US Stock Log | AI Market Cools, Gold Retreats, Rate Cut Debate Intensifies
U.S.stocks displayed a mixed performance amid fluctuating market sentiment, with focus centering on Federal Reserve policy and key economic data releases. The AI market experienced two consecutive days of declines, while gold prices retreated from recent highs.
Lithium Americas shares nearly doubled in value, with reports suggesting potential 10% investment interest from the Trump management. Conversely, Kenvue, the maker of Tylenol, saw its stock fall by over 3% to a new listing low.
Federal Reserve officials offered diverging perspectives on future interest rate policy.Becent expressed disappointment with the Fed’s lack of commitment to rate cuts, stating, “Interest rates are too restrictive of the economy and need to be lowered.” He anticipated a reduction of at least 100 to 150 basis points by year-end, a sentiment he felt was not reflected in the Chairman’s recent statements.
however, Austan Goolsbee, president of the Federal Reserve Bank of Chicago, signaled a potential reluctance to support further rate cuts, citing concerns about prematurely easing policy and the persistence of inflation above the Fed’s target. He noted inflation is “moving in the wrong direction” and that the job market is cooling only moderately.
Economic data presented a complex picture.New home sales in the United States unexpectedly jumped to an annual rate of 800,000 units – the fastest pace as early 2022, representing a more than 2% year-on-year increase, driven by price reductions from developers. Surveys from the Atlanta and Richmond Federal Reserve banks indicated increased optimism among U.S. companies’ financial directors in the third quarter, with easing trade policy uncertainty. However,companies also cautioned that import tariffs woudl continue to contribute to higher costs and prices.
In Chinese stock news, Alibaba ADR rose sharply by 8.1% following an agreement with Nvidia to integrate its technology into Alibaba’s cloud computing platform.