Hassett: New Fed leadership may cut rates; market updates on indices and Nvidia chip sales.

Trump Advisor Hassett: New Fed Leadership May Cut Rates

Potential Rate Cuts and Economic Growth

Kevin Hassett, the Director of the White House National Economic Council, indicated that the new leadership at the Federal Reserve might consider lowering interest rates. President Trump is expected to interview candidates for the Fed Chair position in the coming months, with a decision likely before the New Year. The U.S. economy is projected to grow between 1.5% and 2% in the fourth quarter.

Fed's Internal Divisions Intensify

Ahead of the December policy meeting, divisions within the Fed have become more pronounced. Out of the 12 voting members, five are leaning towards maintaining current rates. New York Fed President John Williams signaled support for a rate cut, which has increased market expectations for a December reduction, with futures indicating a probability rise from below 30% to over 60%.

Delayed Economic Data Complicates Decisions

The U.S. Labor Department announced delays in key economic data releases due to a government shutdown, complicating the Fed's decision-making process. The Consumer Price Index (CPI) report for October has been canceled, and the November CPI data will now be released after the Fed's decision. This lack of data adds uncertainty to the Fed's upcoming meeting.

Fed Officials Express Divergent Views

Boston Fed President Susan Collins stated that she sees no need for further rate cuts in December, highlighting the ongoing debate among policymakers. She noted that the Fed's current stance may still be appropriate given inflation rates above the 2% target.

Market Reactions and Stock Movements

Market Response to Fed Signals

On Friday, U.S. stock indices rose collectively, with the Dow Jones gaining over 1%. Major tech stocks showed mixed results, with Nvidia and Microsoft declining, while Apple and Google saw gains.

Nvidia's Potential Chip Sales to China

Reports suggest that the Trump administration is considering allowing Nvidia to sell its H200 AI chips to China, pending a review by the Commerce Department.

Eli Lilly Achieves $1 Trillion Valuation

Eli Lilly has become the first pharmaceutical company to reach a $1 trillion market cap, driven by strong demand for its diabetes and weight loss drugs.

Apple’s iPhone Sales Underperform

Apple's latest iPhone 17 Air model has seen disappointing sales, prompting the company to cut production plans significantly.

Google’s Ambitious AI Infrastructure Goals

Google aims to double its computing power every six months, with a long-term goal of a 1000-fold increase over the next four to five years.

Amazon CEO Plans Stock Sale

Amazon CEO Andy Jassy plans to sell nearly 20,000 shares of the company stock, valued at approximately $4.3 million.

Nokia's $4 Billion Investment in U.S.

Nokia announced a $4 billion investment to expand its R&D and manufacturing capabilities in the U.S., focusing on AI-ready mobile and fixed access technologies.

JD Industrial's Listing Progress

JD Industrial has passed the Hong Kong Stock Exchange hearing, potentially becoming the sixth listed company under JD Group.

Baidu and Other Chinese Stocks

Chinese stocks saw varied performances, with Baidu and Tencent Music gaining, while Alibaba experienced a slight decline.