(Bloomberg) — Stocks drifted near all-time highs ahead of the Federal Reserve decision, with traders split on the size of an interest-rate cut.

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The S&P 500 closed little changed after briefly crossing the threshold of a record amid an increase in US retail sales. Economically sensitive industries once again outperformed tech. Treasury yields edged up, with shorter maturities leading the move. The market-implied odds the Fed announces a 50-basis-point reduction on Wednesday were around 55%.

For several market observers, perhaps the most-important aspect of what happens may be the investor reaction. Could a 25 basis-point reduction leave traders worried the Fed is behind the curve? Could a 50 basis-point move spook markets that the Fed must know the economy is in dire shape? Or will investors be reassured that, whatever the Fed does, Chair Jerome Powell is on top of the situation?

“It’s rare under the Powell Fed for markets to be this ‘up in the air’ on what exactly the Fed will do with just one day to go before the decision,” according to Bespoke Investment Group strategists. “Although maybe the Fed is happy with the market being 100% sure that we’ll at least get a cut.”

A survey conducted by 22V Research showed investors who expect a 25 basis-point reduction are split on whether that cut would deliver a “risk-on” or “risk-off” reaction. Meantime, those betting on 50 basis points think a smaller Fed move would be “risk-off.”

The S&P 500 closed near 5,635. The Nasdaq 100 and Dow Jones Industrial Average were little changed. The Russell 2000 of small firms added 0.7%. Treasury 10-year yields rose two basis points to 3.64%. The dollar gained.

While the market has typically done well on Fed Days when rates have been cut, performance in the week after the first rate cut of a new easing cycle has been pretty weak, according to Bespoke.

The S&P 500 has averaged a drop of 0.56% from the close on the day before the first rate cut through one week later, while eight of 10 sectors have averaged declines as well. Financials and health care have seen the most weakness in the week after the first rate cut, while tech and communication services have bucked the trend and averaged gains.

The Fed will either cut 50 basis points or opt for a 25 basis-point reduction, but signal that they will be more aggressive going forward, according to Matt Maley at Miller Tabak.

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Still, he says, that does not guarantee that the stock market and/or bond market will rally in a meaningful way. Maley says the Fed will likely try to convey that a more dovish stance is not seen as something that means they’re suddenly worried about an imminent recession.

“Therefore, given that the stock market is approaching overbought territory, we could still get a ‘sell the news’ reaction to the Fed this week,” he added.

“If the Fed doesn’t initiate its easing cycle with 50 basis points, surely a 25 basis-point move will be enveloped by a dovish tone,” according to Quincy Krosby at LPL Financial. Ryan Detrick at Carson Group said “a larger cut out of the gate makes a lot of sense” given that now the big concern is the potential for a quickly slowing labor market.

Steve Sosnick at Interactive Brokers still believes the Fed should lean to 25 basis points, but notes that years of trading experience have taught him to respect the message of the market.

“And that message has been saying 50,” he said.

Sosnick noted there will likely be widespread disappointment if the Fed opts for 25 basis points. He says equity markets always crave more liquidity, and at the same time, bond markets have all but priced in an aggressive rate cutting path for future meetings. So the smaller cut would bias against both.

Kristina Hooper at Invesco expects the Fed to cut by 25 basis points as a bigger reduction would raise alarm bells about the state of the US economy.

“Recall that the Fed started a brief easing cycle with a 50 basis point cut in March 2020 with the global pandemic upon us; it would be very hard to argue that the situation is so dire now,” she noted.

What Powell says in his press conference about the state of the US economy could help build confidence for those worried about a recession in the near term, Hooper added.

“In addition, it will be valuable to hear Powell’s thoughts on the expected path of rate cuts — in particular, what conditions could trigger a change of course, either a moderation or acceleration in easing,” she noted. “These are just things you can’t glean from the dot plot, so the press conference is ‘must see TV’ in my view.”

Corporate Highlights:

• Microsoft Corp. raised its quarterly dividend 10% and unveiled a new $60 billion stock-buyback program, matching the size of a repurchase plan three years ago.

