Latest Sectors News

CNBC's Jim Cramer said on "Mad Money" on Friday that a tough market can also present an opportune time to selectively buy. View More

In this articleKBH.SPX.DJI.IXICFollow your favorite stocksCREATE FREE ACCOUNT watch nowVIDEO1:3801:38Private credit funds weren't meant to be traded, says Jim CramerMad Money with Jim Cramer The stock market just closed out a rough week — and according to CNBC's Jim Cramer, the pain is unlikely to end anytime soon.With little on the calendar in terms of major corporate earnings or economic data next week, the inverse relationship between oil and stocks will take on even more importance. It's been pretty much a given of late that when crude prices surge, equities sink. It's been that way since the U.S. and Israel first attacked Iran nearly three weeks ago.Cramer said the war has taken on an "unrestrained nature," as President Donald Trump flips from talks about winding down military operations in the Middle East to reports of deploying thousands of troops to the region.The market has been hanging on to every development in the region. During Friday's session, the Dow Jones Industrial Average and Nasdaq dipped into correction territory, which is defined by a drop of at least 10% from recent highs. They both closed sharply lower but above that threshold. The S&P 500, which also sank Friday, has fared somewhat better recently — down 7% from its latest highs. All three benchmarks logged four straight weekly losses. Stock Chart IconStock chart iconDow, Nasdaq, and S&P 500 YTD International oil benchmark Brent crude rose more than 3% to $112.19 per barrel on Friday for its highest settle since July 2022. It was up another 8.8% for the week."Given how fast oil can rally, it's mighty hard to figure out what to do with stocks. You don't want to throw away good companies' stocks, though, on something that theoretically could end with a phone call," Cramer said on "Mad Money" on Friday evening. "But if the goal is to reopen the Strait of Hormuz, [that] isn't going to be easy to do. That's going to require either a tremendous escalation or a diplomatic breakthrough. And, I think the latter seems unlikely.""We have no idea what's gonna happen here. We know the war is bad for stocks. The economic impact is global. Every positive seems to be met with two negatives, and all the positives seem to do is keep us from getting oversold enough to have a legitimate bounce," Cramer said.With that set-up, Cramer turned his attention to corporate earnings for the upcoming week. KB Home, a national homebuilder, will report earnings on Tuesday. Cramer said it should give investors a read into the beleaguered housing sector. With mortgage rates still high, he expects "a tale of lukewarm sales" for the quarter. "The weakness in housing is a major reason why I believe the Fed should keep rate cuts on the table despite inflation caused by higher energy costs," Cramer said. "There simply aren't enough transactions occurring, and home sales can play a big role in giving this economy the oomph it so desperately needs now."Wednesday morning brings quarterly results from uniform supplier Cintas and payroll services firm Paychex — both of which Cramer described as high-quality companies with poor-performing stocks. Cintas stock should rebound after it finalizes its acquisition of UniFirst, he said. Paychex shares have been under pressure ahead of earnings due to artificial intelligence disruption concerns. "The longs are shadow boxing with the shorts on this [stock], and I can't tell who's going to win," he added. Carnival earnings are on Friday. While an underperformer, Cramer said that Wall Street appears to be growing more positive on cruise lines. "The stocks have been hammered, and they aren't helped by these higher fuel costs, but Carnival's considered a value vacation, something that seems rather rare these days," he added. Cramer said the bottom line, as investors look ahead to the new week, is that a tough market can also present an opportune time to selectively buy. "I will say that we're beginning to get lower prices in some industries: the banks, the foods, the drugs, the retailers, and in some cases, large tech companies. So as oil works its way higher, you have a very good chance to buy some high-quality stocks at reasonable prices," he concluded. watch nowVIDEO12:1312:13Higher oil may be chance to buy quality names at reasonable prices: Jim CramerMad Money with Jim Cramer Jim Cramer's Guide to InvestingClick here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest smarter. Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market.DisclaimerQuestions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

President Donald Trump also said the Strait of Hormuz, "will have to be guarded and policed, as necessary, by other Nations who use it." View More

