Investopedia Markets News (all except PF)

Source: TradingView.com
Key Takeaways

• Nvidia became the first company to ever achieve a market capitalization of $5 trillion as its stock surged in early trading Wednesday.
• The stock is adding to big gains posted Tuesday after CEO Jensen Huang delivered a keynote address at Nvidia's developers conference, highlighting the company's latest AI products and announcing several deals.
• Nvidia shares on Tuesday broke out from a rising wedge on the highest trading volume since late May, signaling buying conviction behind the jump.
• The measured move technique projects a potential upside target of $220. Investors should also watch crucial support levels on Nvidia's chart around $185 and $165.

Nvidia (NVDA) became the first company to ever achieve a market capitalization of $5 trillion as its stock surged in early trading Wednesday.

Shares were up 4.5% at $210 recently, after gaining 5% yesterday following a keynote address from CEO Jensen Huang at Nvidia's developers conference in Washington, D.C. where he highlighted the companyt's latest AI products and announced several deals.

The chipmaker unveiled a $1 billion investment in Nokia (NOK), as well as a new strategic partnership with the Finnish tech firm in an effort to expand its AI infrastructure push. Nvidia also announced that it will collaborate with Oracle (ORCL) to build AI supercomputers for the U.S. Department of Energy and collaborate with Palantir Technologies (PLTR) on the development of an integrated AI technology stack.

Nvidia shares have gained more than 50% since the start of the year as investors have piled into the stock amid strong demand for AI chips and optimism about the company’s ongoing growth prospects. The company's $5 trillion market cap is substantially higher than the next companies on the list of the world's most valuable—Microsoft (MSFT) and Apple (AAPL) have market caps around $4 trillion.

Below, we break down the technicals on Nvidia’s chart and identify crucial price levels to monitor.

Rising Wedge Breakout

Nvidia shares broke out from a rising wedge on Tuesday on the highest trading volume since late May, signaling buying conviction behind the move.

Although chart watchers often associate this pattern as bearish, it can also indicate a bullish continuation rather than a reversal if it forms during a strong uptrend, as is the case on Nvidia’s chart.

Meanwhile, yesterday’s breakout coincided with the relative strength index approaching overbought levels, though the indicator sits below its July peak, giving the stock further room to move into price discovery mode.

Let’s use technical analysis to project a potential upside target on Nvidia’s chart and also identify two crucial support levels worth watching.

Measured Move Upside Target

Investors can project a potential upside target by using the measured move technique, a trading tool that analyzes well-known chart patterns to forecast future price movements.

When applying the analysis to the chipmaker’s chart, we measure the distance between the rising wedge’s two upward sloping trendlines near their widest section and add that amount to the pattern’s top trendline.

This projects a target of $220 ($25 + $195), indicating the price could climb to around this level before encountering potential resistance and entering a period of consolidation.

Crucial Support Levels Worth Watching

The first support level to watch sits around $185. This area could attract buying interest near a range of corresponding price action on the chart stretching back to the start of the rising wedge pattern in early August.

Finally, a deeper retracement could see Nvidia shares test lower support at the $165 level. Investors may look for entry points in this location near a trendline connecting last month’s low with the end of a brief pullback in late July.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

News of the day for Oct. 29, 2025

Hu Yousong / Xinhua / Getty Images

Federal Reserve Chairman Jerome Powell is scheduled to speak this afternoon after the central bank announces its decision on interest rates.

Stock futures are rising this morning after major indexes hit record highs yesterday for the third straight session on the strength of a tech sector rally; the Federal Reserve is widely expected to announce a cut in interest rates at the end of its two-day policy meeting this afternoon; Nvidia (NVDA) shares continue surging after the chipmaker announced a flurry of new deals yesterday; three Magnificent Seven members—Microsoft (MSFT), Google (GOOG, GOOGL) and Meta (META)—are scheduled to release quarterly results later today; and shares of Dow component Caterpillar (CAT) are higher after a strong earnings report. Here's what you need to know today.