• Intel Corp. made a raft of announcements, spurring optimism that the chipmaker’s turnaround plan is starting to bear fruit.

• Salesforce Inc. is unveiling a pivot in its artificial intelligence strategy this week at its annual Dreamforce conference, now saying that its AI tools can handle tasks without human supervision and changing the way it charges for software.

• Newmont Corp., the world’s biggest gold miner, said it’s on track to raise $2 billion — if not more — from selling smaller mines and development projects.

• JPMorgan Chase & Co. is in discussions with Apple Inc. about taking over a credit card portfolio that rival Goldman Sachs Group Inc. has been trying to ditch.

• Snap Inc. Chief Executive Officer Evan Spiegel unveiled a new version of the company’s Spectacles smart glasses, revitalizing an effort to build an advanced augmented reality product that may one day replace or rival the smartphone.

• Ozempic, the blockbuster diabetes shot made by Novo Nordisk A/S, is “very likely” to be one of the next drugs targeted for a price cut in bargaining with the US government’s Medicare program, a company executive said.

Key events this week:

• Eurozone CPI, Wednesday

• Fed rate decision, Wednesday

• UK rate decision, Thursday

• US US Conf. Board leading index, initial jobless claims, US existing home sales, Thursday

• FedEx earnings, Thursday

• Japan rate decision, Friday

• Eurozone consumer confidence, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 was little changed as of 4 p.m. New York time

• The Nasdaq 100 was little changed

• The Dow Jones Industrial Average was little changed

• The MSCI World Index was little changed

• S&P 500 Equal Weighted Index rose 0.2%

• Bloomberg Magnificent 7 Total Return Index rose 0.4%

• The Russell 2000 Index rose 0.7%

Currencies

• The Bloomberg Dollar Spot Index rose 0.2%

• The euro fell 0.1% to $1.1117

• The British pound fell 0.4% to $1.3163

• The Japanese yen fell 1.1% to 142.22 per dollar

Cryptocurrencies

• Bitcoin rose 4% to $59,953.71

• Ether rose 3.4% to $2,352.4

Bonds

• The yield on 10-year Treasuries advanced two basis points to 3.64%

• Germany’s 10-year yield advanced two basis points to 2.14%

• Britain’s 10-year yield advanced one basis point to 3.77%

Commodities

• West Texas Intermediate crude rose 1.8% to $71.34 a barrel

• Spot gold fell 0.5% to $2,568.94 an ounce

This story was produced with the assistance of Bloomberg Automation.

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©2024 Bloomberg L.P.

• The elite group worth more than $100 billion includes Elon Musk, Jeff Bezos, and Bill Gates.

• The 16 members have grown about $414 billion richer this year and are jointly worth $2.4 trillion.

• Walmart heirs Jim and Rob Walton joined the club this month and their sister could soon follow.

Elon Musk, Jeff Bezos, and Mark Zuckerberg are among the handful of people on the planet with a net worth above $100 billion.

Members of this elite group have amassed 12-digit fortunes by owning huge amounts of stock in some of the world’s most valuable companies. Most are founders and either current or former CEOs, and some, such as Warren Buffett, would be much richer if they didn’t give billions to charity.

There may be only 16 centibillionaires, but their combined wealth is around $2.4 trillion, according to the Bloomberg Billionaires Index. They’re worth more than Amazon or Google-parent Alphabet, which command market values of around $2 trillion each.

All but one of them have grown richer this year, adding a net $414 billion to their collective fortunes. Procter & Gamble ($409 billion), Costco ($406 billion), and Johnson & Johnson ($398 billion) are all worth less than that.

Walmart heirs Jim and Rob Walton joined the exclusive group this month thanks to their net worths surging by over $29 billion this year. Their sister, Alice, could soon follow given her net worth stands at $99.5 billion.

Here’s the list of individuals worth at least $100 billion, showing Bloomberg’s estimate of their net worth at the time of publication, how much it’s changed this calendar year, and the source of their wealth.

All figures are correct as of September 16, 2024.

