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Americans are drinking less and shopping for booze-free options more frequently.

Key Takeaways

• A market for alcohol-free beer, wine and spirits shops has opened up as more Americans moderate their drinking.
• Fewer adults drink, and those who do consume less than in years past, according to Gallup.
• Many are more aware of and concerned about the health risks of drinking, including young adults, research shows.

When the booze-free bottle shop Spirited Away opened in Manhattan five years ago, its proprietor found about a dozen options with which to stock the shelves. Now, according to co-owner Alex Highsmith, the store stocks about 300 brands.

Business, meanwhile, is increasing annually by double-digit rates. Customers, she said, try eschewing alcohol—testing a “Dry January,” for example—decide they like how they feel, and then “keep coming back.”

That feeling has helped retailers selling nothing but non-alcoholic beer, wine and spirits grow as alcohol consumption has waned.

Fewer Americans are drinking alcohol these days, and those who do are cutting back. About 54% of adults say they drink, Gallup said in August, the lowest rate recorded in 90 years. Those surveyed reported having an average of 2.8 drinks over the past week, down from 3.8 in 2024 and even more in prior years. The shift appears most pronounced among young Americans, with those under 25 drinking 17% less than older adults, according to research from Jefferies.

One reason for the pullback: Consumers are more aware of and concerned about alcohol's negative health impacts, research shows, with recent studies linking alcohol consumption to cancer. The gradual legalization of cannabis, wider use of weight-loss drugs and embrace of health trackers may also be weighing on alcohol use, experts said. Some see drinking declining the way that cigarette smoking has. 

“With wearables tracking every metric and influencers glamorizing sobriety, self-prohibition is a headwind that is not going away,” Jefferies wrote in a recent report. “Winners will likely be those who shape the moderation trend, not resist it.”

'There's No Going Back' as Booze-Free Businesses Blossom

Some of those curbing their consumption still like to end their day with a drink, with many looking for something that looks and tastes like alcohol but doesn’t lead to a hangover. That has generated an audience for non-alcoholic beer, wine and spirits, a segment expected to be worth $5 billion by 2028, according to IWSR, a data and insights firm focused on alcohol.

Dozens of bottles and cans have cropped up on store displays beside Clausthaler, a nonalcoholic beer created in 1979. Actor Tom Holland launched Bero; Formula One driver Lewis Hamilton started zero-proof tequila brand Almave; and singer Kylie Minogue added alcohol-free bottles to her wine line. 

One of the more established "NA" beer brands, Athletic Brewing, surpassed $90 million in sales within six years, The Wall Street Journal reported. The segment’s success has some of the biggest alcohol manufactures, such as Diageo (DEO), adding zero and low-alcohol options.

Booze-free shops say business is booming. New York City has at least two such stores, three zero-proof bars, and a planned $3,300-a-year, alcohol-free, social club called Maze. In Seattle, non-alcoholic beverage shop Cheeky & Dry, hit nearly $1 million in sales last year, owner Kirstin Vracko said. 

Although many customers still consume alcohol, according to Vracko, non-alcoholic alternatives have become a part of their lifestyle.

“The [non-alcoholic beverage] industry is not going anywhere,” Vracko told Investopedia. “There’s no going back."

'Alcohol's Effects Are Out of Vogue'

Major alcohol producers have argued that booze has been a casualty of tighter consumer budgets, not changing cultural norms. Young adults’ behavior can be explained by them having relatively little disposable income, their executives have said.

But Gen Z is also more focused on mental health and socializes differently, Jefferies said. They spend less time “going out,” and more time exercising, gaming and on the Internet, analysts said.

Young adults aren’t the backbone of Cheeky & Dry’s business, Vracko said. They didn’t spend their formative years socializing with drinks in-hand, so they don’t have the same impulse to buy alcohol—or, for that matter, products to replace it.

Instead, young shoppers come to Cheeky & Dry for “functional” beverages, Vracko said, including those with non-psychoactive parts of mushrooms or cannabis, kava or ingredients purported to provide energy, mood enhancement or other benefits.

“They still want to feel something,” Highsmith said. “It’s just that alcohol’s effects are out of vogue.”

This article has been republished. It was first republished on Sept. 14, 2025.

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Target is leaning into Pokémon and other trading cards.

