Latest Finance-Economy News
Stocks Slide as Tech Sell-Off Deepens on AI Weakness
Major stock indices declined amid a deepening sell-off in tech stocks driven by AI sector weakness. This reflects broader market concerns over valuations and economic uncertainty.
Flash US PMI Signals Slower Business Growth and Price Spikes
December Flash US PMI indicates slower output growth to three- and six-month lows in manufacturing and services, with new orders at a 20-month low. Price pressures surged to steepest rates since mid-2022, blamed on tariffs increasing costs across sectors.
Fed Delivers Third 25-bps Rate Cut, Targets 3.50%-3.75% Range
The Federal Reserve cut rates by 25 basis points in December, acknowledging easing inflation but softening labor market needing support. Future moves depend on data, with markets expecting two cuts in 2026 amid sticky inflation.
Tariffs Drive Inflation Higher and Disrupt Demand
Tariffs caused sharp rises in input costs and selling prices, with service sector inflation at three-year highs. Manufacturing new orders fell for the first time in a year, while FY26 tariff revenue nears $300 billion.
US Employment Growth Softens Amid Labor Market Concerns
Job growth slowed to marginal increases, weakest in months, constrained by costs, weak demand, and uncertainty. FOMC suspects payroll overcount of 60,000 monthly, signaling potential negative job creation.
Trump Touts Economic Agenda Amid Voter Anxiety
President Trump highlighted a strong economy in a prime-time address, pushing his agenda despite growing voter concerns over slowdowns. This comes as markets react to policy shifts.
Equities Gain in December but Bonds Underperform
US equities posted gains in December, with smaller caps outperforming on 2026 earnings hopes; global stocks up 2-5% quarterly. Bonds struggled post-Fed signals of slower cuts, commodities mixed.
Holiday Retail Sales Rise but Spending Remains Cautious
Holiday sales increased, but in-store traffic dropped significantly year-over-year, with discretionary spending on electronics and travel subdued. Consumers prioritize essentials amid uncertainty.
Tax Reform Bill P.L. 119-21 Increases Debt Limit by $5 Trillion
New tax reform legislation raised the debt ceiling, averting default after extraordinary measures, but Moody’s downgraded US credit due to rising debt. Includes defense funding and Medicaid cuts.
2026 Outlook: Tailwinds from Rate Cuts, Tax Benefits, Tariff Clarity
US economy poised for growth from Fed rate cuts, tax bill advantages, and tariff resolutions. Inflation expected to decline to 2.0% by 2028, unemployment 4.2-4.4%.
Copper Prices Surge on AI and Electrification Demand
Rising copper prices, fueled by global electrification and AI infrastructure, contribute to sticky inflation. This pressures Fed rate cut expectations.
Bipartisan Senate Bill Targets PBM Pricing Transparency
Proposed legislation aims to boost oversight on pharmacy benefit managers' pricing practices. Part of broader corporate and economic policy headlines.