Investing

Investors in bank certificates of deposit can get a better return by choosing a long-term CDs and paying an early-withdrawal penalty, instead of picking a short-term CD.
The strategy may be relevant for those who may seek out safe havens amid a steep stock market selloff fueled by President Donald Trump’s tariff policy.
Of course, investors should consider whether moving to cash fits with a broader investment strategy or is a harmful impulse, advisors say,

Alistair Berg | Digitalvision | Getty Images

Investors who park savings in a certificate of deposit may be short-changing themselves with their CD choice.
And that mistake can prove costly for investors who feel an impulse to flee the stock market amid a steep downturn being fueled by President Donald Trump’s tariff policy and fears of an escalating global trade war.

“When it comes to buying CDs, it pays to shop around,” said Winnie Sun, co-founder of Irvine, California-based Sun Group Wealth Partners and a member of CNBC’s Financial Advisor Council.

Why consumers may be ‘shortchanged’

CDs have a set term, ranging from a few months to five or more years. Upon maturity, banks return the depositor’s principal plus interest.
Consumers who want their money early must generally pay a penalty, losing out on months of interest.
However, paying that withdrawal penalty may be worthwhile for savers who adopt the right strategy, according to a recent research paper by Matthias Fleckenstein, associate professor of finance at University of Delaware, and Francis Longstaff, finance professor at the University of California, Los Angeles.

Specifically, consumers can often get a higher financial return by choosing a long-term CD and paying a penalty to pull money out early, relative to simply picking a short-term CD, the researchers found.

Investors who are unaware of the strategy may get “shortchanged” by banks, Fleckenstein told CNBC.

‘The rule rather than the exception’

Here’s an example: If an investor puts $1 in a five-year CD with a 5% interest rate and cashes it out after one year with a penalty equivalent to six months of interest, they would receive about $1.03, which is slightly more than the $1.01 they would get from a one-year CD with a 1% interest rate, despite the penalty incurred for early withdrawal. 
Banks frequently price CDs this way, Fleckenstein and Longstaff wrote in their paper, published in October in the National Bureau of Economic Research.
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The researchers examined weekly CD rates offered by 16,891 banks and branches — ranging from small community banks to big nationwide institutions — from January 2001 to June 2023. Rates were for accounts up to $100,000.
About 52% of CDs offered during that period had such “inconsistencies” in pricing when comparing a given term against a longer-term CD cashed in early, they found.
“It’s the rule rather than the exception,” Fleckenstein said.
“There are banks that do this all the time,” he said, and “there are some that don’t do this at all.”

At banks where this happens, the difference in returns “is not tiny,” Fleckenstein said. In fact, the pricing inconsistency is about 23 basis points, on average, over the roughly two decades they assessed, he said.
Given that disparity, the average investor who invested $50,000 could have gotten an extra $115 of interest by picking a longer-term CD and cashing it in early, their research suggests.
The average size of that pricing difference rose as interest rates began to increase during the Covid-19 pandemic, Fleckenstein said.

CDs often for ‘safety and liquidity’

About 6.5% of households held assets in CDs as of 2022, with an average value of about $99,000, according to the most recent Survey of Consumer Finances.
Certificates of deposit may be a “great fit” for someone looking for a safe yield — whether someone near retirement, already retired, planning a home purchase in the near future or even a younger investor seeking peace of mind. However, consumers shouldn’t “panic-sell” their stocks and move proceeds into CDs, Sun said.
“Selling at dramatic lows and moving into CDs translates into locking in losses that your financial plan may not be able to absorb,” Sun said.

Like any investment, there are pros and cons to CDs.
For example, unlike other relative safe havens like high-yield savings accounts or money market funds, CDs offer a guaranteed return over a set period with no chance of market-based losses. In exchange, however, CDs offer less liquid access to your cash than a savings account and lower long-term returns than the stock market.
“Shop around for the best CD rate across banks, but also look within banks at whether it actually may pay off to accept a longer term but pay an early withdrawal penalty,” Fleckenstein recommended, based on his research findings.

