First Trust Active Factor Mid Cap ETF (ARCA: AFMC)

First Trust Active Factor Mid Cap ETF (ARCA:AFMC), Quote.Headers.trade-ideas

First Trust Active Factor Mid Cap ETF

Consumer Cyclical

Industrials

Financial Services

Technology

Healthcare

Basic Materials

Real Estate

Consumer Defensive

Utilities

Energy

Communication Services

Other

Under normal market conditions, the fund will invest at least 80% of its net assets (including investment borrowings) in U.S.-listed equity securities issued by mid capitalization companies. The manager defines mid capitalization companies as those that, at the time of investment, have a market capitalization between the minimum and maximum market capitalization of a widely recognized index of mid capitalization companies based upon the composition of the index at the time of investment. It is non-diversified.

Sprouts Farmers Markets Inc.

Williams-sonoma Inc

Tenet Healthcare Corp.

United Therapeutics Corp

Toll Brothers Inc

Kb Home

Mgic Investment Corp

Coca-cola Bottling Co.

Carlisle Cos Inc

Emcor Group Inc

B of A Securities analyst Nafeesa Gupta initiates coverage on Coursera (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COUR#NYSE">COUR</a>) with a Buy rating and announces Price Target of $11.

News

Price Target

Initiation

Analyst Ratings

COUR

B of A Securities Initiates Coverage On Coursera with Buy Rating, Announces Price Target of $11

The briefing will discuss how&nbsp;Russia,&nbsp;China&nbsp;and others have displaced&nbsp;the United States&nbsp;as the global leaders in uranium enrichment &ndash; and what it will take to re-establish America&#39;s domestic supply chain.&nbsp;

Centrus Energy Plans To Host A Special Briefing On Capitol Hill To Outline The Path Forward

This acquisition is expected to be the first transaction of its newly initiated growth strategy to buy and build companies in the sports and casino technology industry and other synergistic companies

Gaming

General

Signing Day Sports Signed A Binding Term Sheet To Acquire 95-99% Of Shares Of Dear Cashmere Group Holding Company, Doing Business As Swifty Global, A Sports And Casino Technologies Company, In An All-Stock Deal

Alibaba Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) was up by 4.15% during Thursday&#8217;s premarket after announcing the launch of more than 100 new open-source AI models and introduced a text-to-video generation tool.
What Happened: The new models, named Qwen 2.5, are designed for various applications, including automotive, gaming, and scientific research. They feature enhanced capabilities in mathematics and coding, Alibaba stated, CNBC <a href="https://www.cnbc.com/2024/09/19/alibaba-launches-over-100-new-ai-models-releases-text-to-video-generation.html">reported</a> on Thursday.
At the time of writing, Alibaba was trading at $87.92 while it closed at $84.42 on Wednesday, according to <a href="https://pro.benzinga.com">Benzinga Pro</a>.
These models are open-source, allowing global researchers, academics, and companies to utilize them without needing to train their own systems, saving time and costs. Alibaba aims to increase the adoption of its AI by making these models accessible.
The company also upgraded its proprietary flagship model, Qwen-Max, which is sold through its cloud computing services. Alibaba claims Qwen-Max 2.5-Max outperforms competitors like Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and OpenAI in reasoning and language comprehension.
See Also: <a href="https://www.benzinga.com/news/24/09/40892284/oracles-larry-ellison-predicts-police-officers-will-be-supervised-at-all-times-and-citizens-will-be?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Oracle&#8217;s Larry Ellison Predicts Police Officers Will Be Supervised &#8216;At All Times&#8217; And Citizens Will Be On Their Best Behavior Thanks To Constant AI-Powered Surveillance</a>
Additionally, Alibaba introduced a text-to-video tool that generates videos from user prompts, similar to OpenAI&#8217;s Sora. CEO Eddie Wu emphasized the company&#8217;s strong investment in AI research and global infrastructure development.
Why It Matters: Alibaba has been aggressively expanding its AI capabilities to rival major players like Microsoft and Amazon.com. According to Derek Yan, Senior Investment Strategist at KraneShares, the company is <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40840625/exclusive-ai-to-turbocharge-alibabas-cloud-in-bid-to-rival-microsoft-amazon-says-st">leveraging generative AI</a> to enhance customer service, sales, and marketing, potentially leading to significant operational savings.
Earlier this month, Alibaba launched a new AI-powered sourcing tool aimed at simplifying the sourcing process for American buyers, despite ongoing tensions between Beijing and Washington. This move is part of its <a href="https://www.benzinga.com/news/24/09/40744024/alibaba-boosts-us-expansion-with-new-ai-sourcing-tool-despite-festering-tensions-between-beijing-and">broader strategy to expand</a> its U.S. footprint.
Additionally, Alibaba recently introduced an<a href="https://www.benzinga.com/markets/equities/24/09/40847464/alibaba-dropped-the-ai-powered-english-version-of-taobao-in-this-country-app-quickly-soars-to-th"> AI-powered English version</a> of its Taobao app in Singapore. This update has significantly boosted the app&#8217;s popularity, making it the top shopping app in the country.
Read Next: 
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<li><a href="https://www.benzinga.com/news/24/09/40897716/elon-musk-reacts-after-mark-cuban-says-he-would-buy-x-in-a-heartbeat?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Reacts After Mark Cuban Says He Would Buy X &#8216;In A Heartbeat&#8217;</a></li>
</ul>
Image via Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

