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Markets traded defensively after the Fed’s third straight 25bp cut and a string of disappointing tech results. The S&P 500 and Nasdaq pulled back as AI names and chips slid, while the Dow held gains led by cyclicals. Volatility rose, Bitcoin slipped under $90k, and bank and energy stocks reacted to geopolitical supply risks.
The Federal Reserve delivered its third consecutive quarter-point rate cut, while Chair Jerome Powell warned the economy is diverging in a K-shaped recovery. Markets and policymakers are parsing whether cuts will be followed up next year.
25 bps – Size of the Fed’s latest rate cut (third straight quarter-point reduction).
Oracle’s quarterly report shook tech markets, with the stock plunging after revenue and guidance disappointed investors. Analysts have reworked forecasts, intensifying doubts about corporate AI spending and capex plans.
U.S. forces seized a Venezuelan oil tanker, marking a sharp escalation in tensions with Caracas and raising geopolitical and energy-market risks. Analysts warn the move could complicate diplomacy and disrupt regional oil flows.
Ciena Smashes Estimates as AI-Driven Data Center Orders Surge
Ciena posted a blowout quarter, driven by surging data-center demand tied to AI deployments, and raised guidance — a clear win for networking suppliers amid the AI buildout.
More on benzinga.com
Bids for Warner Bros. Discovery face political scrutiny as the White House and lawmakers weigh national-security and media concerns. President Trump has demanded CNN be included in any sale, adding a new layer of uncertainty for bidders.
Disney struck a major strategic tie-up with OpenAI, including a $1bn investment and licensing of characters for OpenAI’s Sora video platform. The company also moved to protect IP in a legal fight with Google over content use.
ZTE Shares Plunge on $1bn US Bribery Fine Report
Reports that ZTE may face a more than $1 billion settlement with U.S. authorities sent the stock sharply lower, spotlighting legal and geopolitical risks for Chinese tech suppliers.
More on asiafinancial.com
Eli Lilly released late-stage results showing its next-generation obesity drug produced blockbuster weight loss and eased knee pain, reinforcing the company’s leadership in the booming obesity market. The data sent ripples through pharma and investor circles.
Cryptocurrency markets slipped after the Fed’s rate cut and weak tech earnings, with bitcoin falling back below key support levels. Traders retrenched as macro uncertainty and renewed AI-bubble talk hit risk assets.
Fed cut rates by 25bp and signalled only limited easing ahead; the EU moved to strengthen foreign-subsidy and FDI screening and authorised targeted chip aid; Treasury plans a review of FSOC that could rewrite U.S. stability rules.
Elon Musk signalled public markets may be coming for SpaceX, affirming reports the company is planning an IPO that could be among the largest ever. The suggested timeline and eye-popping valuation estimates are already reshaping investor expectations.
Treasury Secretary Scott Bessent is pushing a high-profile overhaul of the Financial Stability Oversight Council, signaling a shake-up in U.S. financial regulation. The move could reshape how systemic risk is identified and managed.
“How sustainable it is, I don’t know.”
— Jerome Powell
The European Commission executed raids and launched probes into Temu and other China-linked firms over possible unfair foreign subsidies. Brussels is intensifying scrutiny of Chinese entrants as it tightens market-defense rules.
Brussels clashed with Budapest over retail price caps and Hungary’s policy plans, triggering a selloff in Hungarian debt and currency. The row highlights rising friction between EU institutions and member-state economic policies.
Chinese tech giants are lining up to buy Nvidia H200 AI chips even as Washington debates export controls, and Nvidia is exploring software to better trace where chips end up. The demand-versus-security tension is reshaping the AI hardware market.
Regulators stepped up pressure on Big Tech as Microsoft fought a multibillion-dollar UK lawsuit over cloud licences and the EU opened an antitrust probe into Google’s use of web content for AI. Enforcement risks are mounting across markets.
Gemini won CFTC approval to operate prediction markets in the U.S., a landmark for crypto derivatives and regulated betting on events. The decision boosted investor interest and sent the firm’s stock sharply higher.
Rwanda-backed M23 rebels claimed control of Uvira in eastern Congo, undermining a U.S.-brokered peace initiative and heightening regional instability. The advance casts doubt on diplomatic efforts to rein in proxy forces.
Oracle’s weak guidance rippled through markets, knocking AI and chip names lower as investors debated whether the AI investment cycle is overhyped. Futures and risk assets slid as traders reassessed valuations.
Europe and Japan moved to shore up semiconductor supply chains: the EU approved state aid for chip plants while Japanese banks prepared large loans for Rapidus. Policymakers are racing to secure capacity for the AI era.
Initial jobless claims jumped after Thanksgiving, highlighting seasonal volatility in the labor market and creating fresh uncertainty for policymakers. Economists caution the headline rise masks still-low continuing claims.
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