Current market may offer few chances for strategy

The option may not be as prolific in the current market environment, though.
Long-term CDs typically pay a higher interest rate than shorter-term ones, Sun said. But average rates for one-year CDs are currently higher than those for five-year CDs: about 1.9% versus 1.6%, respectively, according to Bankrate data as of March 31.
Households can pursue other CD strategies, Sun said.
For example, instead of putting all savings into a long-term CD, consumers might put a chunk of their money into a long-term CD and with the remaining funds build a “ladder” of shorter-term CDs that mature more quickly. They can then buy more CDs if they’d like once the shorter-term ones come due. More

Traders work on the floor at the New York Stock Exchange in New York City, U.S., April 4, 2025.
Brendan McDermid | Reuters

When stock prices and stock futures fall rapidly in a single session, exchanges implement halts in trading to allow a moment for cooler heads to prevail and avoid market crashes we’ve seen in the past on Wall Street.
Such moves usually take place during times of extreme market volatility, such as March 2020 — when the Covid-19 pandemic sent global markets tumbling. This time, surging global trade tensions sparked by surprisingly high universal tariffs implemented by President Donald Trump are putting massive pressure on equities will selling pressure increasing going into Monday. Futures tied to the S&P 500 were tumbling overnight.

‘Limit down’ futures

In non-U.S. trading hours — between 6 p.m. ET and 9:30 a.m. ET the following day — if S&P futures are down 7%, then trading is halted until traders willing to buy the contract at the “limit down” level emerge.
Russell 2000 futures, which track the small-cap benchmark, briefly reached that threshold overnight, falling 7% before bouncing.

NYSE circuit breakers

During the regular hours of 9:30 a.m. ET to 4 p.m. ET, trading in equities may be paused market-wide if declines in the S&P 500 trigger a “circuit breaker.” These occur when the benchmark index falls by a certain amount intraday, leading the New York Stock Exchange to briefly stop all trading. All major stock exchanges abide by these trading halts.
There are three circuit breaker levels:

Level 1: The S&P 500 falls 7% intraday. If this occurs before 3:25 p.m. ET, trading is halted for 15 minutes. If it happens after that time, trading continues unless a level 3 breaker is tripped up.
Level 2: The S&P 500 drops 13% intraday. If this occurs before 3:25 p.m. ET, trading stops for 15 minutes. If it happens after that time, trading continues unless a level 3 breaker is triggered.
Level 3: The S&P 500 plunges 20% intraday. At this point, the Exchange suspends trading for the remainder of the day.

The benchmark closed Friday’s session at 5,074.08. Here are the thresholds the S&P 500 needs to reach during Monday’s session the different circuit breakers to be triggered:

Level 1: 4,718.89
Level 2: 4,414.45
Level 3: 4,059.26

Wall Street is coming off a horrid session. On Friday, the S&P 500 dropped nearly 6%, its worst day since March 16, 2020 — when it dropped 11.98%. The Dow Jones Industrial Average plunged 6.9%, its biggest one-day decline since June 11, 2020. The Nasdaq Composite tumbled 5.8% on Friday and ended the day in a bear market, down more than 20% from its record high set in December.
The S&P 500 was 17% below its all-time high set in February. More

It’s a challenging time for many federal student loan borrowers just trying to pay off their debt.
Millions of borrowers who enrolled in the Biden administration-era SAVE plan are now in limbo after the program was blocked by Republican-led legal challenges.
Meanwhile, the Trump administration has changed the terms on several other repayment plans.

Sdi Productions | E+ | Getty Images

It’s a challenging time for many federal student loan borrowers just trying to find ways to pay off their debt.
Millions of borrowers who enrolled in the Biden administration-era Saving on a Valuable Education plan are now in limbo after the program was blocked by Republican-led legal challenges.

