Tag:

fomc

Fed Rate Cut: AI Stocks Face Short-Lived ‘Risk-On’ Rally

by Priya Shah – Business Editor November 24, 2025

written by Priya Shah – Business Editor

Tech Stocks Flash Dot-Com Era Warning Signs as Nvidia‘s Gains Fizzle

November 24, 2025 – A wave of⁣ caution swept through the stock market today following Nvidia’s earnings⁣ report, sparking concerns that ⁢the artificial intelligence ‍rally may be mirroring the unsustainable⁣ exuberance of the late‌ 1990s dot-com boom. Despite exceeding⁤ expectations with‍ its latest quarterly results ⁣and CEO Jensen Huang’s claim of “off the charts” demand for its Blackwell chip, Nvidia (NVDA) saw its ‍initial gains evaporate, closing the day in negative territory.

This reversal, coupled with a broader market shift, signals a potential peak for growth stocks and a rotation toward value investments across all market capitalizations and global markets. The ⁤market’s reaction underscores growing anxieties about⁤ valuations in the‌ AI sector, reminiscent ‌of the inflated prices seen ⁢before the dot-com bubble burst. Investors are now questioning whether ‌the current‌ AI-driven surge is built on solid fundamentals or speculative fervor.

Nvidia’s earnings, while strong, failed to ‍sustain ⁢investor enthusiasm. The stock experienced a⁢ momentary rally before‍ succumbing to selling pressure, a⁢ pattern analysts attribute to a reassessment of future⁢ growth prospects. This dynamic has fueled a ‍discernible “risk-off” sentiment,⁣ prompting a sector-wide realignment as investors seek safer havens in value-oriented companies.

The shift away from growth stocks is not ⁣limited ‌to the U.S. market; it’s a‍ global phenomenon. This widespread rotation suggests a fundamental change in investor psychology, driven by⁢ concerns about economic headwinds and the potential for interest rate adjustments. A potential Federal Reserve rate cut⁣ in december‌ coudl briefly reignite ⁤”risk-on” behaviour, but experts predict any such rally would likely ‌be short-lived given the underlying anxieties about inflated valuations.

November 24, 2025 0 comments

Business

Title: Fed Cuts Interest Rates, Future Cuts Uncertain

by Priya Shah – Business Editor October 29, 2025

written by Priya Shah – Business Editor

WASHINGTON – ⁢The federal Reserve on ⁣Wednesday ⁣lowered its benchmark interest rate‍ by 25 basis points, marking the first ⁤rate cut sence‌ January 2023, but signaled uncertainty about further reductions in⁣ December amid persistent inflation concerns. The move brings the federal funds rate to a target ⁤range of 5.25%-5.50%.

The decision comes as the U.S. economy shows signs of cooling,‌ yet inflation remains⁤ above the fed’s 2% target.September‌ 2025 inflation‍ rose to 3.0% year-on-year, up from⁣ 2.9%‍ in August,‌ with core⁤ inflation⁤ also at 3.0% in September. This delicate balance-slowing growth versus sticky inflation-is forcing the Fed to proceed ⁣cautiously, leaving the door open to further adjustments but offering no firm commitments.The rate cut impacts borrowing costs for consumers and businesses, ⁢possibly stimulating economic activity, but the ⁤future path of monetary policy hinges on incoming⁤ economic data.

Fed Chair Jerome⁣ Powell‌ stated, “This is how we believe and hope this will work.” He indicated that without the⁣ impact of tariffs, inflation is “not that far from⁤ our 2% target.” The Fed⁣ estimates tariffs will contribute 0.5-0.6 percentage points to the core personal consumption price index‍ (core PCE), suggesting core PCE inflation could be in the range of ⁢2.3%-2.4% if tariffs where excluded.Powell acknowledged tariffs are likely to cause a “one-off increase,” with potential for further rises.

Alongside the rate decision, the‍ Fed announced⁤ the ⁤conclusion‌ of its three-year program ⁣to reduce its balance sheet on ⁢December 1. The portfolio,which ‌peaked at approximately⁢ $9 trillion in mid-2022 due to pandemic-era financing,has been reduced to around $6.6⁣ trillion.

The ⁤proclamation triggered a‍ mixed reaction in U.S. stock markets. The Dow Jones ⁣Industrial Average initially ⁤reached⁤ a ⁢record high, rising 334 points, before reversing course to close down 74.37 points, or ⁤0.16%, at 47,632.00.⁢ The S&P 500 ⁢ended slightly lower at 6,890.59, ‌while the ⁢Nasdaq composite outperformed, gaining 0.55% to a new record close of 23,958.47,‌ boosted by nvidia⁣ shares. The market’s ⁢volatility reflects⁣ investor uncertainty about the Fed’s⁣ future actions.

