【Breaking】Is the interest rate cut really coming? The Federal Reserve may take action this month! The US stock market is in a wait-and-see mode, and the employment market alarm has been sounded.
The probability of an interest rate cut has soared to 87%, and the market is holding its breath for a decision in the middle of the month. The US stock market performed flat last night, with the Dow slightly down, the S&P and Nasdaq up slightly, and Chinese concept stocks rising moderately. But everyone's focus has long been locked on the Federal Reserve's signals for an interest rate cut!
White House economic official Hassett has hinted: The Federal Reserve is very likely to cut rates by 25 basis points at its next meeting. The market is even more frantically betting - the CME FedWatch shows that the probability of a rate cut in December is as high as 87%!
📈 Technology sector movements are mixed:
· Nvidia partners with Palantir and Midpoint Energy to launch an AI data center-specific platform "Chain Reaction," with stock prices up 2%.
· Micron announces a gradual exit from consumer storage, fully transitioning to AI chips, which may tighten consumer electronics storage, with stock prices down 3%.
· Meta plans to significantly cut its metaverse budget, possibly by 30%, with stock prices up 3%.
· Intel abandons the sale of its networking business, with stock prices plummeting over 7%.
⚠️ The employment market is sending mixed signals:
· Initial claims for unemployment insurance have reached a three-year low, and companies seem to still be retaining employees.
· However, the total number of layoffs in the first 11 months of this year has exceeded 1.17 million, 1.5 times that of the same period last year.
· The "little non-farm" ADP unexpectedly shows: Private employment positions decreased instead of increased in November.
This deadlock of "not hiring and not laying off" is paving the way for an interest rate cut. BlackRock's think tank directly warns: The labor market is cooling, and an interest rate cut this month is almost certain, with the possibility of continuing cuts in 2026!
