Celestica stock price has slumped in the past few weeks, falling from the all-time high of $655 in June to the current $524. This retreat continued today, even after the company announced a $300 million investment in Texas. So, is it safe to buy the dip?
Celestica announces a major US investment
Celestica, a top Canadian provider key products like storage, compute, and networking, made a major announcement today. It will expand its Texas plant and spend $300 million, a move that will create over 2,300 jobs in the next two years.
At the same time, the company plans to extend its lease in its existing buildings and is building a new 343k square-foot program.
This statement came at a time when Celestica’s business is booming, helped by the ongoing artificial intelligence (AI) boom and data center spending. Its top clients like Alphabet, Meta Platforms, Microsoft, Amazon, and Cisco are all spending billions of dollars in their data center.
Google, its biggest customer, is boosting its spending on its TPU, raising demand for its racks and other high-speed networking products. Earlier this month, it said that it planned to spend $80 billion more in AI.
The most recent results showed that its revenue jumped by 53% in the first quarter. It made $4.05 billion, close to the upper side of the $3.85 billion and $4.15 billion guidance.
Most of this revenue came from its Connectivity & Cloud Solutions (CCS), which is made up of its servers and storage products. In a statement, the CEO said:
“We continue to see accelerating growth from our CCS customer base, alongside increasing profitability in both our CCS and ATS segments. Driven by this momentum, we are raising our 2026 annual outlook to $19.0 billion in revenue and $10.15 in adjusted EPS.”
Celestica’s growth to continue amid strong data center spending
Wall Street analysts predict that the company has more room for growth amid the resilient data center spending. Data compiled by Yahoo Finance shows that analysts expect that its revenue will be $19.19 billion, higher than what analysts guided. If this happens, it will be a 54% annual growth rate.
Analysts expect that its revenue growth will be 40% next year to $26 billion, which will make it one of the fastest growing Canadian companies. Its EPS is expected to move from $6.05 last year to $10, followed by $15 next year.
Celestica stock price technical analysis
Celestica stock chart | Source: TradingView
The daily chart shows that the Celestica share price has retreated in the past few weeks. This retreat started after the recent Broadcom earnings, which pushed top AI companies lower.
A closer look shows that the stock has formed a head-and-shoulders pattern, a common bearish sign in technical analysis. The neckline is at $473, its lowest levels since May.
However, it sits above the 50-day Exponential Moving Averages (EMA), a sign that bulls are still hanging on there. Therefore, a drop below the 50-day moving average of $517 will confirm the bearish outlook.
If this happens, the next level to watch will be at $400. On the other hand, a move above the right shoulder level of $580 will invalidate the bearish outlook.
Charles Schwab Corporation partnered with Cboe Global Markets to introduce binary options tied to the performance of the S&P 500, marking its entry into the rapidly growing prediction markets segment.
According to a report by The Wall Street Journal, the brokerage is working with Cboe to roll out all-or-nothing options contracts that allow customers to make yes-or-no wagers on whether the S&P 500 closes above or below a specified level.
The contracts will pay a fixed cash settlement if the prediction is correct and nothing if it is not.
Although structured as options rather than futures contracts, the products function similarly to prediction markets offered by platforms such as Robinhood and Interactive Brokers.
Schwab plans to make the contracts available to customers in the coming months.
New offerings aim to broaden investor participation
Schwab is also introducing an options product that incorporates a Cboe feature known as “the plus zone.”
The feature allows traders to receive a partial payout even if their predictions are not entirely accurate and the index closes near, but not exactly at, the anticipated level.
Cboe began discussing the return of binary options contracts months ago as interest in prediction markets accelerated.
Company executives have indicated that such products could appeal to investors who have experimented with prediction markets but have not yet moved into more sophisticated options strategies.
The companies have also discussed developing contracts linked to other indexes and financial benchmarks.
However, Schwab intends to focus exclusively on events with measurable outcomes in financial markets and is not expected to offer contracts tied to sports, entertainment or other non-financial events.
The expansion comes as prediction markets have grown rapidly in popularity over the past several years.
The products gained significant attention during the 2024 US presidential election and have since evolved into an asset class that allows traders to wager on outcomes ranging from monetary policy decisions and corporate earnings to major sporting events.
Brokerage tightens risk controls around long-short strategies
The move into prediction markets comes as Schwab simultaneously adds new safeguards around another rapidly growing area of its business.
The company recently informed advisers that it is implementing tighter margin requirements for clients using long-short investment strategies.
These strategies typically combine long and short positions and use margin loans and proceeds from short sales to finance investments.
Under the new requirements, individual accounts must maintain margin debits below 110% of short credits, while the aggregate limit across all accounts using long-short strategies is set at 100%.
If the requirements are not met, Schwab said it may impose restrictions.
“If the margin call is not resolved within the required time frame, ‘we may restrict new account enrollments in the strategy, execute transactions in the account to satisfy the deficiency, or take additional action to manage the exposure,’ Schwab said in the notice.”
The brokerage emphasized its continued support for long-short strategies.
