities.



In the lead-up to this decision,&nbsp;<a href="https://www.benzinga.com/markets/equities/25/05/45510183/nippon-steel-pledges-14-billion-including-new-us-mill-to-win-trumps-approval-for-us-steel-deal-report">Nippon Steel pledged $14 billion</a>&nbsp;to U.S. Steel&#8217;s operations, including up to $4 billion for a new steel mill as part of its efforts to secure approval from the Trump administration for its acquisition bid. 



X Price Action: According to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, United States Steel shares ended Friday&#8217;s session up 21.6% at $52.17 and continued to climb in extended trading. 



Read Next:&nbsp;



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<li><a href="https://benzinga.com/markets/cryptocurrency/25/05/45579297/peter-schiff-says-a-president-shouldnt-sell-white-house-tours-and-pocket-the-proceeds-as-t" target="_blank" rel="noreferrer noopener">Peter Schiff Says A President Shouldn&#8217;t &#8216;Sell White House Tours&#8217; And Pocket The Proceeds As Trump Prepares To Have Dinner With Memecoin Holders</a></li>
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Image: Shutterstock

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President Trump Approves US Steel, Nippon Steel Partnership

Never say never, but it finally looks like inflation is moderating, if not abating, in 2025.



Core US inflation increased by 2.3% in April, slightly lower than the 2.4% annual rate recorded in March. That's the lowest overall inflation rate increase since February 2021, according to US government figures.



That's good news for both consumers and businesses, both of whom historically benefit from more tepid inflation rates. Life and investing are both easier when prices are stable and more predictable.



"Although it is not our expectation, it is possible that tariffs will not cause inflation to pick up," said David Seif, chief economist for developed markets at Nomura, in comments to Benzinga. "If that's the case, then we'd expect the Fed to be able to cut rates sooner than we expect."



Currently, Seif said he expects to see the next Fed interest rate cut in December 2025.



Other economic experts say evidence supports the growth of more profitable sectors during periods of lower inflation.



"Falling interest rates have historically been a tailwind for equity investors, said Robert Johnson, chairman and CEO at Economic Index Associates. 



In the book &#8220;Invest With the Fed,&#8221; Johnson and his co-authors Gerald Jensen and Luis Garcia-Feijoo found that from 1966 through 2023, the S&amp;P 500 returned 16.4% when the Fed was lowering interest rates and only 6.2% when the Fed was hiking rates. Additionally, inflation was markedly higher when the Fed was hiking versus lowering rates (4.4% versus 3.1%), so the difference in real returns to stock investors was even greater.



"The best performing sectors in a falling interest rate environment were automobiles (30.9%), apparel (27.3%), and retail (25.8%)," Johnson noted. "In addition, small stocks outperformed large stocks during falling interest rate environments. The smallest quintile of stocks returned 30.1% during falling rate environments while the largest quintile returned 15.6%."



These sectors perform better because they are primarily related to consumer discretionary expenditures. "When the stock market is doing well, people often spend more because they feel wealthier, which economists call the ‘wealth effect," Johnson added.



As Seif indicates, the economy isn't out of the woods yet, not with the tariff troubles percolating globally. But if you're looking for a short-term advantage or a head-start on an extended stock market play, here's a closer look at a handful of stocks that may benefit right away from a milder inflation rate climate.



Here are the three stocks most likely to benefit from slower inflation. 



<h2 class="wp-block-heading">Duke Energy</h2>



Utilities have historically benefited from lower rates. "Investors could be interested in these as potential income replacements," said Hao Dang, investment strategist at Consilio Wealth Advisors. "Their businesses are also debt-funded, so lower rates could make things cheaper to run."



That's where Duke Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DUK#NYSE">DUK</a>) comes in.



The Charlotte, N.C.-based utilities giant is a big energy player. It has a $90.9 market cap with bandwidth – it delivers electricity to 8.2 million consumers and provides gas to 1.6 million customers, primarily in the US Midwest and Southeast. It's also in robust growth mode with expected earnings of $1.26 per share for this quarter, translating into a 6.8% growth rate yearly. Toss a hefty 3.56 dividend yield income into the mix, and investors looking for an element of growth should take a closer look at DUK.



<h2 class="wp-block-heading">Goldman Sachs</h2>



The financial sector is also worth closer examination when inflation is moderating.



"Lower rates typically lead to more deal flow, increased leverage and appetite for private equity activity," said Julia Khandoshko, CEO at Mind Money, an investment technology and financial engineering company.



Khandoshko points to one investment banking titan right now that excels in the deal generation and execution realm.



"In financials, a potential rebound in IPOs and M&amp;A this year makes Goldman Sachs particularly interesting," she noted.



Goldman Sachs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) stock has been sluggish so far in 2025, down 9.8% in the past months, but it bounced back in the past month, with shares up 16.5%. Goldman is a signature name in the finance and banking sector and is highly likely to prosper from more robust mergers and acquisitions and initial public offerings &#8211; both hallmark deals in times of tamer inflation.



Goldman has certainly been good to its investors, returning 27.75% on an annualized basis over the past five years and outperforming the stock market by 12.73% over the same time frame.



<h2 class="wp-block-heading">Amazon</h2>



In lower inflation periods, consumers open their pocketbooks and spend more money. In this digital age, there's no more likely place for shoppers to hit "buy" than on Amazon (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), the $2.19 trillion market cap behemoth.



The timing may be right to get in on a retail and AI stock that's down 7.15% year-to-date.



"Amazon benefits greatly from the strengths and rapid evolution of the e-commerce sector and high-margin AWS growth," Khandoshko said.



Amazon's stock may be off balance in 2025, but its financials seem squarely in place. Its gross profit of $78.7 billion is almost five times the size of its nearest competitors, and its 8.62% revenue growth more than doubles the sector average of 4.25%.



Additionally, AMZN excels in other business markets. Its cloud computing service, for example, is the largest cloud operation globally, with an approximate 30% market share. In that realm, Amazon Web Services is the crown jewel with revenues of $29.3 billion (up 17%) in the previous quarter and operating income up 22% over the same period.



Tracking a group of 67 analysts shows a $240 target price for AMZN, with a high ceiling of $305.00 per share. The low target price is $195 per share, not far off Amazon's current $200 share price.



<h2 class="wp-block-heading">One Note of Caution</h2>



While it appears inflation is in check, for now at least, investors should keep a close eye on key metrics like the US Consumer Price Index, the Producer Price Index and the Personal Consumption Expenditures Price Index, all of which closely track consumer and business pricing trends.



"Although inflation has eased from its previous highs, the Federal Reserve is being careful about cutting rates," said John Murillo, chief dealing officer of B2BROKER, a global fintech solutions provider for financial institutions. "Just earlier this month, they decided to keep rates steady, which left some investors feeling let down as they were hoping for a decrease."



Murillo says the Fed has a valid reason to be cautious, as the decline in oil prices created the main disinflationary impact year-to-date. "This decline, although helpful for the U.S. economy in general, is very detrimental for low-margin oil producers — like Occidental Petroleum, Marathon Oil, Valero Energy, and other alternative oil names," he noted. "Even now, crude prices have rebounded around 9% since May 5, giving these companies a chance to recover their losses."



If the next reading of the Consumer Price Index (CPI) comes in higher than expected, that may cause the Fed to think twice about cutting interest rates. "Since crude oil is already bottoming out, a higher CPI number could push back any potential rate cuts, as policymakers need to determine if inflation is under control," Murillo added.



<h2 class="wp-block-heading">All-in-One Trading Intelligence Now 60% Off for Memorial Day</h2>



One powerful dashboard. All the signals you need. From AI stock alerts to insider trades, Edge delivers pro-grade tools like screeners, rankings, and real-time trade ideas, all for 60% off. Claim Your 60% Memorial Day Discount <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-memorial-day-special/?utm_campaign=mdw-sale&amp;utm_adType=sponsorad&amp;utm_ad=RD052425&amp;el=ResearchDaily&amp;he={{email}}&amp;adt_ei={{email}}&amp;utm_medium=newsletter">HERE</a>



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.



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3 Stocks That Will Likely Prosper As Inflation Falls

Wall Street stumbled midday Friday, shaken by a fresh wave of trade war fears after President Donald Trump proposed aggressive new tariffs on Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45585283/trump-tariff-threat-hits-europe-stocks-sink-as-50-duties-loom">and European imports.</a>



In a post on Truth Social, Trump threatened a 25% import duty on Apple Inc. if the tech giant doesn't repatriate its manufacturing to the United States. He also floated a 50% tariff on goods from the European Union, escalating concerns of a renewed transatlantic trade war.



Shares of Apple Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NYSE">AAPL</a>) dropped 2.6% in response. The S&amp;P 500 slipped 0.8% to fall below the key 5,800 mark, on track to close the week lower. 



Growth-oriented sectors like technology and consumer discretionary bore the brunt of the selling, while traditionally defensive sectors such as utilities and consumer staples remained in the green.



Volatility spiked as investors turned risk-averse. The CBOE Volatility Index, known as the VIX, climbed 8%, reflecting growing market anxiety. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) wasn&#8217;t spared from the risk-off sentiment, shedding over 2% to trade around $108,700. 



Treasury yields edged down to 5.02%, pushing the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) 0.3% higher as investors sought safer assets.



Gold prices surged 2.1% to $3,362 per ounce, boosted by safe-haven demand and a weakening U.S. dollar. The U.S. dollar index is down 1.8% this week, on pace to break a four-week winning streak.