Tech

BABA

Alibaba Shares Rise 4% In Premarket After Company Unveils Over 100 New AI Models And Text-To-Video Tool

HC Wainwright &amp; Co. analyst Emily Bodnar maintains BriaCell Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BCTX#NASDAQ">BCTX</a>) with a Buy and lowers the price target from $18 to $15.

BCTX

HC Wainwright & Co. Maintains Buy on BriaCell Therapeutics, Lowers Price Target to $15

He Succeeds Michael Fiddelke, Target&#39;s Chief Operating Officer. &nbsp;

Management

Target Names Jim Lee As CFO And A Member Of Its Leadership Team Effective Sept. 22

HC Wainwright &amp; Co. analyst Emily Bodnar maintains Purple Biotech (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PPBT#NASDAQ">PPBT</a>) with a Buy and lowers the price target from $10 to $8.

PPBT

HC Wainwright & Co. Maintains Buy on Purple Biotech, Lowers Price Target to $8

HC Wainwright &amp; Co. analyst Douglas Tsao reiterates Roivant Sciences (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROIV#NASDAQ">ROIV</a>) with a Buy and maintains $18 price target.

Reiteration

ROIV

HC Wainwright & Co. Reiterates Buy on Roivant Sciences, Maintains $18 Price Target

Plug Power Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLUG#NASDAQ">PLUG</a>) shares are trading higher premarket Thursday. The company secured a 25-megawatt (MW) order for its proton exchange membrane (PEM) electrolyzer systems from oil companies BP p.l.c. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>) and Iberdrola S.A.&#8216;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/IBDSF#OTC">IBDSF</a>) <a target="_blank" href="https://www.ir.plugpower.com/press-releases/news-details/2024/Plug-Contracts-with-bp-and-Iberdrola-Joint-Venture-to-Supply-25-MW-of-PEM-Electrolyzers-for-bps-Castelln-Refinery-Project-in-Valencia-Spain/default.aspx" rel="noreferrer noopener">joint </a>venture, Castellón Green Hydrogen S.L.
The project will use five 5 MW containerized PEM electrolyzers to decarbonize BP&#8217;s Castellón refinery in Valencia, Spain and is expected to reduce CO2 emissions by 23,000 tons annually.
Plug&#8217;s electrolyzers will be deployed in a project led by BP and Iberdrola to produce green hydrogen, replacing a portion of the refinery&#8217;s current gray hydrogen, which is generated from natural gas.
This partnership with BP marks the start of a long-term collaboration to decarbonize operations, with potential expansion up to 2 gigawatts of electrolysis capacity.
Plug CEO Andy Marsh said, &#8220;The selection of Plug&#8217;s technology for this project serves as a clear example of our established industry expertise and proven technology.&#8221;
&#8220;Industry experts have highlighted the immense market potential for green hydrogen in Europe as being a key factor for reaching European Union decarbonization targets. This presents a significant opportunity for Plug, and we have the market knowledge and technology readily available to make a substantial impact.&#8221;
This month, Plug Power won a contract to support 25 MW of PEM electrolyzers for H2DRIVEN&#8217;s <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40834851/plug-power-secures-contract-with-h2driven-for-25-mw-electrolyzers-enhancing-green-methanol-proje" rel="noreferrer noopener">green methanol project in Portugal</a>.
The contract will provide Technical Evaluation Phase support for 25 megawatts of Proton Exchange Membrane Electrolyzers during the Front End Engineering Design process for a green methanol project in Portugal.
Apart from this, the company received a $10 million grant from the U.S. Department of Energy to scale its HYPER-Fuel project, which focuses on advanced hydrogen refueling infrastructure&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40735452/whats-going-on-with-plug-power-stock-today" rel="noreferrer noopener">for medium and heavy-duty vehicles</a>.
