Senate Ends Trump's Tariff Policy; US-China Trade Teams Reach Consensus; Stocks Rise.

U.S. Senate Passes Resolution to End Trump's Tariff Policy

The U.S. Senate has passed a resolution to terminate the national emergency declared by former President Trump to implement global tariffs, with a vote of 51 to 47. This resolution targets the broad tariffs of 10% to 50% imposed on nearly all countries this summer. Notably, four Republican senators joined the opposition, consistent with previous votes against tariffs on Canada and Mexico. The resolution now awaits a vote in the House of Representatives, where Republican opposition may hinder its passage.

Federal Reserve Restructures Oversight Division

Staff Reduction Plan

Michelle Bowman, Vice Chair for Supervision at the Federal Reserve, announced a restructuring plan aimed at reducing the bank's regulatory staff from nearly 500 to about 350 by the end of 2026. This move aligns with broader layoffs and efforts to ease bank capital rules.

Central Banks Accelerate Gold Purchases

Record Highs in Gold Demand

According to the World Gold Council, central banks purchased 220 tons of gold from July to September, a 28% increase from the previous quarter. Kazakhstan emerged as the largest buyer, while Brazil made its first purchase in over four years. The report also noted record inflows into gold ETFs, totaling $26 billion.

U.S.-China Trade Talks Yield Positive Outcomes

Key Agreements

During recent trade discussions in Kuala Lumpur, the U.S. and China reached several agreements, including the suspension of certain tariffs and export controls. The U.S. will cancel a 10% tariff on Chinese goods and extend the suspension of a 24% tariff for another year. Both sides agreed to continue dialogue to resolve outstanding issues.

Major Stock Market Movements

Index Performance

All three major U.S. indices closed lower, with the Nasdaq down 1.57% and Meta Platforms experiencing its largest single-day drop in three years, falling over 11%. Other tech stocks like Tesla and Amazon also saw declines, while Apple reported better-than-expected earnings, leading to a slight increase in its stock price.

Notable Earnings Reports

• Apple (AAPL): Q4 revenue of $102.47 billion, up 7.9% year-over-year.
• Amazon (AMZN): Q3 earnings exceeded expectations, driven by a 20% growth in AWS.
• Netflix (NFLX): Announced a 1-for-10 stock split to make shares more accessible.

Other Market Highlights

• Coinbase (COIN): Reported Q3 revenue of $1.869 billion, surpassing expectations.
• Western Digital (WDC): Q1 revenue of $2.82 billion, exceeding analyst forecasts.

Conclusion

The recent developments in U.S. trade policy, central bank actions, and corporate earnings reports reflect significant shifts in the economic landscape, with potential implications for both domestic and global markets.