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



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Major Indices</td><td>Price</td><td>% Chg</td></tr><tr><td>Russell 2000</td><td>2,037.33</td><td>-0.4%</td></tr><tr><td>Dow Jones</td><td>41,636.55</td><td>-0.5%</td></tr><tr><td>S&amp;P 500</td><td>5,805.10</td><td>-0.6%</td></tr><tr><td>Nasdaq 100</td><td>20,942.13</td><td>-0.8%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 12:50 p.m.</figcaption></figure>



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



<ul class="wp-block-list">
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) slipped 0.7% to $579.36.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) eased 0.5% to $416.59.</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 0.8% to $509.67.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.4% to $202.51.</li>



<li>The&nbsp;Utilities Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) underperformed, down 0.7%; the&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, down 1%.</li>
</ul>



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



<ul class="wp-block-list">
<li>Intuit Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTU#NASDAQ">INTU</a>) rallied 8% after reporting stronger-than-expected earnings. </li>
</ul>



Other stocks reacting to earnings report were: 



<ul class="wp-block-list">
<li>Workday, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WDAY#NASDAQ">WDAY</a>) down 11.3%</li>



<li>Autodesk, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADSK#NASDAQ">ADSK</a>) down 0.5%</li>



<li>Ross Stores, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROST#NASDAQ">ROST</a>) down 10.5%</li>



<li>Deckers Outdoor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DECK#NYSE">DECK</a>) down 19.2%</li>



<li>Booz Allen Hamilton Holding Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>) down 16%</li>



<li>Cavco Industries, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CVCO#NASDAQ">CVCO</a>) down 3.1%</li>
</ul>



Read now:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45582778/trumps-big-beautiful-bill-passes-house-what-it-means-for-taxes-student-loans-medicaid-and-more">Trump&#8217;s &#8216;Big Beautiful Bill&#8217; Passes House: Taxes, Student Loans, Medicaid And What Else Is Changing For American Families </a></li>
</ul>



Photo: Shutterstock

ADSK

CVCO

DECK

INTU

ROST

WDAY

Stocks, Bitcoin Fall On Trump's Tariff Threats, Gold Rallies: What's Driving Markets Friday?

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) bull and analyst Dan Ives has raised the price target on the electric vehicle stock once again ahead of an <a href="https://www.benzinga.com/25/05/45529030/elon-musk-confirms-tesla-robotaxi-launch-is-on-track-for-next-month-these-things-happen-slowly-but-then-all-at-once">upcoming robotaxi launch.</a>



The Tesla Analyst: Wedbush analyst Ives maintained an Outperform rating on Tesla and raised the price target from $350 to $500.



Read Also: <a href="https://www.benzinga.com/25/04/44937440/tesla-q1-earnings-highlights-revenue-miss-eps-miss-tariff-landscape-and-changing-political-sentiment-cloud-guidance">Tesla Q1 Misses Estimates As Tariff Pressures Weigh On Outlook, Lower-Cost EVs Still On Track</a>



The Analyst Takeaways: Tesla is set to benefit from a new era of autonomous vehicles, Ives said in the new investor note.



"We believe the golden age of autonomous is now on the doorstep for Tesla with the Austin launch next month kicking off this key next chapter of growth for Musk &amp; Co.," Ives said.



The analyst said the kickoff will help provide a "massive stage of valuation creation ahead."



Ives said Tesla started 2025 with a dark chapter due to Musk's role in President Donald Trump's administration, a move that created brand damage for the company and put a "black cloud over the story."



The analyst said those days are in the rear-view mirror, and Musk is now committed to leading Tesla into the autonomous and robotics future.



"We believe the core focus for investors is the AI Revolution is now coming to Tesla … which will make Tesla one of the best pure plays on AI over the next decade."



Ives said the majority of valuation upside for Tesla stock ahead comes from the autonomous vision and the June launch in Austin, ushering in the next era of growth.



"We estimate the AI and autonomous opportunity is worth at least $1 trillion alone for Tesla."



Tesla could see autonomous vehicle items get fast-tracked by the new Trump administration, Ives adds.



"We believe Tesla could reach a $2 trillion market cap by the end of 2026 in a bull case scenario."



Ives said he has never viewed Tesla "simply as a car company," with valuation metrics counting on future revenue from items like autonomous driving, FSD, AI and robotics.



"We believe Tesla remains the most undervalued AI play in the market today. Rome was not built in a day … and neither with Tesla's autonomous and robotics strategic vision."



TSLA Price Action: Tesla stock is down 1.09% to $337.33 on Friday at publication versus a 52-week trading range of $167.41 to $488.54. Tesla stock is down 11.2% year-to-date in 2025, while shares are up over 90% in the last year.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/04/44630769/heres-how-many-vehicles-tesla-has-delivered-produced-in-each-quarter-since-2019">Here&#8217;s How Many Vehicles Tesla Has Delivered, Produced In Each Quarter Since 2019</a></li>
</ul>



Photo: Shutterstock

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Analyst Ratings

Tech

TSLA

Tesla's 2025 Dark Chapter Over, Analyst Says AI, Autonomous To Lift Valuation, End 'Black Cloud' Over Stock

President Donald Trump&#8217;s threat to impose a sweeping 50% tariff on all European Union imports starting June 1 sparked a broad selloff across European markets Friday, triggering fears of a transatlantic trade war just as global <a href="https://www.benzinga.com/topic/tariffs">growth faces renewed pressure.</a>



In a post on Truth Social, Trump said the EU&#8217;s "powerful Trade Barriers, VAT Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against American Companies" were to blame for an annual trade deficit exceeding $250 billion, which he called "totally unacceptable."



The proposed tariff would exempt goods manufactured in the United States, potentially creating sharp distortions for EU-based exporters and global supply chains.



<h3 class="wp-block-heading">European Benchmarks Tumble</h3>



The fallout was immediate in markets. The Euro STOXX 50 index – as closely tracked by the iShares MSCI Eurozone ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EZU#NYSE">EZU</a>) – dropped 3%, Italy's FTSE MIB sank 2.9%, France's CAC 40 lost 2.6% and Spain's IBEX 35 fell 2.2%. 



Germany's DAX, as tracked by the iShares MSCI Germany Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWG#NYSE">EWG</a>), which is home to many export-heavy firms, slid 2.3%.



Financial stocks bore the brunt of the decline, with Deutsche Bank AG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DB#NYSE">DB</a>) falling 6.1%, Société Générale SA (OTCPK: SCGLY) down 5.3% and Banco Bilbao Vizcaya Argentaria SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBVA#NYSE">BBVA</a>) sliding 5%.



 Industrial and luxury exporters also came under heavy pressure, including Bayerische Motoren Werke AG (OTCPK: BMWYY), or BMW (−4.5%), UniCredit SpA (OTCPK: UNCRY) (−4.5%) and EssilorLuxottica SA (OTCPK: ESLOY) (−4.2%).



<h3 class="wp-block-heading">Export Exposure To US Trade Is Key</h3>



The tariff threat has placed a spotlight on European companies heavily reliant on U.S. revenues.



In Germany, Adidas AG (OTCPK: ADDYY) derives roughly a third of its revenue from the United States, while SAP SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAP#NYSE">SAP</a>) generates about 40% of its turnover from North America. 



Chipmaker Infineon Technologies AG (OTCPK: IFNNY) is also significantly exposed due to its automotive and electronics customers.



French luxury and tech firms are equally at risk. LVMH Moët Hennessy Louis Vuitton SE (OTCPK: LVMUY) earns close to 25% of its revenue in the U.S., while Dassault Systèmes SE (OTCPK: DASTY) has a strong footprint in North American enterprise software. Hermès International SA (OTCPK: HESAY) pulls about 20-25% of its sales from the American market.



Italian brands like Ferrari NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RACE#NYSE">RACE</a>), with over 30% of sales from the U.S., and EssilorLuxottica SA (OTCPK: ESLOY), which owns Oakley and Ray-Ban, are also vulnerable. 



In the Netherlands, tech heavyweight ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) earns about 20-25% of revenue from the U.S., and Koninklijke Philips NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHG#NYSE">PHG</a>) maintains a major healthcare business across North America.



<h3 class="wp-block-heading">EU Retaliation Risk Grows For US Stocks</h3>



For U.S. corporations with heavy exposure to Europe—particularly in tech, autos, agriculture and aviation—the economic consequences could be significant if the European Union responds in kind.



The 2018 EU countermeasures to Trump&#8217;s steel tariffs included duties on motorcycles, bourbon and orange juice—strategic hits on U.S. swing-state exports.



EU officials may also revisit tech taxation disputes, where U.S. firms like Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) and Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) are already under regulatory scrutiny.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45584696/trump-threatens-tim-cook-to-manufacture-iphones-in-the-us-or-face-at-least-25-tariffs">Trump Threatens Tim Cook To Manufacture iPhones In US Or Face &#8216;At Least 25%&#8217; Tariffs: AAPL Stock Slides Over 3% In Premarket </a></li>
</ul>



Photo Courtesy: Joshua Sukoff On Shutterstock.com

Sector ETFs

Eurozone

ADDYY

ASML

BBVA

BMWYY

DASTY

ESLOY

GOOGL

HESAY

IFNNY

LVMUY

MSFT

RACE

SCGLY

UNCRY

Trump Tariff Threat Hits Europe: Stocks Sink As 50% Duties Loom

U.S. President&nbsp;Donald Trump&nbsp;has demanded that iPhones sold in the U.S. be manufactured domestically, threatening a 25% tariff on&nbsp;Apple Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) otherwise.



What Happened: On Friday, Trump took to his Truth Social to reiterate his expectations to Apple&#8217;s CEO, Tim Cook, that iPhones sold in the U.S. should be &#8220;manufactured and built&#8221; domestically and not in India. 



He warned of a substantial tariff of &#8220;at least 25%&#8221; if this is not the case.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="609" height="257" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23073341/Screenshot-2025-05-23-170302.png" alt="" class="wp-image-925868" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23073341/Screenshot-2025-05-23-170302.png 609w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23073341/Screenshot-2025-05-23-170302-300x127.png 300w" sizes="(max-width: 609px) 100vw, 609px" /></figure>



SEE ALSO:&nbsp;<a href="https://benzinga.com/markets/cryptocurrency/25/05/45581129/trump-gala-dinner-saw-president-wine-and-dine-top-memecoin-holders-as-protestors-flashed-don-the-con-signs-exclusive" target="_blank" rel="noreferrer noopener">Trump Gala Dinner Saw President Wine And Dine Top Memecoin Holders As Protestors Flashed &#8216;Don The Con&#8217; Signs — Exclusive &#8211; Benzinga</a>



Why It Matters: This came after Apple reportedly plans to ramp up its presence in India by expanding its supply chain operations through its leading manufacturing partner, Foxconn, officially known as Hon Hai Precision Industry Co. Ltd. (OTCPK: HNHAF). Foxconn plans to <a href="https://www.benzinga.com/news/global/25/05/45582261/despite-trumps-warning-to-tim-cook-apple-moves-ahead-with-1-5-billion-india-expansion-via-foxconn-to-boost-iphone-production-report">invest $1.5 billion</a> in a new display module plant near Chennai, India, assembling screen components for iPhones.