October 29, 2025 0 comments

Technology

Title: New York Stocks Eye Big Tech Earnings, Fed, and US-China Summit

by Rachel Kim – Technology Editor October 25, 2025

written by Rachel Kim – Technology Editor

New York Stock Market Weekly Outlook: Key Earnings, Fed Decision, and US-China⁤ Summit Loom large

The New York stock market faces a pivotal week, packed with notable events ‌that could ⁣heavily influence its trajectory. Major earnings reports from tech giants and industrial leaders, a crucial ⁣Federal⁣ Reserve meeting, and a high-stakes US-China⁢ summit are all scheduled, creating a landscape of both opportunity and potential volatility.

Corporate Earnings in Focus

A flurry of earnings releases will dominate⁤ the week. Logistics giants UPS and PayPal kick things off, followed by Boeing and Caterpillar‍ on October 29th. Investors will than turn their⁤ attention to the tech sector, with Coinbase⁢ and Eli Lilly reporting on October 30th.The energy sector will ‌close out the earnings calendar with ExxonMobil and Chevron ⁣announcing their performance on October 31st. These reports will provide crucial insights into the health of various sectors and their outlook for the remainder of the year.

FOMC Meeting: Rate Cut⁤ Expectations High

All eyes will be on the Federal Reserve’s Federal⁢ Open Market Committee (FOMC) meeting, taking place on October 28th⁢ and 29th. The market overwhelmingly anticipates a 0.25% interest rate⁤ cut following the release of September’s Consumer Price Index (CPI) data on October 24th, which showed a lower-than-expected increase. Currently,there’s a 98.3% probability factored into market pricing that the‌ Fed will lower ⁢its ‌base interest rate from 4.0-4.25%⁤ to 3.75-4.0%.

However,the ongoing US federal goverment shutdown and the ‍lack of September employment data add a layer of uncertainty.Investors ⁢will be closely scrutinizing comments from Federal Reserve ⁢Chairman Jerome Powell following the ⁢meeting for his⁣ assessment of the US economic situation.

Looking ahead to the⁢ December 9-10 FOMC meeting, the market currently assigns a 91.1% probability to another 0.25% rate cut,potentially ⁤bringing⁢ the rate down to 3.5-3.75%.Despite this strong expectation,the possibility⁢ of a pause in rate cuts⁤ due to the absence of key economic indicators remains a concern,which could negatively impact the stock market,currently buoyed by the⁣ expectation of further easing. Powell’s press conference on October 29th‍ will be especially vital ⁢in clarifying the Fed’s future ‍monetary policy direction.

US-China Summit: A Decisive Variable

The scheduled US-China summit ‍in Korea on October 30th⁤ is another major⁤ factor influencing market sentiment,⁤ with the impact likely to be felt ⁤on the New York stock market on October 31st. As the world’s two largest economies, the outcome of this meeting could significantly shape market direction.

Past events demonstrate the sensitivity of the market to developments in US-China relations. A ⁣sudden declaration from President Trump on October 10th cancelling a meeting with President Xi and imposing additional tariffs on China triggered a sharp market downturn, ⁢with the S&P 500 falling 2.71% and the NASDAQ dropping 3.56%.

The current outlook for the summit remains uncertain, as both countries possess leverage. The US holds cards related to tariffs and access to cutting-edge⁤ technology, while ‍China controls rare earth elements and imports of US agricultural products.

A positive outcome -‌ an agreement to ease trade tensions – would be a ⁣boon for companies like Nvidia, facing export disruptions to China, and Apple, concerned about import tariffs. Such a progress is expected to provide a significant boost to the overall stock market.

Disclaimer: This article is for informational purposes only and should ⁤not be considered investment advice. We are ⁢not responsible for any investment losses based on this information.

October 25, 2025 0 comments

Business

Title: Bitcoin Surges After Powell Hints at Potential Interest Rate Cuts

by Priya Shah – Business Editor August 22, 2025

written by Priya Shah – Business Editor

Bitcoin Jumps Nearly $4,000 Amid Federal Reserve rate Cut Signals

Table of Contents

Bitcoin Jumps Nearly $4,000 Amid Federal Reserve rate Cut Signals

Jackson‌ Hole, Wyoming – August 22, 2025 – Bitcoin experienced a dramatic price increase, rebounding almost $4,000 in a matter of minutes,‌ following remarks by federal ⁤Reserve Chair Jerome Powell suggesting a potential‍ reduction‍ in interest rates as early as September. The market reacted swiftly to the possibility⁢ of looser monetary policy.

powell’s remarks at Jackson Hole

During the annual Jackson Hole economic symposium, ‍Powell indicated the Federal Reserve is considering lowering interest rates at ⁤its September 16-17 meeting. though, he emphasized that‍ any decision will be ⁢contingent on incoming economic data, particularly regarding⁢ employment and ⁣inflation. powell noted the labor market is exhibiting “an abnormal balance,” with‍ both labor demand and supply slowing‍ down, potentially increasing risks‌ to employment.