1. Major Indexes on Pace to Add to Record Highs

Stock futures are slightly higher as investors look ahead to the Fed’s interest rate decision later today and another big day in tech earnings. Major indexes are coming off of a third straight session of record highs, led by Nvidia’s (NVDA) surge to a new all-time high. Futures tied to the Dow Jones industrial Average were up 0.1% recently, while those linked to the benchmark S&P 500 and the tech-heavy Nasdaq added 0.3% and 0.4%, respectively. Gold futures were up 1.2% at $4,030 an ounce, rebounding from several days of declines, while bitcoin was at $113,200, little changed from yesterday afternoon. The yield on the 10-year Treasury, which can affect borrowing costs on all sorts of consumer loans, was a tick higher at 3.99%.

2. Federal Reserve Expected to Cut Interest Rates for Second Straight Month

The Federal Reserve is scheduled to announce its highly anticipated interest rate decision at 2 p.m. ET. The central bank is widely expected to cut the federal funds rate for its second straight meeting, dropping the influential rate by a quarter percentage point to a range of 3.75%-4%. Investors will be watching how members of the Federal Open Market Committee vote on the decision after a loyalist to President Donald Trump voted for steeper rate reductions at the September meeting.  Market watchers will also be focused on comments from Fed Chair Jerome Powell, who is due to speak at 2: 30 p.m. ET and is expected to talk about the outlook for inflation, the labor market and the economy broadly, potentially providing insight on the path for interest rates.

3. Nvidia Poised to Hit $5 Trillion Market Cap

Nvidia (NVDA) shares are rising in premarket trading after hitting a record high Tuesday on investor optimism over a string of new deals for the chipmaker. At an Nvidia developer conference in Washington, D.C., CEO Jensen Huang announced a $1 billion investment in Finnish tech firm Nokia (NOK), which rose more than 20% on the news. Nvidia also announced new deals with Oracle (ORCL) and Palantir Technologies (PLTR) as the chipmaker highlighted its progress on AI development. Nvidia shares were up more than 3% ahead of the opening bell after rising 5% yesterday, putting the world’s most valuable company on a path to open above the $5 trillion market capitalization level on Wednesday.

4. Microsoft, Google, Meta Earnings on Deck as Tech Stocks Drive Markets Higher

A trio of Magnificent Seven earnings reports are due today as investor optimism about technology stocks continues powering a broader market rally. Microsoft (MSFT), Google (GOOG, GOOGL) and Meta (META) are all scheduled to drop their quarterly results after the closing bell. Microsoft is expected to show an 11% increase in quarterly adjusted earnings amid increased infrastructure spending and Wall Street optimism over its position in the AI race. For Google-parent Alphabet, analysts see near-term momentum on AI for the search giant. Facebook-owner Meta is expected to hit nearly $50 billion in quarterly revenue on surging ad sales, while investors will be listening for details on the company’s efforts to acquire AI talent. Shares of Alphabet, Microsoft and Meta were up slightly in premarket trading.

5. Caterpillar Shares Rise on Strong Earnings Report

Caterpillar (CAT) shares are surging ahead of the opening bell after the heavy-equipment maker posted better-than-expected quarterly results, after missing on earnings in its prior two quarters. Cat’s third-quarter revenue rose 10% to $17.6 billion, higher than the $16.6 billion average estimate of analysts tracked by Visible Alpha. The company posted adjusted earnings per share of $4.95, down from the year-ago quarter but well above the consensus estimates of $4.51. Cat shares were up nearly 5% in premarket trading. Coming into today's session, the stock had gained 45% so far in 2025 and was trailing only Nvidia among the top gainers in the Dow Jones Industrial Average.

Kent Nishimura / Bloomberg / Getty Images

Nvidia shares climbed to a record high Tuesday after CEO Jensen Huang's keynote address at the chipmaker's developers conference in Washington, D.C.
Key Takeaways

• An AI investor favorite was one of the top performers in the S&P 500 Tuesday, helping push the index to an all-time high.
• Nvidia shares surged after the AI chipmaker announced several partnerships at an event in Washington, D.C.
• Royal Caribbean issued a weaker-than-expected outlook, and shares of the cruise company slipped.

The chipmaker at the heart of the AI boom helped push the major indexes higher Tuesday after a raft of partnership announcements. Meanwhile, shares of a cruise operator encountered rough seas as adverse weather and cost pressures weighed on its outlook.