Key Takeaways

• Dick's is the latest retailer to prioritize trading cards, opening Collectors Club Houses in some of its stores.
• Many sports and Pokémon cards are scooped up by adults, who see them as investments.

Americans' love of trading cards has retailers lining up to sell them.

Dick’s Sporting Goods’ (DKS) has opened what it calls Collectors Club Houses in 20 shops, and plans to include them in more locations, CEO Lauren Hobart said on a conference call this week. The spaces, which feature trading cards and signed sports memorabilia, come as retailers rush to capitalize on soaring demand for collectibles.

Consumer response "has exceeded our expectations,” Hobart said, according to a transcript made available by Alpha Sense. “It's a unique and fast-growing category that's a great complement to everything we do, and we're very excited about the opportunity ahead.”

Why This News Matters to Investors

Sports and Pokémon cards have beaten the S&P 500 in recent years, according to some estimates, but predicting their trajectory can be tricky. Collectibles don't come with quarterly results, for example, and they don't pay dividends. Baseball card prices crashed in the 90s after a period of overproduction.

Trading cards have become nearly ubiquitous, popping up everywhere from Costco Wholesale (COST) to mom-and-pop bodegas. Demand for “high-velocity items, such as Pokémon cards,” prompted Costco to create a digital waiting room for its e-commerce platform, CEO Ronald Vachris said. The cards are expected to be a hit this holiday season at Kohl’s (KSS), Best Buy (BBY) and Target (TGT), their executives said on conference calls this week.

Target has built up a diverse collectibles business, including Magic the Gathering, National Football League, Major League Baseball and Women’s National Basketball Association cards, chief commercial officer Rick Gomez said. It leaned into the category after trading cards at the big-box stores rose nearly 70% during the first six or seven months of the year, Gomez said in August. 

Trading cards took off during the pandemic when Americans had extra cash from spending more time at home and collecting stimulus checks, The Wall Street Journal reported. The cards quickly grew into an investment craze: Baseball and Pokémon cards have both outperformed the S&P 500 in recent years, The Journal estimated.

One toy and game executive—Spin Master CEO Max Rangel– went so far as to estimate that the “majority of the industry's growth was driven by adult-targeted building sets, strategic trading cards and sports trading cards" on a conference call this spring.

Toy companies will likely continue catering to adults, given that they can't rely as much on the shrinking youth population, Bank of America analysts said.

"Retailers look to trading cards & collectibles categories to expand their customer demographic profile and offset softness in traditional toys from a decline in addressable population," the analysts said this fall.

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Federal Reserve Chairman Jerome Powell at a news conference in Washington, D.C., March 2024

Key Takeaways

• The Fed’s latest Beige Book shows a slightly weaker job market as employers slow hiring, cut hours, or rely on attrition instead of layoffs.
• Consumer spending softened and price pressures persisted, giving policymakers mixed signals ahead of a potential year-end interest-rate decision.

The job market weakened a bit this month as some employers cut back on hiring plans or reduced employees’ hours and others shed jobs, according to the Federal Reserve’s latest anecdotal Beige Book.

The report is a data-light snapshot of the U.S. economy, giving the Fed visibility into what businesses are experiencing as Fed officials prepare to vote on interest rates. It may take on added importance at the Fed’s Dec. 9-10 meeting, since the government shutdown prompted the cancellation of October’s jobs report and a delay in November’s.

The picture suggests conditions may have weakened since September, when employers added some 119,000 jobs.

Employment “declined slightly” as of mid-November, the Fed’s Beige Book said, with about half of the Fed’s 12 districts seeing weaker demand for workers. 

“Despite an uptick in layoff announcements, more Districts reported contacts limiting headcounts using hiring freezes, replacement-only hiring and attrition than through layoffs,” the report said. “In addition, several employers adjusted hours worked to accommodate higher or lower than expected business volume instead of adjusting the number of employees.”

Why This Matters

A cooling labor market and softer spending shape expectations for the Fed’s next interest-rate move, influencing borrowing costs for consumers and businesses. These shifts also signal the economy's resilience as it enters the year-end.

A few businesses also flagged early impacts of artificial intelligence, noting it replaced some entry-level positions “or made existing workers productive enough to curb new hiring.”