Despite Trump&#8217;s criticism, India, earlier, said it remains committed to its growing partnership with Apple. The Tim Cook-led company has reassured the Indian government of its commitment to continue using India as a major manufacturing base. This assurance comes despite Trump's recent remarks, with government sources emphasizing that there is "<a href="https://www.benzinga.com/markets/25/05/45462006/no-change-in-apples-production-plans-says-india-despite-trumps-little-problem-with-ceo-tim-cook-report">no change</a>" in Apple's investment plans in India.



Price Action: Apple shares dipped over 3% during Friday&#8217;s premarket session, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Benzinga Edge Stock Rankings assigned Apple a growth score of 33.12%. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound" target="_blank" rel="noreferrer noopener">Click here to compare it with other major players</a>. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound" target="_blank" rel="noreferrer noopener"></a>



<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 decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23075059/Screenshot-2025-05-23-at-9.44.36%E2%80%AFAM-1-1.png" alt="" class="wp-image-925885"/></a></figure>



<ul class="wp-block-list">
<li>READ MORE:&nbsp;<a href="https://benzinga.com/news/25/05/45581297/trumps-big-beautiful-3-8-trillion-bill-squeaks-through-house-expert-says-it-will-boost-the-economy-in-the-sh" target="_blank" rel="noreferrer noopener">Trump&#8217;s &#8216;Big, Beautiful&#8217; $3.8 Trillion Bill Squeaks Through House: Expert Says It Will &#8216;Boost The Economy In The Short Term,&#8217; But Worsen Deficits</a></li>
</ul>



Image via Shutterstock



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

Markets

HNHAF

Trump Threatens Tim Cook To Manufacture iPhones In US Or Face 'At Least 25%' Tariffs: AAPL Stock Slides Over 3% In Premarket

U.S. stock futures were fluctuating on Friday after a mixed close on Thursday. Futures of major benchmark indices were mixed in premarket.



The week began with the market shrugging off <a href="https://www.benzinga.com/news/econ-s/25/05/45479078/moodys-downgrades-us-credit-rating-over-debt-deficit-concerns">Moody&#8217;s downgrade of the U.S. government debt</a>, however, it slipped later in the week as investors started assessing the impact of the new tax bill proposed by the Donald Trump administration, known as the &#8220;One, Big, Beautiful Bill.&#8221;



While the tax bill is expected to <a href="https://www.benzinga.com/markets/equities/25/05/45536595/big-beautiful-bill-will-explode-the-deficit-and-make-the-rich-richer-congressional-budget-office-estimates-4-income-fall-for-lowest-decile-of-americans-by-2033">add $3.8 trillion</a> to the U.S. debt as per Congressional Budget Office estimates, it was <a href="https://www.benzinga.com/news/25/05/45581297/trumps-big-beautiful-3-8-trillion-bill-squeaks-through-house-expert-says-it-will-boost-the-economy-in-the-short-term-but-worsen-deficitshttps://www.benzinga.com/news/25/05/45581297/trumps-big-beautiful-3-8-trillion-bill-squeaks-through-house-expert-says-it-will-boost-the-economy-in-the-short-term-but-worsen-deficits">passed by the U.S. House of Representatives</a> on Thursday by a 215-214 margin.



Meanwhile, the 10-year Treasury bond yielded 4.51% and the two-year bond was at 3.98%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool&#8217;</a>s projections show markets pricing a 94.7% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>-0.07%</td></tr><tr><td>S&amp;P 500</td><td>-0.03%</td></tr><tr><td>Nasdaq 100</td><td>-0.04%</td></tr><tr><td>Russell 2000</td><td>0.13%</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, rose in premarket on Friday. The SPY was up 0.16% to $584.05, while the QQQ advanced 0.21% to $515.09, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



Sectoral moves drove a mixed day for U.S. stocks Thursday, as the Nasdaq Composite rose over 50 points while most S&amp;P 500 sectors closed lower.



Utilities, healthcare, and energy stocks saw the biggest losses. Conversely, consumer discretionary and communication services bucked the trend, finishing higher.



Economic data showed U.S. initial jobless claims falling to 227,000, beating estimates, and both S&amp;P Global services and manufacturing PMIs climbing to 52.3 in May.



Meanwhile, Advance Auto Parts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAP#NYSE">AAP</a>) shares surged 57% after strong Q1 results, and Vigil Neuroscience Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VIGL#NASDAQ">VIGL</a>) skyrocketed 241% on news of a Sanofi acquisition.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>0.28%</td><td>18,925.73</td></tr><tr><td>S&amp;P 500</td><td>-0.044%</td><td>5,842.01</td></tr><tr><td>Dow Jones</td><td>-0.0032%</td><td>41,859.09</td></tr><tr><td>Russell 2000</td><td>-0.049%</td><td>2,045.56</td></tr></tbody></table></figure>



Insights From Analysts:



Jurrien Timmer, the director of global macro at Fidelity Investments, highlighted in an X post that the long end of the Treasury market was being ignored after the S&amp;P 500 recovered most of its decline below its 52-week high.



&#8220;There's an old saying that &#8216;nothing good ever happens after midnight,&#8217; and we could borrow that phrase and say that nothing good happens above a 5% yield,&#8221; he said, highlighting concerns about higher yields.



He added that &#8220;It's my strong hunch that the next chapter in this market cycle will be driven by rates, as term premia return to their historical pre-QE levels.&#8221;



<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">With the S&amp;P 500 recovering most of its decline, little noticed has been the long end of the Treasury market, which is once again nearing the danger zone of 4.5-5.0% (10-year) as the term premium reaches a new cycle high of 74 bps. There's an old saying that "nothing good ever… <a href="https://t.co/riaAUGJOrn">pic.twitter.com/riaAUGJOrn</a>&mdash; Jurrien Timmer (@TimmerFidelity) <a href="https://twitter.com/TimmerFidelity/status/1925617154612711785?ref_src=twsrc%5Etfw">May 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



&#8220;The budget discussion is fueling a lot of concern about deficits and debt levels rising over the long run,&#8221; said Kathy Jones, chief fixed income strategist at Schwab, who noted yields moving higher after the vote.



&#8220;The current proposal is expected to add anywhere from $3 trillion to $5 trillion to the accumulated debt over the next 10 years. The market appears to be voting against this bill and would like to see more fiscal restraint.&#8221;



The bill will now advance to the Senate, where it appears likely to face additional revisions.



&#8220;Congress has set a July target for a final bill to be signed into law, which could look very different than the current version. Consequently, we do not recommend taking actions based on the bill in its current form,&#8221; said Brian Therien of Edward Jones.



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>



Upcoming Economic Data



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



<ul class="wp-block-list">
<li>Kansas City Fed President Jeff Schmid will speak at 9:35 a.m., new home sales data for April will be out by 10:00 a.m., and Federal Reserve Governor Lisa Cook will speak at noon ET.</li>



<li>On Sunday, Federal Reserve Chair Jerome Powell will deliver his commencement address at 2:40 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul class="wp-block-list">
<li>Booz Allen Hamilton Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>) rose 3.09% in premarket on Friday as analysts expect it to report quarterly earnings of $1.59 per share on revenue of $3.03 billion, before the opening bell.</li>



<li>Buckle Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKE#NYSE">BKE</a>) was up 1.45% as Wall Street expects it to report earnings before the opening bell. It is expected to post earnings of 69 cents per share on revenue of $268.06 million.</li>



<li>Frontline PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FRO#NYSE">FRO</a>) advanced 1.92% as analysts expect it to report quarterly earnings of 23 cents per share on revenue of $264.19 million, before the opening bell.</li>



<li>Autodesk Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADSK#NASDAQ">ADSK</a>) rose 3.32% after it reported better-than-expected first-quarter financial results, issued strong guidance for the second quarter, and raised its FY26 guidance.</li>



<li>Intuit Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTU#NASDAQ">INTU</a>) jumped 7.96% after reporting stronger-than-expected third-quarter financial results and raising its full-year guidance.</li>



<li>BloomZ Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BLMZ#NASDAQ">BLMZ</a>) surged 43.88% and formed a strategic alliance with M-NEXT Holdings, owner of trading card retailer &#8220;Ryusei no Arashi.&#8221;</li>



<li>Aurinia Pharmaceuticals Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AUPH#NASDAQ">AUPH</a>) was 2.78% higher after it announced positive findings from a post-hoc analysis of its AURORA 1 Phase 3 study in lupus nephritis (LN) patients.</li>



<li>Hallador Energy Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HNRG#NASDAQ">HNRG</a>) dropped 10.25% as a major agreement, with a prominent global data center developer, was terminated on May 19, 2025.</li>



<li>Xerox Holdings Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XRX#NASDAQ">XRX</a>) slumped 8.79% after slashing its quarterly dividend by 75% to fund a $238 million synergy deal with Lexmark.</li>



<li>Sobr Safe Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOBR#NASDAQ">SOBR</a>) zoomed 18.84% after the company reported a year-over-year increase in first-quarter EPS and sales results.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 0.49% to hover around $60.90 per barrel.



Gold Spot US Dollar rose 1.11% to hover around $3,331.29 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.57% at the 99.3890 level.



Asian markets were mixed on Friday as South Korea's Kospi and China&#8217;s CSI 300 indices declined, whereas India's S&amp;P BSE Sensex, Japan's Nikkei 225, Australia's ASX 200, and Hong Kong's Hang Seng indices rose. European markets were also mixed in early trade.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45582025/stock-market-is-underpricing-downside-risks-of-the-tariff-rates-warns-expert-tariff-policy-nuances-are-far-more-important-than-the-one-big-beautiful-bill">Stock Market Is Underpricing &#8216;Downside Risks Of The Tariff Rates,&#8217; Warns Expert: Tariff Policy Nuances Are &#8216;Far More Important&#8217; Than The &#8216;One Big, Beautiful Bill&#8217; </a></li>
</ul>



Photo courtesy: godongphoto / Shutterstock.com

Market Summary

Futures

Treasuries

Pre-Market Outlook

AUPH

BLMZ

HNRG

SOBR

VIGL

US Stocks Likely To Open On A Mixed Note: 'Nothing Good Happens Above A 5% Yield,' Says Expert

President&nbsp;Donald Trump&#8217;s&nbsp;&#8220;big beautiful bill&#8221; has been approved by the House, marking a significant step towards its potential impact on Americans&#8217; finances.