In this article@CL.1Follow your favorite stocksCREATE FREE ACCOUNT watch nowVIDEO1:0801:08Trump on Iran war: 'I don't want to do a ceasefire'Closing Bell: Overtime President Donald Trump told reporters on Friday he is not interested in a ceasefire with Iran."We could have dialogue, but I don't want to do a ceasefire," Trump said from the White House South Lawn before departing for Florida. "You know you don't do a ceasefire when you're literally obliterating the other side.""They don't have a navy. They don't have an air force. They don't have any equipment," Trump continued.In a Truth Social post later Friday afternoon, Trump claimed that the U.S. is "getting very close to meeting our objectives as we consider winding down our great Military efforts in the Middle East."He also asserted that the Strait of Hormuz, the key shipping lane for much of the world's oil trade, "will have to be guarded and policed, as necessary, by other Nations who use it — The United States does not!""If asked, we will help these Countries in their Hormuz efforts, but it shouldn't be necessary once Iran's threat is eradicated. Importantly, it will be an easy Military Operation for them," Trump wrote in the post.Trump's comments come nearly three weeks into the U.S.-Israel war against Iran, which has turned into a broader regional conflict. They signal no quick end to the conflict, which sent stocks tumbling on Friday and has caused oil prices to soar. US President Donald Trump speaks to journalists before boarding Marine One as he departs from the South Lawn of the White House in Washington, DC, on March 20, 2026.Brendan Smialowski | AFP | Getty Images Earlier Friday, Trump said in a phone call with MS Now's Stephanie Ruhle that the U.S. could end the war "right now" but that he planned to press on with the offensive."I think we've won," he later said on the South Lawn. "All they're doing is blocking up the Strait. But from a military standpoint, they're finished."Iran has effectively blocked off the strait since the start of the war. Trump has blasted NATO allies in an attempt to recruit additional support to help open the strait, which he said again Friday doesn't matter to the U.S. The bulk of the energy shipments through the strait are destined for Asian markets. But the Dallas Fed, in a report released Friday, said the economic effects of the closure will hit around the world, including in the U.S.Trump, speaking to reporters Friday, portrayed reopening the strait as simple, provided other countries come to the aid of the U.S."It's a simple military maneuver, it's relatively safe," he said. "But you need a lot of help in the sense of you need ships, you need volume. And NATO could help us, but they so far haven't had the courage to do so." He also called on China and Japan to get involved a day after Japanese Prime Minister Sanae Takaichi met with him at the White House.Trump said earlier this week that he would not put boots on the ground in Iran. Multiple news outlets reported Friday that the Pentagon is sending up to 2,500 Marines to the Middle East — the second such deployment in the last week. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

AI search ads are seen as having massive potential by ad industry insiders and analysts, but OpenAI rival Anthropic has pledged to not have them. View More

watch nowVIDEO1:4001:40Ad industry grows frustrated with ChatGPT's advertising rolloutTechCheck When OpenAI first announced it was rolling out ads on ChatGPT, brands and agencies across Madison Avenue were eager to test the new format to figure out their artificial intelligence advertising strategies. The high-profile announcement, which was far more public than a typical "alpha" test of a new format, presented a massive opportunity. Three of the world's largest ad agencies are part of the testing program, including WPP, Omnicom and Dentsu. So far, the test is moving too slowly to meet the hype, according to multiple ad industry sources who spoke on condition of anonymity in order to discuss the details.The sources told CNBC that OpenAI's test program is frustrating many of its partners because of the conservative rollout. The ad commitments required to participate in the test were unusually high for this type of experiment.Some brands dedicated between $200,000 and $250,000 to the test, which is double a typical experimental ad commitment. For some brands, this money came from funds dedicated to innovative new formats, while others drew from search or social ad budgets.With the pilot program running through the end of March, some of the sources told CNBC they are concerned with the slow pace of rollout, which means their full budget commitments are unlikely to be spent by the end of the month.While any excess will be returned, the budget was already committed to the trial and so can't be deployed elsewhere during the quarter. Advertisers also won't get the volume of insights they were hoping for.Omnicom did not return requests for comment. WPP declined to comment. OpenAI told CNBC that the slow rollout of the ads program was intentional. "We're in the early testing phase of ads in ChatGPT, and the goal right now is to learn and refine the experience for consumers before expanding it more broadly," the company said. "We're encouraged by early signals from users and participating brands, and continue to see strong interest from advertisers."Japanese ad giant Dentsu told CNBC it set realistic expectations for its clients going into the test, pulling from a pool of funds dedicated to testing and innovation.Dentsu EVP and Head of Paid Search Meredith Spitz said it is early on, but the firm is "eager to partner with OpenAI to further test, learn and evolve the offering." "So far, ad delivery is quickly building momentum, with volume increasing week-over-week as the environment scales," she said. Read more CNBC tech newsMicron revenue almost triples, tops estimates as demand for memory soarsUber to invest up to $1.25 billion in EV maker Rivian in deal to launch 50,000 robotaxisMeta is shutting down VR social platform Horizon Worlds in further pivot away from the metaverseMeta’s Manus launches desktop app to bring its AI agent onto personal devices amid OpenClaw craze Despite some early frustrations, sources said they have been encouraged by OpenAI's response to feedback and how quickly the company has been able to make changes, and more recently, ramp up.The sources told CNBC that the caution is a good sign of OpenAI's commitment to building a sustainable and successful ad business. But the frustration stems from the enthusiasm for this new category, and an eagerness to put budgets into ChatGPT ads and get more insights into how they're working.According to recent data from research firm Sensor Tower, the number of ads served halfway through March increased about 600% from the first of the month.Sensor Tower estimated that ads have now rolled out to about 5% of ChatGPT mobile users, up from 1% at the beginning of March.The opportunity for OpenAI and the AI ads landscape remains massive.  A recent Truist analyst note called 2026 an "inflection year" for large language model-powered ads. "Within the next several years, we would expect LLM-powered ad channels to become one of the most important pillars of the digital ad industry alongside Search, Social, and Retail Media," the analysts wrote.Truist estimates OpenAI will generate under $1 billion in ad revenue this year, with that figure growing to over $30 billion by 2030.Dentsu noted that the most value of these new ads can come from brands looking to reach ChatGPT users with very specific queries. "Overall, we're seeing the continued importance of aligning ad relevance with user intent, reinforcing a broader pattern in conversational discovery; that when user intent is precise, brands with focused offerings and tailored messaging are best positioned to deliver relevance and value in the moment," Spitz said.While ads embedded in AI search are seen as having massive potential by ad industry insiders and analysts alike, Anthropic is wary. The AI giant last month took shots at OpenAI in a Super Bowl commercial, criticizing its move into ads and proclaiming that Anthropic's own platform will remain ad-free. Perplexity recently removed ads from its platform after beginning testing in 2024.Google, meanwhile, has not yet announced official plans for ads within Gemini, but the company has signaled in recent reports that it is not ruling them out. The company already has plenty of ad inventory around the AI overview results that appear alongside Google search results. The question is whether OpenAI's slow rollout will prove an advantage for industry leader Google, which will sell an estimated $252 billion in search ads this year, according to Truist. watch nowVIDEO5:0105:01A once quiet rivalry between OpenAI and Anthropic is heating upTech Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Tax refunds are higher on average compared with last year, but the change has been smaller than some early projections. Here's what to expect. View More

