Expectations of a December interest rate hike by the Federal Reserve are largely confirmed, with markets pricing in further rate hikes in January and March next year.
28 minutes ago
Federal Reserve officials have delivered a flurry of hawkish remarks this week, cementing market expectations for a 25-basis-point rate hike in December and further opening the door to a consecutive rate increase in January next year. U.S. October CPI data showed accelerating inflation and expanding price pressures, while the year-on-year rise in wholesale prices in October also hit its highest level since 2022, further bolstering the case for rate hikes. New York Fed President John Williams said inflation remains too high; Chicago Fed President Austan Goolsbee called the latest data "concerning"; Dallas Fed President Lorie Logan noted that faster rate hikes than previously expected may be needed; Fed Governor Christopher Waller even raised the possibility of a 50-basis-point rate hike next month. Markets are now pricing in 25-basis-point rate hikes each in December, January, and March next year, up from earlier expectations of only hikes in December and March. Bank of America has included rate hikes at all three upcoming meetings in its forecast, while Santander projects hikes in December and March next year. However, there remains division among officials over the pace of rate hikes, with some advocating for gradual, small increases. Boston Fed President Susan Collins said the direction of further policy tightening is clear, but declined to pre-judge the size or speed of rate hikes. Rising rate hike expectations have pushed U.S. Treasury yields higher, but factors including a weak housing market, underwhelming AI investment returns that could trigger stock market declines, and future energy price drops remain variables the Fed must consider in its policy decisions.
U.S. stocks close: Nasdaq down 0.91%, Nvidia falls for six straight weeks, semiconductor sector remains under pressure.
7 minutes ago
The U.S. national ground stop order is set to be lifted soon. The order had previously weighed on U.S. stocks and aviation concept stocks.
7 minutes ago
A petition website demanding NVIDIA's board of directors reinstate Jensen Huang has seen a surge in traffic, with over 11,000 signatures.
7 minutes ago
Microsoft apologizes for global service outage: The outage is unrelated to cyberattacks and AI agents, and the full recovery time remains undetermined.
7 minutes ago
Nvidia's board of directors has not formally approached any CEO candidates and is currently selecting a headhunter firm.
7 minutes ago
Soros Fund Management cuts stakes in Microsoft, Amazon and NVIDIA, boosts holdings in Micron Technology.
7 minutes ago
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