Major U.S. equities indexes extended their record run Tuesday as the Federal Reserve also kicked off its two-day meeting, with expectations running high that policymakers will decide to lower interest rates by another quarter point Wednesday. The S&P 500 added 0.2%, the Dow rose 0.3%, and the tech-heavy Nasdaq advanced 0.8% to set fresh closing records. See here for more coverage from Investopedia of the day's market moves.

Nvidia (NVDA) shares powered up 5% to an all-time high after CEO Jensen Huang delivered a keynote speech at the company's developers conference in Washington, D.C. The event brought a flurry of announcements from Nvidia, including a $1 billion investment in Nokia (NOK), as well as a new strategic partnership with the Finnish tech firm, whose shares soared nearly 23%. Nvidia also said it will collaborate with Oracle (ORCL) to build AI supercomputers for the U.S. Department of Energy and team up with Palantir Technologies (PLTR) on the development of an integrated AI technology stack.

Shares of Regeneron Pharmaceutical (REGN) gained close to 12% after the biotechnology firm posted stronger-than-expected quarterly earnings. Strong sales of eczema treatment Dupixent and skin cancer treatment Libtayo helped drive the performance. Regeneron also said it plans to resubmit an application for a higher-dose version of Eylea, a treatment for various diseases that affect the retina.

Skyworks Solutions (SWKS) and Qorvo (QRVO), manufacturers of radio-frequency chips for smartphones and other devices, announced a plan to merge. Both semiconductor makers have been navigating headwinds related to major customer Apple (AAPL), which began developing its own modem chips for use in its devices. Shares of both companies added about 6% following the merger announcement.

United Parcel Service (UPS) shares surged 8% after the package delivery giant topped analysts' estimates with its third-quarter revenue and adjusted earnings per share. The company highlighted progress on a turnaround plan that includes efforts to streamline operations, close underutilized facilities, and reduce its workforce, with 50,000 positions cut so far this year.

PayPal Holdings (PYPL) shares climbed 3.9% after the payments provider said it would partner with ChatGPT operator OpenAI. Users who are shopping on ChatGPT will be able to check out using PayPal, while PayPal will connect its global merchant network with ChatGPT to provide opportunities for sales on the AI platform.

Alexandria Real Estate Equities (ARE), a real estate investment trust (REIT) focused on life science and technology properties, missed estimates with its third-quarter revenue and adjusted funds from operations (AFFO), a key measure of REIT profitability. The firm also lowered its full-year AFFO forecast, pointing to lower occupancy projections in North America and slumping demand in the life science industry. Shares of Alexandria Real Estate Equities plunged nearly 20%, falling the most of any S&P 500 constituent.

Shares of Royal Caribbean Cruises (RCL) sank 8.5%. The cruise operator's revenue for the third quarter came in slightly below expectations, and its outlook for the fourth quarter also fell short of forecasts. Weather disruptions along with increased operating and interest expenses contributed to the cloudy outlook.

Matthias Balk / Picture Alliance / Getty Images

Amazon announced plans on Tuesday to cut about 14,000 jobs, the latest large U.S. company to lay off employees while business is strong
Key Takeaways

• Amazon on Tuesday said it planned to reduce its workforce by about 14,000 jobs.
• The company said it needs to be "organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business."
  

More big job cuts are coming at Amazon.

Amazon (AMZN), the retail and tech giant, on Tuesday said it would cut around 14,000 jobs from its white-collar workforce. The news made it the latest corporate giant to do so—and one of several big tech companies that are paring back at a time when business is strong. Amazon is expected to reporting growing revenue and profits when it turns in its third-quarter results on Thursday.

In a letter published online, Amazon's Senior Vice President of People Experience and Technology Beth Galleti admitted that "some may ask why we’re reducing roles when the company is performing well." Her response:

Across our businesses, we're delivering great customer experiences every day, innovating at a rapid rate, and producing strong business results. What we need to remember is that the world is changing quickly. This generation of AI is the most transformative technology we’ve seen since the Internet, and it's enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones). We’re convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.

Why This News Is Significant

Amazon's planned layoffs are considered its biggest corporate job cuts to date, as the company seeks to streamline operations and redirect spending toward artificial intelligence and other growth priorities. The move reflects a wider trend among tech firms, which are trimming white-collar positions even when posting strong profits, to fund AI investments.

