Fed Split Puts Powell's Guidance in Focus

Fed Internal Split Puts Spotlight on Powell's Guidance

Rate-cut bets firmed as a divided Fed sharpened attention on Powell’s next move. Stocks climbed on easing-policy hopes and AI strength, while private markets stayed hot.

TL;DR:

🏦 Fed split spotlights Powell's guidance
📉 Markets price in 25 bps cut
📈 US stocks rally on AI momentum
🚀 SpaceX sale values firm at $800B

Fed Split Spotlights Powell's Guidance

Fresh reporting highlighted internal Fed dissents, putting Chair Jerome Powell’s guidance under a brighter spotlight as investors game out the policy path. A visible split raises uncertainty on the timing and pace of cuts, keeping front-end yields and the dollar sensitive to Powell’s tone. Markets want clarity on how many cuts and how fast. Source

Markets Price a 25 bps Cut

Morgan Stanley called for a 25 bps December cut, citing cooler inflation trends and softer growth signals. Traders leaned into rate-sensitives as odds for near-term easing firmed, while short-end yields edged lower. Positioning favored duration and quality tech. Source

US Stocks Rally on AI Momentum

Equities pushed higher on rate-cut hopes and AI-led tech strength, with mega-cap leaders lifting the tape. Lower-yield expectations supported growth multiples, while cyclical participation improved into the close. Dip buyers stayed active as breadth firmed. Source

SpaceX Secondary Sale at $800 Billion Valuation

SpaceX launched a secondary share sale valuing the company around $800 billion, signaling deep private-market demand for space and AI-adjacent assets. The deal highlights robust liquidity outside public markets and rising appetite for category leaders. Separately, Chinese chip designer Moore Threads drew extreme IPO oversubscription, underscoring hot semiconductor sentiment. Source

Fed Internal Split Puts Spotlight on Powell's Guidance