Friday saw declines in Asia-Pacific markets as U.S. President Donald Trump confirmed the imposition of tariffs on goods from Mexico and Canada, which would take effect the following week.

 

In Australia, the S&P/ASX 200 index fell by 1.16%, concluding the day at 8,172.4.

 

The Nikkei 225 in Japan dropped by 2.88% to 37,155.5, while the Topix decreased by 1.98% to 2,682.09. South Korea's Kospi saw a reduction of 3.39% to 2,532.78, and the Kosdaq, focusing on smaller firms, declined by 3.49% to conclude at 743.96.

 

The Hang Seng Index in Hong Kong decreased by 3.55%, and China’s CSI 300 index fell by 1.97%, closing at 3,890.05.

 

Stocks in India also slipped, with the Nifty 50 index down by 0.99%.

 

The value of Bitcoin declined by 1.79% to $82,811.12, reflecting nearly a 25% drop since its record high in January.

 

On Thursday, Trump announced the impending enforcement of 25% tariffs on Canada and Mexico on March 4, following a month-long deferment. He noted that these nations had not sufficiently reduced drug trafficking across their borders.

 

Moreover, Trump indicated that China would also face an additional 10% U.S. tariff on products starting the same day, on top of the existing 10% tariffs.

 

In the U.S. overnight, the three major stock indexes closed in negative territory. The S&P 500 ended the day with a 1.59% decline at 5,861.57. This broad market index recorded losses for both the week and the month. The Nasdaq Composite declined by 2.78%, finishing at 18,544.42, impacted by Nvidia’s 8.5% drop.

 

The Dow Jones Industrial Average decreased by 193.62 points, equating to a drop of 0.45%, closing at 43,239.50.

 

Bitcoin's downturn intensified on Friday, marking its lowest level in over three months, erasing gains seen after Donald Trump’s presidential election win.

 

Trading midday in Asia had Bitcoin valued at approximately $79,800, down by 5.25% for the day and approximately 25% from its peak in mid-December.

 

Bitcoin saw a price spike post Trump's November victory where he positioned himself as friendly to cryptocurrency during his campaign.

 

Asian currencies weakened as the U.S. dollar strengthened following President Trump’s confirmation about upcoming tariffs on imports from Mexico and Canada.

 

The dollar index — appraises the U.S. dollar’s strength against major international currencies — climbed 0.12% to 107.36 amid investors seeking more secure options due to tariff-related uncertainties.

 

Against the dollar, the Indonesian rupiah declined by 0.78%, hitting its weakest point since April 2020.

 

Following Nvidia's removal from the $3 trillion market cap status, Asian semiconductor shares experienced reductions.

 

Advantest, a semiconductor testing equipment supplier, dropped nearly 9%, and Tokyo Electron shares fell by 5.1%. Renesas Electronics and Lasertec recorded downturns of 4.43% and 7.19%, respectively.

 

Taiwan Semiconductor Manufacturing Company saw a decrease of 1.89%.

 

Japan observed a robust 3.9% increase in retail sales year-on-year in January, marking the fastest growth rate in almost a year. This surpassed the revised 3.5% increase in December but slightly missed economists’ expectations of 4% as surveyed by Reuters.

 

Tokyo posted a February headline inflation rate of 2.9% year-on-year, down from January’s 3.4%.

 

Core inflation, which excludes fresh food prices, was at 2.2%, slightly beneath the 2.3% forecasted by Reuters. Tokyo’s inflation trends are often seen as indicators of broader national patterns.

 

President Donald Trump communicated via Truth Social that the postponed 25% tariffs on imports from Canada and Mexico are slated to start on March 4, along with an additional 10% tariff on Chinese goods.

 

Trump stated in his post that the tariff implementations are partly due to fentanyl entering the U.S. from these international borders.

 

The Consumer Financial Protection Bureau's Trump-appointed leadership plans to fire nearly all its 1,700 employees while "winding down" the agency, according to testimony from employees.

 

In a trove of statements released late Thursday, federal employees said that the mass layoff was discussed in meetings they attended this month with senior CFPB leaders and members of Elon Musk's so-called Department of Government Efficiency.

 

"My team was directed to assist with terminating the vast majority of CFPB employees as quickly as possible," said an employee identified as Alex Doe, a pseudonym used out of fear of retaliation.

 

Doe said the plan from CFPB leaders and DOGE was to cut the bureau's workforce in three phases. It would first eliminate probationary and term employees, then carry out a wave of about 1,200 layoffs, leaving a skeleton crew of a few hundred workers.

 

"Finally, the Bureau would 'reduce altogether' within 60-90 days by terminating most of its remaining staff," Doe said.

 

The workers' testimony comes at a crucial time for the CFPB, the agency created to protect consumers after the 2008 financial crisis caused by irresponsible lending. Since DOGE operatives first arrived at the CFPB this month, the bureau has shuttered its Washington headquarters, initiated the first round of layoffs and told those who remain to stop nearly all work.

 

The department has also reversed course on several cases where it accused financial firms including Capital One of ripping off customers, dismissing at least four cases Thursday involving billions of dollars in alleged consumer harm.

 

The filings containing the employee statements were made in the case started by a CFPB union, which led to a judge suspending acting Director Russell Vought's moves to shutter the bureau. After the CFPB fired about 200 probationary and term employees, the agency's actions were put on hold until a March 3 hearing.

 

The documents show an apparent disconnect between some of the external messaging from Vought and the behind-the-scenes activity at the bureau.

 

In a motion filed Monday in the case, Vought pushed back against the idea that he planned to eliminate the CFPB.

 

"The predicate to running a 'more streamlined and efficient bureau' is that there will continue to be a CFPB," he wrote.