What Happened: The bill, passed on Thursday, is a comprehensive piece of legislation that extends the President&#8217;s 2017 tax cuts and introduces substantial alterations to the tax system, <a href="https://www.businessinsider.com/big-beautiful-bill-affects-taxes-student-loans-maga-accounts-2025">reported</a> Business Insider. The bill also contains measures related to Medicaid and the Supplemental Nutrition Assistance Program (SNAP).



The bill covers a range of tax measures, such as eliminating taxes on tips and overtime pay, introducing a $4,000 tax deduction for seniors earning under $75,000 a year, and raising the child tax credit from $2,000 to $2,500 through 2028. It also makes Trump's 2017 tax cuts permanent and increases the state and local tax deduction limit from $10,000 to $40,000.



The bill proposes ending income-driven student loan repayment plans, including Biden's SAVE plan, and introducing two new options: the Repayment Assistance Plan and a standard repayment plan.



Low-income Americans on Medicaid and SNAP are set to see major changes, including a monthly 80-hour work requirement for certain childless Medicaid recipients by 2026 and expanded SNAP work requirements for adults aged 55 to 64.



The bill proposes &#8220;Trump accounts,&#8221; offering $1,000 government deposits for babies born between Dec. 31, 2024, and Jan. 1, 2029, along with tax incentives and reduced long-term capital gains tax rates for parents.



SEE ALSO: <a href="https://benzinga.com/markets/cryptocurrency/25/05/45562596/bitcoin-breaks-111000-as-experts-hail-regime-shift" target="_blank" rel="noreferrer noopener">Bitcoin Breaks $111,000 As Experts Hail &#8216;Regime Shift&#8217; </a>



Why It Matters: The bill, which is part of Trump&#8217;s tax-and-spending package, has been&nbsp;narrowly <a href="https://www.benzinga.com/news/25/05/45581297/trumps-big-beautiful-3-8-trillion-bill-squeaks-through-house-expert-says-it-will-boost-the-economy-in-the-short-term-but-worsen-deficits">passed </a>by the House&nbsp;with a 215-214 margin. The bill may boost the economy short term, but experts warn it could raise fiscal deficits due to tax cuts and increased defense spending.



However, the bill has also been criticized for potentially <a href="https://www.benzinga.com/markets/25/05/45559059/trumps-big-beautiful-bill-could-be-3-1-trillion-jackpot-for-affluent-americans-like-elon-musk-and-jeff-bezos-report">exacerbating </a>wealth inequality. A report by Oxfam America suggests that the proposed tax cuts would disproportionately benefit the affluent, further stacking the odds against ordinary citizens. Meanwhile, an economics professor analyzed that the top 10% of households would receive approximately $3.1 trillion in tax cuts over a decade.



The 10-year Treasury yield dipped to 4.53% on Thursday, but remains elevated, reflecting investors&#8217; increased demand for compensation due to fiscal risk.



Stock markets showed mixed reactions, with the S&amp;P 500, tracked by SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), edging 0.039% higher to close at $583.09 on Thursday, while Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) climbed 0.19% to close at $514.



<ul class="wp-block-list">
<li>READ MORE:&nbsp;<a href="https://benzinga.com/markets/cryptocurrency/25/03/44450232/white-house-says-gold-reserves-may-be-used-to-purchase-bitcoin" target="_blank" rel="noreferrer noopener">White House Says Gold Reserves May Be Used to Purchase Bitcoin &#8211; Benzinga</a></li>
</ul>



Image via Shutterstock



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

Trump's 'Big Beautiful Bill' Passes House: Taxes, Student Loans, Medicaid And What Else Is Changing For American Families

Greg Abel, <a href="https://www.benzinga.com/news/management/25/05/45429435/warren-buffett-explains-why-he-couldnt-deny-greg-abel-the-top-job-at-berkshire-hathaway-any-longer-hes-a-natural">set to succeed Warren Buffett </a>as CEO of Berkshire Hathaway, started his career pushing for geothermal energy in California. But as he prepares to take over from one of the world's most influential investors, Abel now oversees a huge fossil fuel empire and defends coal power, even as the climate crisis worsens.



What Happened: <a href="https://www.benzinga.com/25/05/45237968/5-facts-you-might-not-know-about-warren-buffett-successor-greg-abel">Abel started </a>at CalEnergy in 1992, according <a href="https://www.latimes.com/environment/newsletter/2025-05-08/warren-buffetts-successor-got-started-selling-clean-energy-now-he-defends-coal">to</a> the Los Angeles Times. Working with geothermal plants at the Salton Sea and China Lake that produced clean electricity, he rose through the ranks, ultimately becoming president.



In 1999, CalEnergy purchased MidAmerican Energy, and soon, Buffett's Berkshire Hathaway became a major investor. This deal marked Buffett's entry into the energy sector and brought Abel into his inner coterie.



Despite his start in clean energy, at the company's annual meeting in Omaha, Abel responded to a question about Berkshire's coal pollution, which is ranked worst among major U.S. firms for nitrogen oxide emissions according to a Reuters investigation, by stating that utilities like MidAmerican were molded by state policies.



"We had to recognize we implement public policy across these states," he said. Abel also said that coal plants were still vital to grid stability, particularly in Iowa, where five coal units are still operational.



See Also: <a href="https://www.benzinga.com/hedge-funds/25/05/45499198/buffett-ackman-icahn-take-a-beating-as-billionaires-weather-q1-chaos">Buffett, Ackman, Icahn Take A Beating As Billionaires Weather Q1 Chaos</a>



Why It Matters: Abel's comments, alongside Berkshire's lobbying record, indicate that the company is reluctant to hasten a transition to clean energy.



Grassroots environmental organization Sierra Club criticized Abel's response, saying: "Berkshire has teams of aggressive lobbyists and lawyers who fight against any regulation on the state and federal levels that would incentivize transitions to clean energy."



As per data&nbsp;compiled&nbsp;by OpenSecrets.org, Berkshire spent $65 million lobbying the federal government in the last ten years. It has called for the loosening of air pollution regulations and filed lawsuits against federal and state environmental policies.



The company has also delayed closures of its coal plants in Utah and Wyoming, and is asking the Trump administration to block pollution-control mandates put in place to protect air quality in national parks.



While California has almost eliminated coal from its power mix, Berkshire's PacifiCorp still operates six coal plants across the Western U.S. A PacifiCorp spokesperson told the LA Times that coal retirement timelines are not firm commitments, and said they are subject to change.



Meanwhile, according to Bloomberg, <a href="https://www.bloomberg.com/opinion/articles/2025-05-05/buffett-s-successor-has-an-oxy-sized-hole-to-dig-out-of">Berkshire's investment in Occidental Petroleum</a> stock has not turned out to be a successful bet, with analysts estimating that the company suffered around $4.5 billion in losses.



As <a href="https://www.benzinga.com/markets/25/05/45183000/warren-buffetts-right-hand-man-greg-abel-is-quietly-taking-over-day-to-day-leadership-at-berkshire-hathaway-gotten-much-more-involved-in-capital-allocation-decisions">Abel steps into Buffett's role</a>, the contrast between his earlier involvement in clean energy and current coal-friendly stance raises questions about the future path of one of America's most impactful companies.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/25/05/45568741/warren-buffett-convinced-me-to-focus-more-on-stocks-and-less-on-crypto-etoro-ceo-says">Warren Buffett Convinced Me To Focus More On Stocks And Less On Crypto, eToro CEO says</a></li>
</ul>



Photo courtesy: mark reinstein / Shutterstock.com

Warren Buffett's Berkshire Hathaway Runs The Dirtiest Coal Plants In America: His Successor Greg Abel Is Defending Them Despite Starting Out In Clean Energy

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the &#8220;Greed&#8221; zone on Thursday.



U.S. stocks settled mixed on Thursday, with the Nasdaq Composite gaining more than 50 points during the session.



President Donald Trump&#8217;s &#8220;one big beautiful tax bill&#8221; narrowly <a href="https://www.benzinga.com/25/05/45580298/trumps-big-beautiful-bill-strips-key-retirement-benefits-from-federal-workers-in-razor-thin-house-vote">passed the House</a> in a 215-214 vote and now moves to the Senate. According to the Congressional Budget Office, the proposed legislation is projected to add approximately $3 trillion to the national deficit over the next decade.



On the economic data front, U.S. initial jobless claims fell by 2,000 from the previous week to 227,000 in the week ending May 17, compared to market estimates of 230,000. The S&amp;P Global services PMI climbed to 52.3 in May compared to 50.8 in the previous month, while the manufacturing PMI rose to 52.3 in May from 50.2 in April.



Advance Auto Parts, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAP#NYSE">AAP</a>) shares jumped 57% on Thursday following better-than-expected first-quarter financial results. Vigil Neuroscience, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VIGL#NASDAQ">VIGL</a>) shares climbed 241% after announcing Sanofi will acquire the company for approximately $600 million.



Most sectors on the S&amp;P 500 closed on a negative note, with utilities, health care, and energy stocks recording the biggest losses on Thursday. However, consumer discretionary and communication services stocks bucked the overall market trend, closing the session higher.



The Dow Jones closed lower by over 1 point to 41,859.09 on Thursday. The S&amp;P 500 slipped 0.04% to 5,842.01, while the Nasdaq Composite gained 0.28% at 18,925.73 during Thursday's session.