“The changes we have recently shared with our participating RIA clients are designed to ensure the program grows and meets demand sustainably,” the firm said. “With Schwab’s scale, balance sheet, and expertise behind it, Long/Short SMA Strategies on Schwab’s platform are well positioned for the long term.”
Schwab introduced leverage caps and account minimums on long-short separately managed accounts in April.
The company reported margin loan balances of nearly $127 billion at the end of the first quarter.
Shares of Charles Schwab have fallen about 9% so far this year as investors monitor both the company’s expansion into new trading products and its efforts to manage risks across its growing platform.
Alcohol companies have had fewer reasons to say “cheers” in recent years.
Volumes have been falling, and the entire business model is undergoing a structural shakeup as younger people drink less.
The downturn has been driven by a mix of structural and cyclical forces.
Younger consumers are drinking less, inflation has squeezed discretionary spending, and shifting attitudes toward health and socialising are reshaping demand across beer, wine, and spirits.
People drinking lesser
There has been a notable shift in drinking patterns as younger people are increasingly drinking less alcohol.
Cultural changes, inflation, and affordability issues are all eating into alcohol consumption.
It’s no coincidence that since 2021, alcoholic drinks companies have had a tough time of it as sales of alcoholic beverages have slowed due to the changing drinking habits of a younger cohort of consumers. Whether it be your traditional brewing companies like Heineken and Carlsberg to the likes of Diageo who make the famous Guinness and Johnnie Walker whisky brands the share price performance has been poor.
Experts also corroborate the decline of alcohol drinking among younger people.
Stephan Kemper, Chief Investment Strategist at BNP Paribas SA, said roughly 36% of Gen Z identify as non-drinkers. He noted that people who do not begin drinking in early adulthood are unlikely to take up the habit later in life.
Millennials, meanwhile, are approaching their peak consumption years, but Kemper argued that the broader decline in alcohol consumption reflects a deeper generational shift rather than a temporary slowdown.
“We are at the beginning of a generational trend which could well accelerate from current levels.”
Inflation and affordability are hitting alcohol purchases
Inflation and affordability have put a dent in people’s wallets, which has led to cutting down on discretionary spending.
This has affected drinking as consumers pulled their purse strings.
Inflation clearly doesn’t help (falling alcohol consumption), by encouraging households to reduce outside activities: eating at home instead of outside, drinking at home instead of a bar. This is where beverage consumption is the highest… yet, since the pandemic, the downtrending social spectrum, combined with the cost-of-living crisis, hurts.
US consumer sentiment also remained low in recent months due to the US-Iran conflict, which affected gas prices, though the latest data showed improvement in the sentiment.
The decline has also been due to a changing perception of young people towards alcohol drinking.
As more people become health-conscious, their view towards alcohol drinking becomes less favourable.
Ipek Ozkardeskaya said the shift away from alcohol is increasingly cultural rather than purely economic.
She argued that younger consumers are placing greater emphasis on health, fitness, and personal image, while spending more time online and socializing differently than previous generations.
“We see that the idea of ‘you must drink to have fun’ has been totally scrapped.”
Usage of smart products that track health has also contributed to people drinking less.
Amanda Wick, Principal at Incite Consulting, pointed out that health wearables and biometric feedback have affected drinking habits “by making alcohol’s effects immediately visible rather than abstract.”
Grand View Research data shows that the global wearable medical device market was valued at $54.0 billion in 2025 and is expected to expand rapidly over the coming years.
The market is projected to grow to $68.1 billion in 2026 and reach $330.5 billion by 2033, representing a compound annual growth rate (CAGR) of 29.5% during the forecast period.
Wick said the personal usage of the WHOOP Band showed the detrimental impact of alcohol usage.
In 2026, researchers analyzed data from 30,000 new WHOOP users over 72 weeks and found that self-reported alcohol consumption declined significantly after users began tracking their health metrics. Drinking days fell from 23.0% of days to 17.2% of days—a roughly 25% relative reduction—and reported alcohol volume also declined.
Oura, a company that makes rings that track sleep and activity, has reportedly sold 5.5 million rings in total.
IDC data shows the company was the third most popular wearable brand in terms of unit volume in the US in the first quarter of this year, behind Apple and Google.
Stephan Kemper said the growing use of GLP-1 weight-loss drugs could become another headwind for alcohol consumption.
He noted that these medications appear to reduce a range of addictive behaviours, while the high-calorie content of beer and wine may make them less appealing to consumers focused on weight management.
“While the impact of Ozempic and similar drugs on alcohol consumption is still difficult to isolate precisely, the direction is clear,” Kemper said, adding that the effect is likely to become more pronounced as prescription rates rise.
According to a Morgan Stanley note, the global market for weight loss and obesity could grow to $190 billion by 2035 from $79 billion in 2025.
As more people become proactive in taking care of themselves, it will result in less alcohol drinking.
Slowing volume and sales
Major beer and spirit companies have been struggling with either falling volumes or stock slowdown.
The Johnnie Walker whisky maker, Diageo, has seen its stock fall by over 19% since last year.