Photoalto/eric Audras | Photoalto Agency Rf Collections | Getty Images With the federal tax deadline less than one month away, tax refunds are higher on average compared with last year, but the change has been smaller than some early projections. In a January release, the White House said average tax refunds could increase "by $1,000 or more," citing several media reports with early October research from investment bank Piper Sandler. So far, the average payment change has been smaller than that $1,000 estimate, according to IRS filing season data. As of March 6, the average tax refund was $3,676, up from $3,324 around the same time last year, the IRS reported last week. That figure is based on about 60.7 million individual returns out of the 164 million expected through the April 15 deadline. Read more CNBC personal finance coverageAverage IRS tax refund is up 10.8%, new filing data showsYour tax refund could be smaller than expected this season. Here's whyWhat may happen to Social Security benefits in six years if Congress doesn't actTrump officials task Treasury Department with student loan collectionHarvard University tops this year's list of 'dream colleges': The Princeton Review9% of ACA enrollees go uninsured after enhanced subsidies expire, poll findsThe Fed keeps rates unchanged in March: What that means for youMany states' unemployment benefits fall far short of average wages: AnalysisIran war, oil price surge worsen K-shaped economy, say economistsMore than 576,000 student loan borrowers in repayment plan backlog: court filingSome economists are warning about 'stagflation.' What it may mean for your moneyEmployers say AI makes workers faster, but it also creates 'friction': surveyTravel disruptions keep piling up in 2026. How to plan ahead and limit the impactMore women pursue skilled trades — here's what some said about their experienceOlder women may inherit most of $54 trillion in spousal 'great wealth transfer'CNBC's Financial Advisor 100: Best financial advisors, top firms ranked How tax refunds can change This season, your tax refund or balance due could depend on several factors, including which new tax breaks impact your situation, your 2025 paycheck withholdings, plus income and life changes, experts say. "I really wouldn't say that refunds are dramatically higher than they've been," Tom O'Saben, director of tax content and government relations at the National Association of Tax Professionals, told CNBC.So far this season, the average refund size peaked at $3,804 on Feb. 20, an increase from $3,453 about one year prior, and then gradually declined over the next two weeks. That mid-February spike is common once payments start reflecting refunds that include the earned income tax credit or the refundable part of the child tax credit, known as the additional child tax credit or ACTC. After that February jump, the average refund typically declines steadily through Tax Day, according to a Bipartisan Policy Center analysis of IRS data from the previous four seasons. Which taxpayers are seeing bigger refunds During his opening statement at a March 4 House Ways and Means Committee hearing, ranking member Rep. Richard Neal, D-Mass., said that this season's tax refund gains have been "much smaller than promised" for the average American.Later during the same hearing, Frank Bisignano, Social Security Administration commissioner and IRS CEO, said that certain filers claiming President Donald Trump's new tax breaks were already seeing average refunds that were $775 higher than last year.These filers have claimed Trump's new deductions on Schedule 1-A, which feeds into individual tax returns, he said. This form includes the deductions for tip income, overtime earnings, seniors and auto loan interest.  Overall, taxpayers are seeing "bigger refunds, faster," Bisignano said. watch nowVIDEO4:0804:08Trump tax laws to produce higher refunds in 2026Personal Finance As of March 8, nearly 45% of tax returns have claimed one of Trump's new tax breaks from Schedule 1-A this season, according to a U.S. Department of the Treasury release. The bigger limit for the state and local tax deduction, known as SALT, could also drive higher refunds for some. However, filers must itemize tax breaks rather than claiming the standard deduction to benefit from the new cap.During tax year 2022, nearly 90% of returns used the standard deduction, based on the latest IRS data. The same year, about 15 million returns claimed the SALT deduction, which was fewer than 10% of filings. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The average IRS tax refund is up 10.8%, based on new filing data. Here's what you can expect. View More