1. Elon Musk

Net worth: $251 billion

YTD change in wealth: +$21.7 billion

Source of wealth: Tesla and SpaceX stock

Elon Musk is the CEO of the electric-vehicle maker Tesla and the spacecraft manufacturer SpaceX. He’s also the owner of X, the social network formerly known as Twitter.

His other businesses include The Boring Company, Neuralink, and xAI.

2. Jeff Bezos

Net worth: $209 billion

YTD change in wealth: +$32.1 billion

Source of wealth: Amazon stock

Jeff Bezos is the founder, executive chairman, and former CEO of Amazon, the e-commerce and cloud-computing giant.

He also founded the space company Blue Origin and owns The Washington Post.

3. Mark Zuckerberg

Net worth: $186 billion

YTD change in wealth: +$58.3 billion

Source of wealth: Meta stock

Mark Zuckerberg is the cofounder, chairman, and CEO of Meta Platforms, the social-media titan behind Facebook, Instagram, WhatsApp, and Threads.

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Meta’s Reality Labs division makes virtual-reality and augmented-reality headsets and experiences.

4. Bernard Arnault

Net worth: $180 billion

YTD change in wealth: -$27.8 billion

Source of wealth: LVMH stock

Bernard Arnault is the founder, chairman, and CEO of LVMH Moët Hennessy Louis Vuitton. His conglomerate owns a bevy of luxury brands, including Dior, Fendi, Dom Pérignon, Sephora, and Tiffany & Co.

5. Larry Ellison

Net worth: $174 billion

YTD change in wealth: +$50.8 billion

Source of wealth: Oracle and Tesla stock

Larry Ellison is the cofounder, chief technology officer, and former CEO of Oracle, an enterprise software company specializing in cloud computing and database platforms.

He invested in Tesla prior to joining the automaker’s board in 2018 and made more than 10 times his money on paper by the time his term as a director ended in August 2022.

6. Bill Gates

Net worth: $161 billion

YTD change in wealth: +$20.1 billion

Source of wealth: Microsoft stock

Bill Gates is the cofounder and former CEO of Microsoft, which makes the Office application suite, the cloud-computing platform Microsoft Azure, and Xbox consoles.

He’s renowned for his philanthropic work at the helm of the Bill & Melinda Gates Foundation, one of the world’s largest charitable entities.

7. Steve Ballmer

Net worth: $149 billion

YTD change in wealth: +$18.3 billion

Source of wealth: Microsoft stock

Steve Ballmer served as Microsoft’s CEO between 2000 and 2014. He joined the company in 1980 as Bill Gates’ assistant, initially negotiating a profit share which he later swapped for an equity stake when it became excessively large.

Ballmer retired as CEO in 2014 with a 4% stake — a position now worth more than $120 billion. He promptly bought the Los Angeles Clippers for $2 billion and remains the basketball team’s owner.

8. Larry Page

Net worth: $143 billion

YTD change in wealth: +$16.2 billion

Source of wealth: Alphabet stock

Larry Page cofounded Google with his Stanford University classmate Sergey Brin in a friend’s garage in 1998 and served as CEO until 2001.

He took the reins again between 2011 and 2015 after Google was restructured as a subsidiary of Alphabet alongside other businesses such as YouTube and Waymo.

9. Warren Buffett

Net worth: $141 billion

YTD change in wealth: +$21.4 billion

Source of wealth: Berkshire Hathaway stock

Warren Buffett acquired Berkshire Hathaway when it was a failing textile mill in 1965 and has since grown it into one of the world’s largest companies. His nearly 15% stake is worth around $145 billion.

The famed investor’s conglomerate owns scores of businesses, including GEICO, See’s Candies, and BNSF Railway, and holds multibillion-dollar stakes in public companies such as Apple and Coca-Cola.

Buffett has gifted around half of his Berkshire shares to the Gates Foundation and four family foundations since 2006. All else being equal, if he’d retained all his stock he would be the world’s wealthiest person with a net worth over $300 billion.

10. Sergey Brin

Net worth: $134 billion

YTD change in wealth: +$14.4 billion

Source of wealth: Alphabet stock

Sergey Brin cofounded Google with Page in 1998 and served as the search-and-advertising titan’s first president.

