Fed officials adopt hawkish stance; Trump delays new tariffs; Musk's pay plan approved.

Federal Reserve's Hawkish Stance Amid Inflation Concerns

Chicago Fed President's Caution on Rate Cuts

Chicago Fed President Austan Goolsbee expressed concerns about the lack of inflation data during the government shutdown, making him wary of further rate cuts. He stated, "If there are issues with inflation, it may take us a long time to notice." Goolsbee highlighted that private sector inflation data is limited compared to labor market data, leading to a less clear understanding of price trends.

Cleveland Fed President's Opposition to Rate Cuts

Cleveland Fed President Loretta Mester also voiced her opposition to further rate cuts, citing persistent high inflation levels. She noted that current monetary policy is not restrictive enough and that there is no clear reason for additional policy actions. Mester emphasized that inflation pressures remain above the Fed's target.

Trump on Tariffs and Key Mineral List

No New Tariffs During Supreme Court Review

President Trump announced that no new tariffs would be imposed while the Supreme Court reviews tariff cases, indicating a need for a backup plan if the court's progress is unsatisfactory.

New Key Mineral List Released

The U.S. Geological Survey released an updated key mineral list, marking the first inclusion of copper and other minerals like uranium and potassium fertilizers since 2018. This list will influence future tariff policies and trade restrictions.

Gold Market Highlights

Record Trading Volume in October

The World Gold Council reported that global gold ETFs saw a net inflow of $8.2 billion in October, with average daily trading volume reaching a historic high of $561 billion, a 45% increase month-over-month.

Cathie Wood Adjusts Bitcoin Predictions

Cathie Wood has revised her optimistic Bitcoin price forecast, now predicting it could reach $1.5 million by 2030, down by about $300,000 due to the rise of stablecoins. She remains bullish on Bitcoin's long-term prospects, citing institutional investment as a key driver.

Stock Market Overview

Major Indices Decline

The major U.S. indices fell collectively, with the Dow down 0.84%, Nasdaq down 1.9%, and S&P 500 down 1.12%. Notable declines included Tesla and Nvidia, both dropping over 3%.

Tesla's Shareholder Approval of Musk's Compensation Plan

Tesla shareholders approved Elon Musk's compensation plan, which could yield him up to $87.8 billion in stock over ten years. This plan is seen as beneficial for Tesla's stock, aligning with Musk's vision for the company's future.

Google's AI Chip Launch

Google is set to launch its most powerful AI chip, Ironwood, in the coming weeks, aimed at enhancing its offerings in AI and machine learning.

Other Notable Developments

• Trump announced a significant price reduction for GLP-1 weight loss drugs to $245 per month.
• Datadog reported strong Q3 earnings, with revenue growth of 28%.
• Forge Global's stock surged nearly 69% following a $660 million acquisition deal.

Conclusion

The financial landscape remains dynamic, with significant developments in monetary policy, stock performance, and technological advancements shaping market trends. Investors are advised to stay informed on these evolving factors.