Granger Wootz | Tetra Images | Getty Images The average tax refund is 10.8% higher so far this season, compared with about the same period in 2025, according to the latest IRS filing data.As of March 13, the average refund amount for individual filers was $3,623, up from $3,271 about one year ago, the IRS reported on Friday. The IRS data reflects roughly 69.7 million individual returns received, out of about 164 million expected through the April 15 deadline. Read more CNBC personal finance coverageAverage IRS tax refund is up 10.8%, new filing data showsYour tax refund could be smaller than expected this season. Here's whyWhat may happen to Social Security benefits in six years if Congress doesn't actTrump officials task Treasury Department with student loan collectionHarvard University tops this year's list of 'dream colleges': The Princeton Review9% of ACA enrollees go uninsured after enhanced subsidies expire, poll findsThe Fed keeps rates unchanged in March: What that means for youMany states' unemployment benefits fall far short of average wages: AnalysisIran war, oil price surge worsen K-shaped economy, say economistsMore than 576,000 student loan borrowers in repayment plan backlog: court filingSome economists are warning about 'stagflation.' What it may mean for your moneyEmployers say AI makes workers faster, but it also creates 'friction': surveyTravel disruptions keep piling up in 2026. How to plan ahead and limit the impactMore women pursue skilled trades — here's what some said about their experienceOlder women may inherit most of $54 trillion in spousal 'great wealth transfer'CNBC's Financial Advisor 100: Best financial advisors, top firms ranked The latest filing data comes as both parties focus on Americans' affordability concerns ahead of the midterm elections. President Donald Trump has said this will be the "largest tax refund season of all time" following the 2025 changes enacted via his "big beautiful bill." Meanwhile, many Americans are facing rising gasoline prices amid the Iran war. The national average gasoline price reached $3.91 a gallon on Friday, up from about $2.93 per gallon one month ago, according to AAA. The spiking gas prices could offset higher tax refunds from this season, according an analysis published this week from a professor of economics at Stanford University. "The energy shock is going to hit those who have the least cushion ... and it doesn't look like those tax refunds are going to be here to save them," Alex Jacquez, chief of policy and advocacy at Groundwork Collaborative, a left-leaning economic policy think tank, said during a press call Friday. Average tax refund changes This season, the average refund size peaked at $3,804 on Feb. 20, up from $3,453 about one year prior, and has gradually declined over the past three weeks of IRS filing updates.The mid-February jump is common once payments start reflecting refunds that include the earned income tax credit or the refundable part of the child tax credit, known as the additional child tax credit or ACTC.While the White House in early January said the average refund could increase "by $1,000 or more," payments have been lower so far this season. Tom O'Saben, director of tax content and government relations at the National Association of Tax Professionals, told CNBC he has filed around 200 returns so far this season. Those receiving refunds have seen about a few hundred dollars difference compared with last year, he said.  However, your tax refund or balance due depends on several factors, including which of Trump's tax breaks affect your situation and how much you paid in 2025 via paycheck withholdings, experts say. watch nowVIDEO4:0804:08Trump tax laws to produce higher refunds in 2026Personal Finance Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

This spring's housing market is on, but economic headwinds are pushing back most of the advantage that buyers have gained over the past year in affordability. View More