Investors are awaiting earnings results from Booz Allen Hamilton Holding Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>), The Buckle, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKE#NYSE">BKE</a>), and Frontline plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FRO#NYSE">FRO</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 66.2, the index remained in the &#8220;Greed&#8221; zone on Thursday, versus a prior reading of 65.7.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45562909/top-2-financial-stocks-that-may-keep-you-up-at-night-in-may">Top 2 Financial Stocks That May Keep You Up At Night In May</a> </li>
</ul>



Photo courtesy: Shutterstock

Earnings

Nasdaq Gains Over 50 Points Following Positive Economic Reports: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone

Amid protests and ethical concerns, President Donald Trump hosted a private dinner for the top buyers of his Official Trump (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">TRUMP</a>) memecoin on Thursday.



What happened: Trump landed at his private golf club near Washington, D.C., via helicopter to spend the evening with his VIP guests, including cryptocurrency millionaire and Tron (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/trx/usd">TRX</a>) founder Justin Sun, <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45367052/trump-memecoin-exclusive-dinner-guest-list-revealed-with-justin-sun-shining-at-the-top-rep">the meme coin&#8217;s top holder</a>.



In a series of visuals shared with Benzinga by another invitee, Morten Christensen, founder of AirdropAlert.com, Trump can be seen addressing his guests, with an elegant indoor dining setup, complete with wine glasses, cutlery, and a menu card, in the background.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="768" height="1024" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23020759/58e6527f-72b1-48d8-87c5-fd01be27d14e-768x1024.jpg" alt="" class="wp-image-925369" style="width:516px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23020759/58e6527f-72b1-48d8-87c5-fd01be27d14e-768x1024.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23020759/58e6527f-72b1-48d8-87c5-fd01be27d14e-225x300.jpg 225w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23020759/58e6527f-72b1-48d8-87c5-fd01be27d14e-1152x1536.jpg 1152w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23020759/58e6527f-72b1-48d8-87c5-fd01be27d14e.jpg 1200w" sizes="(max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">Source: Morten Christensen</figcaption></figure>



The pictures also showed protesters outside the arena holding placards with phrases such as &#8220;Democracy Not Kleptocracy&#8221; and &#8220;Don The Con."



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="768" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021014/156806f5-b9d8-4853-81ef-2c1d1ac3bb36-1024x768.jpg" alt="" class="wp-image-925373" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021014/156806f5-b9d8-4853-81ef-2c1d1ac3bb36-1024x768.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021014/156806f5-b9d8-4853-81ef-2c1d1ac3bb36-300x225.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021014/156806f5-b9d8-4853-81ef-2c1d1ac3bb36-768x576.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021014/156806f5-b9d8-4853-81ef-2c1d1ac3bb36-1536x1152.jpg 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021014/156806f5-b9d8-4853-81ef-2c1d1ac3bb36.jpg 1600w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Source: Morten Christensen</figcaption></figure>



While the top 220 holders dined with Trump at the club, the top 25 holders have been promised access to a VIP reception and White House tour, as well as limited-edition commemorative non-fungible tokens.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="768" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021159/5190824b-79b6-41d6-84c9-876aa7a47433-1024x768.jpg" alt="" class="wp-image-925378" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021159/5190824b-79b6-41d6-84c9-876aa7a47433-1024x768.jpg 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021159/5190824b-79b6-41d6-84c9-876aa7a47433-300x225.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021159/5190824b-79b6-41d6-84c9-876aa7a47433-768x576.jpg 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021159/5190824b-79b6-41d6-84c9-876aa7a47433-1536x1152.jpg 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/23021159/5190824b-79b6-41d6-84c9-876aa7a47433.jpg 1600w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Source: Morten Christensen</figcaption></figure>



Sun said on X that he was awarded a Trump Golden Tourbillon watch by the POTUS.



<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">I was awarded a Trump Golden Tourbillon watch by Trump! <a href="https://t.co/CCYGQ6FMPA">pic.twitter.com/CCYGQ6FMPA</a>&mdash; H.E. Justin Sun &#x1f34c; (@justinsuntron) <a href="https://twitter.com/justinsuntron/status/1925780215764046285?ref_src=twsrc%5Etfw">May 23, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also:<a href="https://www.benzinga.com/25/04/44621245/gold-backed-cryptos-match-yellow-metals-highs-following-trumps-liberation-day-shock"> </a><a href="https://www.benzinga.com/25/05/45556899/from-amazon-to-warren-buffetts-berkshire-hathawaybitcoin-is-now-bigger-than-these-wall-street-titans">From Warren Buffett&#8217;s Berkshire Hathaway To Jeff Bezos&#8217; Amazon — Bitcoin Is Now Outshining These Wall Street Titans</a>



Why It Matters: The controversy surrounding the dinner has been escalating since it was announced last month.&nbsp; <a href="https://www.benzinga.com/markets/cryptocurrency/25/04/45027557/trumps-memecoin-dinner-event-sparks-impeachment-call-from-democratic-senator-says-potus-is-selling-access-to-those-who-enrich-him">Democrats</a> and even <a href="https://www.benzinga.com/markets/25/05/45563302/pro-trump-crypto-enthusiasts-slam-trumps-memecoin-dinner-as-distasteful-and-an-unnecessary-distraction-hes-becoming-a-salesman-in-chief">some pro-Trump crypto enthusiasts</a> have voiced concerns about potential conflicts of interest and the possibility of shadowy buyers gaining access to Trump through such events.&nbsp;



Trump has <a href="https://in.benzinga.com/25/05/45187462/trump-denies-personal-profit-from-memecoin-venture-i-havent-even-looked">refuted claims</a> that he is financially benefiting from the venture.



Christensen <a href="https://www.benzinga.com/25/05/45429393/crypto-enthusiasts-secure-spot-at-trumps-meme-coin-dinner-for-just-1200-report">secured a spot at the exclusive dinner</a> by paying just $1,200. His strategy involved buying the Trump memecoin and shorting the exact same amount, resulting in a market-neutral position. This essentially meant that they just paid trading fees.



Interestingly, Christensen told Benzinga that he did not favor presidents or heads of state getting linked to speculative investments.



"If promoting a stock you own is a legal issue, the same logic should apply to crypto. There's too much potential for conflict of interest," he said.



Price Action:&nbsp; At the time of writing, TRUMP was exchanging hands at $14.25, down 1.16% in the last 24 hours, according to <a href="https://pro.benzinga.com/dashboard?_gl=1&#x2A;380nj0&#x2A;_ga&#x2A;MTEyOTAyOTcxMy4xNzEzMzY0NTYy&#x2A;_ga_V7ZK73W7N0&#x2A;MTcxNDk4MzIzMi42LjEuMTcxNDk4OTE0Ni4wLjAuMA..">data from Benzinga Pro</a>. 



Feature Photo Courtesy: Morten Christensen



Read Next:&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45557864/jamie-dimon-is-no-fan-of-bitcoin-but-trumps-crypto-czar-made-an-attempt-to-change-the-jpmorgan-ceos-mind-using-this-narrative">Jamie Dimon Is No Fan Of Bitcoin, But Trump&#8217;s Crypto Czar Made An Attempt To Change the JPMorgan CEO&#8217;s Mind Using This Narrative</a></li>
</ul>

Cryptocurrency

Politics

Exclusives

$TRUMP

$TRX

Trump Gala Dinner Saw President Wine And Dine Top Memecoin Holders As Protestors Flashed 'Don The Con' Signs — Exclusive

Leading cryptocurrencies surged higher Thursday, even as stocks remained sluggish due to President Donald Trump&#8217;s tax bill-induced debt fears.



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 9:30 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>+1.30%</td><td>$111,396.80</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>+3.81%</td><td>$2,686.39</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>+2.67%</td><td>$0.2474</td></tr></tbody></table></figure>



What Happened: Bitcoin nearly reached $112,000 during the day, as part of a record-breaking rally that has put the top cryptocurrency into a tailspin.



Ethereum, the second-largest cryptocurrency, also went up roughly 4% during the day, raising its market dominance to 9.3%.



Bitcoin was up over 18% in May, while Ethereum's month-to-date gains shot past 47% as of this writing.&nbsp;



Over $300 million was liquidated from the cryptocurrency market in the last 24 hours, with shorts again bearing the brunt.



Bitcoin&#8217;s Open Interest was largely unchanged in the last 24 hours, while Ethereum witnessed a 9% jump in funds locked in derivatives.&nbsp;



Interestingly, the majority of Binance BTC traders were still short on the leading cryptocurrency.



According to the Crypto Fear and Greed Index, market sentiment has shifted dramatically from &#8220;Neutral&#8221; to &#8220;Greed&#8221; in a month's time.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 8:30 p.m. ET)</td></tr><tr><td>Worldcoin (WLD)</td><td>+25.37%</td><td>$1.54</td></tr><tr><td>Hyperliquid (HYPE)</td><td>+17.37%</td><td>$33.94</td></tr><tr><td>Zcash (ZEC)</td><td>+16.64%</td><td>$50.20</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization topped $3.50 trillion, following an increase of 1.67% in the last 24 hours.



Stocks ended nearly flat on Thursday. The Dow Jones Industrial Average lost 1.35 points to end at 41,859.09. The S&amp;P 500 dipped 0.04% to close at 5,842.01, while the tech-focused Nasdaq Composite closed 0.28% higher at 18,925.73.



Investors responded to the House passing the Trump <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45564489/trumps-big-tax-bill-clears-the-house-30-year-yields-jump-to-515-as-bond-market-freaks">tax-cut bill</a>, raising concerns about debt increases and pushing the 30-year Treasury yield to levels not seen since October 2023.



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



Analyst Notes: Market analysis platform Barchart projected Bitcoin's next moves, anticipating a "challenge" around $113,500.



"This 8-year trendline says it will face a challenge at about $113,500. Since late 2017, it&#8217;s been a tap-and-roll over. Will this time be different?" Barchart speculated.



<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">How high can Bitcoin <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> go? This 8-year trendline says it will face a challenge at about $113,500. Since late 2017, it&#39;s been a tap-and-roll over. Will this time be different? <a href="https://t.co/kVCRmLdSF2">pic.twitter.com/kVCRmLdSF2</a>&mdash; Barchart (@Barchart) <a href="https://twitter.com/Barchart/status/1925711549278097422?ref_src=twsrc%5Etfw">May 23, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Cryptocurrency analyst and trader Ali Martinez noticed Ethereum's "solid" support at $2,370, with no "significant" resistance walls ahead!