The weakening job market lines up with the assessment of one restaurant contact in the Philadelphia Fed district, who noted there had been “an exodus of workers to warehouse jobs” in 2021 and 2022. Now, that contact said, those workers haven’t lost their jobs but are picking up part-time restaurant work since they’ve had their hours cut.

While anecdotal, the report helps give the Fed visibility on whether their dashboards of data align with what local contacts are telling them. 

Fed officials have been unusually split in recent weeks, with some seeing more signs of economic strength than others and debating risks to inflation. Their data dashboards have also been a little smaller due to the federal government shutdown, with its economic data apparatus slowly starting to re-emerge.

“In the absence of key data, the anecdotes will provide valuable insights for Fed officials and we see the FOMC proceeding with a year-end rate cut,” Priscilla Thiagamoorthy, senior economist at BMO Capital Markets, wrote in a research note.

Softer Consumer Spending

The report also found that consumer spending was softening, as middle-of-the-road households became more cautious even as higher-income ones kept spending.

“Overall consumer spending declined further, while higher-end retail spending remained resilient,” the report said, adding that some travel and tourism contacts saw “cautious discretionary spending among consumers.” 

In the Kansas City Fed district, the government shutdown led to “a visible slowdown in foot traffic” at many retailers and restaurants, the report said. Other businesses saw similar trends.

“One firm remarked that now was the best time to get a tattoo, as even top artists have more open appointments than usual,” the report said.

The more wary tone lines up with recent data, with a monthly survey from The Conference Board showing confidence falling to its lowest levels since April. It also underscores the persistence of a “‘K-shaped economy,’” BMO’s Thiagamoorthy wrote, as spending among higher-income households rises while those on the lower end spend less.

Prices On the Rise

The report also flagged that prices “rose moderately,” with tariffs helping prompt widespread pressures on input costs among manufacturers and retailers.

It’s not clear how much that will translate into higher sticker prices for consumers—and show up in the Consumer Price Index or other inflation data. 

“The extent of passthrough of higher input costs to customers varied, and depended upon demand, competitive pressures, price sensitivity of consumers, and pushback from clients,” the report said.

Fed officials tend to cut interest rates when the economy is weakening, but the risk of higher inflation is making some officials prefer keeping rates unchanged.

Prices declined for some materials, the report said, with some businesses attributing to weaker demand, a delay in tariff implementations or the recent cut in tariff rates on some products. 

Other businesses are still seeing higher prices, with “multiple reports of margin compression or firms facing financial strain stemming from tariffs,” the Beige Book said.

The Fed’s contacts broadly said they “anticipate upward cost pressures to persist,” but their “plans to raise prices in the near term were mixed,” the report said.

kali9 / Getty Images

Student loan borrowers may have to turn to private loans after Congress lowered a cap on federal dollars.

KEY TAKEAWAYS

• The "One Big, Beautiful Bill" will restrict the amount of federal student loans available to college students next year. Students may have to take out riskier private loans to cover the rest of their schooling.
• The average medical graduate student will not be able to take out enough federal loans for the cost of their school and will likely have to take out tens of thousands of dollars in private loans.
• Some families who take out Parent PLUS loans will have to use private loans, which typically have higher interest rates and will cost them almost $5,000 more in interest during repayment.

Borrowers will be restricted in the amount of federal student loans they can take out, which could lead to more students—especially those pursuing a medical degree—taking out private loans.

The "One Big, Beautiful Bill" generally lowers the amount of federal money that college students can borrow starting in the 2026-27 academic year. Students may need to bridge the gap between the amount of money they can borrow and the cost of school.

Some advocates and experts say borrowers will be forced to take out private loans to cover the costs.

Why This Matters to You

Private student loans can be harder to pay off as they do not qualify for federal forgiveness programs, and the companies that offer them have proportionally more complaints than federal loan servicers. Many private loans also have higher interest rates than their federal counterparts, making repayment more expensive.

“Proponents of these lending caps argue that by limiting federal aid, schools will be forced to lower decades-worth of price hikes. However, data has shown that this is simply not the case," Aissa Canchola Bañez, policy director at Protect Borrowers, a loan borrower advocacy group, said in a Senate hearing last week. "Instead, students and families will be simply pushed into more expensive, riskier, predatory, private student loan debt."