 

But the Trump administration's plan was to take the CFPB down to the barest minimum staffing required under law: Just five CFPB employees would remain, either in a stand-alone office or folded into another regulatory body, the workers testified.

 

In meetings between Feb. 18 and Feb. 25, "staff were told by Senior Executives that the CFPB would be eliminated except for the five statutorily mandated positions," said another current CFPB employee, this one identified as Drew Doe.

 

"One Senior Executive said that CFPB will become a 'room at Treasury, White House, or Federal Reserve with five men and a phone in it,'" Doe said.

 

Another CFPB employee said that he or she attended a Feb. 13 meeting in which the bureau's chief operating officer, Adam Martinez, stated that the agency was in "wind-down mode."

 

The CFPB employees said that, if directed to by the court, they would provide their names and titles under seal.

 

The bureau has long been a target of Republicans and financial institutions, who have called it a rogue agency that exceeded its legal authority in punishing companies. More recently, Musk has taken up the cause; he posted on his X platform, "RIP CFPB," earlier this month just as his DOGE operatives began their work.

 

In several instances in the testimony, senior CFPB staff appeared to defer to DOGE employees for critical matters.

 

For instance, DOGE worker Jordan Wick "specifically stated" that Musk's ad hoc group wanted a massive round of layoffs by Feb. 14.

 

"The Bureau intended to comply and fire the vast majority of remaining employees on February 14th," Alex Doe said. "The only reason it did not do so is because of this Court's order."

 

In other instances, DOGE workers asked CFPB staff about how deeply they could cut operations while adhering to statutory requirements in areas like consumer response, per testimony from CFPB worker Matthew Pfaff.

 

Despite gaining full access to CFPB systems and data on Feb. 7, the DOGE employees haven't yet completed the cybersecurity and privacy training required by the agency, the employees testified.

 

While Musk and Vought have openly advocated for the termination of the CFPB, only Congress can truly shutter the agency, which was created after lawmakers passed the 2010 Dodd-Frank Act.

 

Vought's moves appear to allow him to claim the CFPB still exists, while sidelining its role by drastically curtailing its ability to supervise companies and respond to complaints.

 

CFPB employees question whether a handful of employees could credibly fulfill the dozens of statutory requirements of the agency, which include responding to millions of consumer complaints filed via web and phone lines, as well as maintaining advocacy offices for military veterans and senior citizens.

 

On Thursday, Jonathan McKernan, President Donald Trump's pick to take over at the CFPB for Vought, told lawmakers including Sen. Elizabeth Warren, the Massachusetts Democrat credited with spurring the agency's creation, that he would "fully and faithfully" enforce laws related to the CFPB's mission.

 

McKernan added that if confirmed by the Senate, he would "rightsize" the CFPB, as well as "refocus it" and "make it accountable."

 

Noting that Vought, who is also head of the Office of Management and Budget, has canceled the lease on the agency's headquarters, Sen. Jack Reed, D.-R.I., told McKernan that he was in a "very difficult position."

 

"You do not appear to have much presidential support or OMB support, and I have this sinking feeling that you're departing Liverpool on the Titanic," Reed said. "Good luck."

The U.S. dollar remained strong on Wednesday due to concerns over tariffs and tense negotiations between Russia and Ukraine, while the New Zealand dollar decreased following a significant interest rate reduction by its central bank.

 

The Reserve Bank of New Zealand cut its key interest rate by 50 basis points to 3.75% on Wednesday, as widely anticipated. This marks a total reduction of 175 basis points since August as the central bank attempts to stimulate a lagging economy and address rising unemployment.

 

The kiwi currency was last down 0.3% at $0.5687 after the rate decision and subsequent comments from the bank indicating potential future cuts.

 

In the broader market, investors evaluated the recent developments in U.S. President Donald Trump's ongoing tariff measures and the uncertainty following the conclusion of initial Russia-Ukraine peace talks, which excluded Kyiv and Europe.

 

A majority of economists surveyed by Reuters this month anticipate another 50-basis-point cut in April.

 

Ukraine's President Volodymyr Zelenskiy asserted that no peace agreement could be made without his involvement. He postponed his trip to Saudi Arabia, originally planned for Wednesday, to March 10 to avoid legitimizing U.S.-Russia discussions.

 

Russia has toughened its stance, specifically demanding assurance that NATO will not grant membership to Kyiv.

 

The Trump administration announced on Tuesday that further discussions with Russia on resolving the war in Ukraine were agreed upon.

 

Expectations of a peace deal had driven the euro to a two-week high last week; however, the EU currency has dropped in recent days, last recorded 0.03% lower at $1.0442.

 

"The euro seems slightly unsettled by the evident differences between the U.S. and Europe over the conflict in Ukraine," commented Sean Callow, senior FX analyst at InTouch Capital Markets.

 

The dollar rose on Tuesday, buoyed by the euro's softness, yet it remains close to a two-month low of 106.56 hit on Friday despite ongoing tariff commitments.

 

Trump announced on Tuesday his intention to apply auto tariffs "in the vicinity of 25%" along with similar duties on semiconductor and pharmaceutical imports.

 

"As long as Trump is perceived as unreliable regarding tariffs, substantial USD long positions will be challenged," Callow remarked.

 

Trump's administration has consistently issued tariffs and threats of tariffs in the initial month of his presidency, creating uncertainty about their domestic and international effects.

 

Investors were awaiting the release of the Federal Reserve's January meeting minutes later that day for insights into policymakers' assessments of the risks associated with a global trade war.

 

Markets have factored in approximately 35 basis points of cuts for 2025.

 

The dollar index, assessing the greenback against a collection of rival currencies, increased by 0.04% to 107.04.

 

The yen gained 0.05% to 152 per dollar. Japan's strong GDP data for October to December released on Monday, along with recent robust inflation figures, have bolstered expectations for rate hikes.