The fed Chair also acknowledged that‍ new tariffs proposed by the Trump administration could exert upward pressure on inflation, though the long-term impact is expected to be gradual. We must remain vigilant in monitoring⁢ both employment and⁣ inflation data before⁢ making any definitive decisions, Powell stated.

Did You⁢ Know? The Jackson⁤ Hole Economic Symposium has been a key event for central bankers and economists sence 1978, ofen serving as⁣ a platform for major policy announcements.

Market Response and Investor Sentiment

Investors now estimate a nearly 90 percent probability of a ‍0.25 percent interest rate cut next ‌month, ⁢a significant increase from 75 percent prior to Powell’s speech. This shift in expectations immediately impacted U.S. stock markets. despite the positive signal,Powell refrained from specifying the pace of future rate reductions,potentially fueling⁤ further speculation ⁣and scrutiny from the Trump administration,which has repeatedly⁣ called for more aggressive easing.

The speech is viewed by some as marking the end of the “Powell era,”⁤ despite ongoing criticism from President Trump. Powell confirmed his commitment to serving until May, despite attempts by the administration ‌to influence the Federal Reserve Board’s composition.

Bitcoin and Ether Surge

Prior to Powell’s address, Bitcoin⁣ was trading below $112,000. Following his remarks, the cryptocurrency experienced a rapid surge, reaching $117,000.Together, Ether, the ‌native cryptocurrency of the Ethereum network, jumped over $4,700, representing an 11 percent increase. This correlation highlights the growing sensitivity of‍ the cryptocurrency market to ‌macroeconomic factors and Federal Reserve policy.

Pro Tip: Understanding the interplay between monetary policy‍ and ‍cryptocurrency markets is⁤ crucial for investors navigating this evolving landscape.

Key Data Summary

Metric	Before ⁣Powell’s Speech	After Powell’s Speech
Bitcoin Price	<$112,000	$117,000
Ether Price	N/A	>$4,700 ‌(+11%)
Rate cut⁢ Probability (september)	75%	90%

What impact do you foresee from potential ⁤interest rate cuts⁤ on the broader cryptocurrency market? And how might further political pressure on⁤ the Federal Reserve influence its⁣ decisions?

Sources: Reuters, Cryptopotato

The⁤ relationship between Federal Reserve policy and Bitcoin’s price has become increasingly apparent in recent years. Historically, Bitcoin‍ has been viewed as a potential hedge against inflation and a store of value in times‍ of economic uncertainty. Lower interest rates generally encourage investment in riskier assets, such as cryptocurrencies, as‍ the prospect‍ cost of holding ⁤cash decreases.However, this correlation is not always consistent and can be influenced by a variety‍ of factors, including regulatory developments, technological advancements, and⁢ broader market sentiment.

Frequently Asked Questions about Bitcoin and federal Reserve policy

What is the Federal reserve’s role⁢ in influencing Bitcoin’s price? The Federal Reserve’s monetary policy decisions, ⁢particularly interest rate adjustments, can substantially impact investor sentiment and risk appetite, thereby‍ affecting Bitcoin’s price.
How do interest rate cuts affect Bitcoin? Lower interest ⁢rates typically make Bitcoin more attractive to‌ investors seeking higher returns, potentially driving up its price.
Is Bitcoin⁣ a reliable hedge against inflation? While Bitcoin is often touted as an inflation hedge, its performance in this regard has‍ been mixed, and ⁣it remains a volatile asset.
What are the risks associated with investing in Bitcoin? Bitcoin is subject to significant‍ price volatility, regulatory uncertainty, and ‌security risks.
What is the Jackson Hole Economic Symposium? It’s an annual meeting‍ of central bankers and economists that often sets the tone for global monetary policy.

Disclaimer: This article provides informational purposes only and ‌does not constitute financial advice. Investing in⁤ cryptocurrencies carries ⁤inherent risks, and you should consult with a qualified financial advisor before making any investment decisions.

We hope you found this article insightful! Please‍ share it with your network, leave a comment below with your thoughts, and‍ consider‍ subscribing⁤ to our newsletter for more breaking news and in-depth analysis.

August 22, 2025 0 comments

Business

Could Donald Trump’s power struggle with Federal Reserve create next financial crisis?

by Priya Shah – Business Editor June 30, 2025

written by Priya Shah – Business Editor

Trump’s Fed Fight: Economic Risks Mount

The former US president is reigniting his feud with the Federal Reserve, potentially destabilizing America’s economy. This clash over interest rates and monetary policy could trigger financial turmoil, impacting both domestic and global markets.

