Market reacts to "hawkish rate cut" expectations; silver hits new high, gold stocks rise.

Final Round of Fed Chair Interviews Set to Begin

Hassett Leads but Uncertain Future

This week, President Trump will initiate the final round of interviews for the Federal Reserve Chair position, with National Economic Council Director Kevin Hassett leading among four candidates. Senior government officials revealed that Trump and Treasury Secretary Mnuchin are scheduled to interview former Fed Governor Kevin Walsh on Wednesday. Despite concerns from some Wall Street investors about Hassett's close ties to the president potentially leading to aggressive rate cuts, he remains the frontrunner to succeed Powell in May. However, the decision to conduct additional interviews indicates that Hassett's position is not guaranteed.

Job Openings Rise Amid Weak Hiring

The U.S. Bureau of Labor Statistics reported that job openings in October rose to 7.67 million, the highest in five months, surpassing expectations of 7.15 million. However, hiring activity continues to decline, with employment numbers dropping by 218,000 to 5.149 million. The labor market is described as stagnant, partly due to a decrease in labor supply and the impact of AI on entry-level jobs.

Market Anticipates Fed Rate Cuts

Hassett stated that the Fed has ample room for significant rate cuts, suggesting that if data supports it, cuts exceeding 25 basis points could be possible. Trump indicated that rapid rate cuts would be a key factor in his choice for Fed Chair.

OCC Confirms Banks Can Engage in Crypto Transactions

The Office of the Comptroller of the Currency (OCC) issued a letter confirming that national banks can engage in transactions involving risk-free principal crypto assets, acting as intermediaries without holding crypto inventories.

Major Banks to Discuss Crypto Legislation

CEOs from Bank of America, Citigroup, and Wells Fargo are set to meet with bipartisan senators to discuss upcoming cryptocurrency legislation, focusing on issues such as stablecoin interest payments and the competitive landscape for banks in the crypto space.

Economic Data Release Resumes Post-Government Shutdown

After a 46-day government shutdown, the release of U.S. economic data is returning to normal. The Labor Department will publish delayed CPI data for November on December 18, followed by December's CPI and employment data in January.

SpaceX Plans $1.5 Trillion IPO

Reports indicate that SpaceX is planning an IPO with an estimated valuation of $1.5 trillion, aiming to raise over $30 billion. The IPO is expected in mid-2026, depending on market conditions.

Mixed Market Performance Ahead of Fed Decision

Despite expectations of a Fed rate cut, investors are cautious about the post-meeting statements. The Dow Jones fell by 0.37%, while the Nasdaq rose by 0.13%. Notable tech stocks showed mixed results, with Google, Broadcom, and Tesla gaining over 1%, while Meta Platforms dropped over 1%.

Meta Delays AI Model Launch

Meta Platforms is reportedly delaying the launch of its new AI model, codenamed "Avocado," until Q1 2026 to ensure a successful debut.

Nvidia's H200 Chip Faces U.S. Scrutiny

Nvidia's H200 AI chip exports to China will undergo special security reviews, with analysts warning that large sales could undermine U.S. advantages in AI computing.

AI Agent Foundation Formed

A coalition of leading companies, including Google and Microsoft, has formed the AI Agent Foundation to develop open-source technical standards for AI agents.

Circle Launches Privacy-Focused Stablecoin

Circle has partnered with Aleo to launch a privacy-enhanced stablecoin, USDCx, which will provide bank-level privacy for transactions.

PepsiCo Compromises with Activist Investors

PepsiCo has reached a strategic reform agreement with activist investor Elliott, which includes cutting 20% of its U.S. product line and closing three factories.

Microsoft to Invest $23 Billion in AI

Microsoft announced a new $23 billion investment plan in AI, primarily focused on India, aiming to establish the largest cloud computing business in the region.

JPMorgan's Spending Projections

JPMorgan expects its total spending for 2026 to reach $105 billion, exceeding previous estimates.

Eli Lilly to Build $6 Billion Factory

Eli Lilly plans to invest over $6 billion in a new manufacturing facility in Alabama, creating 3,450 jobs.

General Electric Raises Revenue Guidance

GE Vernova has raised its revenue guidance and announced a stock buyback increase to $10 billion.

Anglo American Resources Shareholders Approve Merger

Shareholders of Anglo American and Teck Resources have approved a merger to create a $50 billion metal producer.

GameStop Reports Q3 Earnings

GameStop reported a net profit of $77.1 million for Q3 2025, with net sales of $821 million.

Stellantis to Deploy Autonomous Vehicles in Europe

Stellantis announced a partnership with Bolt to deploy autonomous vehicles in Europe, with trials set to begin in 2026.

Hong Kong Stock Market Activity

Southbound funds net bought over HKD 530 million in Hong Kong stocks, with Tencent receiving significant investment.

Li Auto Plans L4 Autonomous Vehicle

Li Auto aims to launch its first L4 autonomous vehicle within three years, predicting a significant industry shift.

New IPO Surges in Hong Kong

The new Hong Kong IPO, Baoji Pharmaceutical, saw its shares surge over 110% in the dark market.

Upcoming Economic Data

Key economic data to watch includes China's November CPI and M2 money supply, as well as U.S. labor cost index data for Q3.