Markets turned choppy after the Fed’s 25bp cut and Powell’s warning that December easing isn’t guaranteed. The S&P 500 and Nasdaq retraced earlier gains while the Dow slid; volatility spiked as tech and AI names led moves. Yields jumped above 4% on the 10‑year, and energy and safe-haven metals outperformed amid geopolitical and hurricane-driven supply worries.
The Federal Reserve cut its policy rate for a second time this year while flagging uncertainty about further easing. Officials signalled an end to quantitative tightening as they balance a cooling jobs market against still-elevated inflation.
5 trillion – Nvidia becomes the first company to top a $5 trillion market value.
Markets reacted sharply to Powell’s cautious tone after the Fed cut, sending equities lower and bond yields higher. The moves underscore investor nervousness over how fast the central bank will ease policy next.
Nvidia surged to a historic valuation milestone as AI demand drove a fresh rally in chip stocks. CEO Jensen Huang’s bullish revenue guidance further fuelled investor enthusiasm for AI infrastructure plays.
Regional biotech posts surprise Phase III win — shares rally
A mid-cap biotech announced positive Phase III data for a high-demand therapy, sending its stock sharply higher as analysts boost forecasts and M&A chatter heats up.
Big-tech earnings highlighted divergent fortunes: Microsoft’s cloud strength outperformed expectations while Meta warned that aggressive AI spending will raise costs. Investors are parsing profits alongside multi-year infrastructure commitments.
A Microsoft Azure outage disrupted global services, exposing cloud fragility as firms rely on a handful of hyperscalers. Microsoft attributed the disruption to a configuration change and moved to restore full functionality.
Regional payments firm misses guidance — stock plunges
A fast-growing payments provider cut guidance after seeing large client churn and funding stress, triggering a steep selloff and fresh sector contagion fears.
OpenAI continued IPO chatter, with multiple reports suggesting a target valuation near $1 trillion. The company’s fundraising and potential listing timeframe are drawing scrutiny from investors and regulators alike.
Heightened legal and safety scrutiny forced Character.AI to restrict under-18 users. The move reflects growing pressure on AI startups to tighten protections for minors after mounting lawsuits and public criticism.
Major central banks moved toward easier settings: the Fed cut rates and will end QT, the Bank of Canada cut its benchmark to 2.25%, and Hong Kong trimmed base rates. Regulators signalled faster biosimilar approvals to lower drug costs and tighter telecom equipment scrutiny amid security concerns.
Amazon announced sweeping corporate cuts tied to an AI-driven restructuring, with significant job losses across California and other hubs. The layoffs exemplify a broader wave of white-collar job reductions across tech firms.
General Motors moved to shrink its EV footprint as consumer demand softens, announcing plant shiftings and mass layoffs. The company is trimming production and workforce at multiple U.S. EV and battery sites.
“Driving in the fog.”
— Jerome Powell
Paramount began large-scale layoffs following its Skydance merger, trimming TV and studio personnel. The cuts underline consolidation pressures across legacy media as companies chase scale and cost savings.
Hurricane Melissa inflicted catastrophic damage across Jamaica and parts of the Caribbean, triggering a humanitarian and logistics crisis. Governments and relief agencies raced to reopen air links and mobilize aid.
The US government shutdown is inflicting measurable economic damage, with forecasts estimating billions in lost GDP and pressures on food assistance programs. Policymakers face rising pressure as benefits and paychecks come under threat.
President Trump and Xi Jinping met amid hopes of a trade détente, with negotiators focused on tariffs and investment. Separately, the administration signalled tech transfers to support South Korea’s submarine ambitions, raising security questions.
Central banks made notable moves: the Bank of Canada cut rates while Hong Kong trimmed its base rate, tracking global easing trends. Markets are recalibrating amid mixed signals on the end of easing cycles.
Meta’s quarterly results were hit by a large one-time tax charge and a forecast for much higher AI capex in 2026. The combination dented near-term earnings despite continued top-line growth from ads and AI initiatives.
Microsoft signalled a sharp rise in data-center spending to support AI demand even as Azure revenue showed strong growth. The company’s capital intensity is drawing investor attention to long-term margin and cash-flow implications.
Regulatory filings and reporting suggest deepening financial ties between Microsoft and OpenAI, including big losses and write-downs that strain partner balance sheets. The cloud-AI alliance is reshaping tech accounting and capital flows.
A major telecom supplier was breached by nation-state attackers, exposing months-long intrusions and raising sector-wide alarm. Meanwhile, a separate corporate data exposure by a Big Four firm underscores persistent cyber risk to enterprise networks.