He and Page stepped down from their respective roles as Alphabet’s president and CEO in 2019.

11. Mukesh Ambani

Net worth: $112 billion

YTD change in wealth: +$15.3 billion

Source of wealth: Reliance Industries stock

Mukesh Ambani is the chairman and managing director of Reliance Industries and Asia’s richest person.

His father, Dhirubhai Ambani, founded Reliance and trusted Mukesh to grow the conglomerate’s petrochemicals business and expand into new areas such as telecommunications.

Mukesh threw a star-studded, multi-event wedding ceremony for his son Anant Ambani this summer.

12. Amancio Ortega

Net worth: $111 billion

YTD change in wealth: +$23.6 billion

Source of wealth: Inditex stock

Amancio Ortega is the founder and former chairman of Inditex, a fashion retail group home to brands such as Zara, Bershka, and Massimo Dutti.

The billionaire philanthropist and real-estate investor stopped running Inditex in 2011. His daughter Marta Ortega Pérez was appointed chair at the end of 2021.

13. Michael Dell

Net worth: $108 billion

YTD change in wealth: +$29.5 billion

Source of wealth: Dell stock

Michael Dell is the founder, chairman, and CEO of the eponymous computer maker. Dell stock has ballooned from below $40 in March last year to upwards of $110, valuing the company at over $80 billion, as investors wager it will be a key beneficiary from the AI boom.

Dell owns about 46% of his company, and pocketed well over $10 billion from the sale of Dell-backed VMware to Broadcom last year.

14. Jensen Huang

Net worth: $104 billion

YTD change in wealth: +$60.4 billion

Source of wealth: Nvidia stock

Jensen Huang cofounded Nvidia in 1993, but the microchip maker has become a market darling within the past two years as its semiconductors have proven pivotal to developing artificial intelligence.

Nvidia’s stock price has skyrocketed from under $15 at the end of 2022 to $130, valuing the business at about $2.9 trillion and making Huang one of the richest people in the world.

15. Jim Walton

Net worth: $102 billion

YTD change in wealth: +$29.9 billion

Source of wealth: Walmart stock

Jim Walton is the youngest son of Walmart founder Sam Walton, who gave each of his four children a 20% stake in the budding retail business over 70 years ago. Jim and his two surviving siblings, Rob and Alice, each still own over 11% of the company.

Jim’s net worth crossed $100 billion this month thanks to the retailer’s stock soaring 53% this year.

16. Rob Walton

Net worth: $101 billion

YTD change in wealth: +$29.3 billion

Source of wealth: Walmart stock

Rob Walton, Sam Walton’s eldest, sat on Walmart’s board for more than 40 years before retiring this June.

His net worth passed $100 billion for the first time last week, making him the second Walton to join the club after his younger brother, Jim. Their sister, Alice, is poised to follow them given her $99.5 billion net worth.

Read the original article on Business Insider

The long-awaited moment has arrived. The Federal Reserve is meeting this week, and economists are predicting policymakers will launch the first interest rate cut in four years. The Fed began lifting rates back in 2022 to calm raging inflation and since has lifted the benchmark rate 11 times, leaving it at 5.5% today. That’s the highest level in more than 20 years.

These moves have done their job, with inflation dropping over this period. Right now, it’s at 2.5% and nearing the Fed’s goal of 2%. Why that level? Because it “is most consistent with the Federal Reserve’s mandate for maximum employment and price stability,” according to the Federal Open Markets Committee.

So economists and traders have been speculating that on Wednesday the Fed will lower the benchmark rate by at least 25 basis points, and some even predict a 50 basis point cut. As an investor in the stock market, you may be wondering what the market will do following the Fed’s move. Let’s look to history for some clues.

Why is a rate cut such a big deal for stocks?

First, let’s consider why a rate cut is such a big deal for the stock market in general and for investors in particular. Higher rates can hurt corporate earnings and investor appetite for stocks due to a couple of factors. As the fed funds rate goes up, so do other borrowing costs for individuals and companies.