 

The likelihood of a rate hike at the Bank of Japan's July meeting is increasing, yet uncertainties about the speed and scope of continuous tightening remain.

 

The focus will be on board member Hajime Takata, who is slated to deliver remarks on Wednesday, and the release of national CPI data on Friday.

 

Sterling remained steady at $1.2613 after touching a two-month high of $1.2641 in early trading on Wednesday. An inflation report for the UK is due later on Wednesday, following Tuesday's data indicating accelerating British wage growth.

 

The Australian dollar edged down 0.07% to $0.63495 after data revealed that domestic wages increased at the slowest annual rate in more than two years during the fourth quarter.

 

The Reserve Bank of Australia reduced rates as expected on Tuesday but issued a warning regarding further easing.

European stock markets fell on Wednesday as investors analyzed a series of corporate earnings reports and a U.K. inflation reading that surpassed expectations.

 

Stoxx 600 Index: Down 1.08% at 2:55 p.m. in London, marking its largest daily drop in 2025 and pulling back from Tuesday's all-time high close.

 

Key Indices:

• Germany's DAX: +0.28%
• France's CAC 40: -0.12%
• U.K.'s FTSE 100: -0.26%

 

Corporate Earnings Highlights

 

Philips (NL)

• Performance: Shares plunged 13% after missing Q4 sales growth expectations, primarily due to a double-digit revenue decline in China.
• Forecast: Citi analysts flagged the company's underwhelming 2025 outlook as a concern.
• CEO Statement: Roy Jakobs expressed optimism about the eventual recovery of Chinese demand, citing long-term healthcare needs.

 

BAE Systems (UK)

• Shares: Slipped despite record-high order backlog and a 14% revenue increase in 2024.
• Profit: Operating profit rose 4% to £2.69 billion ($3.39 billion).
• Outlook: Analysts see strong growth prospects fueled by rising global defense budgets and increased European defense autonomy.

 

Glencore (CH)

• Stock: Fell over 6% after reporting a 16% YoY decline in adjusted earnings in preliminary annual results.

 

HSBC (UK)

• Results: Reported a pre-tax annual profit of $32.31 billion, slightly missing expectations due to a $3.1 billion decline in net interest income.
• Shares: Rose 0.7% after announcing a $2 billion share buyback despite a downgrade from Deutsche Bank.
• Analyst View: UBS noted HSBC’s 9% outperformance versus Q4 consensus but flagged investor focus on long-term growth potential.

 

U.K. Economic Data

 

Inflation Update

• January CPI: Rose to 3%, surpassing the 2.8% forecast (Reuters survey).
• Core Inflation: Increased to 3.7%, its highest since April 2024.

 

Expert Insight:

• James Smith (ING): Suggests the Bank of England remains calm, highlighting that wage trends and labor market performance are key uncertainties.
• Market Expectation: The Bank of England is likely to hold rates in March, with potential cuts later in the year.

 

Housing Market Trends

 

House Prices: Up 4.6% YoY to £268,000 ($337,669) in December 2024.

 

Rental Market: Average rents rose by 8.7% in January, with regional differences:

• England: £1,375
• Wales: £780
• Scotland: £995

 

Industry Perspective: Justin Moy (EHF Mortgages) attributes price persistence to demand-supply imbalances and shifting market dynamics favoring corporate landlords.

 

Global Market Context

 

Asia-Pacific Region

• Stocks traded mostly lower, diverging from Wall Street's bullish performance where the S&P 500 hit a record high on Tuesday, as U.S. investors appeared to discount tariff and inflation concerns.

 

U.S. Market Update

 

Stock Futures: Opened lower on Wednesday.

 

Key Indices:

• S&P 500: -0.22%, pulling back from a recent record high.
• Nasdaq Composite: Declined alongside the S&P 500.
• Dow Jones Industrial Average: Fell 173 points (-0.39%).

For Katherine H., a 60-year-old personal chef, the recent rise in Palantir's stock value has been a "blessing."

 

Katherine had experienced the loss of her Tampa, Florida home, vehicle, and many cherished belongings due to flooding caused by Hurricane Helene a few months before.

 

However, with this week's increase in Palantir's stock value, her prospects are beginning to improve.

 

"It arrived at just the right moment for me personally, providing me with much-needed motivation," Katherine shared with Business Insider.

 

She was utilizing dollar-cost averaging—where one invests at consistent intervals—into Palantir since her initial stock purchase in October 2020, eventually accumulating just over 1,000 shares at an average cost of $14 each.

 

According to brokerage records seen by Business Insider, she now has a $100,000 gain.

 

Katherine is one of many retail investors who have bought into the AI-driven data analytics company since its public listing in September 2020.

 

The stock initially faced challenges, fluctuating between around $5 and $30 during its first three and a half years of public trading. Yet, following a 341% increase in 2024 and a 52% rise already in 2025, Palantir is now valued at roughly $115 per share.

 

With few supporters among Wall Street analysts, Palantir's achievements might largely be credited to its loyal base of retail investors.

 

One reason for the tech firm's massive following among individual investors—with the r/PLTR subreddit gathering nearly 100,000 members—is its dynamic CEO, Alex Karp.

 

Karp, a co-founder of Palantir in 2004, has developed a reputation as a provocateur who welcomes disrupting the norm and readily provides intriguing quotes during company earnings calls.

 

He's also quite meme-worthy. In the middle of a podcast interview last year, Karp appeared nonchalant, spinning a book on his finger while responding to a question.

 

"I can't believe I'm saying this but Alex Karp might be the coolest aspect of Palantir," Alex Tseng, CEO of Ares Industries, stated in an X post last year, referring to the video.

 

For Katherine, Karp was part of why she believed in the stock.

 

"He's an independent thinker, and I believe he merits that status. His approach is unique, and it clearly benefits the shareholders," Katherine said.