Medical Students Will Be Hit The Hardest

Congress's "One Big, Beautiful Bill" lowers the existing $138,500 aggregate loan limit for non-professional graduate students to $100,000. According to the most recent National Center for Education Statistics report, the average non-professional borrower with a master's degree holds $80,550 in student debt after adjusting for inflation.

The bill did increase the cap for graduate students pursuing a "professional" degree, such as medical and law students. Professional graduate students will be able to take up to $200,000 in student loans over their educational career.

However, the increased cap for professional students still won't be enough to cover the average cost of medical school. The average student who completed medical school holds $232,100 in student debt, according to the NCES.

Previously, graduate students could take out Grad PLUS loans to cover the remainder of their cost of attendance, but since the bill eliminated this loan program after July 1, 2026, advocates say more medical students will have to use private loans.

Private loans will end up costing students far more in interest. For example, Federal Student Aid set the interest rate for a Grad PLUS loan during the 2025-26 academic year at 8.94%. Comparatively, the interest rate for private student loans varies, ranging as high as 17.88%, according to loan marketplace Credible.

Limited Parent PLUS Loans May Push More Families To Private Loans For Undergraduate Degrees

The bill also introduces an annual limit on Parent PLUS loans, which parents use to help their undergraduate students afford college. Previously, the limit was set at the cost of attendance at the student's school, but starting next year, parents can only take out $20,000 a year.

Parent PLUS loans will also have an aggregate cap of $65,000, which most parents will not reach. However, 17.1% of Parent PLUS borrowers in 2020 borrowed more $65,000, according to the NCES.

The bill also allows higher education institutions to restrict the amount of federal loans their students can take if they deem their degree program more likely to default once they graduate. Some students in fields like education or public service may be limited in the amount of loans they can take out, but experts say it is unlikely to affect a large number of students.

Scott Olson / Getty Images

Robinhood was the best-performing stock in the S&P 500 Wednesday

Key Takeaways

• A trading platform's expansion into a growing market helped lift its stock on Wednesday, Nov. 26, 2025, while a software firm lost ground after a soft revenue outlook.
• Robinhood Markets shares turned in the S&P 500's top performance after the firm announced a joint venture expanding its prediction markets offerings.
• Shares of Workday fell after the human resources software firm gave an underwhelming subscription revenue forecast.

The operator of a major online trading platform got a boost after announcing a joint venture to broaden its reach in prediction markets, while a soft growth outlook weighed on a human resources software firm.

Major U.S. equities indexes extended their winning streak ahead of the Thanksgiving holiday to four straight sessions Wednesday amid growing optimism around a December rate cut. The S&P 500 and Dow each advanced 0.7%, and the Nasdaq added 0.8%. See here for more from Investopedia on the day's market moves.

Robinhood Markets (HOOD) shares soared nearly 11% to lead the S&P 500 higher. The trading platform operator announced a plan to acquire a stake in LedgerX, a clearinghouse for cryptocurrency derivatives, in coordination with Susquehanna International Group. With the move, Robinhood is expanding its offerings in prediction markets, which allow customers to trade contracts based on the outcome of future events.

Shares of Dell Technologies (DELL) jumped close to 6% after the maker of PCs, servers, and networking equipment raised its full-year sales and profit outlook. The company said it's seeing strong AI-driven demand, with record AI server orders totaling more than $12 billion year-to-date.

Oracle (ORCL) stock gained 4% Wednesday. Shares of the database software and cloud infrastructure giant have suffered significant losses over the past month amid concerns about the company's relationship with OpenAI, its high valuation, and its heavy AI spending plans. However, analysts at HSBC and Deutsche Bank suggested the sell-off could be overdone.

Shares of Workday (WDAY), a provider of cloud-based human resources software, tumbled nearly 8% to post the steepest daily loss in the S&P 500. Although Workday's third-quarter results were mostly in line with expectations, its fourth-quarter subscription revenue forecast failed to impress. The company pointed to soft demand from higher education customers that rely on federal funding and a cautious spending environment among corporate customers.

Deere & Company (DE) shares declined close to 6% after the farm and construction equipment manufacturer warned that a tough market environment could persist into next year. CEO John May indicated tariffs were contributing to pressure on Deere's margins and pointed to challenges across the broader agricultural sector.

