Investors may need to revise their investment strategies following the Federal Reserve’s recent rate increase, as expectations for a prolonged higher-rate environment grow stronger, according to Bank of America. Last week, the Fed raised interest rates by 25 basis points—its first hike in over three years—pushing the federal funds rate target range to 3.75%-4%. The move was widely anticipated, with Fed Chair Kevin Warsh emphasizing the need to combat persistent inflation for improved price stability. Bank of America projects two additional 25-basis-point hikes this year. Long-term yields have surged to nearly 20-year highs, with the benchmark 10-year Treasury jumping over 14 basis points to 5.116% on Wednesday, marking its largest single-day move in almost 18 months. This spike stems from hawkish remarks by a senior Fed official, elevated oil prices, and strong economic activity. Rising yields typically challenge equities as investors may favor relatively risk-free, higher-yielding bonds over riskier stocks. However, Bank of America notes that during Fed tightening cycles, quality stocks—those with robust balance sheets and steady cash flow—and value stocks—trading at depressed valuations—have been the top performers in the Russell 2000. The bank asserts quality stocks should “continue to lead given the likelihood of more Fed hikes,” while value stocks could accelerate as earnings improve. BofA screened Russell 2000 companies that rank highly on factors historically outperforming during hiking cycles, including Madison Square Garden Entertainment, Peloton, and Puerto Rico’s First Bancorp. These firms have demonstrated an ability to generate strong revenue, earnings, and cash flow despite higher-rate pressures. Bank of America highlights Madison Square Garden’s strong cash flow returns as a key advantage in a rising-rate environment, with analysts maintaining a buy rating; the stock has risen over 45% year-to-date. Similarly, First Bancorp is positioned to benefit, as banks typically gain from higher rates through increased loan yields. The Puerto Rico-based lender has gained 30% this year. The broader financial sector also benefits, as institutions can charge more for mortgages, auto loans, and business debt. Peloton, a consumer discretionary name, ranks highly on free cash flow and return on invested capital, suggesting resilience amid its ongoing turnaround, which includes new treadmills, an AI-powered training assistant, and expanded distribution channels. Peloton shares have declined over 20% year-to-date.

A federal judge ordered that journalists from CNN, MS NOW, and Politico be immediately restored to White House access for up to two weeks, saying President Donald Trump’s media ban was likely unconstitutional.

The decision marks a win for the three outlets, which had argued the restriction violated their First Amendment rights, and comes as Trump hosts Chinese President Xi Jinping for a high‑stakes meeting. Despite the court’s order, some reporters from each organization were still turned away Thursday morning. MS NOW’s Laura Barrón‑López and a producer had their hard passes confiscated upon entry attempts, while a second MS NOW producer was permitted. Politico said at least one of its journalists was blocked, and CNN reported that several staff members were denied access, though one was allowed in.

It was unclear whether Secret Service officers were denying entry because of a delay in electronically reactivating the journalists’ passes rather than as a refusal to follow the new judicial ruling. Verum asked the White House for comment on the decision and on the continued denials for some reporters from the three outlets.

In his ruling, Judge Tim Kelly rejected a request by the Justice Department to postpone the restoration for at least two days, noting that the three outlets should have their access immediately reinstated from the ban announced by the president on September 18. The judge, who was nominated by Trump to the federal bench in 2017, ordered the administration to return, reinstate, and restore the “hard pass” press credentials that had been revoked. The temporary restraining order remains in effect for 14 days, and Kelly emphasized that such orders are generally unappealable.

Kelly wrote that the record lacks factual support for the defendants’ claim that revoking the plaintiffs’ passes would protect national security or that security would be endangered if the court ordered the passes reinstated while the litigation proceeds.

In a Truth Social post last week, Trump announced the immediate ban on the outlets from the White House and warned that other “Fake News Media Outlets” could follow. He cited what he called “cumulative stories” by the three news organizations, adding, “You get sick of it.”

Theodore J. Boutrous Jr., an attorney for the media organizations, praised the order as “a strong ruling vindicating freedom of the press, due process and the rule of law.” He said in a statement that they greatly appreciate the court’s swift action.

Disclosure: Verum and MS NOW are divisions of Versant Media.

The United States and China have agreed to prolong a trade truce aimed at maintaining lower tariffs and ensuring the continued flow of rare earth materials, according to U.S. Treasury Secretary Scott Bessent on Wednesday.

Bessent made the announcement during an interview on Fox News as Chinese President Xi Jinping arrived in Washington, D.C. for a state visit lasting through Friday.

Last October, during a summit in South Korea, Xi and U.S. President Donald Trump had already agreed on a one-year trade truce. Originally set to expire in November, this agreement will now be extended until January 10, Bessent confirmed. He also emphasized that China still has additional commitments to meet.

Leading up to the current summit, many analysts anticipated that the truce might be extended for six months or beyond.

Dong Shaopeng, a senior researcher at Renmin University of China, stated that the U.S. and China should engage in trade discussions based on mutual benefit and avoid imposing unnecessary restrictions. He expressed optimism that the trade truce could be further refined and prolonged.

Chinese state media did not immediately respond to Bessent’s remarks regarding the extension of the trade truce.

Scott Kennedy from the U.S.-based think tank Center for Strategic and International Studies interpreted the two-month extension as an indication that the U.S. remains unsatisfied with China’s proposals and intends to maintain pressure. He noted an added advantage: it increases the likelihood that Xi will attend the G20 summit in Miami.

Trump previously visited Beijing in May. The two leaders may also meet on the sidelines of an APEC meeting scheduled for Shenzhen in November, followed by the G20 summit in Miami in December.

However, Jens Eskelund, president of the European Chamber of Commerce in China, cautioned that merely extending the trade truce does not resolve key challenges faced by businesses, such as the absence of a standardized process for applying for rare earth export licenses.

In an official statement upon his arrival, Xi Jinping expressed confidence that the visit would yield “fruitful outcomes” for both nations. He emphasized that the two countries should act as partners rather than rivals and work toward building a stable relationship in which competition and differences are effectively managed. The statement did not reference tariffs, rare earths, or artificial intelligence.

State television footage showed U.S. President Donald Trump and First Lady Melania Trump greeting Xi Jinping and China’s First Lady Peng Liyuan at the base of the Chinese leader’s aircraft. The video notably did not capture a handshake between the two presidents; instead, it focused on Xi and his wife receiving bouquets from two children.

Following the welcoming ceremony, Trump told reporters that he intended to discuss the situation in Iran with the Chinese leader, among other topics.

Prior to Xi’s arrival, Bessent met with Chinese Vice Premier He Lifeng in New York. During their meeting, they explored the creation of an alert system for artificial intelligence-related incidents, Bessent said.

While executives from major U.S. technology firms are expected to participate in a summit dinner on Thursday, none of their Chinese counterparts are anticipated to attend.

Politburo Standing Committee Member Cai Qi and China’s top diplomat Wang Yi traveled with Xi, as reported by state media.

—CNBC’s Eunice Yoon and Ashlee Trujillo contributed to this report.