A realtor gives neighbors a tour during an open house at a home in Palm Beach Gardens, Florida, on Jan. 11, 2026.Zak Bennett | Bloomberg | Getty Images Spring is traditionally the busiest season for home sales, and while this year's market dynamics have shifted strongly in favor of buyers, broader forces in the economy are creating significant challenges.The most important factor in any season is mortgage rates. They were expected to be lower this year, as the Federal Reserve dropped its lending rate to counter inflation, but the war with Iran has turned that on its head. The cost of oil is shooting higher, leading to rising inflation and causing the Fed to reconsider. Now U.S. bond yields are rising, with mortgage rates following suit. The average rate on the popular 30-year-fixed mortgage had started this year lower, even briefly dipping below 6% at the end of February, but it rose sharply this week to 6.53% on Friday, the first day of spring, according to Mortgage News Daily. It is now just 18 basis points below where it was a year ago.Higher rates will weigh on affordability, but other factors have flipped the market in favor of buyers. Homes are sitting on the market longer, sellers are increasingly willing to lower prices and the supply of homes for sale is rising, albeit not as quickly as it should be."As the housing market approaches the 'best time to sell' season, it sits in a precarious position, caught between long-term improvements and sudden short-term instability," Jake Krimmel, senior economist at Realtor.com, wrote in a Weekly Housing Trends report. "Everything seems much more unsettled and uncertain than it did just a month ago."For the week ending on March 14, active inventory was up 5.6% year-over-year, according to Realtor.com, but new listings were down 1.4%. This means the number of homes for sale is climbing not because there are so many more sellers, but because the homes on the market are sitting. That may be because potential sellers who expected to put their homes on the market are holding back due to concerns about the implications of the Iran war."I think inventory is the bigger decider," said Jonathan Miller, director of markets for StreetMatrix, a housing market data provider. "The idea that rates are going to noticeably come down this year, I think, is generally off the table." Get Property Play directly to your inboxCNBC's Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox.Subscribe here to get access today. Location, location Given the disparity in inventory across different markets, this spring is likely to be a tale of many cities. For example, in February, active listings in Las Vegas, Seattle, Cincinnati and Washington, D.C., were all up over 20% from a year ago, according to Realtor.com. Listings in San Francisco, Chicago, Miami and Orlando, Florida, meanwhile, were lower than a year ago. Home prices had been cooling off for much of the past year, and they continue to do so. Prices were just 0.7% higher in January than they were in January 2025, according to Cotality. That's down from the 3.5% annual growth at the beginning of 2025. Higher mortgage rates, however, are taking away from that improved affordability.The Northeast and Midwest are seeing the strongest price appreciation, led by New Jersey, Connecticut, Illinois, Wisconsin and Nebraska, due to tighter supply in those regions, according to Cotality. Cotality ranks 69% of top metropolitan housing markets as overvalued, noting undervalued markets like Los Angeles, New York City, San Francisco and Honolulu could see a rebound in prices in 2027."Ultimately, locations with consistent job growth will remain the primary engines for price appreciation, but they also have larger inventory deficits which are driving pressure on home prices," Selma Hepp, Cotality's chief economist, wrote in a recent report. As for new construction, buyers are likely to see better deals this spring, as builders are struggling to unload an oversupply of homes. Inventories hit a 9.7-month supply in January, according to the U.S. Census, as the result of sales falling to the lowest level since 2022. A growing share of builders cut prices in March, according to the National Association of Home Builders."Affordability for buyers and builders remains a top concern," Bill Owens, chairman of the NAHB, said in a release. "Many buyers remain on the fence waiting for lower interest rates and due to economic uncertainty. Builders are facing elevated land, labor and construction costs and nearly two-thirds continue to offer sales incentives in a bid to firm up the market."Construction of single-family homes also dropped in January. While some are blaming rough winter weather for the weakness in the new home market, builders are consistently battling affordability for both their customers and their own bottom lines. Costs for land, labor and materials have not eased."I think this is not going to be an inspiring year for the housing market. It started out with high expectations. I think the war, whatever the outcome, has really dampened enthusiasm and kept uncertainty really high," StreetMatrix's Miller said. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The stock of T3 Defense has seen a significant decline, losing 59% in March and reaching $0.96, down from $16 a year ago. Despite geopolitical tensions increasing demand for defense, the company faces severe selling pressure.  View More

Social Security's trust funds are due to run out, which would prompt benefit reductions. Yet those cuts do not have to affect all beneficiaries, experts say. View More

