US indices drop before Fed meeting; Trump claims inflation solved; Nvidia gains on China chip sale approval.

U.S. Labor Statistics Bureau Delays October PPI Data Release

The U.S. Labor Statistics Bureau announced that it will not release the Producer Price Index (PPI) data for October 2025 due to a funding interruption caused by a government shutdown. The October data will be published alongside the November PPI report on January 14, 2026.

Trump Claims Inflation Issues Resolved

President Trump stated that inflation is "essentially gone," asserting that prices have decreased significantly. He cautioned against the risks of deflation and criticized the previous Biden administration for the high inflation inherited by his team.

Fed's Rate Cut Probability

According to CME's FedWatch, there is an 89.4% probability that the Federal Reserve will cut rates by 25 basis points in December, with a 10.6% chance of maintaining current rates. The likelihood of a cumulative 25 basis point cut by January is 68.5%.

Market Focus on Fed's Liquidity Management

Despite expectations of a rate cut, the market's attention is on how the Fed will manage its balance sheet and whether it will inject new liquidity into the market. Analysts predict that the Fed may announce a plan to purchase Treasury bills starting in January.

Nvidia H200 Export to China Approved

The U.S. Commerce Department is set to allow Nvidia's H200 AI chips to be exported to China, as the White House believes previous restrictions have failed. This move could open a significant market for Nvidia's products.

Supreme Court Signals Support for Trump's Authority

The U.S. Supreme Court indicated it may support President Trump's ability to dismiss leaders of traditionally independent federal agencies, potentially affecting the Federal Trade Commission.

CFTC Launches Digital Asset Pilot Program

The Commodity Futures Trading Commission (CFTC) has initiated a pilot program allowing specific digital assets like Bitcoin and Ethereum to be used as collateral in the derivatives market.

Russian Gold Bar Export Restrictions

Russia's Deputy Prime Minister Novak announced that restrictions on gold bar exports will take effect in 2026, aiming to control the flow of unregulated cash rubles.

U.S. Stock Market Overview

The three major U.S. indices fell, with the Dow Jones down 0.45%, Nasdaq down 0.14%, and S&P 500 down 0.35%. Tesla dropped over 3%, while Nvidia rebounded nearly 2%.

Paramount's Hostile Takeover of Warner Bros

Paramount has launched a hostile takeover bid for Warner Bros Discovery, offering $30 per share in cash. This move has led to significant stock fluctuations in both companies.

Other Notable Market Movements

• Marvell Technology's stock fell nearly 7% after a downgrade due to concerns over losing Amazon orders.
• CoreWeave announced a $2 billion convertible bond offering, leading to a drop in its stock price.
• Confluent surged over 29% after IBM announced its acquisition for $31 per share.

Xiaomi and Other Hong Kong Stocks

Xiaomi repurchased 480,000 shares for approximately HKD 204 million. Meanwhile, Northbound funds bought over HKD 1.54 billion in Hong Kong stocks, with significant purchases in Xiaomi and SMIC.

Conclusion

Investors should keep an eye on upcoming economic data, including the October JOLTs job openings report, as market dynamics continue to evolve amid regulatory changes and corporate actions.