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The federal government took in $31 billion in tariff revenues in October.

Key Takeaways

• The monthly U.S. budget statement for October showed that tariffs generated $31 billion in revenue for the government, continuing the steady rate of collection since President Donald Trump’s reciprocal tariffs were implemented.
• Some economists have estimated that Trump’s proposal for a $2,000 tariff rebate check in 2026 could cost around $300 billion, less than what tariffs could bring in at their current rate.
• The October budget statement also showed that the government ran a $284 billion deficit that month. Members of Congress have suggested that tariff revenues should be used to reduce the government's debt.

Tariff revenues continue to roll in for the U.S. government, but it is likely not yet enough to cover President Donald Trump’s proposal for $2,000 stimulus checks.

The latest budget statement from the U.S. Treasury revealed that the federal government collected $31 billion in tariffs during October, the highest amount in any month since the Trump administration began implementing steep import taxes.

It’s the third month of collection since the White House laid out a series of "reciprocal" tariffs in August, which introduced or raised levies on imports from a lengthy list of nations. The government collected $30 billion in each of the prior two months.

In the September budget statement, the government reported $195 billion in tariff collections, surpassing the $77 billion collected in the prior fiscal year, which ended in September 2024.

Are Collections Enough to Pay for the Tariff ‘Dividend’ Checks?

With tariff collections now coming in at a steadier rate, Trump wants to use the funds to issue stimulus checks to low- and middle-income Americans.

Why This is Important for You

A $2,000 stimulus check could help many Americans who are struggling to pay for things as inflation remains stubbornly high. Steady collection of tariff revenue could provide a source of funding for these stimulus checks.

Economists at the Tax Foundation think tank estimated that the proposed rebate would cost $300 billion if the $2,000 checks were distributed to adults making less than $100,000 a year.

If collections continue at roughly the same rate since the introduction of the reciprocal tariffs, that would add up to around $360 billion a year, above the potential costs of Trump’s rebate check proposal.

The tariff revenue would be enough to cover the proposal by June, if the Tax Foundation's calculations are correct and revenue remains steady. Trump and other officials said that the checks wouldn’t be issued until sometime in 2026. 

Latest Data Shows Budget Deficit Persists

Even if the tariffs generate enough revenue to issue the checks, the White House will still likely need to persuade Congress to approve the payments. The proposal is already facing pushback, including from members of the president’s party. 

Many legislators are concerned about the debt the government continues to accumulate. The October budget report showed that the government spent $284 billion more than it collected that month. It comes after the federal government ran a $1.78 trillion deficit in the 2025 fiscal year.

Earlier this week, Sen. Ron Johnson, a Wisconsin Republican, said he wasn’t likely to support the idea, joining other legislators in arguing that tariff revenues should be used to reduce the deficit first. However, others, such as Alabama Republican Sen. Katie Britt, have suggested that Congress should examine the proposal. 

Meanwhile, Trump remains committed to the idea, with Commerce Secretary Howard Lutnick stating earlier this week that the White House legislative team is exploring ways to move forward with the checks.

Trump has also said that he expects collections from the tariffs to increase in the coming months. That’s because many importers rushed to stockpile goods before tariffs took effect. As those stockpiles begin to run out, Trump said he expects tariff revenues to jump. 

“The full benefit of the Tariffs has not yet been calculated,” Trump wrote on Truth Social earlier this week. “Soon Tariffs will be paid on everything they apply to, without avoidance, and the amounts payable to the USA will SKYROCKET, over and above the already historic levels of dollars received.”

Cheng Xin / Getty Images

Before the recent rally, Oscar shares had been near unchanged for the year.

Key Takeaways

• Oscar Health shares popped again Wednesday, and have gained 35% over the past three days.
• Piper Sandler analysts upgraded their rating on the health insurer, and said it should be able to gain market share and improve profitability even if ACA subsidies expire at the end of the year.

Shares of Oscar Health (OSCR) jumped Wednesday, the latest big gain for the health insurer after Piper Sandler analysts upgraded their rating of the stock in a recent note to clients.

The analysts upgraded their rating to "overweight," and lifted their price target to $25 from $13 previously. Piper Sandler is now the lone "buy" rating on Oscar among the six analysts tracked by Visible Alpha, alongside one "hold" and four "sell" ratings, and an average price target of $15.