<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 href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw">#Ethereum</a> <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> has built a solid support floor at $2,370, with no significant resistance walls ahead! <a href="https://t.co/E67jeybl6e">pic.twitter.com/E67jeybl6e</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1925661215524585506?ref_src=twsrc%5Etfw">May 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo Courtesy: Antonio Gravante On Shutterstock.com



Read Next:&nbsp;&nbsp;&nbsp;&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45571765/kraken-to-launch-247-tokenized-stock-trading-for-global-users-via-solana">Kraken To Launch 24/7 Tokenized Stock Trading For Global Users Via Solana</a></li>
</ul>

$DOGE

$ETH

Bitcoin Flirts With $112,000 — Ethereum, Dogecoin Spike Even As Stocks Flat On Debt Worries: Analytics Platform Sees Challenge For BTC At This Level

Google (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) has been underperforming the other Big Tech stocks lately. This is likely due to falling margins from the AI overview at the top of Google Search pages and Apple&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) inclusion of AI search on its platforms.



This suggests that Google is going to stay weak for the foreseeable future.



Here&#8217;s the option play to enable us to profit from that weakness.



Trade structure &#8211; the long put spread explained &#8211; positioned for short continuation. 



My play here is a long put spread, which positions us for Google to remain weak. A long put spread involves purchasing a long put and financing part of the cost with a short put. 



The stock&#8217;s current relative resistance zone sits right around $176 and support sits below at $157, so our long put spread is going to look like this:



<ul class="wp-block-list">
<li>Buy to open 1 GOOG 20Jun 2026 170 puts </li>



<li>Sell to open 1 GOOG 20Jun 2026 160 puts </li>
</ul>



This long put spread held a current debit of $3.22 at this writing, representing the total risk incurred in the trade. The breakeven price of the stock at expiration on this trade is $166.79 less commissions. 



The highest potential profit is $10 (the distance between the $170 and $180 strikes) less the cost of the debt incurred by buying the long put spread, so $10 &#8211; $3.22 = $6.78 minus commissions.



The strategy provides several ways to exit, but here are the main two:



<ol class="wp-block-list">
<li>To sell the put spread at either the test of $160 or when the profit goal moves into your target parameters – particularly once the middle strike is tested near the expiration time. I often look for a 40%-70% return with these trending trades. </li>



<li>To sell the put spread when your loss threshold is breached. Customarily, this is 30% for me.</li>
</ol>



<h2 class="wp-block-heading">This Memorial Day: Turn Market Noise Into Clear, Actionable Buy Signals for 60% Off</h2>



Wall Street's top analysts. Insider moves. Real-time portfolio alerts. With Benzinga Edge, you won't just read about profits… you'll know what to buy, when to buy and why. Get the 60% Deal <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-memorial-day-special/?utm_campaign=mdw-sale&amp;utm_adType=sponsorad&amp;utm_ad=RD052325&amp;el=ResearchDaily&amp;he={{email}}&amp;adt_ei={{email}}&amp;utm_medium=newsletter">HERE</a> Before It's Gone!



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

My Top Big Tech Option Trade Of The Week

Intuit Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTU#NASDAQ">INTU</a>) posted a <a href="https://benzinga.com/news/earnings/25/05/45575402/intuit-q3-earnings-revenue-beat-eps-beat-raised-fy-guidance-company-seeing-exceptional-momentum-across-platforms">strong third-quarter</a> performance fueled by explosive growth in its TurboTax Live business. 



What Happened: During the earnings call on Thursday, the company&#8217;s CEO, Sasan Goodarzi, called it a &#8220;breakthrough adoption year&#8221; for its tax-prep product, TurboTax Live, highlighting the significant traction that the product has gained across consumer and business segments during the year.



The company reported a 47% year-over-year increase in TurboTax Live revenue and a 24% rise in customers using its AI-enabled service, helping push its overall Consumer Group revenue, which the product is a part of, to $4 billion.



&#8220;We saw adoption within our base,&#8221; Goodarzi said during the call, referring to Intuit&#8217;s nearly 100 million customers and users worldwide.



See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/25/05/45579297/peter-schiff-says-a-president-shouldnt-sell-white-house-tours-and-pocket-the-proceeds-as-trump-prepares-to-have-dinner-with-memecoin-holders">Peter Schiff Says A President Shouldn&#8217;t &#8216;Sell White House Tours&#8217; And Pocket The Proceeds As Trump Prepares To Have Dinner With Memecoin Holders</a>



Goodarzi emphasized that AI played a critical role in simplifying the user experience, saying that the company reduced the average return preparation time by 12% and enabled over half of its customers to finish their annual tax filings in under an hour.



Despite the strong traction, Intuit sees room for improvement. Gudari notes areas where friction still exists, particularly for users migrating from traditional assisted tax providers. &#8220;There's still so much that we can do to make the end-to-end experience seamless,&#8221; he says.



Why It Matters: TurboTax Live, which blends AI with human experts, brings significant disruption to the traditionally human-led tax preparation market, which has long been dominated by the likes of H&amp;R Block Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HRB#NYSE">HRB</a>), which has already been working with Microsoft Corp.&#8217;s Azure OpenAI to <a href="https://www.benzinga.com/news/23/12/36245483/ai-can-help-do-your-taxes-how-h-r-block-utilizes-microsofts-azure-openai-for-customers">streamline tax preparation</a> process for nearly two years.



Early this week, Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) analyst Kash Rangan called the <a href="https://www.benzinga.com/25/05/45497740/intuit-q3-preview-revenue-beat-likely-benefits-from-being-a-price-disrupter-says-bullish-analyst">tax-heavy third quarter</a> a &#8220;validation opportunity&#8221; for the company. He also said that Intuit is seeing &#8220;product market fit&#8221; in the assisted tax filing segment, while calling it a &#8220;price disrupter.&#8221;



The company released its <a href="https://benzinga.com/news/earnings/25/05/45575402/intuit-q3-earnings-revenue-beat-eps-beat-raised-fy-guidance-company-seeing-exceptional-momentum-across-platforms">third quarter results</a> on Thursday, reporting $7.75 billion in revenue, beating consensus estimates of $7.56 billion. It posted a profit of $11.65 per share, which came in ahead of estimates at $10.91.



Price Action: The stock was up 0.92% on Thursday, trading at $666.07 per share, and is up 8.03% after hours following its robust third quarter performance.



<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="135" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/22233257/Screenshot-2025-05-23-at-9.02.47-AM-1024x135.png" alt="" class="wp-image-925266" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/22233257/Screenshot-2025-05-23-at-9.02.47-AM-1024x135.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/22233257/Screenshot-2025-05-23-at-9.02.47-AM-300x39.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/22233257/Screenshot-2025-05-23-at-9.02.47-AM-768x101.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/22233257/Screenshot-2025-05-23-at-9.02.47-AM-1536x202.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/22233257/Screenshot-2025-05-23-at-9.02.47-AM.png 1614w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



According to Benzinga&#8217;s Edge Stock Rankings, the stock has a favorable price trend in the short, medium, and long term. Click <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">here</a> for more insights and to see how it compares with peers and competitors such as H&amp;R Block.



Photo Courtesy: Tada Images on Shutterstock.com



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<li><a href="https://www.benzinga.com/25/05/45579414/supreme-court-says-trump-cant-fire-jerome-powellthe-fed-a-uniquely-structured-quasi-private-entity">Trump May Not Be Able To Fire Jerome Powell, Supreme Court Signals: Fed A &#8216;Uniquely Structured, Quasi-Private Entity&#8217;</a></li>
</ul>

Intuit CEO Calls It A 'Breakthrough Adoption Year' As TurboTax Live Revenue Jumps—Stock Pops 8% After Hours

China&#8217;s Vice Foreign Minister Ma Zhaoxu held a telephone conversation with U.S. Deputy Secretary of State Christopher Landau on Friday, with both sides agreeing to maintain ongoing communication, according to China&#8217;s Ministry of Foreign Affairs statement released Friday.



What Happened: The diplomatic engagement comes as a 90-day U.S.-China trade truce nears its deadline, with former U.S. Ambassador to Russia, Michael McFaul, calling the lack of direct communication between President Donald Trump and Chinese President Xi Jinping &#8220;horrible.&#8221;



The leaders have not spoken directly since Trump&#8217;s Jan. 17 pre-inauguration call, despite Trump&#8217;s expressed <a href="https://www.benzinga.com/25/05/45512353/urgent-trump-xi-talks-needed-as-trade-truce-deadline-looms-warns-ex-us-diplomat-slamming-the-horrible-lack-of-contact">willingness to visit China for talks</a>.



Treasury Secretary Scott Bessent recently clarified that the U.S. will &#8220;continue trading with China&#8221; while reshoring critical supply chains, signaling potential flexibility in trade relations that could impact major <a href="https://www.benzinga.com/25/05/45512353/urgent-trump-xi-talks-needed-as-trade-truce-deadline-looms-warns-ex-us-diplomat-slamming-the-horrible-lack-of-contact">U.S. companies with Chinese exposure</a>.



See Also: <a href="https://www.benzinga.com/government/regulations/25/05/45574763/goldman-sachs-defense-stock-golden-dome">Goldman Sachs Taps This Defense Stock As Prime Beneficiary Of Trump&#8217;s $175B Golden Dome</a>



Why It Matters: The dialogue occurs against <a href="https://www.benzinga.com/25/05/45534527/china-warns-of-legal-retaliation-against-us-chip-sanctions-threatens-lawsuits-for-aiding-discriminatory-tech-crackdown">escalating tech tensions</a>. China threatened legal action against entities supporting U.S. semiconductor restrictions, following Washington&#8217;s guidance warning companies against using Huawei Technologies&#8216; Ascend AI chips. 



NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang criticized U.S. chip export controls as &#8220;exactly wrong for America,&#8221; revealing his company <a href="https://www.benzinga.com/25/05/45513246/nvidia-ceo-jensen-huang-says-chinese-ai-researchers-are-world-class-and-us-companies-are-hiring-a-whole-bunch-of-them">wrote off $5.5 billion in inventory</a> due to restrictions.



