Happy Wednesday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟩 | US Stocks Rose on Wednesday. Despite the Fed keeping interest rates unchanged, the S&P 500 closed at a record high, and the Nasdaq Composite rose by more than 1%.

• 📈 | One Notable Gainer: Shares of Apple rose 3% as investors are increasingly bullish on the tech giant’s AI plan, dubbed “Apple Intelligence.” This latest rally caused Apple to surpass Microsoft as the world’s most valuable company.

• 📉 | One Notable Decliner: Barnes & Noble’s stock fell 26% after the company announced new leadership changes, completion of equity and refinancing transactions, and a 1-for-100 reverse stock split.

• 🛰️ | Tomorrow's Trade: Betting on Satellites. Scroll down for more.

Plus, check out our partner’s private credits for individual investors.

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YESTERDAY’S POLL RESULTS

Which stock do you think will outperform over the next 12 months?

🟩🟩🟩🟩🟩🟩 Microsoft (MSFT)

🟨🟨🟨🟨⬜️⬜️ Google (GOOG)

MARKET MOVERS

Salesforce, Nvidia, & TSM

CRM (-2%) Shares of Salesforce fell after it was disclosed that CEO Marc Benioff sold 15,000 shares at a total value of $3.6 million on Monday (MarketBeat)

NVDA (+4%) Three Wall Street firms raised their price targets on Nvidia yesterday, believing the stock still has plenty of room to run (IBD)

TSLA (+4%) Tesla’s stock rose ahead of the company’s shareholder meeting tomorrow and a fresh vote on Elon Musk’s $46 billion pay package (YF)

CASY (+17%) Casey’s General Stores’ stock soared to an all-time high today after reporting EPS of $2.34, far above the expected $1.70 (Motley Fool)

TSM (+4%) BofA hiked its price objective on Taiwan Semiconductor Manufacturing, citing that it is an integral partner in Apple’s AI push (CNBC)

TOGETHER WITH PERCENT

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The problem: High minimums and large deal sizes have historically put private credit out of reach except to larger institutional investors.

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Double digit yield potential: Percent’s Q1 LTM net APY was over 14% after fees.

Shorter term offerings: The average investment term is 9 months.

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OVERHEARD ON THE STREET

CNBC: The Federal Reserve kept its key interest rate unchanged and signaled that just one cut is expected before the end of the year.

TC: Black Semiconductor, which is developing a chip-connecting technology based on graphene, has raised €254.4 million.

CNN: Lawyers for Elon Musk moved to dismiss the billionaire’s lawsuit against OpenAI and CEO Sam Altman, ending a months-long legal battle.

MW: FedEx is reducing its European workforce, laying off between 1,700 and 2,000 employees to save up to $175 million annually.

WSJ: EV maker Fisker issued two voluntary recalls on its Ocean SUVs in North America and Europe over software-related problems.

TOMORROW’S TRADE IDEA, TODAY

Betting on Satellites

Making Moves

Investment bank UBS (UBS) has identified AST SpaceMobile (ASTS) as a potential buying opportunity. The bank admits that it's a risky stock, but the potential reward could be worth it. 

AST develops satellites to provide a space-based broadband network for unmodified smartphones. It went public in 2021 through a special-purpose acquisition company. 

The satellite designer announced a $100 million funding deal with Verizon (VZ) last month. AST also has an agreement with AT&T (T) to provide remote coverage across the US through the end of the decade.

Tailwinds

AST has a lot going on at the moment. It recently launched its first five commercial satellites. The company is also now able to collaborate with cell service providers thanks to the FCC’s “Supplemental Coverage from Space” order going into effect last month.

UBS analyst Christopher Schoell views both events as major tailwinds for the satellite maker. 

According to Schoell, AST is already gaining momentum with more than 45 operators, up from 40 at the start of the year. He expects that more deals could be coming soon.

The Risks

UBS reminds investors that the stock isn’t without risk. Some future concerns include launch timing, launch failures, regulatory roadblocks, financial backing, and competition in the space. 

However, the bank views AST’s strong partnerships with major companies as a foundation for its financial health and stability moving forward. 

Schoell has given the stock a $13 price target, a 32% increase from yesterday’s close. Shares are up over 100% YTD. For investors willing to take on the risks, this stock could provide an opportunity.

TOGETHER WITH PERCENT

Private Credit, But For Individual Investors

Private credit deals averaged a 12% return in 2023¹ and the asset class is projected to hit $2.3T by 2027.

The problem: High minimums and large deal sizes have historically put private credit out of reach except to larger institutional investors.

On Percent, everyday accredited investors can invest in private credit with as little as $500 and gain access to:

Double digit yield potential: Percent’s Q1 LTM net APY was over 14% after fees.

Shorter term offerings: The average investment term is 9 months.

Monthly cash flow: Most deals offer cash flow through monthly interest payments.

Diversification: Assets from domestic to international deals.

Check out Percent here and earn a welcome bonus of up to $500 with your first investment.*

ON OUR RADAR

Bloomberg: Rainfall records are falling across South Florida as a storm system threatens to trigger flooding at the start of the season’s first tropical system.

MW: Biden’s federal EV tax credit has allowed shoppers to get $7,500 off the upfront costs of EVs since January 1st and has totaled $1 billion in tax credits.

TC: Two of South Korea’s most prominent fabless AI chip startups, Rebellions and Sapeon, have agreed to merge as the global AI competition heats up.

Reuters: Europe has joined the EV trade war… The European Commission said it will impose extra duties of up to 38.1% on imported Chinese EVs.

Bloomberg: Several big office buildings nationwide — including in Manhattan — have recently sold at steep discounts of as much as 70 percent.