The company said the reduction in workers is aimed at "further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets and what matters most to our customers’ current and future needs."

Amazon Wants to 'Be Organized More Leanly, With Fewer Layers'

Amazon said it plans to give affected employees 90 days to see if they would fit in an open position elsewhere in the company. CNBC said that the cuts are expected to be Amazon's largest corporate layoffs ever, while Reuters said up to 30,000 workers could be laid off in future stages of the same plan, citing people familiar with the matter.

Amazon in its Tuesday letter said that it expected to find "additional places to remove layers, increase ownership, and realize efficiency gains." The company declined to address the specific number reported by Reuters.

Large companies across tech and other sectors have also lately made cuts to their white-collar workforces, among them Oracle (ORCL), Microsoft (MSFT), and Google parent Alphabet (GOOGL). Analysts have pointed to the tech giants' plans to spend hundreds of billions on artificial intelligence infrastructure as one explanation for why the companies are looking to lower their headcounts.

Also on Tuesday, shipping giant United Parcel Service (UPS) said it has cut about 34,000 jobs in its operational segment and closed 93 facilities since announcing a restructuring plan earlier this year, along with 14,000 jobs cut in its management ranks.

And online education company Chegg (CHGG) also announced job cuts Tuesday, about 388 roles or 45% of its workforce, citing declining traffic to its educational services because of "the new realities of AI" as Google's AI overviews reduce traffic to publishers.

—David Marino-Nachison contributed to this article.

Peter Kneffel / picture alliance via Getty Images

Amazon will report third-quarter results after the closing bell on Thursday.
Key Takeaways

• Shares of Amazon, which reports quarterly results after markets close on Thursday, are expected to move 6% in either direction by the end of the week.
• Amazon is contending with increased tariff costs and wary consumers, while it makes massive investments in cloud computing infrastructure to meet AI demand.
• The stock is up about 5% since the start of the year, making it the worst-performing member of the Magnificent Seven.

Amazon (AMZN) is slated to report third-quarter earnings after the closing bell on Thursday, and some traders are betting the results can lift the stock, the laggard of the Magnificent Seven so far this year, to a fresh record.

Amazon stock is expected to move about 6.2% in either direction by the end of the week, according to recent options pricing data. A move of that magnitude, based on Monday's closing price, would put Amazon shares at about $243.50, an all-time high, or $215.

Why This Is Important

Amazon's $2.4 trillion market capitalization makes its stock one of the most impactful in the U.S. equity market. A big share price move after Thursday's results would have a larger effect on the major indexes than nearly every other stock.

Amazon stock has moved an average of 4.7% following its four most recent earnings reports. Shares slumped more than 8% after the company in July reported cloud revenue growth that disappointed Wall Street after strong showings from competitors Microsoft (MSFT) and Alphabet (GOOG). The last time Amazon stock rose following an earnings report was this time last year, when the company topped sales and earnings estimates on strong cloud and advertising growth. 

Amazon is the worst-performing stock in the Magnificent Seven so far this year, with the company’s outsized tariff exposure weighing on shares. The stock is up just 5% since the start of the year. 

Cost Cuts, Cloud Spending in Focus

Amazon’s retail business is contending with increased tariff costs and increasingly squeezed consumers, while its cloud computing unit is making massive data center investments to meet demand for AI workloads. As such, cost savings will be top of mind for investors during Thursday’s earnings call with executives. 

Amazon on Tuesday announced it would cut 14,000 corporate roles, reportedly part of a larger downsizing that could see the company slash up to 30,000 office jobs, nearly 10% of its white collar workforce. And according to a recent New York Times report, some executives expect warehouse robotics to keep the company from hiring as many as 600,000 workers in the coming years.

Cloud growth and capital expenditures will also be in focus. Amazon’s infrastructure investments totaled more than $31 billion in the second quarter, about 20% more than Wall Street was expecting. Chief financial officer Brian Olsavsky forecast the second quarter's spending would be "reasonably representative" of capex spending for the remainder of the year.

Update—October 29, 2025: This story has been updated with the latest options and stock prices.