Anheuser-Busch InBev, the world’s largest brewer, fared much better in the last year, with a 13% gain in stock price.
However, over the last 5 years, the company’s US depository shares have given only 7%returns.
The company’s struggles led to the replacement of CEO Debra Crew in 2025, with sales of the largest spirit maker in the world declining during her tenure.
The company appointed Dave Lewis as CEO to turn the company around.
In its latest results, the company posted a 0.3% organic sales growth, helped by strong demand in the UK and Ireland and stocking up in Latin American countries ahead of the World Cup.
Diageo’s North American sales have declined 9.4% in its third quarter results.
Anheuser-Busch InBev also saw its North American volume fall by 3.1%, though sales grew in the region grew by 0.9%.
The company posted volume growth of 0.8% in its latest quarter, increasing for the first time since 2023.
The growth has been supported by higher prices, while demand for alcoholic beverages has weakened across several markets.
In 2025, the brewer’s total sales volume fell 2.3% from a year earlier, including a 2.6% decline in beer volumes.
How have alcohol companies adapted?
With these challenges, alcohol companies have pivoted to low alcohol drinks. They have also relied on premiumization to combat falling volumes.
Beverage companies are forced to adopt towards 'NoLo-Land' (No/Low Alcohol). The major players have understood the structural shift and are acting on it, albeit with varying degrees of commitment.
Kemper also noted that some companies are adopting the premiumization strategy as a buffer, with higher prices and values per unit sold, which can shield the bottom line.
Anheuser-Busch InBev has rolled out products such as Budweiser Zero, Corona Cero, and Michelob Ultra Zero, while also rolling out alcohol-free versions of Stella Artois and other core labels.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said companies are “streamlining their portfolios by disposing of lower-margin, lower-growth brands. Not only should this help shore up balance sheets and boost margins, but it also means they can allocate more of their advertising budgets to stronger brands to drive better pricing power and offset volume weakness.”
AB InBev Global Chief Marketing Officer Marcel Marcondes said during the company’s first quarter results that the company has sharpened its brand strategy, reducing the number of actively marketed labels in each market from around 15 to 20 brands three years ago to a smaller group of three to five “megabrands.”
The selection is based on a combination of sales volumes and growth potential.
These flagship brands now account for about 70% of AB InBev’s marketing spend, up from 50% in 2021, and contribute roughly 60% of the company’s total sales.
Michael Hewson said, “Carlsberg now generates a good deal of revenue from soft drinks and its non-alcoholic range of beers, with its recent acquisition of Britvic helping to push that up to around 30% of group sales.”
Hewson said Diageo has also expanded its range of alcohol-free products, including 0% versions of Guinness, Tanqueray, and Gordon’s Gin, as it adapts to changing consumer preferences.
Are the changes enough to stage a turnaround?
Analysts cautioned that premiumization may become harder to sustain if consumers remain under financial pressure.
Kemper said higher prices have so far helped offset declining volumes and preserve profitability.
However, he warned that the industry’s position would become more challenging if both pricing power and volumes weakened at the same time.
Ozkardeskaya said investors largely recognize weak volume growth in developed markets but still expect premiumization and emerging-market demand to support earnings.
She added that those assumptions could come under pressure if inflation remains elevated.
IWSR data indicate that while several mature markets faced pressure, some emerging economies continued to post growth in total beverage alcohol (TBA) consumption.
South Africa recorded year-over-year increases of 4% in volume and 12% in value between 2024 and 2025.
India also delivered solid growth, with beverage alcohol volumes rising 4% and value increasing 5% over the same period.
Valuations across the sector have already fallen sharply.
Kemper noted that alcohol companies have lost more than $800 billion in market value in recent years, leaving beverage stocks’ valuation discount to the broader market at a 15-year high.
“While we agree with this argument to a certain degree, we still think that the headwinds could persist as the structural nature of the change might not be fully embraced yet.”
World Cup to boost beer sales in the near term
There are near-term tailwinds for these companies, with the World Cup expected to boost beer consumption.
Jefferies said in a note that “After five successive years of volatility, beer should be better in 2026”.
With this edition having more games than the previous one, there are more opportunities for nights out and watch parties, which would increase sales.
According to Jefferies’ estimates, one billion extra pints would be consumed globally, providing a 0.3% lift for the beer category.
Bernstein also posted a similar view earlier in the year, saying marquee football tournaments increase beer consumption in the host nation by 1.3% above the normal trend.
Budweiser-maker Anheuser-Busch is expected to be the biggest beneficiary, according to Jefferies, due to its role as the tournament sponsor and strong exposure in the host nations.
Heineken is also expected to benefit from its exposure to Latin America and Europe.
A structural shift with no easy fix
For alcohol companies, the challenge is no longer just cyclical weakness but adapting to a market that is changing structurally.
Younger consumers are drinking less, health-conscious behaviour is becoming mainstream, and inflation continues to pressure discretionary spending.
Companies have responded with premium products, no- and low-alcohol offerings, and portfolio reshuffles, but analysts say those measures may only partly offset the decline in volumes.