 

Karp has consistently ignored conventional "rules" associated with managing a public company.

 

He avoided the standard IPO process, which involves investment banks promoting the stock to institutional investors, who then get precedence to purchase the stock at an appealing price before retail can join in.

 

Instead, Palantir chose a direct listing method, enabling retail investors to purchase the stock at the same price as institutional investors at the time of going public.

 

Karp, continuing to value his retail following, frequently responds to retail investor queries before addressing sell-side analysts on earnings calls. In its latest call, only two analysts—Wedbush analyst Dan Ives and Bank of America analyst Mariana Perez Mora—were allowed to ask questions about the business.

 

Ives expressed to BI that he believes retail investors comprehended Palantir's story before it was understood by traditional Wall Street.

 

"It's not the common Wall Street approach, but Palantir's altering the tech space, and retail grasped that, and I think the Palantir team embraced that as well."

 

"I held onto it because it's a robust business that was misunderstood for years, and I knew it would bounce back and succeed," Nick F., a 39-year-old technology consultant from Washington, D.C., shared with BI.

 

Nick had put his future retirement in jeopardy after losses during the SPAC craze a few years prior but decided to keep his nearly 1,000 shares of Palantir, partly due to Karp.

 

"He's a brilliant mind. Unconventional but brilliant. Intensely focused on his mission and growth," Nick commented.

 

For Frank F., a 28-year-old business lending consultant residing in New York City, the rise in Palantir's stock has been transformative.

 

Frank began exploring investments during the 2020 meme stock surge and discovered Palantir in November 2021, purchasing 1,000 shares at approximately $23 each.

 

"I stayed invested, and at one point, I was at a substantial loss for my situation. But as the company advanced and I followed the deals they were closing, I grew increasingly confident that the stock would eventually soar," Frank shared with BI.

 

Fast forward to November 2023, Frank made a significant gamble on the stock, withdrawing his entire Roth IRA and investing roughly $180,000 in Palantir stock.

 

"I took a bold step. I invested everything I had into Palantir at $19," Frank stated. "The rest is simply part of the narrative."

 

Frank's account is now valued at around $940,000, as account statements confirm. He sold some shares at approximately $80 back in December to reclaim his initial investment and is now letting the remainder of his investment grow.

 

Karp significantly contributed to Frank's trust in Palantir's stock.

 

"I admire him. I think he's incredible," Frank remarked. "He's always been an outsider on Wall Street, and despite being criticized by Wall Street for such a long time, he has consistently supported retail investors like myself."

 

As for his plans with the Palantir profits, Frank mentioned that purchasing a condo in New York City would be great, but for now, he intends to "simply hang onto it and relax."

 

Katherine also plans to retain her investment in Palantir stock.

 

"I'm not selling anything," she stated. "I'm holding onto it. I am quite fond of it, and I genuinely believe they have a solid future ahead with what they're pursuing. They continually acquire contracts, notably military contracts."

 

Nick said he had reduced some of his Palantir stock positions over time but still holds approximately half of his initial stake and doesn't intend to sell more shares—and now his retirement plan is back on course.

 

"I've recuperated most of my losses and I'm back on track for retirement," Nick reported.

 

For Palantir and its retail investors, the affection is mutual.

 

"Alex, as is often the case, we have numerous individual investors listening in. Is there anything you'd like to express before we conclude the call," Palantir's Ana Soro inquired of Karp during the company's earnings call this week.

 

"Let's not converse with the analysts about the pressure of being accurate," Karp replied. "I am extremely pleased to have you join us for the journey, and you are our partners. Every person at Palantir, we are excelling."

Gold surged over 1% on Monday, as the recent tariff announcements by U.S. President Donald Trump intensified concerns about a global trade conflict, driving demand for the safe-haven metal and escalating bullion prices to unprecedented levels.

 

Spot gold rose 1.2% to reach $2,895.38 per ounce, as of 0758 GMT. Earlier in the session, the metal hit a record high of $2,896.35, marking its seventh such achievement this year. U.S. gold futures also increased by 1.2% to $2,920.8.

 

"Trump's announcement of new tariffs is bolstering worries about inflation and economic growth, boosting demand for gold. We expect continued price support, with gold projected to reach $3,000 per ounce," stated UBS analyst Giovanni Staunovo.

 

Over the weekend, Trump declared he would introduce new 25% tariffs on Monday on all imports of steel and aluminum into the U.S., which would add to existing metal duties, marking another significant escalation in his trade policy strategy.

 

Trump further announced that he would reveal reciprocal tariffs on Tuesday or Wednesday, to be implemented almost immediately, applying them to all countries and matching the tariff rates imposed by each nation.

 

"The possibility of gold also becoming entangled in the retaliatory tariffs is causing market disruptions," noted Daniel Hynes, senior commodity strategist at ANZ bank.

 

Federal Reserve officials on Friday highlighted the ongoing uncertainty regarding the impact of Trump's policies on economic growth and persistently high inflation, emphasizing their cautious stance on rate cuts as the U.S. job market remains robust.

 

Gold is regarded as a secure investment during times of economic and financial uncertainty, although rising interest rates tend to diminish the appeal of the non-yielding asset.

 

"I do not foresee a significant likelihood of a gold price correction at the moment, unless there is a substantial rise in the U.S. dollar," said Kelvin Wong, OANDA's senior market analyst for the Asia-Pacific region.

UBS analyst adjusted the price target for Berkshire Hathaway shares, which are listed on the New York Stock Exchange under the ticker NYSE:BRK-A. The new price target is set at $803,444, an increase from the previous target of $796,021. Alongside this adjustment, the analyst reaffirmed a Buy rating for the stock.

