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Borrowers sued Secretary Linda McMahon’s Department of Education on Thursday for failing to properly cancel their student debt.
Credit: Will Oliver/EPA/Bloomberg via Getty Images

KEY TAKEAWAYS

• The Department of Education allegedly reported $4.6 billion in canceled student debt as overdue loans, impacting over 300,000 borrowers, advocates say.
• A class action lawsuit claims borrowers with forgiven loans are still being reported as delinquent, harming their credit and risking wage garnishments.

The Department of Education is allegedly reporting canceled federal student debt as still due, and two affected borrowers are taking action to correct it.

On Thursday, the Project on Predatory Student Lending (PPSL), a legal advocacy group, said in a press release that it estimates the Department of Education is falsely reporting $4.6 billion of canceled debt to credit agencies. This impacts more than 300,000 borrowers, according to PPSL estimates based on public data.

The PPSL also announced it is representing two student loan borrowers who, on Thursday, filed a class action lawsuit alleging that the Department of Education announced the cancellation of their debt but is still reporting them as having overdue loans.

The Department of Education declined to comment on the case Thursday.

Why This Matters

Student debt reported as delinquent or in default can negatively impact a borrower’s credit scores, making other debt more expensive and less attainable and potentially leading to garnishment of their income or federal benefits.

These borrowers were among the 1.5 million borrowers who, from 2022 to 2025, had $23.4 billion in loans forgiven through the Department of Education group discharge program for those who attended a college that allegedly engaged in misconduct. Borrowers were told the relief was automatic and they did not have to take any further action.

Yet, according to the class action lawsuit, the Department of Education continues to report canceled debt to credit reporting agencies, affecting borrowers’ credit reports and potentially resulting in wage garnishments.

Investment in AI, including the construction of data centers, has soared in the past year.
Credit: Anna Moneymaker / Getty Images

Key Takeaways

• The AI boom differs from past bubbles in that tech companies’ rising earnings currently support soaring stock prices.
• However, rising interest rates, regulatory restrictions, or underwhelming productivity gains could trigger a downturn in the AI sector.

By the end of next year, AI could either deliver massive benefits to the economy or crash spectacularly.

That’s according to a new analysis by economists at Oxford Economics, who analyzed the risks of the AI spending boom. While many companies have found uses for AI technology, the software is promising but largely unproven. AI has yet to bring about the kind of productivity increases that would justify the massive amount of money that’s been invested in it, Adam Slater, lead economist at Oxford Economics, wrote in a commentary.

“For there to be a sharp correction in the AI sector, it doesn’t require the technology to prove worthless, only for there to be disappointment relative to the currently elevated expectations,” he wrote.

Just how elevated are those expectations? Slater estimated the hyperscalers—the large companies building massive data centers to power AI systems—are expecting 15% to 20% returns on $3.8 trillion of investments between 2024 and 2028.

Those companies would have to make an additional $570 billion to $800 billion in yearly profits to hit those targets. Growth like that would be more than two-thirds of the projected increase in U.S. GDP by 2032, he calculated.

“This seems very unlikely,” he wrote.

Falling short of those lofty ambitions could leave AI companies exposed to a downturn in stock prices. Slater compared the risk to previous technology-driven stock price booms, such as the 1920s electrification boom, the 90s telecom boom, and the 1840s British railway boom, all of which ended with catastrophic market crashes.

Slater identified several possible catalysts for a downturn, including rising interest rates, which would reduce the ability to finance the AI expansion; government regulators restricting AI development; or data showing the tech’s failure to deliver productivity benefits.

To be sure, many investors are brushing off such bubble concerns. In a recent Investopedia poll, the majority of investors surveyed said they were either “optimistic” or “cautiously optimistic” about the industry’s outlook.

And optimists can point to key differences between the AI boom and past bubbles, including the fact that the soaring stock prices have been supported by rapidly rising earnings for tech companies.

With technology continuing to advance and threats to expansion growing more salient, 2027 could be the year one side or the other is proven correct.

“These risks are likely to intensify as we enter 2027,” Slater wrote.

