Overview
Today's U.S. stock market declined as investors turned cautious ahead of the Federal Reserve's October rate decision, amidst growing concerns over future rate cuts and inflation. With the Federal Reserve's rate cut in October looking almost certain, investors are increasingly worried about the pace of rate cuts in 2026. The potential for prolonged rate adjustments and apprehension over AI-driven market rallies have contributed to a dampened investment sentiment. The S&P 500 index fell by 0.3%.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News Story
- President Trump raised potential monopoly concerns over the Netflix acquisition, causing a stir in the market. Meanwhile, Broadcom surged nearly 3% after reports of discussions with Microsoft on chip design. Additionally, NVIDIA received approval to sell H200 chips to China, influencing the market positively.
- Concerns about ongoing inflation stirred differences in opinion among Federal Reserve officials, exacerbated by a lack of new data during the government shutdown. The market expects the Fed to cut rates this week, although it has now lowered its projection for the number of cuts by the end of 2026 from three to two.
- In Japan, a 7.6 magnitude earthquake in the northeastern region affected market sentiment. The yield on Japanese government bonds has increased, reflecting economic contraction over the past three months.
Tomorrow's Economic Indicators
| Time | Indicator |
|---|---|
| 20:00 | U.S. November NFIB Small Business Optimism Index |
| 22:15 | U.S. ADP Employment Change Report |
| 22:55 | U.S. Johnson Redbook Retail Sales Index |
| 24:00 | U.S. October JOLTS Job Openings |
| 04:00 | U.S. 10-Year Bond Auction |
General Opinion
As the Fed's rate cut decision approaches, investors are focused on the uncertainty of 2026. Clarity on the Fed's future rate path is crucial, and further economic indicators and political news are expected to significantly impact the market.
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