 

The revised price target suggests a level of confidence in Berkshire Hathaway's potential for growth and performance. The Buy rating indicates that UBS continues to view the company's stock as a favorable investment opportunity. This outlook is based on the analysis of the company's financial health, market position, and broader economic factors that could influence its stock price.

 

Berkshire Hathaway, led by renowned investor Warren Buffett, has a diverse portfolio of businesses and investments, including significant holdings in insurance, energy, transportation, and consumer goods sectors. The company's performance is often seen as a reflection of the broader economy due to its diversified nature.

 

The price target increase by UBS is a signal to investors that the firm sees an upward trajectory for Berkshire Hathaway's stock value. It is a detailed expectation of where the stock price might go, based on UBS's financial models and projections.

 

Investors and market watchers often look to such updates from analysts as indicators of how stocks are expected to perform. These insights can influence investment decisions and market movements related to the stocks in question. The new price target for Berkshire Hathaway by UBS is one such piece of analysis that provides a perspective on the stock's future.

The stock market has been riding on optimism as President Donald Trump assumes office, but many uncertainties remain regarding tax cuts and tariffs. Stocks that pay dividends can offer investors some stability if the market encounters volatility.

 

In an unpredictable macroeconomic environment, investors seeking steady returns might consider adding reliable dividend stocks to their portfolios. To choose the appropriate dividend stocks, investors can utilize insights from leading Wall Street analysts, who assess a company's capacity to consistently pay dividends supported by robust cash flows.

 

Here are three dividend-paying stocks, highlighted by top Wall Street professionals as tracked by TipRanks, a platform that ranks analysts based on their historical performance.

 

This week's first dividend stock is telecommunications firm AT&T (T). Recently, the company declared a quarterly dividend of $0.2775 per share, payable on Feb. 3. AT&T stock offers a dividend yield of nearly 5%.

 

Recently, Argus Research analyst Joseph Bonner upgraded AT&T stock to buy from hold, with a price target of $27. Bonner's optimistic stance follows AT&T's analyst day event, where the company outlined its strategy and long-term financial plans.

 

Bonner observed that management increased its 2024 adjusted EPS outlook and presented strong projections for shareholder returns, earnings, and cash flow growth, as AT&T "completes disentangling itself from challenging acquisitions and focuses on the convergence of wireless and fiber internet services."

 

The analyst anticipates that the company's cost-reduction efforts, network modernization, and revenue acceleration will gradually become evident in its performance. He believes that management's vision of capturing opportunities from the convergence of wireless and fiber, coupled with the company's strategic investments, offers a compelling outlook for future growth and shareholder returns.

 

Bonner noted that during the analyst day event, AT&T indicated that increases in dividends or mergers and acquisitions are not currently under consideration while the company invests in 5G and fiber broadband networks and works to reduce its debt. However, management remains dedicated to maintaining its dividend payments after reducing them by nearly half in March 2022. Bonner highlighted that AT&T aims to return $40 billion to shareholders in 2025-2027 through $20 billion in dividends and $20 billion in share buybacks.

 

Bonner ranks No. 310 among more than 9,300 analysts tracked by TipRanks. His ratings have been profitable 67% of the time, yielding an average return of 14.1%. See AT&T Stock Buybacks on TipRanks.

 

Next up is Chord Energy (CHRD), an independent oil and gas company operating in the Williston Basin. Through its capital returns program, Chord Energy aims to return over 75% of its free cash flow. The company recently disbursed a base dividend of $1.25 per share and a variable dividend of 19 cents per share.

 

Ahead of Chord Energy's Q4 2024 results, Mizuho analyst William Janela reiterated a buy rating on the stock with a price target of $178, designating CHRD as a Top Pick. The analyst stated that his Q4 2024 estimates for CFPS (cash flow per share) and EBITDX (earnings before interest, tax, depreciation, and exploration costs) closely align with the Street's projections.

 

Janela added that relative to its peers, Chord Energy's outlook for this year is clearer, given its preliminary guidance. Furthermore, he expects the company to display enhanced capital efficiencies on a year-over-year basis, considering its complete integration of assets from the Enerplus acquisition.

 

"A more cautious balance sheet (~0.2x net debt/EBITDX, one of the lowest among E&P peers) also positions CHRD well in an unpredictable oil price environment," stated Janela.

 

Although CHRD stock underperformed compared to its peers in 2024, the analyst noted that shares are now trading at a greater discount to peers on an EV/EBITDX and FCF/EV basis, which he believes overlooks the company's improved scale and top-notch inventory in the Bakken basin following the Enerplus acquisition. Lastly, based on his Q4 2024 free cash flow (FCF) estimate of $235 million, Janela anticipates about $176 million in cash returns, including $76 million in base dividends. He expects most of the variable FCF portion to go toward share buybacks, similar to the third quarter.

 

Janela ranks No. 656 among more than 9,300 analysts tracked by TipRanks. His ratings have been profitable 52% of the time, yielding an average return of 19.2%. See Chord Energy Insider Trading Activity on TipRanks.

 

Another Mizuho analyst, Nitin Kumar, is optimistic about Diamondback Energy (FANG), an independent oil and natural gas company focused on reserves in the Permian Basin. The company paid a base dividend of 90 cents per share for Q3 2024.

 

The company is set to release its Q4 2024 results in late February. Kumar anticipates FANG to report Q4 2024 EBITDA, free cash flow, and capital expenses of $2.543 billion, $1.243 billion, and $996 million, versus Wall Street's consensus of $2.485 billion, $1.251 billion, and $1.004 billion, respectively.

 

The analyst remarked that FANG's maintenance of its preliminary outlook for 2025, issued while announcing the Endeavor Energy Resources acquisition in February 2024, signals strong execution and modest cost savings.

 

Overall, Kumar reaffirmed a buy rating on FANG stock with a price target of $207. He emphasized that "FANG is a frontrunner in cash return payouts, with 50% of free cash now being distributed to investors, including a significant base dividend yield."

