Overview
- The Federal Reserve cut rates by 25 basis points to 3.75%–4.00%, and Powell said a December move is “not a foregone conclusion,” with market-implied odds for another cut falling to roughly 70%–73%.
- Meta shares dropped about 11%–12% after the company projected notably larger AI-related capital spending in 2026, renewing concerns over rising costs.
- Microsoft declined roughly 2%–3% despite strong revenue as it reported nearly $35 billion in quarterly capital expenditure and flagged higher outlays ahead.
- President Trump said average U.S. tariffs on Chinese goods will fall to 47% from 57%, with China keeping rare-earth export restrictions on hold for a year and tightening controls on fentanyl precursors.
- U.S. indexes pulled back from record highs with the S&P 500 down about 1% and the Nasdaq off roughly 1.6%, Alphabet rose after topping $100 billion in quarterly revenue, and Asia looked steadier with Japan at new highs as Apple and Amazon after-hours beats lifted futures.