This funding is part of the DOE&#8217;s $62 million investment in 20 projects across 15 states to advance next-generation clean hydrogen technologies.
Investors can gain access to the stock via&nbsp;Global X Hydrogen ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HYDR#NASDAQ">HYDR</a>) and&nbsp;ETF Series Solutions Defiance Next Gen H2 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HDRO#NYSE">HDRO</a>).
Price Action: PLUG shares are up 5.24% at $2.21 premarket at the last check Thursday.
Photo via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/24/08/40288778/plug-power-misses-q2-revenues-analysts-focus-on-electrolyzer-deployments-the-bar-was-set-low" target="_blank" rel="noreferrer noopener">Plug Power Misses Q2 Revenues, Analysts Focus On Electrolyzer Deployments: &#8216;The Bar Was Set Low&#8217;</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Equities

Contracts

Small Cap

Movers

ETF Series Solutions Defiance Next Gen H2 ETF

HDRO

HYDR

IBDSF

PLUG

Why Is Plug Power Stock Surging Premarket On Thursday?

HC Wainwright &amp; Co. analyst Matthew Caufield reiterates 4D Molecular Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FDMT#NASDAQ">FDMT</a>) with a Buy and maintains $36 price target.

FDMT

HC Wainwright & Co. Reiterates Buy on 4D Molecular Therapeutics, Maintains $36 Price Target

TotalEnergies SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTE#NYSE">TTE</a>) extended its sales and purchase agreement (SPA) with CNOOC by an additional five years.
Under the agreement, the company will continue delivering 1.25 million tons of liquified natural gas (<a target="_blank" href="https://totalenergies.com/news/press-releases/long-term-lng-sales-china-totalenergies-will-supply-125-million-tons-year-cnooc" rel="noreferrer noopener">LNG</a>) annually to China, now extending the contract until 2034.
Gregory Joffroy, Senior Vice President, LNG at TotalEnergies said, &#8220;We are pleased to strengthen our ties with CNOOC, a key partner for the Company in the world&#8217;s largest LNG importing country. This agreement allows us to continue securing long-term sales in Asia and reduce our exposure to spot market gas prices.&#8221;
On Wednesday, TotalEnergies inked a 10-year deal with BOTAŞ for 1.1 million tons of LNG annually, starting in 2027. The agreement secures long-term sales in Türkiye and reduces <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40919924/totalenergies-expands-in-turkey-with-long-term-lng-agreement" rel="noreferrer noopener">exposure to spot gas price fluctuations</a>.
Apart from this, the company formed a 50/50 joint venture with Adani Green for a 1,150 MW solar project in Gujarat, India. TotalEnergies will invest $444 million,&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40681721/totalenergies-invests-in-indian-solar-projects-forms-jv-with-adani-green-energy" rel="noreferrer noopener">boosting its renewable energy strategy</a>.
Investors can gain exposure to the stock via&nbsp;Advisor Managed Portfolios Miller Value Partners Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MVPA#NYSE">MVPA</a>) and&nbsp;Octane All-Cap Value Energy ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OCTA#NASDAQ">OCTA</a>).
Price Action: TTE shares are up 2.65% at $69.84 premarket at the last check Thursday.
Read Next:
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<li><a href="https://www.benzinga.com//node/40932786" target="_blank" rel="noreferrer noopener">Tesla Bull Explains Why Elon Musk&#8217;s xAI Is Critical To EV Maker&#8217;s Autonomous Ambitions</a></li>
</ul>