Meanwhile, the Trump administration has changed the terms on several other repayment plans.
To successfully keep up with your student loan payments and eventually emerge debt-free, borrowers should explore their options and understand the terms of their repayment plan. Here’s what you need to know amid major challenges to the lending system.

How the SAVE plan got blocked

A U.S. appeals court in February blocked the Biden administration’s student loan relief plan known as SAVE.
The 8th U.S. Circuit Court of Appeals sided with the seven Republican-led states that filed a lawsuit against the U.S. Department of Education’s plan. The states had argued that former President Joe Biden, with SAVE, was essentially trying to find a roundabout way to forgive student debt after the Supreme Court struck down his sweeping debt cancellation plan in June 2023.
SAVE came with two key provisions that the lawsuits targeted: It had lower monthly payments than any other federal student loan repayment plan, and it led to quicker debt erasure for those with small balances.

Forbearance has no clear end date

When its SAVE plan got tied up in legal challenges, the Biden administration put millions of borrowers who’d enrolled in the plan in an interest-free forbearance. Borrowers, if they wish, can still remain in that payment pause.
There’s no specific end date to that forbearance as of now, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers.
More from Personal Finance:Stock volatility poses an ‘opportunity’How tariffs fuel higher pricesThe ‘danger zone’ for retirees when stocks dip
But unlike the Covid-era pause on student loan bills, this forbearance does not give borrowers credit toward debt forgiveness under an income-driven repayment plan or Public Service Loan Forgiveness.
Historically, at least, IDR plans limit borrowers’ monthly payments to a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years. PSLF, which President George W. Bush signed into law in 2007, allows certain not-for-profit and government employees to have their federal student loans wiped away after 10 years of payments.

Borrowers have other options

Some borrowers who are in the SAVE program’s forbearance might want to sit tight, said higher education expert Mark Kantrowitz. Not having to make payments might be a relief to those who are experiencing any financial struggles.
Another benefit of remaining in the payment pause is that interest isn’t accumulating on your debt, like it would under other IDR plans, Buchanan explained.
“But months in SAVE forbearance do not count toward loan forgiveness, so both those considerations need to be weighed when thinking about switching plans,” Buchanan said.
If you do decide to switch out of the now-blocked SAVE plan, the Trump administration says that the other IDR plans now open are: Income-Based Repayment, Pay As You Earn and Income-Contingent Repayment.
The Education Department recently reopened those IDR plan applications, following a period during which the plans were unavailable. (The Trump administration said it was updating the plans’ applications to make them comply with the recent court order over SAVE.)
Borrowers should know that the automatic loan forgiveness after 20 or 25 years is not available at the moment under ICR or PAYE “since the courts have questioned that permissibility under statute,” Buchanan said.

Still, if a borrower enrolled in ICR or PAYE, then switches to IBR, their previous payments made under the other plans will count toward loan forgiveness under IBR, as long as they meet the plan’s other requirements, Buchanan said.
Meanwhile, borrowers in any of the three IDR plans can get credit toward PSLF.
If you’re on strong financial footing and not seeking loan forgiveness, the Standard Repayment Plan is a smart option for borrowers, experts say. Under that plan, the payments will usually be larger than on an IDR plan, but they’re fixed and borrowers are typically debt-free after just a decade. More

Pavlo Gonchar | SOPA Images | Lightrocket | Getty Images

The tariffs under the Trump administration have rattled global markets and shaken investors’ confidence, leaving them in search of some portfolio stability.
In this challenging scenario, investors looking for stable income can add some dividend stocks trading at attractive levels to their portfolios. Top Wall Street analysts can inform investors’ search for the right dividend stocks that have the wherewithal to faithfully make their payments, backed by strong cash flows

Here are three dividend-paying stocks, highlighted by Wall Street’s top pros on TipRanks, a platform that ranks analysts based on their past performance.