For example, high-growth companies relying on loans to build their businesses will see these expenses climb. As a result, potential investors may worry about their ability to fund growth and may stay away from these sorts of stocks. As for individuals, higher borrowing costs eat into their budgets, and that means they probably won’t have as much discretionary income to spend.

Investors, seeing this unfold, often lose confidence in stocks most vulnerable in this sort of environment. They might hesitate to buy shares of those young growth companies — often technology players — and they may stay away from companies, such as those in entertainment or travel, that rely on discretionary spending.

Investors might even rein in their investments in the stock market as a whole and opt for investments that tend to flourish in a higher-rate environment, such as bonds.

Of course, as interest rates fall, the situation shifts, with borrowing becoming easier and cheaper for companies and individuals, while consumers find themselves with more money to spend on non-essentials. All of this paints a brighter picture for corporate earnings, and that, in turn, makes investors more confident about putting their dollars into the stock market.

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The S&P 500’s performance after past rate cuts

Now, as we await the Fed‘s next move, let’s consider how the stock market reacted in the past to rate cuts. In the past two cycles of cuts, from the initial rate decrease, the S&P 500 index (SNPINDEX: ^GSPC) rose in the double digits in the 12 months following that move. Those rate cuts were on March 3, 2020 and Aug. 1, 2019, and the S&P 500 rose 27% and 10%, respectively, over the year to follow.

Prior to that, rate cuts happened during the Great Recession and a crash in the housing market over the 2007 and 2008 period. The first rate cut then happened in September of 2007, and this time it took a lot longer for the S&P 500 to climb back to previous levels.

^SPX data by YCharts.

It’s important to note, though, that the Great Recession was a particularly difficult time worldwide, so it doesn’t represent a good point of comparison for the S&P 500 today.

What does all of this mean for the stock market moving forward? It’s impossible to predict what the index will do next, but recent history shows us a favorable trend. That said, if the Fed lowers rates as expected or makes an even more aggressive cut this week, this won’t ease the borrowing situation for companies and individuals overnight. It will take a series of cuts to produce concrete results.

But the good news is that a potential rate cut this week will get things moving in the right direction — and that could help the S&P 500 follow the recent historical trend and rise in the coming year.

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The Fed May Cut Interest Rates This Week. History Says Stocks Will Do This Next. was originally published by The Motley Fool

By Noel Randewich

(Reuters) – Shares of Donald Trump’s media company fell for a second session on Tuesday ahead of the end of restrictions on share sales by the former U.S. president and other insiders.

Trump Media & Technology Group, which is 57% owned by the Republican presidential candidate, fell 3.6%, bringing its loss this week to 7%.

Trump Media’s stock jumped 12% on Friday after Trump told reporters he does not plan to sell his now $1.9 billion stake in the company, reversing weeks of steady losses partly due to worries about the end of insider trading restrictions related to its stock market debut in March.

Newly listed companies often see pressure on their stocks ahead of the end of so-called lock-up restrictions due to expectations that insiders may sell their shares and flood the market.

Trump Media, which operates the Truth Social app, saw its value balloon to nearly $10 billion following its Wall Street debut, lifted by retail traders and Trump supporters who see it as a speculative bet on his chances of securing a second four-year term as president.

Other Trump Media insiders who will be allowed to begin selling shares when the lock-up ends include United Atlantic Ventures and Patrick Orlando, whose fund, ARC Global Investments II, sponsored the blank-check company that merged with Trump Media. They own a combined 11% of Trump Media, according to a company filing.

Trump Media’s market capitalization on Tuesday stood at $3.3 billion, with shares at $16.68, down about 75% from their March closing peak of over $66. The slide has accelerated in recent weeks after President Joe Biden gave up his reelection bid and Trump lost a lead in opinion polls ahead of the Nov. 5 presidential election.

The company’s revenue is equivalent to two Starbucks coffee shops and it is burning cash.

If Trump Media’s stock price remains at or above $12 through Thursday, then Trump and other insiders will be free to sell shares beginning on Friday. Otherwise, they are eligible to sell shares beginning on Sept. 26.