Large Cap

MVPA

OCTA

TotalEnergies Extends LNG Deal With CNOOC

HC Wainwright &amp; Co. analyst Amit Dayal reiterates Newpark Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NR#NYSE">NR</a>) with a Buy and maintains $12 price target.

HC Wainwright & Co. Reiterates Buy on Newpark Resources, Maintains $12 Price Target

Michaël van de Poppe, a well-known cryptocurrency analyst, says there is a beginning of a bull market after the Federal Reserve's <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40926729/bitcoin-spikes-above-61-000-as-fed-implements-50-bps-rate-cut">recent decision to cut interest rates</a>.
What Happened: According to his post, van de Poppe is bullish on Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>), Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>), and decentralized finance (DeFi). He stated, &#8220;The bull market has started. Long #Bitcoin. Long #Ethereum. Long DeFi.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">GM. The bull market has started. Long <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a>. Long <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw">#Ethereum</a>. Long DeFi.
&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1836578218351935904?ref_src=twsrc%5Etfw">September 19, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
In another post, van de Poppe elaborated on the recent Federal Open Market Committee meeting, highlighting a significant 50 basis points rate cut. He mentioned that the dot plot suggests additional rate cuts of 50-75 basis points in the coming months, which he views as bullish for cryptocurrencies.
Van de Poppe also noted that the FOMC does not anticipate a significant rise in unemployment, which he believes is crucial for market stability. 
However, he expressed skepticism about the FOMC&#8217;s outlook, predicting a reduction in labor markets and a substantial economic impact that would necessitate quantitative easing to sustain economic momentum.
&#8220;I think they have a wrong view, I suspect that there will be a reduction in the labor markets and a huge impact on the economy, through which QE is required to keep the economy moving forward,&#8221; wrote van de Poppe. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The FOMC meeting was massive. 50bps rate cut. However, the dotplot assumes that another 50-75bps of rate cuts are likely to be happening in the coming months &#8211;&gt; bullish for <a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw">#Crypto</a> &amp; <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a>. The most significant thing: FOMC doesn&#39;t expect a massive impact on unemployment. This…
&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1836670076679807004?ref_src=twsrc%5Etfw">September 19, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40924380/mark-cuban-slams-trumps-crypto-plans-while-jon-stewart-calls-him-the-lefts-favorite-billio?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Mark Cuban Slams Trump&#8217;s Crypto Plans While Jon Stewart Calls Him &#8216;The Left&#8217;s Favorite Billionaire&#8217;</a>
Why It Matters: The announcement from van de Poppe comes on the heels of significant developments in the cryptocurrency market. On Wednesday, Bitcoin surged past the $61,000 mark following the Federal Reserve&#8217;s <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40926729/bitcoin-spikes-above-61-000-as-fed-implements-50-bps-rate-cut">announcement of a 50 basis point rate cut</a>, bringing the federal funds rate down to a range of 4.75% to 5%. 
Additionally, the Federal Reserve&#8217;s decision to cut rates was widely anticipated, with an 85% likelihood leading up to the announcement. This anticipation led to a <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40931419/bitcoin-and-ethereum-euphoria-built-around-rate-cuts-could-be-ruined-by-retail-traders-say">bullish reaction in both cryptocurrency and traditional equity markets</a>. However, prices quickly reversed as traders executed buy orders.
Former President Donald Trump also made headlines by using Bitcoin to <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40932192/trump-pays-up-for-smash-burgers-and-diet-cokes-with-bitcoin-during-new-york-campaign-halt-">pay for smash burgers and Diet Cokes</a> during a campaign stop in New York City. This move was hailed as &#8220;one of the most historic transactions&#8221; and aimed to bolster his support from the crypto community.
Price Action: Bitcoin is currently trading at $62,017.60, up 0.59% in the last 24 hours. Year to date, it has gained 40.30%. Meanwhile, Ether is currently priced at $2,357, rising 2.63% in the last 24 hours. Year to date, it has increased 0.19%, according to&nbsp;<a href="https://www.benzinga.com/pro/login" target="_blank" rel="noreferrer noopener">data from Benzinga Pro</a>.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40913080/shiba-inu-team-says-launching-k9-finance-liquid-staking-on-shibarium-tomorrow-are-shib-bur?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Shiba Inu Team Says Launching K9 Finance Liquid Staking On Shibarium Tomorrow: Are SHIB Burns Set To Accelerate From Here On Now?</a></li>
</ul>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Analyst Color