Rithm Capital

We start this week with Rithm Capital (RITM), a global asset manager focused on real estate, credit, and financial services. Interestingly, Rithm conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes.
Recently, Rithm Capital announced a dividend of 25 cents per share for the first quarter. Since its inception in 2013 through the fourth quarter of 2024, the company has paid about $5.8 billion in dividends to shareholders. RITM stock offers a dividend yield of about 8.9%.
Following virtual meetings with Rithm Capital’s management, RBC Capital analyst Kenneth Lee reiterated a buy rating on RITM stock with a price target of $13. “We favor RITM as it pivots towards being an alternative investment manager, with a fee-based, capital-light business model, over time,” said Lee.
The analyst said that he observed from the meetings that management intends to change its corporate structure to become more of an alternative investment manager than a mortgage REIT or real estate firm, with more upside potential in the times ahead. However, the timing of this potential change remains uncertain as management wants to ensure that the change in capital structure or “de-REITing” enhances value.

Lee highlighted that management had previously stated that they might have to restructure Rithm Capital such that there is a C-corp structure at the top level like other publicly-traded alternative asset managers, with the company evaluating a potential listing or spin-off of the Newrez business. Notably, the possible listing or spin-off of Newrez, a mortgage origination platform, would enable RITM to re-assign capital away from mortgage service rights/mortgages into other investment areas while giving Newrez more independence.
Lee ranks No. 28 among more than 9,400 analysts tracked by TipRanks. His ratings have been profitable 70% of the time, delivering an average return of 17.5%. See Rithm Capital Ownership Structure on TipRanks.

Darden Restaurants

The next dividend stock on this week’s list is Darden Restaurants (DRI). The restaurant company, which owns the Olive Garden and LongHorn Steakhouse chains, recently reported better-than-expected earnings for the third quarter of fiscal 2025 but missed the Street’s revenue expectations due to unfavorable weather.
Darden declared a quarterly dividend of $1.40 per share. DRI stock offers a dividend yield of 2.8%.
Following the Q3 FY25 print, JPMorgan analyst John Ivankoe reaffirmed a buy rating on DRI stock and boosted the price target to $218 from $186. The analyst recommends accumulating Darden stock more aggressively during periods of volatility, as “visibility to headline trends acceleration and overall margin expansion remains intact.”
In particular, Ivankoe highlighted that the quarter-to-date comparable sales trends for Q4 FY25 are tracking above 3% at both the flagship Olive Garden and LongHorn brands and, consequently, for Darden overall. The analyst expects continued operating margin expansion from 12.1% in FY25 to 12.3% in FY28, partially fueled by above-average Olive Garden comparable sales.
The analyst highlighted that Darden reiterated its FY25 outlook, supported by tangible drivers like the flexibility the company has in running extended versions of high-value price point promotions. This includes Darden’s decision to bring back its “Buy One, Take One” offer, starting at $14.99, to boost traffic. Among other positives, Ivankoe also noted the systemwide rollout of Uber Direct at qualifying Olive Garden restaurants that was completed at the end of Q3 FY25 and a 10-store pilot at Cheddar’s, with plans for a wider rollout.
Ivankoe ranks No. 241 among more than 9,400 analysts tracked by TipRanks. His ratings have been successful 66% of the time, delivering an average return of 13.5%. See Darden Restaurants Hedge Fund Trading Activity on TipRanks.