A person holds a sign reading "Save Our Social Security" during a rally against President Donald Trump's tax plan, near the U.S. Capitol in Washington, D.C. on April 10, 2025.Bryan Dozier | Afp | Getty Images The clock is ticking to fix Social Security to ensure it continues to pay full benefits to millions of Americans who rely on monthly payments from the program.By 2032, the trust fund Social Security draws from to help pay benefits to retirees, their spouses, children and survivors of deceased workers will be exhausted, according to the Social Security Administration.When that date arrives, there could be a 24% benefit cut for all beneficiaries if Congress does not act sooner to address the program's shortfall, based on current projections.Because Social Security is a pay-as-you-go program, with money continually coming in from payroll taxes, benefits would still be paid if the calendar reaches that date without any action by Congress to address the program's solvency. Read more CNBC personal finance coverageAverage IRS tax refund is up 10.8%, new filing data showsYour tax refund could be smaller than expected this season. Here's whyWhat may happen to Social Security benefits in six years if Congress doesn't actTrump officials task Treasury Department with student loan collectionHarvard University tops this year's list of 'dream colleges': The Princeton Review9% of ACA enrollees go uninsured after enhanced subsidies expire, poll findsThe Fed keeps rates unchanged in March: What that means for youMany states' unemployment benefits fall far short of average wages: AnalysisIran war, oil price surge worsen K-shaped economy, say economistsMore than 576,000 student loan borrowers in repayment plan backlog: court filingSome economists are warning about 'stagflation.' What it may mean for your moneyEmployers say AI makes workers faster, but it also creates 'friction': surveyTravel disruptions keep piling up in 2026. How to plan ahead and limit the impactMore women pursue skilled trades — here's what some said about their experienceOlder women may inherit most of $54 trillion in spousal 'great wealth transfer'CNBC's Financial Advisor 100: Best financial advisors, top firms ranked Experts generally say there could be an across-the-board benefit cut at that time. With just six years left on the calendar, it is an "unfortunate but now likely contingency" that Congress may not address the situation in time, Mark Warshawsky, senior fellow at the American Enterprise Institute, a conservative-leaning Washington, D.C., think tank, wrote in recent research. Lawmakers may wait until the last minute — either right up to the time or after the trust funds are due to be exhausted — based on their reactions to recent federal government shutdowns, Warshawsky said. However, an "alternative contingency policy" could make it so not everyone suffers a benefit cut at that time, according to Warshawsky, who previously served as deputy commissioner for retirement and disability policy at the Social Security Administration. What may happen when trust funds run out When 2032 comes — and if there have been no changes to curb Social Security's funding shortfall — Congress may be able to buy some time, Warshawsky said.One option: The retirement and disability trust funds could be combined, which would push the depletion date to 2034. At that time, 81% of scheduled benefits would be payable, according to Warshawsky's research.Instead of an across-the-board reduction for all beneficiaries, policymakers may instead opt to choose who absorbs those temporary reductions, Warshawsky said. His "alternative contingency policy" is inspired by Australia's approach to part of its asset means test for its age pension program.The cuts would focus on those ages 62 to 74 who receive either retirement or widow(er) benefits, based on the idea that younger retirees could more easily adapt or perhaps reenter the labor force to make up for the lost income, according to Warshawsky's proposal. Disability beneficiaries would be exempt. watch nowVIDEO2:3702:37What you need to know about Social Security as the program turns 90News Videos Additionally, the benefit changes would focus on certain net worth thresholds. Those with a net worth of less than $470,400 in 2025 dollars would be excluded from cuts. Partial benefit cuts would apply to individuals with a net worth below $785,400 at the median benefit, according to Warshawsky's plan.Beneficiaries with a significant net worth may be able to tolerate cuts, at least on a temporary basis, under his proposed contingency policy, Warshawsky told CNBC. Meanwhile, much older individuals would be spared from the benefit cuts."In the interim, that seems to me that this is a fair way of allocating the reduced revenues," he said.The enforcement of the proposed plan would depend on accurate government data, which may require the sharing of information between the Social Security Administration and IRS, according to Warshawsky. Warshawsky's proposal follows 2024 research from Andrew Biggs, a senior fellow at the American Enterprise Institute, and Kristin Shapiro, partner at BakerHostetler, a law firm. They also wrote that across-the-board benefit cuts are not inevitable if and when Social Security crosses the projected insolvency dates.Under Biggs' and Shapiro's plan, monthly benefits would be capped at $2,050, based on 2024 dollars. Approximately half of beneficiaries would still get their monthly payments as scheduled. The other half, comprised of those with higher incomes, would see progressive benefit reductions.Those changes would mean that 80% of beneficiaries would see a smaller benefit cut than under the implementation of across-the-board reductions, according to Biggs' and Shapiro's analysis. Moreover, the elderly poverty rate would not increase, according to their research. "Whatever solution they come up with for the 2032 problems can involve a lot of borrowing," Biggs said in an interview with CNBC.But if lawmakers decide to borrow money that can't be paid back, the markets may react negatively, he said. Anticipated shortfall may affect claiming decisions Prospective Social Security retirement beneficiaries may already be factoring the program's uncertain future into their decision on when to claim, surveys have found.Eligibility for Social Security retirement benefits starts at age 62. Beneficiaries get a permanent benefit reduction for taking it early.By waiting until full retirement age — age 66 or 67, depending on year of birth — or even later to age 70, beneficiaries may lock in bigger monthly payments. watch nowVIDEO2:3102:31The retirement paradox: Here's what to knowSquawk Box Nevertheless, a 2025 Schroders survey found 44% of non-retirees plan to file before age 67. While the most commonly cited reason respondents gave for wanting to claim before age 70 was wanting to access the money as soon as possible, with 37%, fears about Social Security running out of money or stopping payments altogether followed closely, with 36%.The decision on when to claim Social Security should not be an emotional decision, financial advisors say. A variety of factors — such as health, marital status, income, investments and taxes — should be considered."If you aren't in the best health and you don't have longevity in your family, it probably makes sense to take it at 62," said Crystal Cox, a certified financial planner and senior vice president at Wealthspire Advisors in Madison, Wisconsin.Other reasons may make it make sense to claim early, according to Cox. "Depletion I don't think is one of them," she said.At full retirement age, retirees stand to get 100% of the benefits they're owed. For each year they delay past retirement age, up to age 70, they can get an 8% increase to their benefits.By waiting until 70, beneficiaries would see 132% of their monthly benefit, according to the Social Security Administration, based on a full retirement age of 66.Yet research has found that just around 10% of beneficiaries wait until the highest claiming age.  Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