Nearly 84 tons of meat have been recalled over false inspection labels.
Credit: RONALDO SCHEMIDT / AFP via Getty Images

Key Takeaways

• Over 167,000 pounds of meat are being recalled nationwide after shipping without proper inspections.
• The USDA said any products labeled with “EST. 1363” should be thrown out or returned.
• The agency warned packages may not have that label, however, as retailers may have repackaged the meat.

Over 167,000 pounds of meat distributed to restaurants and retailers are being recalled nationwide after shipping without proper inspections.

The U.S. Department of Agriculture’s Food Safety and Inspection Service said pork, beef, and goat products shipped by North Carolina-based Star Meat Delivery were incorrectly labeled and should be thrown out or returned, according to a notice Tuesday.

The agency said products with the USDA inspection label “EST. 1363” were shipped without required federal inspection under the label A&D Foods. The recalled items include beef short ribs, oxtail, pork chops, and more. You can review the full list here.

The agency warned some packages may no longer have that label, however, as some retailers may have repackaged the meat.

The USDA said that while there haven’t been any confirmed reports of illnesses or injuries as a result of the incorrect labeling, it considers the call a Class 1 “high” risk, as meat produced without USDA inspection could contain unlabeled allergens or harmful bacteria.

In a statement on the company’s Facebook page, Star Meat Delivery said the facility involved in the recall, which was processing and packaging the products for Georgia-based A&D Foods, was in the middle of the approval process for receiving USDA certification when the EST. 1363 label was prematurely used. The company said it initiated the recall, and is cooperating with the USDA’s investigation.

Meta’s recent rally has the stock closing in on its record high.
Credit: Minh Connors / Bloomberg via Getty Images

Key Takeaways

• Meta unveiled new features coming to its Muse AI agent at the company’s Connect event last night, along with new designs for its smart glasses and related partnerships.
• Several Wall Street analysts cheered the updates, with JPMorgan telling clients Muse could become the most widely used consumer AI application since ChatGPT.

Meta Platforms gave several updates on its AI efforts last night that analysts see driving big gains for its business, and its stock.

In a keynote address at the company’s Connect conference yesterday, CEO Mark Zuckerberg unveiled new features coming for Meta’s new Muse personal AI agent, including the ability to talk to Muse through Meta’s smart glasses rather than typing requests into an app. Zuckerberg said Meta plans to release a pendant, the Muse Charm, later this year that will bring the AI agent to a wearable form.

JPMorgan analysts lifted their price target for Meta’s stock to $920 from $820 following the event, telling clients they believe Muse has the potential to become the most widely used consumer AI application since ChatGPT. “We expect Muse adoption and engagement to continue to ramp, with Meta beginning to prove out AI returns and leadership beyond its core advertising platform, with a [total addressable market] potentially in the tens of trillions of dollars,” the analysts wrote.

Zuckerberg also announced new partnerships with Walmart (WMT), Best Buy (BBY), Dick’s Sporting Goods (DKS), and others that will allow users to shop the retailers through Muse. Morgan Stanley analysts said the deals could be “important as a way to remove friction in the user shopping and purchase process,” and give Meta a greater foothold in an agentic shopping market they see growing to $30 trillion.

Meta revealed new designs for its smart glasses as well, including a camera-free, audio-only version amid criticism that the glasses can be used to film others without consent. Meta (META) is also launching a $1,299 pair of virtual reality glasses next spring, with partnerships to bring 3D content from Amazon (AMZN) Prime Video and Disney (DIS)-owned ESPN, among others, to the glasses.

Meta shares have recently rallied back into positive territory for the year, thanks largely to enthusiasm around the early reception to Muse. Nearly 25% of the stock’s value has been added since Meta rolled out Muse earlier this month. 

The stock was up about 3% in recent trading, leaving it less than 4% off last August’s record high. 

Everpure led gainers in the S&P 500 Thursday
Credit: Michael Nagle / Bloomberg / Getty Images

Key Takeaways

• Everpure shares soared to pace S&P 500 risers Thursday after the company raised its fiscal 2028 outlook.
• The gains add to what’s already been a strong year for Everpure’s stock, which joined the S&P 500 earlier this week.

Everpure shares are surging after the data storage company raised its fiscal 2028 outlook, citing growth opportunities from business with hyperscalers.