Enterprise Products Partners

Midstream energy services provider Enterprise Products Partners L.P. (EPD) is another dividend-paying stock recommended by a top analyst. For Q4 2024, EPD paid a cash distribution of $0.535 per unit on Feb. 14, with this payment reflecting a 3.9% year-over-year increase.
EPD stock offers a yield of 6.4%. Notably, 2024 marked EPD’s 26th consecutive year of distribution growth, with the company’s distributable cash flow (DCF) providing 1.7 times coverage of the distributions declared for the year.
Recently, RBC Capital analyst Elvira Scotto reiterated a buy rating on EPD stock with a price target of $37 and updated her estimates to reflect the Q4 2024 results and the details in the 10-K filing. “We still believe EPD is positioned well given its backlog of growth projects and incremental growth opportunities,” said Scotto.
Specifically, EPD’s project backlog increased to $7.6 billion from $6.9 billion, with new projects primarily related to Permian gathering and processing. Scotto expects the full project backlog to drive higher cash flows and translate into incremental returns to unitholders in the form of increased distributions or buybacks.
Moreover, Scotto is optimistic that EPD’s consistent cash flows and solid balance sheet with a target leverage of 3.0-times (at the midpoint) will provide the company the financial flexibility to support its planned growth expenditure and pursue additional opportunities. Overall, the analyst is bullish on EPD stock and views it as a core master limited partnership holding, having both offensive and defensive characteristics.
Scotto ranks No. 11 among more than 9,400 analysts tracked by TipRanks. Her ratings have been successful 71% of the time, delivering an average return of 20.6%. See Enterprise Products Partners Stock Charts on TipRanks. More

Yeti tumblers are displayed at an REI store on May 09, 2024 in Berkeley, California. 
Justin Sullivan | Getty Images

Company: Yeti Holdings Inc (YETI)

Business: Yeti is a designer, retailer, and distributor of outdoor products. The company’s product portfolio consists of three categories: Coolers & Equipment, Drinkware and Other.
Stock Market Value: ~$2.5B ($30.15 per share)

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Yeti Holdings in the past 12 months

Activist: Engaged Capital LLC

Ownership: 1.87%
Average Cost: n/a
Activist Commentary: Engaged Capital was founded by Glenn W. Welling, a former principal and managing director at Relational Investors. Engaged is an experienced and successful small cap investor and makes investments with a two-to-five-year investment horizon. Its style is holding managements and boards accountable behind closed doors. Of the firm’s 37 past activist campaigns, 10 have been at companies in the consumer discretionary sector, at which it had an average return of 35.13% versus 21.88% for the Russell 2000.

What’s happening

On March 14, Engaged and Yeti entered into a cooperation agreement, pursuant to which the company agreed to increase the size of the board to 10 directors and appoint Arne Arens (former CEO of Boardriders and global brand president of The North Face) and J. Magnus Welander (former CEO of Thule Group AB) as directors. Additionally, both directors will be appointed to one of the audit, compensation or nominating and governance committees of the board, no later than May 1. Engaged agreed to withdraw its director nomination notice and to abide by certain voting and standstill restrictions.

Behind the scenes

Yeti is a global designer, retailer and distributor of premium outdoor products. Well-known for its high-quality insulated coolers and tumblers, the company also sells cargo, bags and other outdoor apparel and gear. In 2024, net sales of Drinkware, Coolers & Equipment, and Other (apparel and gear) represented 60%, 38% and 2% of net sales, respectively. Yeti does not manufacture its products in-house, instead specializing in design and marketing through a diverse omnichannel strategy selling both direct to consumers and through large outdoor retailers including Dick’s Sporting Goods, Bass Pro Shop, REI and Ace Hardware. Yeti’s focus on innovative design and premium quality — excelling in temperature retention and moisture protection — drives its competitive edge and strong consumer loyalty.