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Federal Reserve

Markets

$BTC

$ETH

Analyst Predicts Energized Crypto Market After Fed's Decision: Says Bitcoin, Ethereum, And DeFi Set To Rally Amid Anticipation Of Further Rate Cuts: 'The Bull Market Has Started'

The conversions are intended to reduce greenhouse gas emissions by lowering methane slip in support of Chevron Shipping's broader efforts to reduce the carbon intensity of its operations. This marine industry first was made possible after two years of collaboration between the companies.

Commodities

Technology Group Wärtsilä, In Partnership With Chevron Shipping Company, Plans To Convert One Engine On Six Of Chevron Transport's LNG Carriers From Dual-fuel To Spark Gas Operation, The Order For The First Two Vessels Was Booked By Wärtsilä In Q3 2024

The company recently announced new revenue contracts for its solar panel recycling business, an international equity partnership with revenue and royalty generating agreements for its low carbon, lignocellulosic fuels business, certain asset sales and an indicative term sheet for&nbsp;$325 million&nbsp;in gross funding through SBC Commerce LLC, a U.S. based, globally positioned, private equity group.
The remainder of the Comstock&#39;s convertible debt has been either converted, redeemed or extinguished. 
&nbsp;
&nbsp;

LODE

Comstock Says SBCC transactions Are Progressing; Reveals Additional Convertible Debt Financing Of $3.5M, With Option For Additional $1.5M;

Coherent Corp. (NYSE:&nbsp;COHR), a global leader in high-performance optical networking solutions, today announced an uncooled dual-chip 980 nm micro-pump laser delivering a powerful 2x400 mW output. The new laser is delivered in a compact 3-pin module, making it the ideal choice for next-generation coherent transceivers in data center interconnects and in compact single-channel and bidirectional amplifiers for metro and long-haul networks.
Next-generation coherent transmission applications continue to demand amplifiers that can operate efficiently in space- and power-constrained environments and in a wider operating temperature range outside the central office. Single-mode uncooled dual-chip micro-pump lasers from Coherent offer an industry-first output power of 2x400 mW with power consumption of less than 2 W in environments where temperatures can range from -20 to 85 degrees Celsius.
Uncooled modules help address the growing need for energy-efficient communications networks at a lower cost of ownership by reducing overall power consumption and eliminating much of the thermal and power management systems associated with cooled lasers.

