Fed's "dove" member opposes rate cut; Oracle won't delay OpenAI data center; China's November data released.

Recent Developments in U.S. Monetary Policy and Market Reactions

Fed Officials Express Diverging Views on Interest Rates

Recent statements from Federal Reserve officials indicate a split in opinions regarding future interest rate adjustments.

• Anna Paulson, President of the Philadelphia Fed, anticipates a cooling of inflation in the U.S. next year but warns of potential weaknesses in the labor market. She is expected to play a significant role as a voting member of the Federal Open Market Committee (FOMC) next year.

• Goolsbee and Harmack have also expressed caution, suggesting that more inflation data is needed before considering rate cuts.

Trump’s Potential Successor for Fed Chair

As the term of current Fed Chair Jerome Powell approaches its end in May 2026, former President Donald Trump has indicated a preference for Kevin Warsh as his potential successor. Trump believes Warsh aligns with his views on monetary policy, particularly regarding the need to lower interest rates.

SEC Criticism of Deregulation Trends

Caroline Crenshaw, a departing SEC commissioner, criticized the recent trend of deregulation in the U.S. securities industry, warning that it risks turning markets into casinos where only the house wins. She emphasized the need for stronger protections for investors.

SpaceX Plans for IPO

SpaceX has confirmed plans for an IPO in 2026, with its valuation reportedly doubling to $800 billion in just six months.

Market Reactions to AI and Tech Stocks

On Friday, major U.S. indices fell collectively, driven by concerns over AI valuations following disappointing earnings from Broadcom and Oracle.

• Broadcom saw its stock drop over 11%, while Oracle fell more than 4%.

• The Dow Jones decreased by 0.51%, the Nasdaq by 1.69%, and the S&P 500 by 1.07%.

Cryptocurrency Developments

The Trump administration has approved the establishment of five new national banks focused on cryptocurrency, including Circle and Ripple. Circle plans to launch a national trust bank to manage USDC reserves.

Dell to Raise Prices Amid Memory Chip Shortages

Dell Technologies is set to increase prices on its commercial PC line by 10%-30% starting December 17, due to rising memory chip costs.

Summary of Market Movements

• Tech Stocks: Broad declines were noted, with NVIDIA down over 3% and Tesla up over 2%.
• Chinese Stocks: Major declines were seen in TSMC and Baidu.
• Emerging Trends: The market is witnessing a surge in cannabis stocks, with Tilray and Canopy Growth seeing significant gains.

Conclusion

The U.S. financial landscape is currently marked by diverging views on monetary policy, significant market reactions to tech earnings, and evolving regulations in the cryptocurrency sector. Investors are advised to stay informed as these developments unfold.