Yeti had its initial public offering in October 2018, priced at $18 per share. It had an impressive track record of growth, delivering annual growth of 17% to 29% between 2018 and 2021. Along with that growth came excellent shareholder return, peaking at $108 per share in November 2021. Since then, growth has slowed to 3.98% in 2023, and the stock went right down: It closed at $30.15 on Friday. Trading at eight-times earnings before interest, taxes, depreciation, and amortization today versus over 20-times historically, Yeti is viewed as a stable drinkware and cooler company with no real prospects for growth. Nothing could be further from the truth. There are three real opportunities for value creation at Yeti. First, the company could massively ramp up growth from the mid-single digits to double digits by pursuing expansion both geographically and in different product categories. Geographically, the company has had success expanding into Canada and Australia, but there remains a tremendous opportunity to grow in Europe and Asia. The other growth driver can come from product category expansion. Again, this is a drinkware and cooler company with a competitive advantage in insulation and moisture protection, making it a natural fit for growth in other categories such as luggage, bags and camping equipment. It has begun to make inroads here, developing some of these products, but diversification efforts should be continually made considering the brand loyalty the company has developed through its quality focus.
Second, Yeti cannot keep these plans and opportunities a secret. The company has a great brand and excellent products, but now is the time for decisive execution and communications to get the stock moving again. Yeti has never had an investor day, and it hasn’t put out mid-term targets. Management rarely goes on the road or to conferences, and they have not communicated a clear product roadmap, despite having one. Look at SharkNinja, a strong brand originally known for quality in vacuum and blender technologies: It has successfully expanded into several verticals across home and kitchen appliances many of which capitalize on its original product excellence such as air fryers, ice cream makers, hair styling tools, fans and mops. Not to mention, SharkNinja regularly attends conferences and puts out investor presentations. As a result, SharkNinja has grown adjusted net sales at a three-year compound annual growth rate of 23.6% and trades at a premium valuation of 16-times enterprise value/EBITDA.
Finally, with $280 million of net cash and nearly $300 million of EBITDA, Yeti should be creating shareholder value through capital allocation. At eight-times EBITDA, as low of a multiple as the company has traded at, management should be buying back stock here ahead of value creating changes. With the cash on hand and free cash flow it will generate, Yeti could buy back up to 50% of its current market cap over the next five years.
On March 14, Engaged and Yeti entered into a cooperation agreement, pursuant to which the company agreed to increase the size of the board to 10 directors and appoint Arne Arens (former CEO of Boardriders and global brand president of The North Face) and J. Magnus Welander (former CEO of Thule Group AB) as directors. Engaged and Yeti have agreed to expand the board with two experienced directors with strong backgrounds in product and international expansion, especially into Europe. Thule, well known for its automobile roof and bike racks, successfully expanded into other verticals like strollers, bags, and tents under the CEO tenure of Welander from 2010-2023 delivering a return of over 430% versus 230% for the Russell 2000. Arens, the global brand president of The North Face from 2017 to 2021, also oversaw double-digit growth under his watch and VF Corp’s stock price appreciated by 77% versus 60% for the Russell 2000. The North Face is a great comp for Yeti with excellent products, strong brand loyalty, and a solid opportunity for expansion from niche products for outdoorsy consumers to the masses.
Considering the amicable settlement and lack of noise regarding the discussions with the company, we expect that this is a very friendly and constructive working relationship. Management of Yeti is in fact quite good. They just might be a little complacent regarding speed of growth. It does not help things that 75% of Yeti CEO Matt Reintjes’ long-term incentive plan is comprised of performance-based restricted stock units, which are tied to free-cash-flow generation – something that could be hindered in the short term as money is invested into long-term growth and could make management somewhat risk averse. Now, he has two directors who could help mitigate risks associated with growing into new markets and countries and give management more confidence to be aggressive in their growth initiatives. Moreover, just because Engaged did not get a board seat for an Engaged principal, does not mean the firm is going away. In situations like this, the firm often becomes vocal and constructive shareholders working with management, usually after signing a non-disclosure agreement. We expect Engaged will do that here and help with investor communications.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. Yeti Holdings is owned in the fund. More

Stablecoin Tether and Circle’s USDC dominate the market.
Justin Tallis | Afp | Getty Images

The Securities and Exchange Commission issued a statement on Friday, clarifying that it does not deem certain stablecoins to be securities.
Specifically, the agency’s Division of Corporate Finance refers to stablecoins that are “designed to maintain a stable value relative to the United States Dollar, or ‘USD,’ on a one-for-one basis, can be redeemed for USD on a one-for-one basis … and are backed by assets held in a reserve that are considered low-risk and readily liquid with a USD-value that meets or exceeds the redemption value of the stablecoins in circulation” – which it calls “covered stablecoins.”

