Hala,
🗽💸 NYC: Billionaire HQ? With 144 billionaires, NYC tops Altrata’s 2024 Billionaire Census — guess the Big Apple’s got plenty of core wealth!(1) 🍎💰
🚨📉 A disappointing rate outlook by the Fed made a dent in the US stock market. The Dow lost 1,123.03 points, or 2.58%, to 42,326.87, for its worst losing streak since an 11-day slide in 1974. Meanwhile, the S&P 500 dropped 2.95% to 5,872.16 and the Nasdaq 100 shed 3.60% to 21,209.3.(2) 🚨⬇️
🎵 But the UAE is singing a different tune. While Dubai slipped 0.8%, Abu Dhabi benchmark index was up 0.3%, lifted by gains in most sectors.(3) ⬆️
amana’s Take
- The U.S. Federal Reserve dropped interest rates as anticipated on Wednesday, but warned that it will restrict the rate at which borrowing costs drop any further, which boosted the dollar and bond yields. As a result, gold fell more than 2% to a one-month low.
- At $2,589.91 an ounce, spot gold was down 2.1%, the lowest since November 18. At $2,653.30, U.S. gold futures ended the day 0.3% down.
- “Markets are climbing a wall of worry into the close as (Fed Chief Jerome) Powell nods to a period of slower rate cuts predicated on further progress in inflation. Core PCE data later this week now takes on more importance,” said Tai Wong, an independent metals trader.
🚦📉 The Fed Shifts Gears on Rates
The Federal Reserve’s latest move is like shifting gears on a winding road — measured and strategic. On Wednesday, the Fed trimmed its key interest rate by a quarter-point to a target range of 4.25%-4.5%, bringing rates back to December 2022 levels.(4) While traders anticipated this adjustment, the spotlight shifted to what’s next: fewer cuts ahead. The Fed’s “dot plot” now signals just two more reductions in 2025 — half the pace it hinted at back in September. 🎢📊
📊💸 Rate Rundown:
- Rate Reset: Overnight borrowing rate reduced to 4.25%-4.5%.
- Dot Drama: Only two cuts forecasted in 2025, down from four.
- Market Moves: Dow sank over 1,100 points post-announcement.
- Treasury Tension: 2-year yields spiked to 4.3%, outpacing the Fed’s range.
- Economic Projections: 2024 GDP revised up to 2.5%, with inflation estimates also nudging higher.
💼🔮 What’s Next for the Fed?
Chair Jerome Powell likened the Fed’s actions to shifting gears: “We’ve moved quickly to get here, but now we’re moving slower.” The focus is on “normalizing policy,” with an eye on growth, inflation, and a steady labor market. However, not everyone’s on board — Cleveland Fed President Beth Hammack dissented, advocating for a pause. Meanwhile, markets are skeptical about further cuts, as mortgage rates and Treasury yields climb. The Fed’s cautious descent down the policy staircase leaves traders guessing whether the landing will be soft or slippery. 🚀📈
In the Neighborhood
- 📉💸 Gulf central banks followed the Fed’s lead, trimming rates to keep up with global shifts. Saudi Arabia and Oman cut by 25 bps, Qatar went for a deeper 30 bps — guess someone’s showing off!(5) ✂️💵
- 📈💰 Saudi Arabia’s Almoosa Health set its IPO price at SAR 127 per share, oversubscribed 103x. SAR 173B in demand proves healthcare is wealth-care!(6)🚀💼
- 🌍📊 UAE GDP is forecast to grow 5% in 2025, outpacing the global average of 3.2%. Looks like the Emirates are flexing their economy muscles again!(7) 💪🇦🇪
What Else Is Trending
- 🤖 Apple is holding talks with Tencent and TikTok-owner ByteDance to bring local AI models to iPhones. Because in China, even AI has to play by the local rules.(8) 📱
- ☕ Starbucks workers are brewing up a strike, with 98% of union members voting “yes” on Tuesday. Looks like the only thing steaming at Starbucks right now is the tension.(9) 🚨
- 🚀 Bitcoin took a tumble below $100,000 after the Fed’s cautious tone on rate cuts rattled speculative bets. The crypto giant dipped to $98,760 — just $10,000 short of this week’s record. Looks like even Bitcoin needs a breather after its victory lap.(10) 📉
💬Quote of the Day
“We think the economy is in [a] really good place. We think policy is in a really good place.” — Fed chair Jerome Powell
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Sources:(1) Robb Report, (2) (4) CNBC, (3)(5)(8)(10) Reuters, (6) Zawya, (7) Economy Middle East, (9) Fast Company
