Latest Finance-Economy News
Flash US PMI Signals Slower Business Growth in December
US Flash PMI indicates decelerating output growth to three- and six-month lows in manufacturing and services, with new orders at a 20-month low. Employment growth weakened marginally, the lowest since September, due to cost concerns and uncertainty.
Price pressures spiked sharply, with selling prices at steepest rates since mid-2022, blamed on tariffs.
Companies Set for Pre-Market Earnings on December 18
Key firms including ACN, CTAS, DRI, FDS, BIRK, KMX, FCEL, and ISSC are scheduled to report earnings before market open today. Investors await these reports amid volatile economic conditions.
Full earnings calendar available for broader insights.
Federal Reserve Delivers Third Rate Cut to 3.50%-3.75%
The Fed cut rates by 25 bps in December, following September and October cuts, targeting a cooling labor market despite sticky inflation. Policymakers cite downside risks from weakening jobs data.
Future moves depend on incoming data post-shutdown.
US Government Endures Record 43-Day Shutdown in 2025
The longest federal shutdown in history stalled data releases and heightened economic uncertainty around ACA tax credits. It delayed key reports, complicating Fed decisions amid labor softening.
Shutdown backlog now released, showing mixed signals.
Tariffs Drive Inflation and Reshape Trade Policy
2025 saw massive tariff hikes via Section 232 and IEEPA, boosting FY26 revenue toward $300 billion. They fueled sharp cost and price rises, especially spilling into services.
Many tariffs negotiated down, but negative macro impact persists.
US Unemployment Ticks Up to Four-Year High
Post-shutdown data reveals rising unemployment, highest in four years, with potential payroll overcount of 60,000 monthly. FOMC notes significant labor market downside risks prompting rate cuts.
Healthcare added 46,000 jobs, but overall hiring slowed.
Retail Sales Stall at Holiday Season Start
October retail sales flat versus September, signaling consumer pullback despite holiday ramp-up. This cautions on spending, 2/3 of economic activity, amid tariff pressures.
Analysts see losing momentum at crucial time.
2025 US GDP Growth at Resilient 1.8%
Despite volatility from tariffs, shutdown, and trade disputes, annual GDP reached 1.8%. AI capex, consumer spending supported recovery after midyear rebound.
2026 outlook similar at 1.8% with policy tailwinds.
Tax Reform Bill Boosts Debt Limit by $5 Trillion
P.L. 119-21 enacted tax reforms, defense funding, while raising debt ceiling to avert default. Followed Moody's credit downgrade over rising debt and interest.
Includes cuts to Medicaid, SNAP benefits.
2026 Outlook: Tailwinds from Rate Cuts, Tax Bill, Tariffs Clarity
Lower rates after three 2025 Fed cuts, tax benefits, and resolved tariff negotiations to support growth. Business adjustments ongoing, with AI and capex bolstering investment.
Fed may cut further to 3.25%-3.50%.
Moody's Downgrades US Credit Amid Debt Surge
May downgrade responded to escalating government debt and interest payments over past decade. Tied to prolonged extraordinary measures before debt limit hike.
Impacts fiscal policy amid shutdown legacy.