Near-term events such as the World Cup could provide a temporary boost to beer sales, yet the broader question remains whether the industry can build sustainable growth in a world where drinking is becoming less central to social life.
US stocks are showing surprising resilience as Wall Street increasingly abandons expectations for near-term Federal Reserve rate cuts.
Several major financial institutions have recently pushed back their forecasts for monetary easing, with some now expecting the Federal Reserve to leave rates unchanged throughout 2026.
Yet despite the more hawkish outlook, strategists remain broadly constructive on equities, particularly in the United States.
The bank forecasts the Federal Funds rate will remain in a range of 3.5% to 3.75% through the remainder of 2026, with only a single 25-basis-point cut expected in the first half of 2027.
The bank expects strong corporate earnings and continued economic resilience to support markets despite elevated borrowing costs. It forecasts the S&P 500 will reach 7,950 by mid-2027.
Standard Chartered said the US economy is performing better than many had feared, with second-quarter growth tracking around 2.2% on a seasonally adjusted annualized basis.
Full-year growth is expected to average approximately 2.1%, supported by artificial intelligence-related capital expenditure, a recovering labor market, and increased manufacturing activity.
Wall Street pushes rate-cut expectations back
The constructive outlook for equities comes even as investors adjust to a Federal Reserve that appears increasingly reluctant to ease policy.
The bank now expects policymakers to leave rates unchanged throughout 2026 before delivering reductions in June and December 2027.
The revision followed stronger-than-expected labor market data and reflects expectations that economic growth and inflation pressures will remain firm.
Citigroup has also delayed its expected easing timeline. The bank now forecasts rate cuts in October and December 2026, followed by another reduction in January 2027, after previously expecting cuts to begin in September.
The revisions come after Federal Reserve policymakers signaled a more cautious stance on inflation, prompting investors to reassess expectations that lower rates would arrive quickly.
Other assets struggle with higher rates
While equities have largely absorbed the hawkish shift, other asset classes have been less resilient.
Bitcoin was trading near $62,000 on Friday after falling from above $67,000 earlier in the week.
The cryptocurrency has struggled to regain momentum even as stocks recovered, reflecting the pressure that higher interest rates place on speculative assets.
Higher borrowing costs typically reduce the attractiveness of assets that do not generate income, particularly when yields on cash and fixed-income investments remain elevated.
Gold has also weakened. Futures recently fell 1.8% to around $4,173 an ounce after trading above $4,350 earlier in the week.
Rising real yields and a stronger dollar have weighed on demand for the precious metal, which offers no yield to investors.
The divergence has become increasingly pronounced. While stocks continue pushing toward record highs, both Bitcoin and gold have struggled to maintain gains as markets price in a longer period of restrictive monetary policy.
Earnings and AI spending drive confidence
Rather than relying on lower interest rates to justify higher valuations, investors appear increasingly focused on earnings growth and corporate spending trends.
Artificial intelligence investment remains one of the strongest drivers of capital expenditure across the US economy, supporting demand across technology, infrastructure, and manufacturing sectors.
Markets briefly wobbled following Federal Reserve Chair Kevin Warsh’s first policy meeting, which underscored policymakers’ concerns about inflation.
However, equities quickly recovered, aided by optimism surrounding an agreement between the United States and Iran that could help stabilize energy markets through the reopening of the Strait of Hormuz.
For now, Wall Street’s message appears increasingly clear: rate cuts may be further away than previously expected, but many strategists believe strong earnings growth, economic resilience, and continued AI investment can keep supporting equities even in a higher-rate environment.
Celestica stock price has slumped in the past few weeks, falling from the all-time high of $655 in June to the current $524. This retreat continued today, even after the company announced a $300 million investment in Texas. So, is it safe to buy the dip?
Celestica announces a major US investment
Celestica, a top Canadian provider key products like storage, compute, and networking, made a major announcement today. It will expand its Texas plant and spend $300 million, a move that will create over 2,300 jobs in the next two years.
At the same time, the company plans to extend its lease in its existing buildings and is building a new 343k square-foot program.
This statement came at a time when Celestica’s business is booming, helped by the ongoing artificial intelligence (AI) boom and data center spending. Its top clients like Alphabet, Meta Platforms, Microsoft, Amazon, and Cisco are all spending billions of dollars in their data center.
Google, its biggest customer, is boosting its spending on its TPU, raising demand for its racks and other high-speed networking products. Earlier this month, it said that it planned to spend $80 billion more in AI.
The most recent results showed that its revenue jumped by 53% in the first quarter. It made $4.05 billion, close to the upper side of the $3.85 billion and $4.15 billion guidance.
Most of this revenue came from its Connectivity & Cloud Solutions (CCS), which is made up of its servers and storage products. In a statement, the CEO said:
“We continue to see accelerating growth from our CCS customer base, alongside increasing profitability in both our CCS and ATS segments. Driven by this momentum, we are raising our 2026 annual outlook to $19.0 billion in revenue and $10.15 in adjusted EPS.”