 

He highlighted that the company's high dividend yield demonstrates its excellent cost control and unit margins. Moreover, the analyst believes that with the completion of the Endeavor acquisition, the scale and quality of the combined asset base are noteworthy.

 

Kumar ranks No. 119 among more than 9,300 analysts tracked by TipRanks. His ratings have been profitable 67% of the time, yielding an average return of 14.1%. See Diamondback Ownership Structure on TipRanks.

BlackRock's leader Larry Fink notes that Treasury yields could climb to the highest level in over two decades, with inflation prompting a sell-off in the bond market that extends to the stock market.

 

The Chief Executive Officer of the globe's largest asset manager forecasted that the yield on the 10-year US Treasury bond could increase to up to 5.5%, contingent on rising inflation that reduces demand for government debt. This would mark the highest yield on the 10-year Treasury note in about 25 years, as the bond last reached 5.5% in 2000.

 

Yields of such magnitude could unsettle investors because many likely aren't preparing for the potential of increased inflation, Fink observed. He referenced policies from the current administration that could introduce new pricing strains into the economy.

 

"I think it will release all this private capital, and we're going to experience substantial growth," Fink shared with CNBC on the fringes of the World Economic Forum on Thursday. "Simultaneously, some of this will introduce new inflationary pressures. And I do believe that's potentially the threat that the markets might not be considering."

 

He further commented: "There exists a possibility that we might observe the 10-year surpassing 5%, perhaps even reaching 5.5%. That could stun the equity market. It would not be a favorable situation."

 

Fink does not perceive the 10-year yield exceeding 5% as his primary scenario, but he suggested that should it happen, it might likely trigger declines in the stock market, noting that such a scenario could have a "significantly adverse effect" on equities and might "necessitate a reassessment."

 

Bond yields have seen substantial fluctuations over the past year, partly driven by concerns about a resurgence of inflation, which could result in interest rates remaining elevated for a longer period as the Federal Reserve tightens monetary policy to curb prices.

 

Meanwhile, economists have criticized some aspects of President Donald Trump's policies — like his proposal to impose high tariffs on China, Mexico, and Canada — as being inflationary. Trump has refuted such claims, assuring to reduce costs for Americans in his subsequent term.

 

Nonetheless, bond investors have been very responsive to news regarding Trump's trade strategy, with yields spiking earlier in January amid apprehensions of assertive trade policies and a thriving economy. The 10-year neared 5% this month before retreating due to more favorable inflation figures and unexpectedly mild tariff directives on the first day of Trump's term this week.

 

Worries about the national debt have also pressured the bond market. A faction of investors known as bond vigilantes could withdraw from purchasing Treasurys or liquidate their holdings to push the government towards greater fiscal discipline.

 

Fink noted that yields reaching 5% could be a crucial trigger in spurring dialogue around managing the US debt. The federal debt balance reached a historic $36.2 trillion on Thursday.

Tesla stock has faced challenges since its peak in December, but some Wall Street analysts still see potential opportunities by 2025.

 

The electric automaker's stock is experiencing a correction, declining about 18% from its all-time high closing price of $479.86 on December 17. This sell-off, initially triggered by a broader market downturn, intensified last week after Tesla reported missing annual delivery targets for the first time.

 

The stock further declined by 4% on Tuesday, trading around $395.30 per share.

 

Despite the early 2025 stock weakness, some analysts maintain that the stock has further upside potential this year.

 

Artificial intelligence could be a bullish factor for the stock, according to Dan Ives of Wedbush Securities, who forecasts that companies will spend $2 trillion on AI investments over the next three years.

 

"We've continuously discussed the AI Revolution over the past few years as we believe it represents the most significant tech transformation in over four decades," noted Ives. "Now it's time for the broader software sector to join the AI movement as use cases are rapidly increasing."

 

Here's what analysts are saying about Tesla stock's recent challenges and why the automaker's shares might still experience significant gains in 2025.

 

Consider the Decline a Buying Opportunity: Wedbush Securities

 

According to Wedbush, Tesla's recent stock decline presents a buying opportunity for investors. The firm cites Tesla's "respectable" sales performance from the previous year, highlighting that the company delivered roughly 495,600 vehicles, just slightly below the projected 504,800 units.

 

Tesla is expected to release new models this year, potentially boosting its stock. Analysts reference the low-cost Tesla model Musk has been hinting at for years.

 

"We believe Tesla remains the market's most undervalued AI investment," analysts claimed, expressing "high confidence" that Tesla could increase its delivery growth by 20%-30%.

 

"Tesla's focus for 2025 is on accelerated delivery growth and full self-driving penetration, with the autonomous vision as Musk & Co.'s ultimate goal. We are strong buyers during any sell-off today due to weaker 4Q delivery numbers."

 

The firm reaffirmed its "outperform" rating on the stock and its $515 price target, suggesting a 31% upside from current levels.

 

Stock Appears Inexpensive: Stifel

 

Tesla's stock seems appealing at its current price, considering the company is more than just an automotive entity, according to Stifel analyst Stephen Gengaro.

 

"If you're purchasing the stock solely because they sell EVs, it seems overvalued. However, when considering full self-driving initiatives and how it could enhance the Cybercab business over time, it becomes a substantial value driver for the stock in the medium- to long-term," Gengaro commented in a conversation with Yahoo! Finance on Monday.

 

Musk's increasing interaction with president-elect Trump in recent months is also viewed as positive. It positions him to potentially impact full self-driving technology regulation, as Gengaro pointed out.

 

Furthermore, Tesla might benefit if Trump fulfills his plans to impose steep tariffs on U.S. imports from other nations. These tariffs could lessen competition from Tesla's U.S. rivals, another advantage, according to Gengaro.