JUNG YEON-JE / AFP / Getty Images

Nvidia’s $1 billion investment in Nokia marks the latest deal expanding its AI infrastructure push.
Key Takeaways

• Nokia's stock soared Tuesday after Nvidia said it plans to take a $1 billion stake in the Finnish tech company. Nvidia shares also climbed.
• The deal marks Nvidia's latest bet on AI infrastructure plays.

A vote of confidence from AI chipmaker Nvidia sent shares of another tech company soaring Tuesday.

Nvidia (NVDA) said it's making a $1 billion investment in Nokia (NOK) in addition to a new strategic partnership, sending shares of the Finnish tech company up nearly 23%. With Tuesday's gains, they've added about three-quarters of their value in 2025.

Nvidia said it will purchase nearly 166.4 million new Nokia shares at $6.01 each, and become a 2.9% shareholder of the Finnish firm. Nokia said it would use the proceeds "to accelerate its strategic plans to advance trusted connectivity for the AI supercycle and other general corporate purposes."

Nokia, known for its early cellphones and mobile network products, has shifted its focus to cater to the booming AI data center market of late, and the investment by Nvidia marks its latest bet on AI infrastructure plays.

Why This News Is Significant

Nvidia’s $1 billion investment in Nokia marks the latest deal expanding its AI infrastructure push. The jump in Nokia's stock following the news also speaks to Nvidia's growing influence, with the ability to drive optimism about the stocks of companies it invests in.

Some of the other companies Nvidia has taken stakes in include AI cloud computing provider CoreWeave (CRWV) and AI chip designer Arm (ARM). CoreWeave represented the largest holding in Nvidia's equity portfolio, with 24.3 million shares amounting to a roughly 7% stake in the company as of June, according to a regulatory filing.

Much like Nvidia, shares of Arm have added close to half of their value in 2025 as demand for AI chips has surged, while shares of CoreWeave have more than tripled from their initial public offering price of $40 in March.

Nvidia shares rose about 5% Tuesday to close at a record high after CEO Jensen Huang gave a keynote address at the company's developers conference in Washington, D.C. highlighting its latest developments in AI and a flurry of announcements, including the partnership with Nokia.

This article has been updated since it was first published to include additional information and reflect more recent stock prices.

© Big Stock Photo Home price growth in August slowed.
Key Takeaways

• Home prices in August increased by 1.5%, the slowest rate in two years, providing some relief for house hunters under pressure from high costs.
• Home price trends vary by area, with New York, Chicago and Cleveland posting strong gains, while home prices in Tampa, Phoenix and Miami all fell.
• The relief in home prices may not last, as falling mortgage rates are likely to increase buyer demand.

After years of rising home prices, the gains are beginning to cool down. But how long will it last?

Home prices in August were up 1.5% from a year ago, rising at their slowest pace in two years, giving some relief to house hunters facing an unaffordable market. Data from the S&P Cotality Case-Shiller national home price index shows rising home prices aren’t keeping pace with inflation.

Why This Matters for Home Buyers

Housing is one of the U.S. economy's biggest drivers, and typically accounts for a large share of household wealth. That's why shifts in the real estate market tend to have far-reaching effects.

“This marks the weakest annual gain in over two years and falls well below the 3% inflation rate,” said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices. “For the fourth straight month, home values have lost ground to inflation, meaning homeowners are seeing their real wealth decline even as nominal prices inch higher.”

Prices Fall In Tampa, Climb In Chicago

Home price growth varied by location. New York, Chicago and Cleveland all showed year-over-year increases of 4.5% or more. Meanwhile, housing prices in Tampa, Phoenix and Miami all declined after their pandemic-era surge.

“Markets that experienced the sharpest pandemic-era gains are now seeing the largest corrections, while more affordable metros with stable local economies are holding up better,” Godec said. “The housing market appears to be finding a new equilibrium after the pandemic boom.”

Affordability in the housing market has been stretched by a combination of steadily-increasing home prices and mortgage rates that have hovered near their highest levels in more than a decade. But increases in home inventory could help keep prices in check.

“Supply conditions have shifted in favor of buyers as price cuts and longer stays on the market have become more common,” wrote Ben Ayers, senior economist at Nationwide.