Celestica’s growth to continue amid strong data center spending
Wall Street analysts predict that the company has more room for growth amid the resilient data center spending. Data compiled by Yahoo Finance shows that analysts expect that its revenue will be $19.19 billion, higher than what analysts guided. If this happens, it will be a 54% annual growth rate.
Analysts expect that its revenue growth will be 40% next year to $26 billion, which will make it one of the fastest growing Canadian companies. Its EPS is expected to move from $6.05 last year to $10, followed by $15 next year.
Celestica stock price technical analysis
Celestica stock chart | Source: TradingView
The daily chart shows that the Celestica share price has retreated in the past few weeks. This retreat started after the recent Broadcom earnings, which pushed top AI companies lower.
A closer look shows that the stock has formed a head-and-shoulders pattern, a common bearish sign in technical analysis. The neckline is at $473, its lowest levels since May.
However, it sits above the 50-day Exponential Moving Averages (EMA), a sign that bulls are still hanging on there. Therefore, a drop below the 50-day moving average of $517 will confirm the bearish outlook.
If this happens, the next level to watch will be at $400. On the other hand, a move above the right shoulder level of $580 will invalidate the bearish outlook.
Shares of Snap Inc. have been under pressure after the company’s latest push into augmented reality, raising questions about whether its long-term investment in wearable computing can eventually translate into improved stock performance.
SNAP stock has fallen 13% over the past five trading sessions and is down 42.6% year to date.
The decline comes even as the company unveiled SPECS, a new pair of standalone augmented reality glasses that represent its latest attempt to build a computing platform beyond smartphones.
The launch underscores Snap’s long-standing commitment to augmented reality, an area that has fallen out of favor among investors following years of ambitious promises and limited commercial success across the industry.
Snap’s new SPECS AR glasses
On June 16, 2026, Snap introduced SPECS at the Augmented World Expo in Long Beach, California.
The glasses are designed to bring digital information, entertainment, and assistance into users’ surroundings without drawing attention away from the physical world.
The product is built using Swiss TR90 polymer, comes in two sizes, and weighs either 132 grams or 136 grams.
SPECS feature a 51-degree field of view, support 16 million colors, and include electrochromic lenses that can switch between clear and tinted modes. The glasses also support prescription inserts.
Powered by two Snapdragon processors, the device enables computer vision, hand tracking, and augmented reality experiences.
SPECS provide up to four hours of mixed-use battery life, while a charging case extends usage to as much as 20 hours.
The glasses are available for pre-order at $2,195 with a refundable $200 deposit and are expected to begin shipping this fall in the United States, the United Kingdom, and France.
Snap co-founder and Chief Executive Evan Spiegel described the company’s vision during his keynote presentation.
It’s building “a computer you can wear, see through, and use in the moment,” Spiegel said. “A computer that understands the world around you instead of pulling you out of it.”
Long-term vision faces near-term challenges
Despite the new product launch, augmented reality hardware still faces significant hurdles.
SPECS offer only four hours of standalone battery life and remain considerably heavier than conventional eyewear.
The digital display also occupies only a portion of the lens.
The launch comes after years of investment in augmented reality by major technology companies.
Meta has invested heavily through its Reality Labs division and collaborations with Ray-Ban and Oakley, while Apple entered the market with its Vision Pro headset in 2024.
Analysts question pricing and mass-market appeal
Analysts have expressed skepticism about Snap’s latest augmented reality push, citing concerns around pricing, hardware design and the pace of consumer adoption.
BNP Paribas analyst Nick Jones said the company’s pricing strategy may be contributing to recent stock weakness, noting that the $2,195 price tag for Specs is significantly higher than Meta’s smart glasses, which start at about $250.
Jitesh Ubrani, a research manager at International Data Corp., said Snap’s “heavy spending” in an “unproven” extended-reality market has raised red flags for investors.
He added that while Snap is positioning Specs as consumer-grade AR glasses, “at its current price point and with a design that hasn’t yet achieved mainstream appeal, the glasses face a steep road to mass adoption.”
Rosenblatt analyst Barton Crockett also questioned the product’s prospects, arguing that heavier devices may struggle to gain widespread consumer acceptance and that it could take several generations of Specs hardware before the category becomes significant.
Charles Schwab Corporation partnered with Cboe Global Markets to introduce binary options tied to the performance of the S&P 500, marking its entry into the rapidly growing prediction markets segment.
According to a report by The Wall Street Journal, the brokerage is working with Cboe to roll out all-or-nothing options contracts that allow customers to make yes-or-no wagers on whether the S&P 500 closes above or below a specified level.
The contracts will pay a fixed cash settlement if the prediction is correct and nothing if it is not.
Although structured as options rather than futures contracts, the products function similarly to prediction markets offered by platforms such as Robinhood and Interactive Brokers.
Schwab plans to make the contracts available to customers in the coming months.
New offerings aim to broaden investor participation
Schwab is also introducing an options product that incorporates a Cboe feature known as “the plus zone.”
The feature allows traders to receive a partial payout even if their predictions are not entirely accurate and the index closes near, but not exactly at, the anticipated level.