Shares of Everpure (P) were up nearly 18% to pace S&P 500 risers Thursday, a day after the data storage firm guided for fiscal 2028 revenue of $7 billion to $7.3 billion and operating income of $1.7 billion to $1.9 billion. Analysts polled by Visible Alpha had expected $5.23 billion and $1.09 billion, respectively.

The Santa Clara, Calif.-based company formerly known as Pure Storage also affirmed its fiscal 2027 guidance provided on its second-quarter earnings call last month.

“Everpure is at an inflection point as we expand our horizons to managing data in the enterprise and solutions for hyperscalers,” CEO Charlie Giancarlo said in a release.

With Thursday’s gains, Everpure shares have nearly doubled in value since the start of the year. They joined the S&P 500 earlier this week.

Starbucks shares are up about 12% for the year.
Credit: Katy Blackwood / NurPhoto via Getty Images

Key Takeaways

• Starbucks is closing 250 underperforming stores across North America this week.
• The company expects to incur $300 million in restructuring charges related to the closures.

Some Americans might soon have to drive a bit further to get their favorite coffee, as Starbucks is closing hundreds of stores.

Starbucks (SBUX) COO Mike Grams wrote in a message to employees Thursday that the company is closing 250 stores across North America later this week, just over 1% of its network of over 18,000 stores across the continent.

“We have carefully reviewed our North America coffeehouse portfolio and identified locations where we do not believe we can consistently deliver the experience we want for customers and partners or where we don’t see a path to acceptable financial performance,” Grams wrote.

The message said Starbucks is progressing in its plans to update some 1,500 locations as part of CEO Brian Niccol’s multi-year turnaround effort. Grams said the implementation of its Back to Starbucks plan has “given us a clearer view of the performance of every coffeehouse,” with some locations improving while others “continue to underperform.”

In a regulatory filing, the coffee giant said it expects to incur about $300 million in restructuring charges related to the closures. Starbucks now forecasts net new store openings of around 440 locations in its current fiscal year, which ends this month, down from 600 to 650 previously. Around this time last year, the company announced plans to close over 400 stores across the country and cut hundreds of corporate jobs.

The company did not detail how many of the 250 closures will be in the U.S., or provide specific information about which locations will be impacted. Long term, the company still plans to expand its footprint in North America, Grams said.

Starbucks shares were up less than 1% in premarket trading. They’ve climbed about 12% this year so far.

Stitch Fix shares entered Thursday down 46% this year.
Credit: Cheng Xin / Getty Images

Key Takeaways

• Shares of Stitch Fix tumbled after the personal styling company gave a weaker-than-expected outlook.
• The company said its forecast reflects a “more challenging consumer environment.”

Support for Stitch Fix’s stock is unraveling after the company’s latest results.

Shares of Stitch Fix (SFIX) plunged nearly 20% in premarket trading Thursday, a day after the online personal styling company issued weaker-than-expected guidance for the current quarter and new fiscal year.

Stitch Fix said it sees fiscal 2027 first-quarter revenue of $323 million to $328 million and full-year revenue of $1.31 billion to $1.36 billion. Analysts surveyed by Visible Alpha expected $352.2 million and $1.40 billion, respectively. The company said its full-year forecast “reflects a more challenging consumer environment and a lower active client starting point, which we expect will temper revenue growth.”

The San Francisco-based firm also projected adjusted EBITDA of $3 million to $6 million in the current quarter and $27 million to $42 million for the full year. Visible Alpha consensus called for $13.8 million and $54.6 million, respectively.

For its fiscal fourth quarter of 2026, Stitch Fix reported a loss of 2 cents per share on revenue of $324.4 million. Analysts expected a loss of 6 cents per share on revenue of $324.7 million.

Entering Thursday’s session, Stitch Fix shares were down 46% this year.

News of the day for Sept. 24, 2026

Stocks slipped yesterday, while Treasury yields soared to multi-decade highs.
Credit: Michael Nagle / Bloomberg / Getty Images

Stocks are pointing to a lower open Thursday as markets extend a pullback from record highs set earlier in the week; Treasury yields are around 2007 levels amid worries about inflation and rising oil prices; talks between President Donald Trump and Chinese President Xi Jinping are set to begin today in Washington, D.C.; Meta last night unveiled new versions of its AI glasses in a keynote speech by CEO Mark Zuckerberg; and Costco is set to report earnings after the closing bell.