Oscar shares were up 9% in late trading Wednesday at around $18.20, and have gained about 35% this week alone.

Oscar and several other health-related stocks surged Monday following a report that the White House was considering including an extension of subsidies that lowered the cost of Affordable Care Act plans in its yet-to-be-released plan to revamp the U.S. health care system.

Why This Matters

The extension of Affordable Care Act subsidies would lower costs for millions of Americans and help health care companies by keeping enrollment rates steady. Oscar Health appears well-positioned to navigate any policy scenario, according to analysts at Piper Sandler.

The Piper Sandler analysts said that even if those subsidies expire at the end of this year, they think Oscar could grow both its market share and profitability. That's because the company has "designed and priced CY26 products to perform in adverse operating environment," and is currently "executing against a thoughtful education and enrollment campaign" for the open enrollment period for 2026.

"We think OSCR is entering a compelling two year earnings recovery in the worst case secular scenario," the analysts wrote. "We believe OSCR management is capable of designing and pricing product to perform in any policy regime. We believe CY26 products have been designed and priced to perform in a worst case secular scenario."

Before its recent rally, the stock had been near unchanged for the year. With the latest gains, Oscar shares are handily outpacing the performance of the S&P 500 year-to-date.

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Dell was one of the best-performing stocks in the S&P 500 Wednesday after the PC maker raised its outlook

Key Takeaways

• Dell Technologies shares popped Wednesday after the PC maker hiked its full-year outlook.
• Executives said they see Dell's AI momentum accelerating.

Dell Technologies (DELL) shares jumped Wednesday after the PC maker hiked its outlook, pointing to a boost from AI-driven demand.

The shares were up nearly 6% in recent trading, making Dell one of the best-performing stocks in the S&P 500 Wednesday. (Read our daily markets coverage here.)

Chief Operating Officer Jeff Clarke said “AI momentum is accelerating in the second half of the year, leading to record AI server orders of $12.3 billion and an unprecedented $30 billion in orders year to date.”

Dell boosted its full-year revenue forecast to $111.2 billion to $112.2 billion, up from $105 billion to $109 billion previously. It now sees adjusted earnings per share of $9.92 at the midpoint, compared to an earlier forecast of $9.55. Both the revenue and profit projections topped analysts' estimates compiled by Visible Alpha.

Why This Is Significant

Dell's big stock gains on signs of AI momentum could point to renewed confidence in the flagging AI trade, as well as Dell's place as a beneficiary of the AI boom.

Dell posted adjusted EPS of $2.59 for the third quarter, up 17% from a year ago and above analysts' forecasts, though its revenue at $27 billion was slightly below expectations.

With Wednesday's gains, shares of Dell are up about 17% for 2025.

Cheng Xin / Getty Images

Robinhood's bet on prediction markets is paying off as it works to be a one-stop shop for trading in stocks, crypto, and events contracts, among other services

Key Takeaways

• The retail brokerage is launching a new derivatives exchange in a bid to expand its prediction markets offerings.
• Robinhood's stock has more than tripled year-to-date, making it one of the top gainers in the S&P 500.

Robinhood's latest venture raises the prediction-markets stakes.

The U.S. brokerage made popular by offering slices of stocks to retail investors is launching a futures and derivatives exchange in a bid to expand its prediction markets business. Robinhood (HOOD) announced Tuesday that the exchange will be managed by a joint venture with market maker Susquehanna International Group.

Its shares were up 10% as of Wednesday afternoon, solidifying Robinhood's position among the top gainers within the benchmark S&P 500.

WHY THIS MATTERS TO YOU

Robinhood built its business on catering to individual investors, starting with fractional shares of stocks and, more recently, offering banking and mortgage services to some of its more active users. As its business grows, the brokerage appears to be stepping into position to woo bigger customers.

Robinhood aims to be a one-stop shop for trading in stocks, crypto, and events contracts as well as banking and mortgage services. While it faces fierce competition in rivals like Polymarket, which yesterday announced receiving a regulatory nod to resume U.S. operations, Robinhood could also attract partners that want to get into the events-markets action but don't have the infrastructure to do so.