(Reporting by Noel Randewich; Editing by David Gregorio)

Though retirees are only required to take a certain portion of their retirement savings out as distributions each year, a study from JPMorgan Chase shows that there is likely good reason to take out more. A withdrawal approach based solely on required minimum distributions (RMDs) not only fails to meet retirees’ annual income needs but can also leave money on the table at the end of their lives, the financial services firm found.

A financial advisor can help you right-size your retirement income. Find an advisor today.

Using internal data and an Employee Benefit Research Institute database, JPMorgan Chase studied 31,000 people as they approached and entered retirement between 2013 and 2018. The vast majority (84%) of the retirees who had already reached RMD age were only withdrawing the minimum. Meanwhile, 80% of retirees still had not reached RMD age were yet to take distributions from their accounts, the study found, suggesting a desire to preserve capital for later in retirement.

Retirees’ prudence surrounding withdrawals may be misguided, though.

“The RMD approach has some clear shortcomings,” JPMorgan Chase’s Katherine Roy and Kelly Hahn wrote. “It does not generate income that supports retirees’ declining spending in today’s dollars, a behavior that we see occurs with age. In fact, the RMD approach tends to generate more income later in retirement and can even leave a sizable account balance at age 100.”

What Are RMDs?

An RMD is the minimum amount the government requires most retirees withdraw from their tax-advantaged retirement accounts at a certain age. In 2020, the RMD age was raised from 70.5 to 72. The JPMorgan Chase study examined data that predated this change.

While most employer-sponsored retirement plans and individual retirement accounts (IRAs) are subject to RMDs, owners of Roth IRAs are exempt from taking minimum annual distributions.

The following retirement accounts all come with required minimum distributions:

An RMD is calculated by dividing a person’s account balance (as of Dec. 31 of the previous year) by his current life expectancy factor, a figure set by the IRS. For example, a 75-year-old has a life expectancy factor of 22.9. If a 75-year-old retiree has $250,000 in a retirement account, he would be required to withdraw at least $10,917 from his account that year.

A financial advisor can help you navigate the rules of RMDs.

RMD Approach vs. Declining Consumption Strategy

Using an RMD approach, a retiree simply sticks to the minimum required distributions each year. This strategy does have several notable advantages over a more static technique, like the 4% rule. For one, using actuarial statistics, the RMD approach factors in a person’s expectancy based on his current age; the 4% method does not. Also, by only withdrawing the minimum each year, the account owner will lessen his tax bill for the year and maintain maximum tax-deferred growth.

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However, Roy and Hahn of JPMorgan Chase note that a more flexible withdrawal strategy tied to actual spending behaviors of retirees is more effective for meeting income needs and lowering the possibility of dying with a considerable account balance left over.

Assuming people spend more earlier in retirement than during their latter years, a withdrawal strategy should match this declining consumption, even if it means taking more than the required minimum distribution, Roy and Hahn wrote.

“On the consumption front, we believe the most effective way to withdraw wealth is to support actual spending behaviors, as spending tends to decline in today’s dollars with age,” they wrote. “Unlike the RMD approach, reflecting actual spending allows retirees to support higher spending early in retirement and achieve greater utility of their savings.”

In comparing the RMD approach to the declining consumption strategy, JPMorgan Chase found that a 72-year-old with $100,000 in retirement savings could spend more money each year using the declining consumption strategy approach until age 87 when the RMD strategy would support higher spending.

Meanwhile, the same retiree would still have more than $20,000 in his account by the time he turns 100 if he limited his distributions to the minimum amount. A 72-year-old using the declining consumption approach would only have a couple thousand left over by age 100.

Though RMD approach may increase a retiree’s odds of being able to leave money to loved ones, a retiree who’s more concerned with meeting his own needs would likely benefit from an option tied to his declining consumption later in life. Consider matching with a financial advisor if you need help with an RMD strategy.

Bottom Line

A whopping 84% of retirees who reached RMD age were limiting their retirement account withdrawals to the minimums that are required, a JPMorgan Chase study found. This method may leave a retiree with not enough annual income than what is needed. A withdrawal approach more closely aligned with a retiree’s spending needs will provide more retirement income and lessen the chances that retirement funds will outlast the retiree.