Falling Mortgage Rates Could Change Everything

However, August's home price relief may not last, thanks to falling mortgage rates, which at 6.19% are the lowest in more than a year. While lower mortgage rates offer buyers better borrowing costs, they may also spur more interest from house hunters who could then bid up home prices.

“Falling mortgage rates should boost demand from buyers who have been waiting for a cheaper environment, preventing a sharp drop off in house prices,” Ayers wrote.

Andrew Harnik / Getty Images

President Trump's Truth Social recently announced a move into prediction markets.
Key Takeaways

• Weekly prediction market trading volume hit a record high of over $2 billion last week, according to research platform Dune.
• This month alone, two of the largest events contracts operators were eying valuations above $10 billion.

Digital prediction markets are drawing in throngs of users—and investors.

The markets have become increasingly popular, sparking a rush of new and rumored capital into them. Just this month, New York Stock Exchange parent Intercontinental Exchange (ICE) announced a $2 billion investment in Polymarket, recently said to be in discussions to raise money at a valuation as high as $15 billion. (Polymarket did not respond to Investopedia's request for comment in time for publication.)

Kalshi was reportedly receiving funding offers valuing it at more than $10 billion, double what it fetched weeks earlier on a $300 million funding round. And sports betting giant DraftKings (DKNG) last week acquired predictions platform Railbird.

Why This News Matters To You

Speculating is trending in stock markets, sports betting, and the broader world of prediction markets. The latter are shaping up up to be the new playgrounds for retail investors—and attracting those who want in on the action.

The investor interest follows user activity. Weekly prediction market volume hit a record high last week of over $2.3 billion, across a handful of tracked platforms including Polymarket and Kalshi, according to estimates from research platform Dune derived from data on the blockchain.

Trump Media & Technology Group (DJT), the company co-founded by President Donald Trump, is the latest to advance further into prediction markets. The company said Tuesday that it partnered with Crypto.com, a coin trading platform whose name adorns the Lakers' basketball stadium, to launch Truth Predict. It will let users bet on the outcomes of events, whether a basketball game or an election, through the social platform.

Polymarket and Kalshi launched in 2020 and 2021, respectively, around the time when meme-stock trading took off, and now they have a lot more competition.

Robinhood (HOOD) launched its prediction markets hub this year in time for the NCAA's March Madness tournament and the Federal Reserve's interest rate decisions. How its prediction markets are faring will likely be a highlight when it reports third-quarter earnings next week.

Sebastian Ng / SOPA Images / LightRocket / Getty Images

Apple share have added about 7% in 2025 so far, after spending most of the year in negative territory
Key Takeaways

• Apple is scheduled to report earnings after the closing bell Thursday, with Wall Street analysts expecting growing revenues and profits.
• Options pricing suggests traders expect Apple's stock could move about 4% in either direction after its results.

Apple is scheduled to report its fiscal fourth-quarter earnings after the closing bell Thursday, with traders betting on a move in the iPhone maker's stock that could take it to new highs after the results.

Options pricing suggests traders expect Apple (AAPL) stock could move about 4% in either direction by the end of this week. A move of that size from Monday's record close near $269 would push shares to a new all-time high near $280 at the high end, or pull them down to about $258 where they were last week.

However, Apple's earnings haven't tended to help the stock in recent quarters, with shares losing ground after all of its four most recent reports. In July, Apple posted earnings that topped analysts' estimates as its services revenue climbed to a record high, though lingering worries about its AI progress weighed on the stock.

Why This Matters to Investors

Apple's earnings have tended to be a "sell the news" event in recent quarters, though updates on its AI plans or a bigger-than-expected boost from the iPhone 17 could help drive more enthusiasm for the stock.

Apple shares have added about 7% in 2025 so far, after spending most of the year in negative territory amid concerns about delays in some highly anticipated AI features and its progress with the technology. The only Magnificent 7 member with a weaker performance this year so far has been Amazon (AMZN), which is also due to report results Thursday, with its shares up close to 4% for 2025 as of Monday's close.

Investors will likely be watching closely Thursday for any updates on Apple's AI roadmap during the company's earnings call. A revenue boost after some signs of a strong start to sales of its iPhone 17 lineup could also help lift confidence in the stock.