Trade complexities deepened with China&#8217;s criticism of the recent U.S.-UK trade pact, which Beijing called detrimental to third-party interests. Chinese researcher Zhang Yansheng described such agreements as &#8220;poison pill clauses&#8221; worse than tariffs, as Washington attempts to <a href="https://www.benzinga.com/markets/25/05/45400750/china-slams-uk-us-trade-pact-finds-it-against-its-interests-this-type-of-poison-pill-clause-is-actually-worse-than-the-tariffs">isolate China from supply chains</a>.



Read Next: 



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<li><a href="https://www.benzinga.com/25/05/45579414/supreme-court-says-trump-cant-fire-jerome-powellthe-fed-a-uniquely-structured-quasi-private-entity">Trump May Not Be Able To Fire Jerome Powell, Supreme Court Signals: Fed A &#8216;Uniquely Structured, Quasi-Private Entity&#8217;</a></li>
</ul>



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



Photo courtesy: Shutterstock

NVDA

As Trump-Xi Jinping Silence Drags On, China And US Reopen Diplomatic Lines Amid Looming Trade Truce Deadline And Tech Tensions

Goldman Sachs believes L3Harris Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LHX#NASDAQ">LHX</a>) could be among the biggest corporate winners of the Trump administration&#8217;s <a href="https://www.benzinga.com/25/05/45548110/trumps-golden-dome-launches-new-era-for-defense-stocks-like-rtx-lockheed-martin-l3harris">$175 billion &#8220;Golden Dome&#8221; initiative</a>. 



What Happened: Goldman Sachs analyst Noah Poponak reiterated a Buy rating on L3Harris in a note Thursday following management meetings, highlighting the firm's positioning in key elements of the so-called &#8220;Golden Dome.&#8221;



On May 20, President Donald Trump, Secretary of Defense Pete Hegseth, and top military leaders pitched the Golden Dome as a multi-layered national missile defense system that can counter hypersonic and ballistic missiles.



The program, they say, is expected to be completed within three years, though experts note the complexity could extend that timeline.



Beyond the missile defense space, L3Harris has continued to report strength in high-margin communications and signal processing technologies.



Management emphasized global demand for battlefield integration systems, which are increasingly expected to feature artificial intelligence and data analytics, potentially in partnership with firms like Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>).



&#8220;LHX continues to see opportunity for margin expansion and free cash flow growth,&#8221; said Poponak. &#8220;It also remains focused on cost and productivity improvement programs.&#8221;



L3Harris believes the dome initiative could bring "billions of dollars in incremental revenue." The company has a High-Altitude Ballistic Tracking and Surveillance System (HBTSS).



Observers also see L3Harris&#8217; Aerojet Rocketdyne unit, acquired in 2023, as a technological leader in missile propulsion and guidance. Company management says it can benefit from missile-focused components of the initiative.



See Also: <a href="https://www.benzinga.com/general/space/25/05/45532125/l3harris-stock-moves-higher-after-being-named-in-golden-dome-missile-defense-system">L3Harris Stock Moves Higher After Being Named In &#8216;Golden Dome&#8217; Missile Defense System</a>



Why It Matters: In the GOP tax bill that passed the House on Thursday, the Treasury is increasing the deficit by about $144 billion for Armed Services and $67 billion for Homeland Security, <a href="https://www.benzinga.com/government/regulations/25/05/45569891/big-tax-cuts-big-deficits-wall-street-winners-and-losers-emerge">reflecting key spending priorities.</a>



Golden Dome&#8217;s early funding allocation is pegged at $25 billion. At least $24.7 billion in proposed spending would go toward air and missile defense enhancements.



Key line items include:



<ul class="wp-block-list">
<li>$7.2 billion for development of space-based military sensors</li>



<li>$5.6 billion for space-based and boost-phase missile interceptors</li>



<li>$2.2 billion for hypersonic defense system acceleration</li>



<li>$2 billion for military satellite systems targeting airborne threat</li>
</ul>



What Trump and House Republicans dub the &#8220;big, beautiful bill&#8221; now heads to the Senate.



Shares of L3Harris climbed 3% to $239 on Thursday, outperforming peers like Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), up 0.5%, and Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>), up 0.2%. Meanwhile, RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) slipped 0.3%. 



Goldman Sachs maintained a $283 price target for LHX shares, suggesting an 18% upside over the next 12 months.



Now Read:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/25/05/45541866/xi-jinpings-china-wants-trump-to-immediately-drop-the-golden-dome-project-over-strong-offensive-implications-security-of-all-countries-should-not-be-compromised">Xi Jinping&#8217;s China Wants Trump To Immediately Drop The Golden Dome Project Over &#8216;Strong Offensive Implications:&#8217; &#8216;&#8230;Security Of All Countries Should Not Be Compromised&#8217; </a></li>
</ul>



Image: Shutterstock

PLTR

Goldman Sachs Taps This Defense Stock As Prime Beneficiary Of Trump's $175B Golden Dome

Intuit Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTU#NASDAQ">INTU</a>) reported financial results for the third quarter of fiscal 2025 after the market close on Thursday. Here&#8217;s a rundown <a href="https://www.benzinga.com/pressreleases/25/05/b45573956/intuit-reports-strong-third-quarter-results-and-raises-full-year-guidance">of the report</a>.



Q3 Earnings: Intuit reported third-quarter revenue of $7.75 billion, beating analyst <a href="http://benzinga.com/quote/INTU/earnings">estimates</a> of $7.56 billion, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>. The QuickBooks and TurboTax parent company reported third-quarter adjusted earnings of $11.65 per share, beating analyst estimates of $10.91 per share.



Total revenue was up 15% year-over-year. Here&#8217;s a breakdown of revenue by segment:



<ul class="wp-block-list">
<li>Consumer Group revenue: $4 billion, up 11%</li>
</ul>



<ul class="wp-block-list">
<li>Global Business Solutions revenue: $2.8 billion, up 19%</li>
</ul>



<ul class="wp-block-list">
<li>Credit Karma revenue: $579 million, up 31%</li>
</ul>



<ul class="wp-block-list">
<li>ProTax Group revenue: $278 million, up 9%</li>
</ul>



<ul class="wp-block-list">
<li>Online Ecosystem revenue: up 20%</li>
</ul>



Intuit repurchased $754 million of its stock in the quarter and had $2.8 billion remaining on its buyback at quarter&#8217;s end. The company said its board approved a quarterly dividend of $1.04 per share, payable on July 18. 



Intuit ended the quarter with $6.2 billion in total cash and investments and $6.4 billion of debt.



&#8220;We have exceptional momentum with outstanding performance across our platform. We&#8217;re redefining what&#8217;s possible with AI by becoming a one-stop shop of AI-agents and AI-enabled human experts to fuel the success of consumers and small and mid-market businesses,&#8221;&nbsp;said&nbsp;Sasan Goodarzi, CEO of Intuit.



Guidance:&nbsp;Intuit expects fourth-quarter revenue of $3.72 billion to $3.76 billion versus estimates of $3.76 billion. The company sees third-quarter adjusted earnings in the range of $2.63 to $2.68 per share versus estimates of $2.59 per share.&nbsp;



Intuit also raised its full-year guidance. The company expects full-year 2025 revenue of $18.72 billion to $18.76 billion, up from prior guidance of $18.16 billion and $18.35 billion. The company anticipates full-year earnings of $20.07 to $20.12 per share, up from prior guidance of $19.16 to $19.36, Analysts are currently looking for full-year revenue of $18.35 billion and full-year adjusted earnings of $19.34 per share, per <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Intuit&#8217;s management team will further discuss the quarter on a call with investors and analysts at 4:30 p.m. ET. 



INTU Price Action: <a href="https://www.benzinga.com/quote/INTU" target="_blank" rel="noreferrer noopener">Intuit shares</a> were up 8.25% in after-hours, trading at $721 at the time of publication on Thursday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



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Photo: Shutterstock.

Guidance

After-Hours Center

Intuit Q3 Earnings: Revenue Beat, EPS Beat, Raised FY Guidance, Company Seeing 'Exceptional' Momentum Across Platforms

In an era dominated by the rush toward renewable energy, coal might seem like some relic of the past. Yet, for people willing to look beyond the headlines, the coal industry holds hidden gems. <a href="https://www.peabodyenergy.com/">Peabody Energy</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BTU#NYSE">BTU</a>), the largest coal producer in the United States, stands out as a compelling opportunity. Trading at a steep discount to its intrinsic value, with robust financials and a global footprint, Peabody offers a rare blend of stability and growth potential. This coal titan is a standout choice, poised to reward those who see its enduring relevance.



<h2 class="wp-block-heading">A Legacy of Strength in a Shifting Industry</h2>



Peabody Energy, founded in 1883 and based in St. Louis, Missouri, has weathered over a century of economic cycles to emerge as one of a global leader in coal production. The company operates 17 mines across the United States and Australia, extracting both thermal coal for power generation and metallurgical coal for steelmaking. Its crown jewel, the North Antelope Rochelle Mine in Wyoming, produces over 60 million tons of thermal coal annually, making it one of the world's largest coal operations. In Australia, Peabody's Queensland and New South Wales mines, including the recently reactivated Centurion Mine, cater to the growing demand for metallurgical coal in Asia.



Such kind of diversified portfolio sets Peabody apart. While thermal coal faces headwinds in developed markets due to the shift toward renewables, metallurgical coal remains a critical input for steel production, particularly in fast-growing economies like China and India. With exports to over 26 countries-generating 55-63% of its revenue from international markets- Peabody is not tethered to any single region. Global reach, combined with its operational efficiency, positions the company to navigate the complexities of a transitioning energy landscape.



<h2 class="wp-block-heading">Financial Fortitude: A Case for Undervaluation</h2>



Peabody's financial health tells a story of resilience and opportunity. At a share price of $14.61, the company trades at a price-to-earnings (P/E) ratio of 6.5, far below the coal industry average of 9.04. This suggests a 40% discount to peers, implying a fair value closer to $17.72 based on its earnings per share of $1.96. The stock's price-to-book (P/B) ratio of 0.42 is equally striking, indicating that the market values Peabody at less than half its book value-a rarity in today's market. Similarly, its price-to-sales (P/S) ratio of 0.4 reflects a market capitalization of $1.54 billion, just 40% of its $4.24 billion in annual revenue.



