Fed officials signal hawkish stance; major indices see significant drop; Figure stock rises post-market.

Trump Administration Plans to Expand Food Tariff Exemptions

According to the New York Times, sources indicate that the Trump administration is preparing to implement broad exemptions on certain tariffs to alleviate consumer anxiety over rising food prices. This change will apply to tariffs announced in April, including products from countries without trade agreements with the U.S. Exemptions are expected to cover beef and citrus products.

If the proposal advances, it will mark a significant reversal in Trump's economic policy, potentially exceeding the scope of a September executive order that limited exemptions to products not produced in the U.S. The September order required the Secretary of Commerce and the Trade Representative to decide on exemptions for over 1,000 product categories, including metals, antibiotics, and certain foreign agricultural products.

EU Accelerates Tax on Chinese E-commerce Small Packages

The Financial Times reports that the EU plans to impose fees on small packages primarily from China starting early next year, two years ahead of schedule. This move aims to combat the influx of cheap goods from China, with EU Trade Commissioner Valdis Dombrovskis urging finance ministers to agree on the tax to protect EU retailers from unfair competition.

European Officials Consider Centralizing Dollar Holdings

European financial stability officials are discussing the creation of an alternative funding mechanism to reduce reliance on the Federal Reserve. Concerns have been raised about the Fed's mechanisms being "weaponized" under the Trump administration. However, centralizing dollar holdings faces practical challenges and may not be feasible.

Fed Officials Express Divergent Views on Interest Rates

Minneapolis Fed President Neel Kashkari stated he does not support the last rate cut but remains cautious about December's decision. He noted that economic activity appears more resilient than expected. Meanwhile, Fed officials, including Lael Brainard and Mussailem, emphasized the need for a tight monetary policy to combat inflation.

Market Reactions to Fed Officials' Hawkish Stance

On Thursday, major U.S. indices fell sharply, marking the largest drop in a month, as investors reassessed the Fed's rate cut prospects. The Dow Jones dropped 1.65%, the Nasdaq fell 2.29%, and the S&P 500 declined 1.66%. Notable tech stocks like Tesla and Nvidia also saw significant declines.

BlackRock Increases Nvidia Holdings, Reduces Apple

BlackRock's 13F report revealed significant increases in Nvidia and Microsoft holdings, while Apple saw a reduction. The firm acquired approximately 19.47 million shares of Nvidia and 10.28 million shares of Microsoft.

Apple Launches Mini App Partner Program

Apple announced a new Mini App Partner Program, reducing the revenue share for developers to 15% for eligible in-app purchases. This move aims to enhance support for apps offering mini-programs.

Tesla to Support Apple CarPlay

Reports indicate that Tesla is developing support for Apple CarPlay, a significant shift for the electric vehicle manufacturer. This feature will allow users to sync iPhone applications with Tesla's infotainment system.

Boeing Ends Historic Strike

Boeing workers in St. Louis voted to accept a new five-year contract, ending the longest strike since 1948. The agreement includes a 24% wage increase and a $6,000 signing bonus.

Chinese Economic Data

In October, China reported an increase in social financing of 810 billion yuan and new RMB loans of 220 billion yuan. The M2-M1 spread widened, indicating a robust growth in social financing.

Upcoming Economic Data Releases

Key economic data releases are expected, including U.S. retail sales and PPI figures, as well as China's retail sales and industrial output data.