Cboe began discussing the return of binary options contracts months ago as interest in prediction markets accelerated.
Company executives have indicated that such products could appeal to investors who have experimented with prediction markets but have not yet moved into more sophisticated options strategies.
The companies have also discussed developing contracts linked to other indexes and financial benchmarks.
However, Schwab intends to focus exclusively on events with measurable outcomes in financial markets and is not expected to offer contracts tied to sports, entertainment or other non-financial events.
The expansion comes as prediction markets have grown rapidly in popularity over the past several years.
The products gained significant attention during the 2024 US presidential election and have since evolved into an asset class that allows traders to wager on outcomes ranging from monetary policy decisions and corporate earnings to major sporting events.
Brokerage tightens risk controls around long-short strategies
The move into prediction markets comes as Schwab simultaneously adds new safeguards around another rapidly growing area of its business.
The company recently informed advisers that it is implementing tighter margin requirements for clients using long-short investment strategies.
These strategies typically combine long and short positions and use margin loans and proceeds from short sales to finance investments.
Under the new requirements, individual accounts must maintain margin debits below 110% of short credits, while the aggregate limit across all accounts using long-short strategies is set at 100%.
If the requirements are not met, Schwab said it may impose restrictions.
“If the margin call is not resolved within the required time frame, ‘we may restrict new account enrollments in the strategy, execute transactions in the account to satisfy the deficiency, or take additional action to manage the exposure,’ Schwab said in the notice.”
The brokerage emphasized its continued support for long-short strategies.
“The changes we have recently shared with our participating RIA clients are designed to ensure the program grows and meets demand sustainably,” the firm said. “With Schwab’s scale, balance sheet, and expertise behind it, Long/Short SMA Strategies on Schwab’s platform are well positioned for the long term.”
Schwab introduced leverage caps and account minimums on long-short separately managed accounts in April.
The company reported margin loan balances of nearly $127 billion at the end of the first quarter.
Shares of Charles Schwab have fallen about 9% so far this year as investors monitor both the company’s expansion into new trading products and its efforts to manage risks across its growing platform.
Alcohol companies have had fewer reasons to say “cheers” in recent years.
Volumes have been falling, and the entire business model is undergoing a structural shakeup as younger people drink less.
The downturn has been driven by a mix of structural and cyclical forces.
Younger consumers are drinking less, inflation has squeezed discretionary spending, and shifting attitudes toward health and socialising are reshaping demand across beer, wine, and spirits.
People drinking lesser
There has been a notable shift in drinking patterns as younger people are increasingly drinking less alcohol.
Cultural changes, inflation, and affordability issues are all eating into alcohol consumption.
It’s no coincidence that since 2021, alcoholic drinks companies have had a tough time of it as sales of alcoholic beverages have slowed due to the changing drinking habits of a younger cohort of consumers. Whether it be your traditional brewing companies like Heineken and Carlsberg to the likes of Diageo who make the famous Guinness and Johnnie Walker whisky brands the share price performance has been poor.
Experts also corroborate the decline of alcohol drinking among younger people.
Stephan Kemper, Chief Investment Strategist at BNP Paribas SA, said roughly 36% of Gen Z identify as non-drinkers. He noted that people who do not begin drinking in early adulthood are unlikely to take up the habit later in life.
Millennials, meanwhile, are approaching their peak consumption years, but Kemper argued that the broader decline in alcohol consumption reflects a deeper generational shift rather than a temporary slowdown.
“We are at the beginning of a generational trend which could well accelerate from current levels.”
Inflation and affordability are hitting alcohol purchases
Inflation and affordability have put a dent in people’s wallets, which has led to cutting down on discretionary spending.
This has affected drinking as consumers pulled their purse strings.
Inflation clearly doesn’t help (falling alcohol consumption), by encouraging households to reduce outside activities: eating at home instead of outside, drinking at home instead of a bar. This is where beverage consumption is the highest… yet, since the pandemic, the downtrending social spectrum, combined with the cost-of-living crisis, hurts.
US consumer sentiment also remained low in recent months due to the US-Iran conflict, which affected gas prices, though the latest data showed improvement in the sentiment.
The decline has also been due to a changing perception of young people towards alcohol drinking.
As more people become health-conscious, their view towards alcohol drinking becomes less favourable.
Ipek Ozkardeskaya said the shift away from alcohol is increasingly cultural rather than purely economic.
She argued that younger consumers are placing greater emphasis on health, fitness, and personal image, while spending more time online and socializing differently than previous generations.
“We see that the idea of ‘you must drink to have fun’ has been totally scrapped.”
Usage of smart products that track health has also contributed to people drinking less.
Amanda Wick, Principal at Incite Consulting, pointed out that health wearables and biometric feedback have affected drinking habits “by making alcohol’s effects immediately visible rather than abstract.”
Grand View Research data shows that the global wearable medical device market was valued at $54.0 billion in 2025 and is expected to expand rapidly over the coming years.
The market is projected to grow to $68.1 billion in 2026 and reach $330.5 billion by 2033, representing a compound annual growth rate (CAGR) of 29.5% during the forecast period.