The company's operational efficiency shines through in its enterprise value-to-EBITDA ratio of 1.7, among the lowest in the industry, signaling that Peabody generates strong earnings relative to its $1.37 billion enterprise value. Its balance sheet is equally impressive: a debt-to-assets ratio of 7.8% and a debt-to-equity ratio of 12.8% reflect minimal leverage, while its EBITDA covers interest expenses 9.5 times. With a current ratio of 2.2, Peabody can comfortably meet short-term obligations. Add to that $205.2 million in free cash flow and a price-to-cash-flow ratio of 2.6, and it's clear the company is a cash-generating machine, supporting both its modest 2.4% dividend yield and future growth initiatives.



Peabody's metrics reveal a company that offers deep value and strong fundamentals, boasting profitability metrics-10.5% operating margin, 10.5% net margin, 11.1% return on equity, and 10.3% return on assets- that compete with far pricier rivals. Peabody opens to us as a bargain, hiding in plain sight.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="636" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22142803/image-10-1024x636.png" alt="" class="wp-image-13299" style="width:599px;height:auto" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22142803/image-10-1024x636.png 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22142803/image-10-300x186.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22142803/image-10-768x477.png 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22142803/image-10.png 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h2 class="wp-block-heading">The Coal Conundrum: Challenges and Catalysts</h2>



The coal industry is at a crossroads. In 2025, thermal coal prices hover around $95 per ton, weighed down by reduced demand in Europe and softer imports from China. Metallurgical coal, by contrast, commands $183 per ton, buoyed by steady steel production in Asia. Production costs vary-$10-20 per ton for U.S. thermal coal and $60-90 per ton for Australian metallurgical coal-but Peabody's margins remain healthy, thanks to its low-cost operations and diversified revenue streams.



Long-term challenges loom, particularly in developed markets where environmental regulations and the push for renewables are squeezing thermal coal demand. Yet, recent events underscore coal's enduring role. Power outages in Spain and Portugal, linked to overreliance on renewables, highlight the risks of grids where green energy exceeds 15% of capacity. In developing economies, coal remains a cornerstone of energy security, with India and Southeast Asia driving demand. Moreover, underinvestment in new coal deposits over the past decade has depleted global reserves-Peabody's own stood at 2.4 billion tons in 2022-setting the stage for potential supply shortages and price spikes.



Peabody is pretty well-equipped to capitalize on these dynamics. Its low debt and high cash flow provide a buffer against price volatility, while its focus on metallurgical coal aligns with Asia's industrial growth. The reactivation of the Centurion Mine in Australia further strengthens its position in this resilient segment, where reserve growth outpacing industry trends.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="768" src="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22182231/ShoalCreek-1-1024x768.jpg" alt="" class="wp-image-13309" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22182231/ShoalCreek-1-1024x768.jpg 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22182231/ShoalCreek-1-300x225.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22182231/ShoalCreek-1-768x576.jpg 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2025/05/22182231/ShoalCreek-1.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Image credit: https://www.peabodyenergy.com/Media-Center/Photo-Gallery/Location-United-States



<h2 class="wp-block-heading">Why Peabody Shines as a Top Stock Pick</h2>



Peabody Energy offers a compelling case for investors seeking value and resilience. At $14.61, its stock is undervalued by nearly 40% relative to its fair value, with analysts projecting a price target of $27.60-an 88.9% upside. This discount persists despite stable coal prices and Peabody's operational strength, suggesting that market skepticism about coal's future is overstated. The company's diversified revenue, minimal debt, and robust cash flow provide a margin of safety, while its 2.4% dividend yield adds an income component.



Catalysts for growth are on the horizon. A rebound in coal prices, driven by supply constraints or renewed energy demand, could unlock significant value. Continued steel production in Asia ensures steady demand for metallurgical coal, while coal's role as a reliable energy source may see a resurgence in markets grappling with renewable energy's limitations. Risks, such as regulatory pressures and price volatility, are real but mitigated by Peabody's financial discipline and global diversification.



<h2 class="wp-block-heading">A Resounding Recommendation</h2>



Peabody Energy stands out as a rare opportunity in a misunderstood sector. Its undervaluation, strong fundamentals, and strategic positioning make it a prime candidate for investors looking to capitalize on the coal industry's resilience. With a "Strong Buy" rating from analysts and a clear path to significant upside, Peabody is not just a stock- it's a story of value waiting to be rediscovered. For those willing to dig a little bit deeper, this coal giant is a shining prospect.

Long Ideas

Commodities

Signals

Peabody Energy: Unlocking Value In A Misunderstood Market

The U.S. House of Representatives passed one of the most expansive tax-and-spending bills in modern history, setting the stage for a multi-trillion-dollar shift in federal deficits and sector <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45564489/trumps-big-tax-bill-clears-the-house-30-year-yields-jump-to-515-as-bond-market-freaks">dynamics over the next decade.</a>



The legislation is projected to balloon the federal deficit by over $3 trillion between 2025 and 2034, according to preliminary estimates from the Congressional Budget Office. The fiscal impact will peak around 2027, when the bulk of the temporary spending programs and tax cuts kick in.



<h1 class="wp-block-heading">Fiscal Alarm Bells Ring On Wall Street</h1>



Analysts at the bipartisan federal agency warn that such a sharp increase comes at a time when U.S. debt is already on an unsustainable trajectory.



"Adding more than $3 trillion to the debt when our nation's finances are already on an unsustainable path would be unwise," the CBO stated. 



"Lawmakers should go back to the drawing board and work on a bill that reduces deficits, not adds to them."



Spencer Hakimian, founder of Tolou Capital warned that with the bill's passage, markets should brace for permanent emergency-style stimulus and $4 trillion annual deficits within a few years.



"This is COVID-style spending — without the pandemic," Hakimian said in a post on X.



Goldman Sachs' economist Alec Phillips highlighted that Moody's recent U.S. credit rating downgrade was influenced by the bill's trajectory, stating, "Markets are already attuned to fiscal risks… early August remains our base case for enactment."



<h1 class="wp-block-heading">How The House Tax Bill Could Shake Up Different Sectors</h1>



According to CBO projections, the bill increases the deficit in three key government areas — meaning more spending is likely ahead:



<ul class="wp-block-list">
<li>Judiciary: $7 billion (deficit increase)</li>



<li>Armed Services: $144 billion</li>



<li>Homeland Security: $67 billion</li>
</ul>



This suggests significant boosts to military procurement, border enforcement and law enforcement infrastructure. These sectors could benefit from rising federal contracts and equipment orders, with likely beneficiaries including the iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>) and the First Trust Nasdaq Cybersecurity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>).



At the core of the bill is the Ways &amp; Means Committee, responsible for all tax policy, Social Security, Medicare, unemployment benefits and tariffs. This section alone accounts for $3.775 trillion of the total deficit increase.



Other areas of the budget plan reflect deficit reductions, which generally imply spending cuts or revenue gains. These include:



<ul class="wp-block-list">
<li>Energy &amp; Commerce: -988 billion (deficit reduction).</li>



<li>Agriculture: -$238 billion</li>



<li>Education &amp; Workforce: -$349 billion</li>



<li>Financial Services: -$5 billion</li>



<li>Natural Resources: -$20 billion</li>



<li>Oversight &amp; Government Reform: -$51 billion</li>



<li>Transportation &amp; Infrastructure: -$37 billion</li>
</ul>



Potential ETF losers include Invesco WilderHill Clean Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBW#NYSE">PBW</a>), iShares MSCI Agriculture Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEGI#NYSE">VEGI</a>), and iShares U.S. Transportation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYT#NYSE">IYT</a>), given expected cuts to renewables subsidies, rural and transportation programs.



<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">&#x1f1fa;&#x1f1f8; CBO&#39;s First Score of House Reconciliation Bill &#8211; CRFB<a href="https://t.co/iFM00ypPuM">https://t.co/iFM00ypPuM</a> <a href="https://t.co/JmkCrJ8W3q">pic.twitter.com/JmkCrJ8W3q</a>&mdash; Christophe Barraud&#x1f6e2;&#x1f433; (@C_Barraud) <a href="https://twitter.com/C_Barraud/status/1925540653607395776?ref_src=twsrc%5Etfw">May 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h1 class="wp-block-heading">Market Reactions</h1>



Initial market reactions hit the solar and renewables sectors, which suffered the brunt of market fallout. With many solar tax subsidies ended, the Invesco Solar ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NASDAQ">TAN</a>) fell 9% on Thursday. Among key names:



<ul class="wp-block-list">
<li>Sunrun Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUN#NASDAQ">RUN</a>) collapsed 40%</li>



<li>SolarEdge Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEDG#NASDAQ">SEDG</a>) dropped 26%</li>



<li>Enphase Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>) fell 19%</li>



<li>First Solar Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NASDAQ">FSLR</a>) declined 4%</li>
</ul>



Abigail Ross Hopper, CEO of the Solar Energy Industries Association, warned the bill would "upend an economic boom," potentially leading to blackouts and a strategic loss to China in the global AI race.



"This bill is willfully ignorant of the fact that deploying solar and storage is the only way the U.S. power grid can meet demand&#8230; If it becomes law, America will effectively surrender the AI race to China."



In contrast, consumer-related stocks rallied, buoyed by expectations of tax relief and increased household spending power. The SPDR S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>) climbed 1.5%, led by Advance Auto Parts (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAP#NYSE">AAP</a>), which soared 42% after a blowout earnings report.



Within tech-focused defense names, Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) jumped 4.5%, while cybersecurity leader CrowdStrike Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) gained 2.6%. 



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<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45567476/us-business-activity-rebounds-in-may-but-tariff-fueled-inflation-surges-at-fastest-pace-in-3-years">US Business Activity Rebounds In May, But Tariff-Fueled Inflation Surges At Fastest Pace In 3 Years</a> Photo: iQoncept via Shutterstock<a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45567476/us-business-activity-rebounds-in-may-but-tariff-fueled-inflation-surges-at-fastest-pace-in-3-years"> </a></li>
</ul>

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