Key Takeaways You're likely one of the billions who use social media. But would you pay for the privilege? More changes to do so may soon come your way. Meta Platforms (META), parent company of Instagram, Facebook and WhatsApp, is looking to test new subscription plans for premium experiences on the trio of apps, according to a TechCrunch report later confirmed to Investopedia by a Meta spokesperson. The report said the plans would give users access to features that could include AI capabilities, as well as ...

Group 1 - The Federal Reserve is expected to keep the fed funds rate unchanged at a range of 3.5% to 3.75%, with a 97% probability according to the CME Group's FedWatch tool [1][1][1] - Recent economic indicators suggest improvements in inflation and the job market, although data has been affected by a government shutdown in October and November [1][1][1] - The Federal Open Market Committee (FOMC) consists of 12 members who meet eight times a year to set monetary policy, primarily through adjustments to the fed funds rate [1][1][1] Group 2 - Major equity indexes rose ahead of the Fed's decision, with the yield on the 10-year Treasury increasing to approximately 4.26% from 4.25% [1][1][1] - Analysts are closely monitoring Federal Reserve Chair Jerome Powell's press conference for any unexpected comments that could impact financial markets, particularly bonds tied to inflation expectations [1][1][1] - Only one FOMC member, Governor Stephen Miran, has advocated for steep rate cuts, indicating a general consensus against further reductions at this time [1][1][1]

-- Nvidia's Plans to Sell More Chips in China Just Cleared a Major Hurdle [S&P 500 Hits New High, Dow Slides][How One Stock Shaved 400 Points Off the Dow][What to Expect from Wednesday's Fed Meeting][How Much Traders Expect Tesla to Move After Earnings]- Top StoriesNvidia CEO Jensen Huang at last week's World Economic Forum in Davos, Switzerland.Krisztian Bocsi / Bloomberg / Getty ImagesClose### Key Takeaways- The Trump administration gave the green light to Nvidia to sell the chips late last year for a 25% ...

Key Takeaways Social Security benefits change depending on your current and past income, and the age at which you started claiming benefits.The 2026 cost-of-living adjustment boosts benefits by 2.8%.The average retired worker gets more than $2,000 per month in Social Security benefits in 2026. The average Social Security benefit in 2026 is $2,071 per month. Social Security benefits vary for each person, depending on a few factors. You can start receiving Social Security retirement benefits as early as ...

Core Insights - The 'One Big Beautiful Bill' introduces significant tax law changes, allowing business owners to deduct the full cost of qualified business purchases in a single tax year, enhancing potential tax refunds and reducing tax liabilities for many Americans [2][4]. Tax Deduction Changes - The bonus depreciation, previously set at 50%, was increased to 100% during the COVID-19 pandemic, but is set to phase out starting in 2023, with only 40% deductible in 2025 and elimination by 2027 [3]. - The new law makes the 100% bonus depreciation permanent for property acquired and put into service after January 19, 2025, incentivizing businesses to increase capital spending [4][5]. Impact on Businesses - The ability to deduct 100% of the purchase amount in a single year significantly lowers taxable income for business owners, creating substantial tax savings [6][7]. - This change encourages accelerated purchasing, which can lead to higher productivity and broader economic growth [4]. Practical Application - For example, a business purchasing a $25,000 vehicle in 2025 can deduct the entire cost from their taxes, contrasting with the previous requirement to spread deductions over several years [6][8]. - Taxpayers can find this deduction on Form 4562, specifically on Line 14, which pertains to special depreciation allowances for qualified property [8].

Core Insights - Microsoft is expected to report its fiscal second-quarter results, with analysts predicting revenue growth driven by strong AI demand [1] - Options pricing indicates traders anticipate a stock movement of up to 5% in either direction following the earnings report [1] Financial Expectations - Analysts forecast Microsoft will report revenue of $80.31 billion for the fiscal second quarter, representing a 15% year-over-year increase [1] - Intelligent Cloud revenue is expected to rise by 27% to $32.39 billion [1] - Earnings per share are projected to be $3.87, up from $3.23 a year ago [1] Market Sentiment - Microsoft shares have declined approximately 11% since the last earnings report in October, where the company exceeded estimates but announced significant AI infrastructure investments [1] - Analysts remain bullish on Microsoft, with 14 out of 15 recommending a buy, and a mean price target of around $615, suggesting nearly 30% upside from the recent close [1] Investor Concerns - There are concerns regarding the costs associated with Microsoft's AI buildout, which may overshadow the anticipated strong earnings and revenue growth [1] - Investors are particularly interested in insights regarding capital expenditures and projections for the Intelligent Cloud segment, including Azure [1]

