????Slowing Down? Fed’s Quarter-Point Cut Details

Hala,

???? Thieves pulled off a chaotic heist in the Netherlands, grabbing an Andy Warhol print of Queen Elizabeth II(1)—only to ditch two others because they couldn’t fit them in their getaway car. Guess they didn’t get the “frame-size matters” memo! ??

amana’s Take

• Bitcoin Surges Amid Positive Momentum: Bitcoin’s rise, fueled by high trading volumes and positive sentiment, is supported by increased institutional interest. BlackRock’s ETF drew $1.34 billion in a day, while Detroit’s crypto tax acceptance underscores growing U.S. blockchain adoption. Analysts predict a rally to $78,000–$85,000.
• Gold Under Pressure from USD and Risk-On Mood: Gold dropped to $2,680 as dollar strength and optimism over Trump’s policies shift investors to riskier assets, despite recent Fed rate cuts. Expectations of further cuts provide some support.

Stock Market Update

???? U.S. stocks played seesaw on Thursday after President-elect Donald Trump’s win and the Fed’s latest rate cut. The S&P 500 rose 0.74% to a record 5,973.10, the Nasdaq 100 advanced 1.54% to 21,101.57, while the Dow barely budged, slipping less than a point to 43,729.34. (2) Looks like someone missed the rally memo! ?? ??

??? Meanwhile, Gulf markets edged higher as investors braced for round two of Trump! Abu Dhabi added 0.4% to 9,466 and Dubai gained 0.6% to 4,644.(3) ??↗?

???? Fed Taps the Brakes—But Are We Headed for a Soft Landing?

The Federal Reserve eased off the gas, trimming rates by a quarter point as it continues its quest for that elusive soft landing.(4) This quarter-point cut, bringing the target range to 4.50%-4.75%, reflects the Fed’s shift to a slower, more cautious pace of rate adjustments—think of it as trading in a sports car for a reliable sedan. With a unanimous vote from the FOMC, the Fed's message is clear: inflation’s still on the radar. ????

?? Key Indicators on the Dashboard:

• Rate Reduction: 25 basis points down, easing the overnight lending rate to 4.50%-4.75%.
• Stock Market Response: The Nasdaq surged 1.5%, hitting record highs alongside the S&P 500.
• Labor Market: Nonfarm payrolls showed a slight dip in October, possibly impacted by labor strikes and weather.
• GDP Growth: Q3 saw a 2.8% growth rate, dipping slightly below expectations but still cruising above the U.S. trend. ????

???? Fed’s Next Moves: Keep Steering or Take a Pause?

As Fed Chair Jerome Powell navigates these economic twists and turns, questions loom over when (or if) the Fed will hit the brakes completely. Powell hinted that while they’re monitoring the macroeconomic road, the incoming political dynamics won’t throw them off course—at least not yet. With a potential rate cut expected in December, analysts say the Fed is likely on a “steady-as-she-goes” policy path. But if inflation keeps nudging up, Powell’s plans for a scenic cruise might shift gears again. #BraceYourself ?????

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Closer to Home?

• ?? The Fed’s rate cut had GCC central banks saying, “We’ll have what they’re having!” and trimmed 25bps, too. With rates cooling, Gulf real estate and spending could see a growth boost.(5) ??
• ?? Similarly, Saudi’s Central Bank gave its rates a 25bps haircut and followed the Fed’s move, with repo rate now at 5.25%—keeping the riyal-dollar peg tight and the policy moves in sync.(6) ??
• ?? Meanwhile, Dubai Financial Market’s (DFM) trading floor sizzled today with three major trades totaling AED 38.6M across 35 million shares, involving Al Ansari and Ajman Bank, which just stole the trading spotlight!(7) ??

What Else Is Trending

• ?? AI darling Nvidia’s market value shot to a blazing $3.65T on Thursday, stealing Apple’s crown and becoming Wall Street’s new MVP—all thanks to President Donald Trump's return to the White House. Guess AI chips are the new golden apples!(8) ??
• ↗? Meanwhile, oil prices heated up as Trump’s return and the Fed’s latest move stirred the pot. Brent rose 0.95% to $75.63, while WTI climbed 0.93% to $72.36.(9) ???

??Quote of the Day

“In the near term, the election will have no effect on our policy decisions,” — Fed Chair Jerome Powell

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amana.app

Sources: (1) Sky News, (2) (4) (9) (10) CNBC, (3) Reuters, (5) (7) (8) Zawya, (6) Trading Economics