Bloomberg News Now: Market Update, Trump Meeting, Ukraine Conflict, and Fed Rate Outlook

Market Performance and Bitcoin Volatility

• 📈 Stocks closed higher on Friday, with the S&P 500 gaining 65 points, the Nasdaq up 195, and the Dow Jones Industrial Average increasing by 493 points.
• 📉 Bitcoin experienced a significant sell-off, dropping over 3% to around $84,000, with options-fueled selling contributing to increased volatility and a roughly 25% loss in value this month.
• 📊 The ten-year Treasury yield closed at 4.06%, and the two-year yield at 3.5%.

Political Developments and Chip Exports

• 🤝 President Trump hosted New York Mayor-elect Zoran Mamdani at the White House, describing the meeting as productive and expressing confidence in Mamdani's ability to do a good job.
• 💡 Trump's team is reportedly considering allowing Nvidia to sell its H200 AI chips to China, a potential shift from previous export control policies.
• ⚠️ Former National Security Advisor Meghan O'Sullivan warned that selling high-end chips to China could mean giving up a U.S. advantage and may not be in the national security interest.

Ukraine Conflict and US Support

• ⚠️ Ukrainian President Volodymyr Zelensky stated that Ukraine is facing one of its toughest periods and cannot accept parts of a 28-point peace plan.
• 🇺🇸 The U.S. has threatened to halt intelligence sharing and weapons supplies to Ukraine if Kyiv does not agree to the peace plan by Thursday.
• 🇷🇺 Russia, while ready for talks, also indicated readiness to continue fighting if an agreement isn't reached.

Consumer Sentiment and Federal Reserve Policy

• 📉 US consumer sentiment has fallen to near record lows, with Americans' views on their personal finances souring to a 16-year low, driven by frustration over high prices.
• 🏦 Several Federal Reserve officials are leaning against a December rate cut, citing persistent inflationary pressures and the need for more data, particularly on the labor market.
• 🗣️ Fed Governor Miran suggested that recent economic data should push policy in a dovish direction, while Dallas Fed President Laurie Logan indicated it would be appropriate to hold rates steady in December.
• 📊 Investors now see a roughly 65% probability of a rate cut in December, an increase from previous expectations.