Wick said the personal usage of the WHOOP Band showed the detrimental impact of alcohol usage.
In 2026, researchers analyzed data from 30,000 new WHOOP users over 72 weeks and found that self-reported alcohol consumption declined significantly after users began tracking their health metrics. Drinking days fell from 23.0% of days to 17.2% of days—a roughly 25% relative reduction—and reported alcohol volume also declined.
Oura, a company that makes rings that track sleep and activity, has reportedly sold 5.5 million rings in total.
IDC data shows the company was the third most popular wearable brand in terms of unit volume in the US in the first quarter of this year, behind Apple and Google.
Stephan Kemper said the growing use of GLP-1 weight-loss drugs could become another headwind for alcohol consumption.
He noted that these medications appear to reduce a range of addictive behaviours, while the high-calorie content of beer and wine may make them less appealing to consumers focused on weight management.
“While the impact of Ozempic and similar drugs on alcohol consumption is still difficult to isolate precisely, the direction is clear,” Kemper said, adding that the effect is likely to become more pronounced as prescription rates rise.
According to a Morgan Stanley note, the global market for weight loss and obesity could grow to $190 billion by 2035 from $79 billion in 2025.
As more people become proactive in taking care of themselves, it will result in less alcohol drinking.
Slowing volume and sales
Major beer and spirit companies have been struggling with either falling volumes or stock slowdown.
The Johnnie Walker whisky maker, Diageo, has seen its stock fall by over 19% since last year.
Anheuser-Busch InBev, the world’s largest brewer, fared much better in the last year, with a 13% gain in stock price.
However, over the last 5 years, the company’s US depository shares have given only 7%returns.
The company’s struggles led to the replacement of CEO Debra Crew in 2025, with sales of the largest spirit maker in the world declining during her tenure.
The company appointed Dave Lewis as CEO to turn the company around.
In its latest results, the company posted a 0.3% organic sales growth, helped by strong demand in the UK and Ireland and stocking up in Latin American countries ahead of the World Cup.
Diageo’s North American sales have declined 9.4% in its third quarter results.
Anheuser-Busch InBev also saw its North American volume fall by 3.1%, though sales grew in the region grew by 0.9%.
The company posted volume growth of 0.8% in its latest quarter, increasing for the first time since 2023.
The growth has been supported by higher prices, while demand for alcoholic beverages has weakened across several markets.
In 2025, the brewer’s total sales volume fell 2.3% from a year earlier, including a 2.6% decline in beer volumes.
How have alcohol companies adapted?
With these challenges, alcohol companies have pivoted to low alcohol drinks. They have also relied on premiumization to combat falling volumes.
Beverage companies are forced to adopt towards 'NoLo-Land' (No/Low Alcohol). The major players have understood the structural shift and are acting on it, albeit with varying degrees of commitment.
Kemper also noted that some companies are adopting the premiumization strategy as a buffer, with higher prices and values per unit sold, which can shield the bottom line.
Anheuser-Busch InBev has rolled out products such as Budweiser Zero, Corona Cero, and Michelob Ultra Zero, while also rolling out alcohol-free versions of Stella Artois and other core labels.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said companies are “streamlining their portfolios by disposing of lower-margin, lower-growth brands. Not only should this help shore up balance sheets and boost margins, but it also means they can allocate more of their advertising budgets to stronger brands to drive better pricing power and offset volume weakness.”
AB InBev Global Chief Marketing Officer Marcel Marcondes said during the company’s first quarter results that the company has sharpened its brand strategy, reducing the number of actively marketed labels in each market from around 15 to 20 brands three years ago to a smaller group of three to five “megabrands.”
The selection is based on a combination of sales volumes and growth potential.
These flagship brands now account for about 70% of AB InBev’s marketing spend, up from 50% in 2021, and contribute roughly 60% of the company’s total sales.
Michael Hewson said, “Carlsberg now generates a good deal of revenue from soft drinks and its non-alcoholic range of beers, with its recent acquisition of Britvic helping to push that up to around 30% of group sales.”
Hewson said Diageo has also expanded its range of alcohol-free products, including 0% versions of Guinness, Tanqueray, and Gordon’s Gin, as it adapts to changing consumer preferences.
Are the changes enough to stage a turnaround?
Analysts cautioned that premiumization may become harder to sustain if consumers remain under financial pressure.
Kemper said higher prices have so far helped offset declining volumes and preserve profitability.
However, he warned that the industry’s position would become more challenging if both pricing power and volumes weakened at the same time.
Ozkardeskaya said investors largely recognize weak volume growth in developed markets but still expect premiumization and emerging-market demand to support earnings.
She added that those assumptions could come under pressure if inflation remains elevated.
IWSR data indicate that while several mature markets faced pressure, some emerging economies continued to post growth in total beverage alcohol (TBA) consumption.
South Africa recorded year-over-year increases of 4% in volume and 12% in value between 2024 and 2025.
India also delivered solid growth, with beverage alcohol volumes rising 4% and value increasing 5% over the same period.