Here’s what you need to know today.

Stocks Fall as Oil, Treasury Yields Are Back on the Rise

Stock futures are sinking Thursday morning as inflation and rate-hike fears have dragged markets from record highs set earlier in the week. Futures tracking the Dow Jones Industrial Average and S&P 500 were recently down 0.3% and 0.6%, respectively, while Nasdaq 100 futures were down nearly 1%. The major indexes finished in the red yesterday as the tech rally that pushed the Nasdaq Composite to two days of record closes stalled. Crude oil futures are up about 1% to around $93 a barrel. The 10-year Treasury yield is rising to 5.13% after soaring nearly 15 basis points yesterday. Gold futures are down nearly 1% to $4,290 an ounce. Bitcoin is trading at $83,500, below recent highs of $87,400.

Yields Touch Highest Point Since 2007 Amid Inflation, Rate Hike Fears

The 10-year Treasury yield was recently at 5.13% and earlier today hit 5.15%, marking a new high since the summer of 2007. Investors worry that inflation caused by higher oil and gas prices could persist for months and force the Federal Reserve to raise interest rates again. John Williams, president of the New York Fed, yesterday at an event in London called it “likely that another rate hike may be appropriate by the end of the year,” based on the current sentiment among investors. With just over a month until the next Fed meeting, the CME Group’s FedWatch tool currently shows that traders are pricing in a 75% chance of a rate hike at that meeting, up from 55% a week ago and just 11% a month ago.

Xi Jinping Set to Meet With Trump in Washington Today

Investors will be keeping an eye on Washington, D.C. today, as Chinese President Xi Jinping is in the nation’s capital to meet with the Trump administration. The sides are expected to meet today and tomorrow, with hopes that some agreements on key topics like tariffs, the Iran war, and AI development could come out of the talks. Treasury Secretary Scott Bessent said yesterday the U.S. and China had agreed to extend a monthslong trade truce into at least January to give them more time to work out a long-term deal. Experts anticipate that the meeting will result in the lowering of some of the tariffs the countries have placed on each other’s imports since Trump took office.

Meta Unveils New Smart Glasses, AI Wearable at Connect Event

Meta Platforms (META) stock is trending lower following CEO Mark Zuckerberg’s keynote address at the company’s annual Connect conference last night. Zuckerberg unveiled new versions of the company’s smart glasses, including an audio-only version that followed criticism that those with cameras might record others without consent. He also laid out upcoming features for Meta’s new Muse personal AI agent, including the ability to talk to Muse directly. Meta will also release a wearable pendant, the Muse Charm, that will bring the AI agent to a wearable form. Meta shares are down about 2% ahead of the opening bell after rallying in the days leading up to the event.

Costco Earnings Due After Closing Bell

Investors are set to get fresh insights into the health of the American consumer, with quarterly results from Costco Wholesale (COST) set to be released after the closing bell. The warehouse retail giant is expected to report $94.85 billion in fiscal fourth-quarter revenue, up 10% year-over-year, along with earnings of $6.52 per share, up from $5.87 a year ago. Other key metrics include comparable store sales, expected to have grown by nearly 9%, and the size of Costco’s membership base, seen coming in at roughly 84.7 million, up from about 81 million a year ago. Shares are little changed premarket, entering the day up about 5% for the year. Inflation worries have weighed on shares in recent months.

Homebuilders are warning it’s becoming more difficult for many Americans to afford buying a home.
Credit: Justin Sullivan / Getty Images

Key Takeaways

• Berkshire Hathaway has been growing its bet on the U.S. housing market, at a time when homebuilders are warning affordability headwinds could weigh on the sector’s outlook.
• The conglomerate recently raised its stake in Lennar, and acquired Taylor Morrison earlier this year.

Some of America’s largest homebuilders are warning about headwinds to the U.S. housing market. That’s not stopping Berkshire Hathaway from boosting its bets on the sector.

The investment conglomerate has been expanding its exposure to the housing market, recently upping its stake in Lennar (LEN), which sent shares of the homebuilder surging this week. Berkshire (BRK.A, BRK.B) also announced a deal to buy Taylor Morrison earlier this year, in its first major deal under new CEO Greg Abel.