Tips for Retirement Saving

• Do you have a financial plan for retirement? It’s never too late to begin planning and a financial advisor can help you do just that. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

• If you’re still years or decades away from retiring, knowing where you stand on the path to retirement is still important. SmartAsset’s free 401(k) calculator can help you determine how much you can expect your savings to grow over time and how much you may have when the time comes to retire.

• Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.

• Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP.

Photo credit: ©iStock.com/katleho Seisa, ©iStock.com/Wand_Prapan, ©iStock.com/eggeeggjiew

The post 84% of Retirees Are Making This RMD Mistake appeared first on SmartAsset Blog.

Analyst Profile

Kristina began working with Argus Research in 2019. She is responsible for covering selected Consumer Discretionary and Consumer Staples Stocks and has nearly 20 years of experience in the financial services industry. Kristina began her career at Price Waterhouse where she audited asset managers, broker dealers, and banks. Later she joined J.P. Morgan as a financial analyst. In 1994, Kristina joined Bankers Trust Company where she managed the daily operations of several equity derivative funds and later implemented tools to mitigate risk and improve workflow processes. Prior to working with Argus, Kristina was a Senior Director at S&P Global where she led key competitive intelligence and market research initiatives and executed programs to better understand client needs. Kristina earned a BS in Accounting and a minor in Spanish from Bucknell University. She holds an MBA in Finance from New York University’s Stern School of Business and is a Certified Public Accountant. Kristina is also a certified teacher in the State of New Jersey and devotes time to working with elementary and middle school-aged students.

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Larry Ellison and Elon Musk recently implored Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang for additional GPUs during a dinner at Nobu Palo Alto.

What Happened: During a meeting with analysts last week, Ellison, co-founder and CTO of Oracle Corp. (NYSE:ORCL), revealed that he and Tesla Inc. (NASDAQ:TSLA) CEO Musk “begged” Huang for more GPUs.

Don’t Miss:

Ellison humorously recounted, “Please take our money. By the way, I got dinner. No, no, take more of it. We need you to take more of our money please.”

The dinner’s outcome was positive, according to Ellison, who said, “It went ok. I mean, it worked.” Ellison, whose fortune is estimated at $206 billion, according to Forbes, has a history of anticipating technological shifts and positioning Oracle to benefit from them.

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Oracle has maintained a strong relationship with Nvidia, which dominates the artificial intelligence chip market. The company is heavily investing in GPU technology for AI applications, with revenues up 7% to $13.3 billion in the first quarter of fiscal 2025.

Similarly, Tesla relies on Nvidia GPUs to train its neural networks for self-driving technology. Ellison emphasized the importance of being the first to build the most capable neural network, stating, “It’s a big deal.”

Trending: Unlock a $400 billion opportunity by investing in the future of EV infrastructure on this startup already valued at $50 million.

Why It Matters: The global supply of high-performance memory chips is expected to remain constrained throughout 2024, driven by the soaring demand for artificial intelligence technology. Leading memory chip suppliers like SK Hynix and Micron Technology Inc. are already facing shortages, with stock for 2025 nearly depleted.

See Also: The startup behind White Castle’s favorite Robot Fry Cook announces a next-generation fast food robot – Here’s how to get a share for under $5 today.

In May, Musk acknowledged and praised Nvidia’s impressive market cap, which had reached $2.55 trillion, making it the third most-valued global corporation.

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In June, Musk justified his decision to divert Nvidia chips meant for Tesla to his other ventures, X and xAI, explaining that the existing factory space was already allocated to vehicle, battery, and cell production.

The demand for Nvidia’s RTX 4090 graphics cards has also surged, leading to a supply crisis exacerbated by U.S. sanctions on advanced chips to China.

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This article Elon Musk And Oracle’s Larry Ellison ‘Begged’ Jensen Huang For Nvidia GPUs At A Dinner: ‘Please Take Our Money’ originally appeared on Benzinga.com

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