 

"Musk is clearly involved in the conversation about accelerating regulation for FSD, opening up various growth prospects for the company over time."

 

In a Monday note, the firm raised its price target for Tesla shares to $492, indicating a 25% upside from current levels.

 

Full Self-Driving Could Approach a Valuation of Half a Trillion Dollars: BofA

 

Bank of America analysts downgraded their Tesla stock rating to neutral in a Tuesday note but increased their price target to $490 per share, suggesting approximately a 25% upside from current levels.

 

They estimated that Tesla's full self-driving technology could have a worth of about $480 billion. Meanwhile, the robotaxi segment might be valued at approximately $420 billion within the US and over $800 billion in global markets, the bank projected.

 

"We tested FSD during our visit to Tesla's gigafactory in Austin, TX in December, and we were impressed by its capabilities," analysts noted, forecasting that by the end of the decade, 23 million vehicles could be equipped with full self-driving software. "FSD is poised to deliver significantly higher margins compared to Tesla's primary auto business and could generate billions in EBIT annually."

 

Additionally, Tesla has several positive prospects in 2025, including possibly launching the robotaxi business and potentially increasing production of Optimus, its humanoid robot, according to the bank.

 

The analysts acknowledged that long-term growth drivers support their price target, although they conceded that there is considerable execution risk.

 

Strength in Energy Storage: Morgan Stanley

 

Morgan Stanley suggested that Tesla's minor delivery shortfall might be insignificant, considering newer facets of its business that will fuel future growth. Analysts highlighted the anticipated lower-priced vehicle model, along with its energy storage business.

 

Energy storage deployments exceeded expectations by roughly 15% in the fourth quarter, while energy storage growth rose about 113% over the 2024 fiscal year, the analysts pointed out.

 

"In our opinion, the shortfall reflects a relatively dated product and greater availability of more affordable competition internationally, prior to the anticipated introduction of the more affordable model (Juniper) in early/mid-2025, offsetting pre-buying and promotional efforts," the analysts wrote.

The new year is just beginning, yet macroeconomic uncertainty is already looming over investors, as Federal Reserve officials express concerns about inflation and its effect on the path of interest rate cuts.

 

During uncertain times like these, investors can boost their portfolio returns by including stocks with strong financial foundations and long-term growth prospects. The investment strategies of top Wall Street analysts can guide investors in selecting the right stocks, as these professionals rely on a deep understanding of the macroeconomic conditions and specific company factors for their analysis.

 

Here are three stocks preferred by the top analysts in the field, according to TipRanks, a platform that evaluates analysts based on their performance.

 

We'll begin with Uber Technologies (UBER), a company known for its ride-sharing and food delivery services. Uber exceeded expectations with its revenue and earnings for the third quarter of 2024, although its gross bookings were below expectations.

 

Recently, Mizuho analyst James Lee reaffirmed a buy rating on Uber Technologies shares with a price target of $90. Lee views 2025 as a year of investment for Uber. Although these investments could affect the company's earnings before interest, taxes, depreciation, and amortization in the short term, they are anticipated to drive long-term growth.

 

Based on his analysis, Lee expects Uber's growth investments to lead to a compound annual growth rate of 16% in core gross bookings from FY23 to FY26, aligning with the company's target of mid- to high-teens growth projected during their analyst day. Lee is confident that Uber's EBITDA growth is on track with the forecasted high-30s to 40% compound annual growth rate set during the analyst day. "Despite focusing on growth investments, economies of scale and enhanced efficiency should mitigate margin risks," said Lee.

 

Additionally, Lee believes that concerns about the growth of Uber's Mobility business are exaggerated. He anticipates high-teens gross bookings growth (in forex-neutral terms) in FY25, with the rate of deceleration slowing compared to the latter half of 2024.

 

Moreover, Lee projects that gross bookings for Uber's Delivery segment will remain in the mid-teens in FY25. This increase is expected to be driven by the rising adoption of new verticals while maintaining its market share in food delivery. The analyst also noted that Mizuho's research indicates order frequency has reached a new all-time high. The research further shows robust adoption of grocery delivery in the U.S., Canada, and Mexico, along with strong user penetration.

 

Lee is ranked No. 324 among over 9,200 analysts tracked by TipRanks. His ratings have been successful 60% of the time, providing an average return of 12.9%. View Uber Technologies Stock Charts on TipRanks.

 

Next, we examine Datadog (DDOG), a company that offers cloud monitoring and security solutions. In November, Datadog reported results for the third quarter of 2024 that exceeded expectations.

 

On January 6, Monness analyst Brian White reiterated a buy rating on Datadog stock with a price target of $155. White believes the company has a balanced approach toward the trend of generative artificial intelligence, "avoiding the exaggerated claims made by many in the software industry." He noted that Datadog performed well compared to its peers in a difficult software landscape in 2024, but acknowledged it lagged behind other stocks in Monness' coverage.

 

Nevertheless, White anticipates that both Datadog and the broader industry will begin to experience incremental growth over the next 12 to 18 months due to the long-term boom in generative AI. Highlighting Datadog's strong performance compared to peers and its transparency regarding its progress in generative AI, White pointed out that AI-native customers comprised more than 6% of the company's annual recurring revenue (ARR) in Q3 2024, an increase from over 4% in Q2 2024 and 2.5% in Q3 2023.

 

White also highlighted some of Datadog's AI offerings, such as LLM Observability and its generative AI assistant, Bits AI. Overall, the analyst is optimistic about Datadog and believes the stock warrants a premium valuation compared to traditional software vendors due to its cloud-native platform, rapid growth, and significant secular trends in the observability field, as well as its new growth opportunities driven by generative AI.

