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In this week’s newsletter:
Weekly Market Update: Stocks Edge Up 0.1% as Energy Rises and Basic Materials Fall
What Kevin Warsh as Fed Chair Could Mean for Interest Rates
AI Is Driving Up Power Costs. Is That a Problem for Tech and Utilities Stocks?
BlackRock TCP Capital’s Tumble Was More Than Just Private Credit Risk
10 Best Dividend Aristocrats to Buy Now for 2026
No shortage of news these last few days. Between the long-awaited announcement of Kevin Warsh to be Federal Reserve chair and a slew of earnings, investors have had plenty to information to digest. For the overall market, it was a bit of a wash, with stocks finishing the week up just slightly where they started despite a selloff Friday. However, the price of gold – which had been soaring – melted down, falling 11%.
Perhaps the most significant development of the week was President Donald Trump’s unveiling of his choice of Fed chair. This is always an important decision, but with the focus on Fed independence, the stakes are even higher. What do analysts make of Warsh as a prospective Fed chair and what could it mean for the interest rate outlook Sarah Hansen has the takeaways.
In another corner of the market – private credit – the headlines have not been looking so good lately. Eric Jacobson takes a look at a massive markdown on a BlackRock private credit fund and explains how leverage used in this market magnified the already high levels of credit risk that investors face.
While on the subject of credit risk, this week I took a deep dive in the high yield bond market. Long one of the riskiest portions of the bond market, the landscape has changed, with many of the riskiest issuers moving to the leveraged loan market, and yes, private credit. Check out my article here.
Turning back to the stock market, earnings have been the focus. We’ve got the take from Morningstar analysts on Microsoft, Tesla, Meta and Apple. Across the board with these stocks, AI has been the big focus. And while Morningstar analysts see a lot that they like in terms of AI opportunities, the technology doesn’t come cheap. That includes the cost of all that electricity needed to run those massive data centers. How much of an issue are electricity costs for tech companies? What about the utilities that could face greater regulation? We look for some answers.
Lastly, Susan Dziubinski has updated our list of the 10 best dividend aristocrats to buy now. These stocks are undervalued, carry economic moats and have increased their dividends for 25 consecutive years or more. It’s a list that includes a number of household product stocks including a big-name beverage company that isn’t Coke.
As always, be sure to visit our Markets page for our latest coverage and live stock market updates along with our full weekly calendar of key upcoming data and events.
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