The Fed spooks the market after .25% cut by forecasting only 2 for 2025

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🏛️ Financial News

• 🏛️ Single-Family The Fed could be pumping the breaks in the new year – Investopedia: FOMC members penciled in two quarter-point rate cuts for 2025 in their quarterly economic projections Wednesday, down from the four cuts they expected when they last made projections in September.

• 🏛️ Debt Ceiling Government shutdown averted after Senate passes bipartisan House stopgap funding bill – CNBC: The US Senate has approved a three-month bipartisan federal funding package, sending the House-passed legislation to President Joe Biden’s desk.

• 🛒 Household Expenses November’s personal consumption expense (PCE) price index up 2.4%, however, softer than expected – Morningstar: When volatile food and energy costs are factored out, the Federal Reserve’s preferred measure of inflation increased 2.8% from one year ago, in line with expectations.

📈 Stocks

• 🎽 Discretionary Nike stock pops 9% as its new CEO starts with an earnings beat – Quartz: Nike appears to be find its footing under new CEO Elliott Hill, reporting second-quarter earnings on Thursday that were better than feared.

• 🚚 Industrials Following mixed quarterly results, FedEx announced it plans to spin off its freight business into another publicly-traded company – CNBC: Nike appears to be find its footing under new CEO Elliott Hill, reporting second-quarter earnings on Thursday that were better than feared.

• 🎽 Healthcare Novo Nordisk stock plunges after disappointing obesity drug data – Morningstar: Shares of the pharmaceutical giant fell 20% after a late-stage weight-loss drug trial missed expectations.

• ▶️ Communications Netflix secures U.S. rights to the FIFA Women’s 2027 and 2031 World Cup – CNBC: The streaming giant said that coverage will include commentary and entertainment, as well as Netflix-original documentaries in the lead up to the 2027 tournament in Brazil.

📊 Exchange Traded Funds

• 🏛️ Inflows ETF Market Tops $15T on Active Management Boom – ETF.com: The global ETF industry accumulated $15.1 trillion in assets and attracted $1.6 trillion in flows during 2024, marking one of its strongest years on record

• 🌐 Technology Big Tech ETF on pace to snap weekly winning streak amid S&P 500 breadth worries – MarketWatch: Tech ETF’s have soared in 2024 on investors’ optimism about AI, fueling the S&P 500’s strong gains. On the surface, their hefty influence may make the index’s rally appear healthier than it is, as many other stocks may be struggling under the hood of the S&P 500.

🏡 Real Estate

• 🏠 Single-Family Home sales keep rising despite high mortgage rates – Investopedia: The increase in sales suggests buyers are getting used to the idea of paying rates in the high 6% range, compared to 3%- 4% before the pandemic.

• 🏠 Single-Family Why a housing market 'thaw' never came in 2024 – Yahoo! Finance: Wall Street analysts had hoped the housing market would show signs of life in 2024. Instead, it remained stagnant.

• 🛍️ Commercial Malls are using new restaurants to draw consumers as shopping centers reinvent themselves – CNBC: Malls are using new restaurants to draw consumers as shopping centers reinvent themselves

💱 Crypto Currencies

• 💱 BTC Bitcoin falls 8% in volatile trade around $93,000 as sell-off intensifies – CNBC: Bitcoin fell sharply amid broader caution in risk assets, trading at around $92,808.07 Friday morning. The cryptocurrency hit an all-time high above $108,000 just this week, but has since sold off aggressively.

• 💎 ETH Ethereum ETF Hot Steak Continues Amid Trump Regulatory Optimism – Decrypt: Both Bitcoin and Ethereum ETFs are riding weekslong streaks of positive flows, with ETH fortunes rising ahead of the new U.S. admin.

🛢️ Commodities

• ⛽ Oil & Natural Gas Trump says European Union must buy US oil and gas in trade ultimatum – CNBC: US president-elect Donald Trump told the European Union it must reduce its trade gap with the US through oil and gas purchases or face tariffs.

• 🛢️ Oil Oil may ‘collapse’ below $50 a barrel if this perfect storm hits the market – MarketWatch: An energy analyst at OPIC says ‘economic declines in China or Europe may lead to more oil supplies’.

• 🏆 Gold Gold holding $2,600 ahead of shortened holiday trading week – Kitco: Despite ending the week in negative territory, gold managed to hold critical support at around $2,600 an ounce, after the Federal Reserve signaled it would slow the pace of rate cuts in 2025.

• ☕ Coffee Droughts in Brazil and Vietnam Are Driving up Global Coffee Prices – Inside Climate News: Climate change is projected to drastically reduce suitable coffee-growing regions by 2050.

We’ll take a break thru the holidays but will be back in your inbox the first weekend of January. Thanks again to UseFidelity for sponsoring.

Have a wonderful holiday season and happy new year.

Happy Unprompting!
Rawee
[email protected]