The Federal Reserve has reduced the benchmark interest rate by 25 basis points to a range of 3.5%-3.75%, marking the third cut this year. The decision, made amidst rising inflation and a slowing labor market, reflects the Fed's effort to balance its dual mandate of price stability and maximum employment. However, the vote revealed a divided policy committee, with dissenters advocating for either a larger cut or no change. Fed Chair Jerome Powell emphasized the need for caution in future rate adjustments as uncertainty persists in the economy.

SpaceX, led by Elon Musk, is reportedly preparing for a secondary share sale valuing the company at $800 billion, surpassing OpenAI's $500 billion valuation. This move cements SpaceX as the most valuable private company in the U.S. The valuation reflects its dominance in commercial space launches and the success of its Starlink satellite internet service, which serves millions globally. An IPO is targeted for late 2026, further solidifying its position as a dual-sector leader in defense and telecommunications.

The University of Michigan reported a slight rise in U.S. consumer sentiment to 53.3 in December from 51 in November, surpassing economist expectations of 52. However, sentiment remains significantly lower compared to a year ago. Expectations for year-ahead inflation improved, dipping to 4.1%, the lowest since January. Despite this, consumers continue to feel burdened by high prices, and overall economic views remain subdued.

U.S. consumer spending rose by 0.3% in September, showing signs of slowing momentum compared to previous months. The moderation in spending is attributed to a weak labor market, rising living costs, and reduced government assistance. Despite these challenges, overall economic growth remained robust, with GDP estimated to have grown at an annualized rate of 3.8% in Q3. Inflation stayed elevated, with the Federal Reserve's preferred PCE Price Index rising 2.8% year-over-year, potentially influencing upcoming interest rate decisions.