Shares of companies in the sector may be looking like a bargain after a big pullback in recent months. Even after this week’s Berkshire-fueled rally, Lennar shares have dropped a third from their highs in January. Two of the biggest exchange-traded funds focused on the sector, the iShares U.S. Home Construction ETF (ITB) and the SPDR S&P Homebuilders ETF (XHB), have fallen roughly 20% from their February highs, amid worries about sluggish demand and rising costs as the war in Iran drags on.

KB Home (KBH) executive chair Jeffrey Mezger said during last night’s earnings call that rising borrowing costs and stubborn inflation are making Americans “more cautious about buying a home,” according to a transcript provided by AlphaSense. The company warned affordability concerns would weigh on its current-quarter outlook.

Lennar CEO Stuart Miller told investors in an earning call last week that “when families are paying more at the pump and more for electricity, their willingness to make the largest financial commitment of their lives moderates, even when their underlying desire to own has not changed at all.”

China’s President Xi Jinping (R) and US President Donald Trump visit the Temple of Heaven on May 14, 2026 in Beijing, China.
Credit: Brendan Smialowski / Getty Images

Key Takeaways

• Two days of trade talks between President Donald Trump and his counterpart Xi Jinping, begin Thursday.
• Experts expect the two sides to reduce tariffs against one another and further extend a truce in the trade war that has upended international commerce since 2025. 
• Major breakthroughs on trade issues, or a breakdown in the truce, would come as a surprise to experts who expect the summit to be mostly uneventful.

Leaders of the world’s two largest economies are meeting this week in Washington, and experts expect some agreements to come of the two-day summit that begins Thursday.

Back in May, President Donald Trump met with his Chinese counterpart, Xi Jinping, in Beijing. Now, the Chinese leader is returning the favor, visiting the U.S. capital for a round of negotiations on thorny issues such as trade, tariffs, Taiwan, the war against Iran, and the development of AI technology. Experts expect some agreements, but see no signs of major breakthroughs. 

The meeting is the latest opportunity for the two leaders to change the course of a trade war that has roiled the global economy. In 2025, President Donald Trump ratcheted up tariffs against China and restricted the export of U.S. technology. China retaliated by restricting the supply of crucial minerals it controls, which are needed for high-tech manufacturing. The two sides agreed to a trade truce last May, which has prevented further rounds of tit-for-tat measures, at least until it expires in November.

What This Means For The Economy

The trade talks could impose some stability on a relationship that has caused a great deal of uncertainty for companies that do business on both sides of the Pacific in recent years. 

The Trade Truce Will Be Extended

Experts expect that truce to be extended, possibly for another six months, paving the way for further negotiations and meetings at international gatherings later this year. 

“Both sides have an incentive to extend it,” Melanie Hart, senior director of the Global China Hub at the Atlantic Council think tank, wrote in a commentary. “While there are divergent views in Washington regarding how far to extend the truce, the two presidents will likely agree to a six-month extension.”

Tariffs Will Be Reduced

The heavy tariffs that both countries have levied on one another’s products could be reduced. As of late July, after Trump’s latest round of import taxes, the U.S. was charging a 36.5% tariff on Chinese products, and China a 31% tariff on American imports, according to the Congressional Research Service.

“Tariff reductions are almost certain,” Hart wrote. “The two sides are referring to this as the ‘30 by 30’ deliverable: each side will remove existing tariffs on thirty billion dollars of imported goods. This announcement is so widely expected that if it is derailed, it will indicate something has gone horribly wrong.”

No Major Breakthroughs Or Blowups

The talks, brief as they are, are not expected to yield results on issues where the two sides have major disagreements. However, the talks will keep the relationship on a more stable and predictable footing than it was a year ago, Louise Loo, head of Asia Economics at Oxford Economics, wrote in a commentary.

Also on the table are relatively minor trade deals, including Chinese agreements to buy American airplanes and soybeans. 

“More substantive deliverables are possible, but are likely to remain concentrated in areas where concessions are relatively easy to reverse,” Loo wrote.

Aside from that, any major agreements would come as a surprise to experts. 

“I expect very little to come out of this,” Scott Kennedy, trustee chair at the Center for International and Strategic Studies think tank, said last week in a webcast. “I think it may be essentially a photo op of Xi Jinping visiting the White House, having a day of conversations and then heading off.”