COHR

Coherent Launches Energy-Efficient 980 nm Micro-Pump Laser, Reduces Power Consumption for Network Amplifiers

Infosys ((NSE, BSE, NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INFY#NYSE">INFY</a>), a global leader in nextgeneration digital services and consulting, today announced it is extending its strategic collaboration with Posti, the leading delivery and logistics services provider in Finland, Sweden, and the Baltics. As part of the engagement, Infosys will help Posti enhance customer experience and operational efficiency while continuing to innovate, scale, and grow its IT operations

INFY

Infosys, Posti Extend Strategic Collaboration

Legal

AAPL

Apple Told By EU Antitrust Regulators How To Comply With Obligations Set Out Under EU Tech Rules; Apple Must Ensure Rivals Can Function With Its IOS Mobile Operating System; Must Respond To Interoperability Requests From Developers And Third Parties

Billionaire investor Ray Dalio has highlighted the difficulties faced by the U.S. Federal Reserve as it navigates interest rate cuts amid a <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40927293/powell-defends-0-5-interest-rate-drop-as-right-thing-for-the-economy-doubles-down">heavily indebted economy</a>. 
What Happened: On Thursday, Dalio the founder of Bridgewater Associates said that the Fed must balance keeping interest rates high enough to benefit creditors while not excessively burdening debtors, Dalio <a href="https://www.cnbc.com/2024/09/19/ray-dalio-says-the-fed-faces-a-tough-balancing-act.html">said</a> in an interview with CNBC.
The central bank reduced the federal funds rate by 50 basis points on Wednesday to 4.75% to 5%, impacting banks&#8217; short-term borrowing costs.
Dalio expressed concerns about the &#8220;enormous amount of debt&#8221; in the U.S. The <a href="https://www.benzinga.com/news/24/09/40869188/robert-kiyosaki-rings-alarm-bells-over-soaring-us-debt-the-dollar-is-trash">government has spent over $1 trillion</a> on interest payments for its $35.3 trillion national debt this year. 
Despite these challenges, Dalio does not foresee a looming credit event but anticipates a significant depreciation in the value of debt through artificially low real rates. He warned that the path forward might involve monetizing the debt, similar to Japan&#8217;s approach, which could lead to depreciated currency values and lower bond yields.
"I see a big depreciation in the value of that debt through a combination of artificial low real rates, so you won't be compensated," Dalio said.
Dalio concluded by stating that he does not favor debt assets for his portfolio, preferring to underweight them, particularly bonds.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40891378/ahead-of-fomc-meeting-paul-krugman-says-fed-rates-will-be-elevated-even-with-50-bps?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Ahead Of FOMC Meeting Paul Krugman Says Fed Rates Will Be Elevated Even With 50 Bps Cut: &#8216;Argument For Incrementalism Is Very Weak&#8217;</a>
Why It Matters: The Federal Reserve&#8217;s recent rate cut marks the first <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40927293/powell-defends-0-5-interest-rate-drop-as-right-thing-for-the-economy-doubles-down">reduction in more than four years</a>. Federal Reserve Chair Jerome Powell defended the decision, emphasizing the need to support a strong labor market and prevent economic harm. Powell stated, "The time to support the labor market is when it's strong, not when you begin to see layoffs."
Furthermore, the rate cut&#8217;s implications extend to <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/09/40928301/interest-rates-in-free-fall-what-it-means-for-mortgages-credit-cards-and-your-wallet-a">consumer financial products</a>. The reduction could affect mortgage rates, credit card interest rates, and auto loan rates, potentially easing the financial burden on consumers.
However, the economic <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40933361/jim-cramer-predicts-no-huge-run-for-tech-stocks-after-federal-reserve-cuts-rate-it-">landscape remains complex</a>. Jim Cramer noted that the rate cuts might not significantly benefit tech stocks, suggesting that the market had already anticipated this move.
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