Trump Tariffs on Canada and Mexico Spark Global Market Concerns

US President Donald Trump is set to impose 25% tariffs on goods from Canada and Mexico, prompting concerns about potential global stock market impacts. The uncertainty surrounding his decisions, including possible retaliation and effects on various sectors, has left traders on high alert, particularly in the automotive industry. Despite the tariff threats, the S&P 500 has seen only a modest increase, while other equity benchmarks have performed better, reflecting a market that has largely priced in the tariff risks.

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US job market shows signs of growth amid mixed stock performance

Employers ramped up hiring in November, rebounding from October’s sluggish growth impacted by hurricanes and strikes. In financial markets, Chinese stocks surged due to improved manufacturing conditions, while U.S. tech stocks drove Wall Street to another record, despite mixed performances from major retailers. The dollar strengthened against several currencies amid tariff threats from President-elect Trump, as the bond market remained steady ahead of key job market reports.

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U S Stocks Near Record Levels as Banks Report Strong Profits

U.S. stocks are near record levels, with the S&P 500 up 0.2% and the Dow Jones gaining 142 points after major banks reported stronger-than-expected profits. JPMorgan and Wells Fargo saw significant stock increases, while Tesla’s shares fell 9% following the announcement of its robotaxi. In global markets, Japan’s Nikkei rose, but Chinese stocks declined sharply ahead of anticipated fiscal stimulus plans from China’s Finance Ministry.

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Federal Reserve Rate Cut Anticipated as Market Reacts to Key Developments

The Federal Reserve is set to cut interest rates for the first time in four years, with market expectations divided on the size of the cut. In other news, the EU court overturned a $1.7 billion fine against Google, while the UAW plans a strike vote against Stellantis. Microsoft is launching a $30 billion AI infrastructure fund with BlackRock, following a series of positive stock movements.

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Stocks Decline After Federal Reserve’s Significant Rate Cut Announcement

Stocks dipped after the Federal Reserve’s first rate cut in four years, lowering the federal funds rate by 50 basis points to a target range of 4.75% to 5.00%. Despite a positive housing market outlook, the Fed anticipates another 50 basis point cut by year-end, with unemployment projected to rise to 4.4%. In corporate news, Super Micro Computer’s stock fell slightly despite a bullish rating from Needham, while Microsoft and BlackRock announced a $100 billion investment in AI infrastructure.

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Key Market Updates Ahead of Federal Reserve Rate Cut Announcement

The Federal Reserve is expected to cut interest rates for the first time in four years, with market participants divided on the size of the cut. In other news, the EU court overturned a $1.7 billion fine against Google, while the UAW plans a strike vote against Stellantis. Microsoft is launching a $30 billion AI infrastructure fund with BlackRock, and the DOT has approved Alaska Air’s $1.9 billion acquisition of Hawaiian Holdings with conditions.

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