Stock Indexes Tick Lower to End Year After 3 Sessions of Declines; Silver Sinks as CME Hikes Margins for 2nd Time in Week

IRS Announces New IRA Contribution Limits—Would You Be Ready for Retirement Saving That Much Annually?

5 minutes ago

In 2026, you can contribute up to $7,500 to your IRA, according to the Internal Revenue Service (IRS).1 (If you’re 50 or older, you can contribute $1,100 more as a catch-up contribution.) So we wondered: If you contributed $625 per month just to your IRA, would you have enough money to retire in the future?

Well, let’s run the numbers. Let’s assume you start saving for retirement at age 27 and you plan to retire at age 67. While IRA contribution limits typically increase every year to keep pace with inflation, let’s assume that you stick to the 2026 contribution limit of $7,500 per year. (This means no catch-up contributions, too.)

We can analyze two different scenarios: What if you put all of your money in an S&P 500 index fund? Or what about a 60/40 portfolio comprised of equities and fixed-income assets, respectively?

A few notes: These numbers will exclude fees like expense ratios, and we’ll use past annualized returns, which are not necessarily predictive of future returns. Additionally, these numbers assume you opt for a Roth IRA, where you pay taxes on your contributions upfront and withdrawals are tax- and penalty-free, as long as you’ve had the account for five years and are over age 59 ½.

Read the full article here.

–Trina Paul

Here’s What the Average Social Security Benefit Will Look Like for Retirees in 2026

51 minutes ago

The average Social Security benefit in 2026 will be $2,071 per month.

Social Security benefits vary for each person, depending on a few factors. You can start receiving Social Security retirement benefits at age 62, but your payments will be lower than if you had waited until your full retirement age (FRA). (If you were born in 1960 or later, your FRA is 67.)

Once you reach your FRA, which varies depending on when you were born, you will receive your full benefits. If you wait longer, your benefits will continue to increase until you reach the age of 70. If you started receiving benefits before your FRA and are still working, your benefits will also change depending on how much income you earn in a year.

Your benefits are based on the average indexed monthly earnings you earned in your highest-earning 35 years. The more you made in those years, the more you’ll receive in benefits once you retire.

Read the full article here.

–Elizabeth Guevara

Why AI Might Stamp Out Inflation But Endanger the Job Market

1 hr 30 min ago

If AI delivers on its promises, the economy of the future could have lower inflation and far fewer jobs.

That’s according to Chen Zhao, chief global strategist at Alpine Macroeconomics, who believes that today’s “jobless profit boom,” fueled by AI expansion, will lead to a low-inflation, low-employment economy in the near future.

“The chances are … that inflation will be all lower than 2% by the end of next year,” Zhao said.

Cooling prices would be great for American households—at least for those who manage to stay employed in the AI-driven economy.

Read the full article here.

–Diccon Hyatt

Hurricane Melissa Damage to Ding Hyatt’s 2025 Earnings, Hotel Chain Says

2 hr 17 min ago

Hurricane Melissa packed a wallop. The damage it caused in Jamaica is going to affect Hyatt Hotels’ full-year earnings.

Hyatt Hotels (H) stock fell 2% in premarket trading Wednesday, a day after it updated its adjusted EBITDA outlook as a result of the damage related to the hurricane on the island in October.

In a regulatory filing late Tuesday, Hyatt said its 2025 adjusted EBITDA now is expected to be at the low end of its prior outlook range of $1.09 billion to $1.11 billion, “due primarily to weaker Distribution segment performance from cancellations in Jamaica.”

Hyatt said that seven Jamaica properties are expected to remain closed until the 2026 fourth quarter because of the hurricane damage.

Entering the final trading day of 2025, Hyatt shares are up 4% this year.

Bath & Body Works Confirms Stores Feel Overwhelming to Shoppers and Announces Upcoming Changes

3 hr 3 min ago

Some stores aspire to be basic. Bath & Body Works is one of them.

Bath & Body Works (BBWI) is simplifying its approach after its sales slipped 1% year-over-year and adjusted income fell 33% in the fiscal third quarter that ended in early November.

The retailer known for soaps, candles and skincare products overlooked its core inventory while trying to woo younger consumers, CEO Daniel Heaf said, and grew too dependent on big-name collaborations and promotions.

To regroup, the company will focus on traditional offerings, prioritize “clean” ingredients, and streamline the way its inventory appears in physical and digital stores, Heaf said on a conference call last month. The company—and its boss—aims to revive a stock that has cratered in 2025.

“The customer tells us that our proposition in-store is too overwhelming and confusing,” Heaf said, according to a transcript made available by AlphaSense. “The outcome that we want is to be able to entice new consumers into our stores and onto our digital platforms. They [should be able to] find what they want easily and fall in love.”

Read the full story here.

–Sarina Trangle

What Taxes on Your Student Loan Forgiveness Will Look Like in 2026

3 hr 32 min ago

If you expect to have your federal student loans forgiven in 2026, you should check now to see if you’ll owe taxes on those funds.

Under a temporary tax rule created during the pandemic, borrowers who became eligible to have their loans discharged under an income-driven repayment plan between 2021 and the end of 2025 were exempt from paying taxes on the discharge of their loans. Eligibility requirements typically included being on an active income-driven repayment plan (Income-Based Repayment, Pay as You Earn, or Income-Contingent Repayment) and making 20 or 25 years of qualifying payments.

Starting in the new year, however, the rules for loan forgiveness will change, and borrowers who qualify for forgiveness in 2026 will have a higher tax bill.

Many borrowers who met all the requirements for student loan forgiveness this year have had their discharge delayed due to ongoing court litigation.

However, when the Department of Education announced in October that it would resume granting loan forgiveness to eligible borrowers, it clarified that any borrower who reaches eligibility in 2025 will not be required to pay taxes on it, even if their forgiveness is processed in 2026.

Read the full article here.

–Elizabeth Guevara

Stock Futures Point Lower to End Year

4 hr 11 min ago

Futures contracts associated with the Dow Jones Industrial Average were 0.1% lower.

S&P 500 futures pointed down 0.2%.

Nasdaq 100 futures slipped 0.3%.