Core Insights - Consumer confidence has significantly declined, reaching its lowest level since 2014, with the Conference Board's Consumer Confidence Index showing a 20% drop compared to the same time last year, driven by concerns over jobs, inflation, and health insurance [1][6] Economic Context - Despite the drop in consumer confidence, spending remains robust, indicating a potential disconnect between consumer sentiment and actual spending behavior [2][5] - The economy is experiencing expansion, primarily supported by high-income households, which may mask the struggles of lower-income consumers [3][4] K-Shaped Economy - The current economic landscape is characterized as a "K-shaped economy," where high-income earners are increasing their spending, while lower-income groups are reducing their expenditures [3][4] - For instance, individuals earning over $125,000 increased their holiday spending by nearly 30%, contrasting with lower-income groups who have pulled back [4] Future Expectations - Economists anticipate that consumer spending and economic growth will remain strong in 2026, despite the current pessimistic consumer sentiment [5][6] - Factors contributing to this optimism include expected government stimulus from tax changes and increased spending driven by advancements in AI and productivity gains [7]

Core Insights - Companies are increasingly considering "peanut butter raises," which are uniform wage increases across the organization, rather than merit-based raises for 2026 [1][7] - A significant portion of organizations, 44%, are planning or considering this approach to salary increases [1][7] Pay Strategies - Understanding employer pay strategies is crucial for employees to set realistic career expectations [2] - In 2025, Starbucks implemented peanut butter raises, providing a 2% increase to North American corporate employees instead of merit-based raises [2] Merit-Based Raises - Despite the trend towards peanut butter raises, nearly half (48%) of organizations still plan to increase pay based on performance [4] - The median base pay raise is expected to remain at 3.5% in 2026, consistent with the previous year [4] Job Switching and Salary Growth - Job switchers experienced a median wage growth of 4.1% as of December 2025, only slightly higher than those who remained in their roles [5] - Smaller companies (1 to 99 employees) are planning average raises of 4%, while larger organizations (5,000 to 9,999 employees) plan to give 3% raises [6] Industry-Specific Trends - Industries such as construction and technology are offering larger raises, with increases of 5% and 4% respectively, due to the demand for specialized skills [7]

Group 1: Economic Outlook - Economists are optimistic about the economy, with forecasts indicating a growth rate of 5.4% annualized in the fourth quarter, the fastest since the pandemic recession [2] - Consumer sentiment has fallen to its lowest level since 2014, indicating a disconnect between economic growth and public perception [1][3] Group 2: Consumer Spending Dynamics - Consumer spending remains robust, driven primarily by high-income households, while lower- and middle-income households face financial struggles [4][5] - The disparity in wealth distribution has increased, with top earners accounting for a larger share of wealth and spending compared to previous decades [4] Group 3: Inflation and Economic Perception - Inflation has significantly eroded the purchasing power of lower-income households, contributing to negative consumer sentiment despite positive GDP indicators [5][6] - The disconnect between economic data and consumer sentiment is attributed to rising costs of living and negative media coverage of economic news [7] Group 4: K-Shaped Economic Recovery - The economy is described as "K-shaped," where wealthier households benefit from stock market gains while average households experience financial deterioration [8]

Core Insights - The Federal Reserve's policy committee members who dissent from the majority are less likely to have their preferred policies adopted in future meetings, as highlighted by a research paper from the National Bureau of Economic Research [2][5][6] - Recent meetings have seen a majority vote to lower interest rates by a quarter-point, but dissenting votes have been present, indicating a division among members regarding inflation and employment concerns [3][8] Economic Implications - The Fed faces a dilemma between high inflation and a slowing job market, which has led to varying viewpoints among committee members [4][7] - The influence of the chair in steering majority opinion and establishing consensus is significant, with dissenting members experiencing a one-third reduction in the likelihood of their preferred policies being adopted in the future [5][6] Dissent Dynamics - Dissenting votes are less common, as members may only express disagreement when they believe their position will not prevail in future discussions [6][7] - The recent increase in dissenting votes reflects a lack of consensus on whether inflation or unemployment poses a greater threat to the economy [8]