Market Summary
Markets rallied after the Fed’s 25bp cut: the Dow jumped nearly 500 points, the S&P 500 closed near record highs and the Nasdaq was mixed as tech earnings and AI policy moved prices. Volatility eased, with tech and industrials leading gains while energy rose on geopolitical supply concerns and a tanker seizure off Venezuela.
The Federal Reserve cut interest rates for the third time this year and signalled a cautious path forward. Policymakers and Chair Powell stressed a mixed outlook on future cuts, underscoring divisions on the committee.
Figure of the Day
25 bps – Fed cuts benchmark rate by 25 basis points to a 3.50%–3.75% range.
The Fed moved to ease money-market strains by restarting reserve management purchases and a $40bn T‑bill buying program. Officials framed the step as a liquidity backstop after pressures in short-term funding markets.
U.S. forces intercepted and seized a sanctioned oil tanker off Venezuela, escalating pressure on the Maduro government. The operation sparked market moves and diplomatic friction across the region.
Bullish
Fervo Energy Raises $462M as Google Backs Geothermal Push
Geothermal developer Fervo closed a $462.5m round led by major strategic investors, accelerating commercial projects and signalling strong energy‑transition investor appetite.
More on inc.com
Paramount Skydance and David Ellison are pushing a hostile bid for Warner Bros. Discovery, directly engaging shareholders. Lawmakers and Democrats raised national security concerns about the bid and its backers.
SpaceX is preparing a blockbuster IPO that could rank among the largest ever, stoking market speculation. Alphabet and other early investors stand to reap huge gains if the flotation reaches reported valuations.
Bearish
Cracker Barrel Slashes Forecast After Rebrand Fallout
Cracker Barrel trimmed guidance and reported weaker sales as controversy from a rebrand and execution missteps weighed on traffic and investor confidence.
More on fortune.com
The White House moved to allow Nvidia H200 chip exports to China, a major shift in tech policy that redraws the export landscape. Officials framed the reprieve as calibrated and linked to competitive calculations around Huawei.
Nvidia is testing a tracking option for GPUs amid concerns about chip diversion and smuggling. The company denied seeing substantiated reports linking chips to illicit supply chains.
Regulatory Impact
U.S. proposes requiring five years of social‑media history from visa‑waiver visitors; Fed restarts T‑bill purchases to stabilise money markets; White House clears limited Nvidia H200 exports to China under new terms.
Oracle reported mixed results that fell short of some expectations, reigniting investor worry about AI infrastructure spending and funding needs. The stock dropped as analysts questioned whether revenue trends will sustain heavy capital plans.
Companies and startups are racing to put data‑centre capability into orbit, accelerating a space-based infrastructure trend. Firms and investors see orbital AI and hosting as the next frontier for compute expansion.
Quote
There’s been a ‘systematic overcount’ in payroll numbers that will be ‘corrected’.
— Jerome Powell, Federal Reserve Chair
Markets rallied after the Fed’s decision, with the Dow jumping and the S&P approaching record levels. Investors cheered dovish signals even as analysts cautioned that the path for future cuts remains uncertain.
Google shuffled leadership to accelerate its AI infrastructure buildout as Gemini gains momentum against rivals. The moves underscore intensifying competition in foundational AI services and models.
The U.S. proposed requiring visa‑waiver visitors to provide five years of social‑media history, a sweeping security measure that would affect tens of millions. The plan drew civil‑liberties and travel industry scrutiny as details circulate.
Amazon sharply expanded same‑day grocery delivery, intensifying competition with Instacart and DoorDash. The move pushed rival stocks down and signals Amazon’s deeper push into perishable supply chains.
A massive Coupang data breach prompted the company’s CEO to resign, exposing tens of millions of accounts. Other retailers are reporting data incidents, highlighting persisting cybersecurity risks in retail.
Coca‑Cola announced a planned leadership handover with COO Henrique Braun succeeding James Quincey next year. The move formalises a board‑approved succession plan as the company navigates sluggish consumer demand.
Congress moved a must‑pass defense package through the House that funds troop pay, Ukraine assistance and broader security priorities. Lawmakers raced to clear a $900bn measure as year‑end deadlines loom.
Palantir won a major U.S. Navy contract and a related $448m testing pledge, signalling deeper defence‑tech ties. The deals underscore growing military interest in operational software for shipbuilding and fleet management.
Bolivia’s former president Luis Arce was arrested in an expanding corruption probe, marking a major political escalation. The detentions signal intensified anti‑corruption enforcement in the region.
