Americans head to dollar stores as affordability crunch pinches consumers

Dollar General is experiencing a notable shift in customer behavior as the K-shaped economy continues to impact lower- and middle-income households, leading to a decrease in discretionary spending and an increase in essential purchases. This change is attributed to a weakening job market and rising inflation, which are squeezing consumer wallets.

Telsey has raised the stock price target for Dollar General to $130 following the company's strong earnings report, reflecting confidence in its financial performance. This adjustment indicates a positive outlook from analysts regarding Dollar General's ability to navigate current market conditions.

Jefferies has raised its stock price target for Dollar General from $130 to $142, reflecting a positive outlook on the company's performance amid changing market conditions. This adjustment indicates confidence in Dollar General's ability to navigate economic challenges and maintain its market position.

Meta is reportedly planning to reduce its metaverse spending by up to 30% as CEO Mark Zuckerberg shifts the company's focus towards artificial intelligence initiatives. This decision reflects a significant strategic pivot in response to evolving market conditions and internal assessments of project viability.

Dollar Tree has reported that 60% of its new customers in the latest quarter earn $100,000 or more, highlighting a trend where affluent shoppers are increasingly turning to dollar stores amid a significant affordability crisis affecting many Americans.

OpenAI's CEO Sam Altman has declared a 'code red' to prioritize improvements to ChatGPT amid intensifying competition from rivals like Google's Gemini 3, which has rapidly gained traction in the AI market. This internal memo reflects a critical moment for OpenAI as it seeks to maintain its leadership position in artificial intelligence.

Dollar General has raised its outlook due to increasing consumer demand for essential items, including food, household supplies, and seasonal products, despite facing some incremental pressures. This adjustment reflects the company's confidence in its ability to meet customer needs in a challenging economic environment.

The recent speech by the Bank of Japan (BoJ) governor has raised concerns among investors regarding a potential rise in Japanese interest rates, which could lead to the unwinding of the yen carry trade. This situation has sparked worries about its impact on global markets, particularly as Japanese 10-year bond yields have reached their highest levels since 2007.