Powell’s Stand

The core conflict revolves around Donald Trump and current Fed Chair Jerome Powell. Trump, during his initial term, criticized Powell for not aligning with his economic directives. Now, with Trump eyeing a return to power, the conflict has escalated.

“Not permitted under the law.”

—Jerome Powell, Fed Chair

Powell has resisted Trump’s demands to immediately cut interest rates. This defiance has led to public insults from the former president, who has labeled Powell with various derogatory terms. The US national debt stands at around 120% of GDP, a level that could cause a debt crisis (Bureau of Economic Analysis).

Rates, Tariffs and Debt

The former president is pushing for lower rates to boost his approval ratings and address the burgeoning US government debt. The annual interest on the $36 trillion debt now exceeds America’s defense spending. Powell, however, has placed the blame on the President’s tariff policies. Cutting rates could cause an inflation spike.

Donald Trump appointed Jerome Powell as Fed chair during his first term as president.

Market Reactions and Global Implications

The bond market’s unease is palpable, with investors shifting money out of America, causing the dollar to plummet. The primary worry is the Fed’s independence and its capacity to manage monetary policy responsibly. Trump has even suggested he may try to appoint himself to replace Powell.

Could Donald Trump’s power struggle with Federal Reserve create next financial crisis? — **Jerome Powell** testified before a US Senate committee last week.

The showdown goes beyond debt servicing; it involves the credibility of the world’s most powerful financial institution. The outcome of this high-stakes battle could have significant consequences for the American economy and the global financial system.

June 30, 2025 0 comments

Business

Labor Market Risks Might Prompt Fed To Cut Rates Faster Than Planned

by Priya Shah – Business Editor June 21, 2025

written by Priya Shah – Business Editor

Fed Signals Potential Rate Cuts Amidst Economic Uncertainty

The Federal Reserve is hinting at potential interest rate reductions in 2025, sparking market speculation. This move comes as officials assess the labor market’s strength and navigate economic uncertainties, including the impact of tariffs.

Rate Cut Anticipation

The Federal Open Market Committee projects interest rates will decrease in 2025. Financial markets anticipate two cuts, potentially lowering rates to between 3.75% and 4% by year-end, a shift from the present 4.25% to 4.5%. However, if the labor market were to falter, as suggested by one policymaker, the FOMC could implement more aggressive rate cuts.

Labor Market Strength

At the June FOMC meeting, interest rates were maintained at 4.25% to 4.5%, mirroring the levels since December 2024. Jerome Powell, the Federal Reserve Chair, described the labor market as “robust.” Unemployment has remained within a narrow 4% to 4.2% range for the past year.

Economic Policy Uncertainty

Economic uncertainty persists, although it has somewhat diminished since April, according to the Economic Policy Uncertainty Index. Powell addressed this during the press conference, stating, “And in particular, we feel like we’re going to learn a great deal more over the summer on tariffs. We do, we hadn’t expected them to show up much by now, and they haven’t, and we will see the extent to which they do over coming months. And I think that’s going to inform our thinking for one thing. In addition we’ll see how the labor market progresses. So, at some point it will become clear, I can’t tell you exactly when that will be, and meanwhile we’ll be watching the labor market very carefully for signs of weakness and strength, and tariffs for signs of what’s going to happen there.”

July Rate Cut Possibility

Christopher Waller, a Fed Governor, indicated a potential interest rate cut as early as the July FOMC meeting, as mentioned in an interview with CNBC. Still, it’s uncertain if other policymakers will support this timeframe. Financial markets currently estimate only a 10% chance of a July cut, according to the CME FedWatch Tool. Current market expectations lean toward the initial rate cut possibly occurring in the fall.

Incoming Data

Summer economic data will contribute to understanding the influence of tariffs and other economic policies. Tariffs are currently impacting supply chains as long-term economic relationships are negotiated. If unemployment stays near 4% and inflation continues to ease, as observed in recent months of 2025, the FOMC is likely to cut rates in the fall. However, if the labor market weakens, the FOMC may cut rates more aggressively.

The biggest potential challenge, theoretically, would be stagflation, where inflation rises and unemployment increases, creating conflicting monetary policy needs. Higher inflation would necessitate higher interest rates, while rising unemployment would require lower rates. In such a scenario, Powell has stated officials will prioritize the metric further from its target in policy decisions.

What To Expect

For months, the FOMC has adopted a wait-and-see strategy for monetary policy, awaiting the economic impact of government policies based on economic data. This approach has been viable due to a stable labor market and gradually decreasing inflation. Over the summer, economic uncertainty may decrease. The expectations of markets and policymakers lean towards limited interest rate cuts. However, more substantial cuts could occur if the labor market weakens more than anticipated, while inflation remains subdued.

June 21, 2025 0 comments

Newer Posts

Older Posts