Market Rundown: Fed Rate Cut Expected, Big Tech Earnings, and AI's Impact

Federal Reserve Decision Day

• 🎯 Policy makers are widely expected to cut rates by a quarter point today.
• ⚠️ However, no clear clues on future actions are anticipated due to divisions over inflation and the jobs market.
• 🏦 The Fed may also halt the runoff of its $6.6 trillion balance sheet as money markets show signs of stress.

Yen and Bank of Japan Focus

• 💹 The yen firmed following comments urging the new Japanese government to allow the Bank of Japan room to fight inflation.
• 📈 Rates are expected to remain on hold, but the odds of a surprise hike jumped to 20%.

Big Tech Earnings and AI Investments

• 💰 Wall Street faces a critical moment with earnings from Microsoft, Alphabet, and Meta due today.
• 💡 Investors are seeking proof that billions invested in AI are translating into tangible returns.
• 🤝 OpenAI has finalized a deal giving Microsoft a 27% stake, paving the way for the ChatGPT maker to become a full-for-profit company.

Automation and Job Cuts

• 📉 US companies have cut 25,000 jobs this month, with Amazon leading with 14,000 corporate role reductions.
• 🤖 These cuts are primarily in white-collar jobs increasingly exposed to AI, signaling a potential shift as AI moves from hype to reality.

Nvidia and China Relations

• 🚀 Nvidia shares extended their record run after President Trump indicated he would discuss the company's chips with China.
• 🇨🇳 This marks a potential breakthrough for Nvidia and a shift in US efforts to curb China's AI ambitions.
• 🤝 Nvidia also announced a $1 billion stake in Nokia.