AI industry leaders have opposed state-level regulatory efforts, arguing that a "patchwork" of laws would hobble innovation and give China a competitive edge. View More

U.S. President Donald Trump delivers remarks on artificial intelligence at the "Winning the AI Race" Summit in Washington D.C., U.S., July 23, 2025. Kent Nishimura | Reuters The Trump administration on Friday issued a legislative framework for a single national policy on artificial intelligence, aiming to create uniform safety and security guardrails around the nascent technology while preempting states from enacting their own AI rules.The six-pronged outline broadly proposes a slew of regulations on AI products and infrastructure, ranging from implementing new child-safety rules to standardizing the permitting and energy use of AI data centers.It also calls on Congress to address thorny issues surrounding intellectual-property rights and craft rules "preventing AI systems from being used to silence or censor lawful political expression or dissent."The administration said in an official release that it wants to work with Congress "in the coming months" to convert its framework into a bill that President Donald Trump can sign.The White House wants to codify the framework into law "this year" and believes it can generate bipartisan support, Michael Kratsios, director of the White House Office of Science and Technology Policy, said in an interview with Fox News on Thursday evening.That won't be easy in a deeply divided Congress where Republicans hold thin and often fractious majorities, and where Trump has already urged GOP lawmakers to prioritize his controversial voter-ID bill above all else ahead of the November midterms. The Senate has spent much of this week debating the SAVE America Act even though it doesn't have the votes to clear the chamber.Amid rapidly growing concerns about AI and its impacts, lawmakers in New York, California and elsewhere have pushed to enact their own state-level regulations.AI industry leaders have strongly opposed those efforts, arguing that a "patchwork" of laws would hobble innovation and give global competitors like China a major advantage in the race for AI dominance. Read more CNBC politics coverageEverything to know about the SAVE America Act voter ID-billTrump signals DOJ should continue Powell probe, complicating Warsh Fed nomHegseth says potential $200 billion Iran war spending request could shift: ‘Takes money to kill bad guys’ Trump, whose administration has largely embraced AI, in December signed an executive order for a single national regulatory standard on the industry."Congress should preempt state AI laws that impose undue burdens to ensure a minimally burdensome national standard consistent with these recommendations, not fifty discordant ones," the White House framework argues.Kratsios, in a press release Friday morning said, "The White House's national AI legislative framework will unleash American ingenuity to win the global AI race, delivering breakthroughs that create jobs, lower costs, and improve lives for Americans across the country.""At the same time, it tackles real concerns head-on — protecting our children online, shielding families from higher energy costs, respecting creators' rights, and supporting American workers — so every citizen can trust and benefit from this incredible technology," he said. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Washington state's first-ever income tax would impose a 9.9% tax on income of more than $1 million a year. View More