Valuations across the sector have already fallen sharply.
Kemper noted that alcohol companies have lost more than $800 billion in market value in recent years, leaving beverage stocks’ valuation discount to the broader market at a 15-year high.
“While we agree with this argument to a certain degree, we still think that the headwinds could persist as the structural nature of the change might not be fully embraced yet.”
World Cup to boost beer sales in the near term
There are near-term tailwinds for these companies, with the World Cup expected to boost beer consumption.
Jefferies said in a note that “After five successive years of volatility, beer should be better in 2026”.
With this edition having more games than the previous one, there are more opportunities for nights out and watch parties, which would increase sales.
According to Jefferies’ estimates, one billion extra pints would be consumed globally, providing a 0.3% lift for the beer category.
Bernstein also posted a similar view earlier in the year, saying marquee football tournaments increase beer consumption in the host nation by 1.3% above the normal trend.
Budweiser-maker Anheuser-Busch is expected to be the biggest beneficiary, according to Jefferies, due to its role as the tournament sponsor and strong exposure in the host nations.
Heineken is also expected to benefit from its exposure to Latin America and Europe.
A structural shift with no easy fix
For alcohol companies, the challenge is no longer just cyclical weakness but adapting to a market that is changing structurally.
Younger consumers are drinking less, health-conscious behaviour is becoming mainstream, and inflation continues to pressure discretionary spending.
Companies have responded with premium products, no- and low-alcohol offerings, and portfolio reshuffles, but analysts say those measures may only partly offset the decline in volumes.
Near-term events such as the World Cup could provide a temporary boost to beer sales, yet the broader question remains whether the industry can build sustainable growth in a world where drinking is becoming less central to social life.
US stocks are showing surprising resilience as Wall Street increasingly abandons expectations for near-term Federal Reserve rate cuts.
Several major financial institutions have recently pushed back their forecasts for monetary easing, with some now expecting the Federal Reserve to leave rates unchanged throughout 2026.
Yet despite the more hawkish outlook, strategists remain broadly constructive on equities, particularly in the United States.
The bank forecasts the Federal Funds rate will remain in a range of 3.5% to 3.75% through the remainder of 2026, with only a single 25-basis-point cut expected in the first half of 2027.
The bank expects strong corporate earnings and continued economic resilience to support markets despite elevated borrowing costs. It forecasts the S&P 500 will reach 7,950 by mid-2027.
Standard Chartered said the US economy is performing better than many had feared, with second-quarter growth tracking around 2.2% on a seasonally adjusted annualized basis.
Full-year growth is expected to average approximately 2.1%, supported by artificial intelligence-related capital expenditure, a recovering labor market, and increased manufacturing activity.
Wall Street pushes rate-cut expectations back
The constructive outlook for equities comes even as investors adjust to a Federal Reserve that appears increasingly reluctant to ease policy.
The bank now expects policymakers to leave rates unchanged throughout 2026 before delivering reductions in June and December 2027.
The revision followed stronger-than-expected labor market data and reflects expectations that economic growth and inflation pressures will remain firm.
Citigroup has also delayed its expected easing timeline. The bank now forecasts rate cuts in October and December 2026, followed by another reduction in January 2027, after previously expecting cuts to begin in September.
The revisions come after Federal Reserve policymakers signaled a more cautious stance on inflation, prompting investors to reassess expectations that lower rates would arrive quickly.
Other assets struggle with higher rates
While equities have largely absorbed the hawkish shift, other asset classes have been less resilient.
Bitcoin was trading near $62,000 on Friday after falling from above $67,000 earlier in the week.
The cryptocurrency has struggled to regain momentum even as stocks recovered, reflecting the pressure that higher interest rates place on speculative assets.
Higher borrowing costs typically reduce the attractiveness of assets that do not generate income, particularly when yields on cash and fixed-income investments remain elevated.
Gold has also weakened. Futures recently fell 1.8% to around $4,173 an ounce after trading above $4,350 earlier in the week.
Rising real yields and a stronger dollar have weighed on demand for the precious metal, which offers no yield to investors.
The divergence has become increasingly pronounced. While stocks continue pushing toward record highs, both Bitcoin and gold have struggled to maintain gains as markets price in a longer period of restrictive monetary policy.
Earnings and AI spending drive confidence
Rather than relying on lower interest rates to justify higher valuations, investors appear increasingly focused on earnings growth and corporate spending trends.
Artificial intelligence investment remains one of the strongest drivers of capital expenditure across the US economy, supporting demand across technology, infrastructure, and manufacturing sectors.
Markets briefly wobbled following Federal Reserve Chair Kevin Warsh’s first policy meeting, which underscored policymakers’ concerns about inflation.
However, equities quickly recovered, aided by optimism surrounding an agreement between the United States and Iran that could help stabilize energy markets through the reopening of the Strait of Hormuz.
For now, Wall Street’s message appears increasingly clear: rate cuts may be further away than previously expected, but many strategists believe strong earnings growth, economic resilience, and continued AI investment can keep supporting equities even in a higher-rate environment.