 

White is ranked No. 33 among over 9,200 analysts tracked by TipRanks. His ratings have been successful 69% of the time, yielding an average return of 20%. View Datadog Ownership Structure on TipRanks.

 

Our third stock pick this week is Nvidia (NVDA), a semiconductor powerhouse. The company is regarded as one of the primary beneficiaries of the generative AI surge and is witnessing strong demand for its advanced GPUs (graphics processing units), critical for building and running AI models.

 

Following a fireside chat with Nvidia's CFO, Colette Kress, JPMorgan analyst Harlan Sur reaffirmed his buy rating on Nvidia stock with a price target of $170. Sur emphasized the CFO's confidence in maintaining the production ramp-up of the company's Blackwell platform despite supply chain challenges, thanks to effective execution.

 

Additionally, the company anticipates continued strong spending in the data center space throughout 2025, bolstered by the Blackwell ramp-up and widespread demand. Sur noted that management envisions significant revenue growth opportunities as the company captures a larger portion of the $1 trillion-worth data center infrastructure installed base.

 

Sur added that Nvidia expects to capitalize on the shift to accelerated computing and the growing demand for AI solutions. Management believes the company holds a competitive edge over ASIC (application-specific integrated circuit) solutions due to several advantages, including ease of adoption and comprehensive system solutions.

 

Agreeing with this perspective, Sur stated, "We believe that enterprise, vertical markets, and government customers will continue to favor Nvidia-based solutions."

 

Among other key insights, Sur highlighted the launch of next-generation gaming products and opportunities to expand beyond high-end gaming into markets such as AI PCs.

 

Sur is ranked No. 35 among over 9,200 analysts tracked by TipRanks. His ratings have been successful 67% of the time, providing an average return of 26.9%. View Nvidia Hedge Funds Activity on TipRanks.

Bond yields are climbing to levels unseen in over a year, fueled by worries that President-elect Donald Trump's extensive tariff strategy might trigger a resurgence in inflation.

 

This, in combination with solid economic indicators that don't seem likely to require further aggressive interest rate reductions, has yields on a steep upward trajectory that could impact everyday Americans.

 

While some on Wall Street have issued warnings about how rising bond yields could affect stock markets, the potential challenges extend far beyond that.

 

Outlined below are four areas consumers should monitor for signs of difficulty following the 10-year US Treasury yield's increase of over 100 basis points since mid-September, as it nears the significant 5% mark.

 

Consumer retirement portfolios are confronting a dual challenge as interest rates escalate, resembling what occurred during the bear equity market of 2022.

 

Higher interest rates coincide with declining bond prices for those with fixed-income investments, often resulting in negative returns.

 

In 2022, when the 10-year US Treasury yield more than doubled to around 4%, the Bloomberg aggregate bond index dropped 13%. Increased bond yields also exert pressure on stock valuations, with the S&P 500 falling nearly 20%.

 

Since the 10-year US Treasury yield began increasing in September, that Bloomberg index has decreased nearly 6%, once more adversely affecting consumer retirement assets. This is especially significant for those nearing retirement or already retired, as they typically maintain a larger portion in fixed-income instruments.

 

Meanwhile, the S&P 500 has fallen about 4% since mid-December, when investor unease about surging bond yields started to emerge.

 

Perhaps the most noticeable effect of rising bond yields is the increase in mortgage rates.

 

They were anticipated to decline after the Federal Reserve began reducing interest rates in September, but they have instead increased sharply.

 

This has raised the borrowing costs for potential homebuyers and reduced overall affordability.

 

Based on Freddie Mac data, the average 30-year fixed mortgage rate has climbed nearly 1 percentage point to approximately 7% since September.

 

"Mortgage rates have risen quite significantly," Greg McBride, the chief financial analyst at Bankrate, told Business Insider. He mentioned that a large proportion of the pain arising from higher bond yields is concentrated in fixed mortgage rates.

 

For consumers aiming to purchase a home at the US median sales price of around $420,000, the nearly 1-percentage-point increase in a 30-year fixed mortgage translates to a rise of more than $200 in monthly mortgage payments, equating to about $2,500 per year.

 

Rising interest rates also have an immediate impact on homeowners with adjustable-rate mortgages, as their monthly payments reset to align with the higher interest rates.

 

Even renters might not be exempt, as landlords facing increased financing costs might transfer those costs to their tenants during the next lease agreement.

 

McBride pointed out that auto loan interest rates are more closely associated with movements in the five-year US Treasury yield, which has roughly mirrored the 10-year note's increase of 100 basis points since September.

 

According to data from the St. Louis Federal Reserve, since interest rates began to rise in 2022, consumer auto loan rates for a five-year loan have almost doubled to 8.4% as of August.

 

Consumers can lower their monthly auto loan payment by opting for a longer repayment period, such as the increasingly popular six-year loan. However, this does not reduce the total amount of interest paid on the car over the loan's duration; it actually increases it.

 

Higher bond yields can also push up interest rates on consumer debt, such as personal loans and credit card balances.

 

For credit cards, since the debt is unsecured, it is variable and closely linked to changes in the prime rate, which is based on the federal funds rate.

 

"Even though the Fed lowered interest rates several times in 2024, average credit card interest rates reached record highs," Sara Rathner, a credit card expert at NerdWallet, told BI. "In simple terms, this makes it more costly to have credit card debt."

 

The average credit card interest rate has jumped from about 15% at the start of 2022 to almost 22%, according to information from the St. Louis Federal Reserve.

 

This 7-percentage-point increase will significantly raise interest expenses for consumers if they carry a credit card balance from month to month and do not pay it off fully.

 

A recent survey by NerdWallet found that US households with revolving credit card balances were carrying an average of nearly $10,000 in debt.

 

"If you only make the minimum payment, it could take you over two decades to pay that off," Rathner said, "and with interest, you'll pay triple the original amount that you charged."