“It is the Division’s view that the offer and sale of Covered Stablecoins, in the manner and under the circumstances described in this statement, do not involve the offer and sale of securities,” the SEC said.
The clarification comes as the stablecoin sector of crypto has been ramping up on increasing optimism that Congress will pass its first piece of crypto legislation this year, and that it will focus on stablecoins. President Donald Trump has said he hopes lawmakers will send stablecoin legislation to his desk before Congress’s August recess.
Interest payments, stablecoins and the SEC
The SEC’s definition of a covered stablecoin does not allow for interest payments by the issuer to the user. “While earnings on these assets, such as interest, may be used by a Covered Stablecoin issuer at its discretion, no such earnings are paid to Covered Stablecoin holders,” the statement says.
That’s a topic Coinbase CEO Brian Armstrong is hoping Congress will change. He spoke on CNBC earlier this week, saying he’s “concerned about this idea that consumers cannot get interest on stablecoins” – doing so would make the issuer subject to securities law, he explained in a lengthy X post – and that he’d “like to see legislation that allows that.”

There are two competing pieces of stablecoin legislation now waiting on a full vote. This week, the House Financial Services Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy Act (STABLE). Sen. Tim Scott, R-S.C, and Bill Hagerty, R.-Tenn., introduced the competing Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS) in February, and it was approved by the Senate Banking Committee last month.

Stablecoins are widely viewed as the next killer app for crypto. Their market has grown about 11% this year and about 47% in the past year. Tether and USD Coin dominate the market. Historically, they’re used for trading and as collateral in decentralized finance (DeFi), and crypto investors watch them closely for evidence of demand, liquidity and activity in the market. Increasingly, they’ve become more attractive to individual users and financial institutions alike for payments.
Outside of covered stablecoins, the universe of yield-bearing stablecoins – which the SEC implies would fall under securities law – has been “growing exponentially post the U.S. election, with the market cap of the five biggest surpassing $13 billion, or 6% of the total stablecoin universe,” according to JPMorgan.
The SEC’s regulatory guidance caps a busy week for stablecoin issuers. Circle, the issuer of the USDC filed for an initial public offering this week. If successful, it would be one of the most prominent pure-play crypto companies to list on a U.S. exchange, after Coinbase went public in 2021 through a direct listing.
Get Your Ticket to Pro LIVEJoin us at the New York Stock Exchange!Uncertain markets? Gain an edge with CNBC Pro LIVE, an exclusive, inaugural event at the historic New York Stock Exchange.In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12.Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited! 

Don’t miss these cryptocurrency insights from CNBC Pro: More

Traders work on the floor of the New York Stock Exchange on April 4, 2025.
Spencer Platt | Getty Images News | Getty Images

The iShares MSCI Emerging Markets ETF fell on Friday to its biggest drop since March 2020, as President Donald Trump’s retaliatory tariffs raised fears of a global trade war and recession.
The fund closed 5.56% lower, and ended the week down 7.29%. Year to date, it is now down nearly 3%.

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EM ETF on Friday

Many emerging market economies are key members of global supply chains and rely heavily upon exports for economic output, and they face significant headwinds from tariffs. Exports of goods and services accounted for 44% of South Korea’s GDP in 2023, according to the World Bank, and 21.8% for India and 19.7% for China.
The top 10 holdings of the exchange-traded fund, which account for 26.4% of total holdings, are all based in Taiwan, China, India or South Korea — nations that are among the hardest hit by Trump’s tariffs. Taiwan faces a 32% levy, while South Korea and India face a 25% and 26% rate, respectively.
China, which is subject to a cumulative tariff rate of 54%, declared on Friday that it would impose a retaliatory 34% duty on all U.S. imports from April 10. It also announced earlier in the week trilateral discussions with Japan and South Korea to coordinate their tariff response.
“If a trade war now is beginning, and if terms stay in place for an extended period and for many years, this is going to have more negative implications on the rest of the world than it will on the U.S. … Simply because exports and imports as a share of GDP is much more substantial in the rest of the world than it is in the U.S.,” said Torsten Slok, Apollo Global Management’s chief economist, during a conference call with investors Friday.Get Your Ticket to Pro LIVE
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Uncertain markets? Gain an edge with CNBC Pro LIVE, an exclusive, inaugural event at the historic New York Stock Exchange.
In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12.
Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited! More

