🌏 Fed’s ‘Wait-and-See’

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The Federal Reserve paused rate hikes amid tariff and inflation concerns, signaling only two rate cuts for 2025.

… That led to declines in the Nasdaq and Nvidia. Investors are now eyeing earnings from Tesla, Meta, and Microsoft.

Microsoft suspects China’s DeepSeek used OpenAI tech early. Microsoft and OpenAI have launched an investigation into unauthorized access claims. But, Microsoft still beat earnings expectations on demand for AI.

Alibaba’s got something to say about DeepSeek. The Chinese firm says its AI beats DeepSeek’s and Meta’s in new tests.

Meta’s gearing up to spend billions on AI, after reporting strong earnings, which were fueled by AI, smart glasses, and social media.

Tesla missed the mark. The EV maker reported lower profits and sales that missed Wall Street’s expectations.

Starbucks bets on ceramic mugs to redefine the cafe experience. The move is part of the coffee giant’s plan to slow down the moment while speeding up service. Meanwhile, Sam’s Club beats Costco on customer satisfaction. The Walmart-owned retailer owes it to some splashy tech.

Best and worst U.S. states to retire in 2025

2025 will mark a record number of Americans turning 65, with over 11,000 crossing that threshold daily.

For many, where to retire is crucial for financial stability and happiness in their later years. Affordability, quality of life, and healthcare are key factors in the decision-making process. But things like state taxes, crime levels, and bingo halls play a role too. Experts stress that low living costs, excellent healthcare, and social support are vital for retirees.

Which U.S. states top the list for retirement – and which fall short? Quartz’s Ben Kesslen has the details.

The Big Deep

Big Tech’s AI investments are under fire after Chinese startup DeepSeek launched a competitive model for a fraction of the cost.

Its DeepSeek-R1 model, rivaling OpenAI and Anthropic, triggered a $1 trillion loss in the AI stock rally, with Nvidia losing $600 billion in value. Investors are now questioning whether DeepSeek’s efficient approach could challenge the billions U.S. companies are spending on AI infrastructure.

Experts believe Big Tech will continue its massive spending. But will lower AI costs speed up adoption or slow down Big Tech’s push for bigger, more powerful infrastructure? Quartz’s Britney Nguyen dives deeper.

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Our best wishes on a safe start to the day. Send any news, comments, Starbucks mugs, or retirement recs to talk@qz.com. Today’s Daily Brief was brought to you by Francisco Velasquez and Audrey McNamara.