Analysts surveyed by Visible Alpha are divided on Apple's stock, with as many neutral as "buy" ratings at four each, and one "sell." Their mean target near $245 would suggest a nearly 9% pullback from Monday's record close.

Investopedia / Photo Illustration by Alice Morgan / Getty Images

Social Security simply isn't enough for millions of senior Americans.
KEY TAKEAWAYS

• The 2026 Social Security cost-of-living adjustment is 2.8%, but experts say this won't be enough for retirees to keep up with rising costs.
• Older Americans generally have higher expenses than the typical worker, as the increasing costs of Medicare and prescription drugs are stretching their budgets.
• To better reflect the expenses of older Americans, the COLA could be based on an inflation index that specifically tracks prices for those 62 and older.

Social Security benefits aren't keeping pace with the expenses of older Americans, but experts say an easy change could adjust the program to provide beneficiaries with sufficient income to cover their costs.

The Social Security Administration said Friday that benefits will increase by 2.8% in 2026. This cost-of-living adjustment happens yearly and is calculated based on inflation during the third quarter, but many experts say it will not be enough to keep up with beneficiaries' expenses.

Benefits Can't Keep Up

Premiums for Medicare Part B, which is used by 63 million disabled or older Americans, are expected to outpace the 2026 COLA, rising by 11.6% next year. In addition, COLA's failure to keep up with costs means those on Social Security have lost 20% of their buying power from 2010 to 2024, according to a report by The Senior Citizens League.

To remedy the gap between benefits and inflation, Shannon Benton, executive director of The Senior Citizens League, said the federal government should consider using an inflation index that better reflects the expenses of older Americans in particular to determine the COLA. The Senior Citizens League has also called for a one-time $1,400 stimulus check to help beneficiaries afford rising costs.

Why This Matters

About 71 million Americans rely on the help of their Social Security benefits to afford their health care and groceries, with nearly 22 million people relying solely on their benefits for their income. If the Social Security COLA continues to lag behind beneficiaries' expenses, many will have to make up for it by working longer or returning to work.

How This Can Be Resolved

The Social Security COLA currently uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to estimate how much expenses have increased over the year for Social Security beneficiaries, and adjust benefits accordingly. However, many experts say this measure does not accurately reflect the actual expenses of the millions of retirees on Social Security.

Instead of CPI-W, which shows the expenses of the average worker, Benton said the Social Security Administration should use the Consumer Price Index for Americans 62 years of age and older, called CPI-E.

Why Beneficiaries Spend More

In September, expenses as measured by the CPI-E were almost 10% higher than those measured by the CPI-W. The majority of that difference is due to the fact that retirees spend much more than workers on health care, rent, prescription drugs, and transportation, Benton said.

In addition to the rising cost of Medicare, higher prices for health care services and prescription drugs are taking a big bite out of budgets. The average 65-year-old who stops working in 2025 can expect to spend $172,500 on health insurance and medical expenses during their retirement, according to an estimate by Fidelity Investments.

Additionally, Benton said, older Americans typically hold onto their cars for longer. The costs of maintaining an older car, alongside higher car insurance costs, make transportation more expensive for this group.

“[Beneficiaries] should call their members of Congress and tell them that they want the Social Security COLA calculated using the CPI-E,” said Benton. “While they listen to your advocates, they really listen to their constituents. Those are the votes.”

There are some limitations to using the CPI-E. This inflation index is still experimental and is not yet used by government agencies. It's drawbacks include the relatively small number of households measured by this index and a higher sampling error. The Bureau of Labor Statistics also says CPI-E also doesn't account for any senior discounts, which could lower costs.

However, many beneficiaries are struggling to keep up with their expenses on their current Social Security checks. In a recent Nationwide survey, nearly a third of retirees said they have had to cut spending on essentials, and about 77% of older Americans told AARP their benefit checks do not keep up with rising prices.

Last year, several Senate lawmakers proposed requiring the SSA to use CPI-E when calculating the COLA. However, the bill did not move forward, and it may be a tough sell in Congress, as Social Security funds are already being depleted.

IMPORTANT

Investopedia wants to know if your Social Security benefits cover your monthly costs. 

What is your current Social Security situation?