A big market sell-off can prompt individual investors to go into fight or flight mode, behavioral finance experts say.
That’s usually the worst time to make decisions on how to invest your money.

Jamie Grill | Getty Images

As U.S. markets continue to suffer steep declines in the wake of the Trump administration’s new tariff policies, you may be wondering what the next best move is when it comes to your retirement portfolio and other investments.
Behavioral finance experts warn now is the worst time to make any drastic moves.

“It is dangerous for you — unless you can read what is going to happen next in the political world, in the economic world — to make a decision,” said Meir Statman, a professor of finance at Santa Clara University.
“It is more likely to be driven by emotion and, in this case, emotion that is going to act against you rather than for you,” said Statman, who is author of the book, “A Wealth of Well-Being: A Holistic Approach to Behavioral Finance.”
More from Personal Finance:Tariffs are ‘lose-lose’ for U.S. jobs and industryWhy uncertainty makes the stock market go haywireAmericans are suffering from ‘sticker shock’ — how to adjust
That may sound easier said than done when headlines show stocks are sliding into bear market territory while J.P. Morgan is raising the chances of a recession this year to 60% from 40%.
“When the market drops, we have sort of a herd instinct,” said Bradley Klontz, a psychologist, certified financial planner and managing principal of YMW Advisors in Boulder, Colorado. Klontz is also a member of the CNBC FA Council.

That survival instinct to run towards safety and away from danger dates back to humans’ hunter gatherer days, Klontz said. Back then, following those cues was necessary for survival.
But when it comes to investing, those impulses can backfire, he said.
“It’s an internal panic, and we’re just sort of wired to sell at the absolute worst times,” Klontz said.

‘Never trust your instincts when it comes to investing’

When conditions are stressful, our frame of reference narrows to today, tomorrow and what’s going to happen, Klontz said.
It may be tempting to come up with a story for why taking action now makes sense, Klontz said.
“Never trust your instincts when it comes to investing,” said Klontz, particularly when you’re excited or scared.

Meanwhile, many investors are likely in a fight or flight response mode now, said Danielle Labotka, behavioral scientist at Morningstar.
“The problem with that, in acting right away, is that we’re going to be relying on what we call fast thinking,” Labotka said.
Instead, investors would be wise to slow down, she said.
Just as grief requires moving through emotional stages in order to eventually feel good, it’s impossible to jump to a good investing decision, Labotka said.
Good investment decisions take time, she said.

What should be guiding your decisions now

Many investors have experienced market drops before, whether it be during the Covid pandemic, the financial crisis of 2008 or the dot-com bust.
Even though we’ve experienced volatility before, it feels different every time, Labotka said.
That can make it difficult to heed to the advice to stay the course, she said.
Investors would be wise to ask themselves whether their reasons for investing and the goals they’re trying to achieve have changed, experts say.
“Even though the markets have changed, why you’re invested, your values and your goals probably haven’t,” Labotka said. “These are the things that should be guiding your investments.”
While there is the notion that life well-being is based on financial well-being, it helps to take a broader view, Statman said.
At any moment, no one has everything perfect when it comes to their finances, family and health. In life, as in an investment portfolio, all stocks don’t necessarily go up, and it’s helpful to learn to live with the good and the bad, he said.
“Things are never perfect for anyone,” Statman said. More