Aerial view of Washington State Capitol in 2024.Joe Sohm/visions Of America | Universal Images Group | Getty Images A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.Washington state's proposed new income tax includes the largest "marriage penalty" in the nation, placing higher taxes on certain couples who file jointly, according to tax experts.The state House of Representatives approved Washington's first-ever income tax, imposing a 9.9% tax on income of more than $1 million a year. Having also passed the state Senate, it will now go to the governor, who plans to sign it into law. Washington is currently one of only nine states with no state income tax, and the new rate would be one of the highest in the nation.While Democratic legislators call it "the millionaire's tax," some taxpayers making far less as individuals will also be subject to the tax thanks to a steep marriage penalty. According to the legislation, the $1 million threshold for the tax applies to individuals, couples and domestic partners. So if a married couple each makes $600,000, their combined income of $1.2 million would trigger the tax."According to the statute, it doesn't matter if you're single or married, the exemption is $1 million," said Joe Wallin, an attorney who advises companies and tech founders in Washington. "It should be called the half-millionaire tax."While marriage penalties are not uncommon in state or federal tax codes, Washington's stands out for its size. Most states use two income thresholds for tax brackets, one for individuals and another for couples that's usually twice as high. Some high-tax states, such as California and New York, only apply marriage penalties for the highest earners, according to the Tax Foundation, a nonprofit tax policy think tank.In New York, for instance, the income thresholds for each bracket are doubled for joint filers through the 9.65% rate, which applies to income above $1,077,550 for single filers and $2,155,350 for joint filers. But for the special millionaire surtax rates of 10.3% and 10.9% — relevant to those making above $5 million and $25 million in income, respectively — the income thresholds are the same for joint and single filers.In California, bracket thresholds double for joint filers, except for the 1% Mental Health Services Act, which applies to income above $1 million for both single and married filers.Jared Walczak, senior fellow of the Tax Foundation, said the marriage penalties in New York and California are relatively small, amounting to a 1% tax rate difference in California and a 0.65% difference in New York. In Washington state, however, the difference can be up to 9.9%."In the most extreme case, if you had two single filers who both earned exactly $1 million, they would owe $0, but if they married and earned the same income, they would owe $99,000," he said. "Washington's marriage penalty will be the largest by far."The state's Democratic lawmakers and governor haven't specifically addressed concerns about the marriage penalty. State Sen. Noel Frame, who leads fiscal policy for the state Senate Democrats, said the standard deduction of $1 million per household is the same structure used for the state's capital gains excise tax, passed by voters in 2021."As we work to make the two separate tax structures work together, having consistency in the deduction helps with both administration of the tax by our Department of Revenue and simplicity for taxpayers," she said in a statement. "Since the tax doesn't apply to income less than $1 million, there are many high-earning couples that still won't see much of a tax impact even if their combined incomes are more than $1 million."Yet in a state that depends on highly skilled, highly paid workers at companies such as Amazon, Microsoft and other tech companies, many dual-income families could get hit with the tax, analysts said."There's this idea that, 'We're just taxing rich dudes with yachts,'" said Brian Heywood, a Washington hedge-fund manager who founded Let's Go Washington, a conservative political action committee opposed to the tax. "They've been less than honest with who they're going after and what the numbers are."Wallin joked that some dual-earning couples might even explore a legal divorce for tax reasons, even if they want to stay effectively married. "The tax savings alone would more than pay the costs of a divorce lawyer," he said.The marriage penalty is the latest controversy for Washington's new income tax, which has become a beacon in the Democratic Party's movement to raise taxes on the wealthy. From Rhode Island and New York to Virginia and Michigan, Democrats in state legislatures are seeking to counteract rising inequality and federal funding cuts to health care by raising taxes on top earners. California is considering a ballot initiative to create the first state wealth tax, taxing the total net worth of the state's billionaires. Washington will be a closely watched experiment in the debate over the impact of higher state taxes on wealth migration. Two of the state's most celebrated entrepreneurs — Jeff Bezos of Amazon and Howard Schultz of Starbucks — have already left the state for Florida, which has no income tax. Bezos announced his move to Miami in 2023, after the state's new capital gains tax of 7% took effect. He sold more than $9 billion worth of Amazon stock in 2024, effectively saving over $600 million in capital gains taxes that he would have had to pay to Washington state. Schultz recently announced that he had moved from Seattle after 44 years. He said his family office will also move to Miami but that his foundation would continue to operate in Seattle."It is our hope that Washington will remain a place for business and entrepreneurship to thrive, creating essential opportunity for those in Seattle and the surrounding areas," he wrote. Get Inside Wealth directly to your inboxThe Inside Wealth newsletter by Robert Frank is your weekly guide to high-net-worth investors and the industries that serve them.Subscribe here to get access today. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.