Robinhood's new venture comes with an acquisition—a 90% stake in MIAXdx, a CFTC-licensed derivatives clearing house; the deal is expected to close in the first quarter of next year. Miami International Holdings (MIAX) will retain the remaining shares. The company said its new exchange would serve its derivatives business and other futures commission merchant platforms.

A Robinhood spokesperson said its derivatives business "plans to continue to partner with multiple DCM/DCO partners," referencing the entities where derivatives contracts are executed and settled. "There will be no changes in the short term" for that business's customers, the spokesperson said. Robinhood offers some of its event contracts through Kalshi, another dominant player in predictions markets.

"Prediction markets are really on fire," Robinhood CEO Vlad Tenev said during the company's third-quarter earnings call earlier this month, according to a transcript provided by AlphaSense. Robinhood has doubled volume in that business every quarter since it launched roughly a year ago, according to the company, reaching 2.3 billion contracts in the third quarter.

kali9 / Getty Images

Student loan borrowers may have to turn to private loans after Congress lowered a cap on federal dollars.

KEY TAKEAWAYS

• The "One Big, Beautiful Bill" will restrict the amount of federal student loans available to college students next year. Students may have to take out riskier private loans to cover the rest of their schooling.
• The average medical graduate student will not be able to take out enough federal loans for the cost of their school and will likely have to take out tens of thousands of dollars in private loans.
• Some families who take out Parent PLUS loans will have to use private loans, which typically have higher interest rates and will cost them almost $5,000 more in interest during repayment.

Borrowers will be restricted in the amount of federal student loans they can take out, which could lead to more students—especially those pursuing a medical degree—taking out private loans.

The "One Big, Beautiful Bill" generally lowers the amount of federal money that college students can borrow starting in the 2026-27 academic year. Students may need to bridge the gap between the amount of money they can borrow and the cost of school.

Some advocates and experts say borrowers will be forced to take out private loans to cover the costs.

Why This Matters to You

Private student loans can be harder to pay off as they do not qualify for federal forgiveness programs, and the companies that offer them have proportionally more complaints than federal loan servicers. Many private loans also have higher interest rates than their federal counterparts, making repayment more expensive.

“Proponents of these lending caps argue that by limiting federal aid, schools will be forced to lower decades-worth of price hikes. However, data has shown that this is simply not the case," Aissa Canchola Bañez, policy director at Protect Borrowers, a loan borrower advocacy group, said in a Senate hearing last week. "Instead, students and families will be simply pushed into more expensive, riskier, predatory, private student loan debt."

Medical Students Will Be Hit The Hardest

Congress's "One Big, Beautiful Bill" lowers the existing $138,500 aggregate loan limit for non-professional graduate students to $100,000. According to the most recent National Center for Education Statistics report, the average non-professional borrower with a master's degree holds $80,550 in student debt after adjusting for inflation.

The bill did increase the cap for graduate students pursuing a "professional" degree, such as medical and law students. Professional graduate students will be able to take up to $200,000 in student loans over their educational career.

However, the increased cap for professional students still won't be enough to cover the average cost of medical school. The average student who completed medical school holds $232,100 in student debt, according to the NCES.

Previously, graduate students could take out Grad PLUS loans to cover the remainder of their cost of attendance, but since the bill eliminated this loan program after July 1, 2026, advocates say more medical students will have to use private loans.

Private loans will end up costing students far more in interest. For example, Federal Student Aid set the interest rate for a Grad PLUS loan during the 2025-26 academic year at 8.94%. Comparatively, the interest rate for private student loans varies, ranging as high as 17.88%, according to loan marketplace Credible.

Limited Parent PLUS Loans May Push More Families To Private Loans For Undergraduate Degrees

The bill also introduces an annual limit on Parent PLUS loans, which parents use to help their undergraduate students afford college. Previously, the limit was set at the cost of attendance at the student's school, but starting next year, parents can only take out $20,000 a year.

Parent PLUS loans will also have an aggregate cap of $65,000, which most parents will not reach. However, 17.1% of Parent PLUS borrowers in 2020 borrowed more $65,000, according to the NCES.

The bill also allows higher education institutions to restrict the amount of federal loans their students can take if they deem their degree program more likely to default once they graduate. Some students in fields like education or public service may be limited in the amount of loans they can take out, but experts say it is unlikely to affect a large number of students.