Hala,
📱💥 Looks like Apple might finally be breaking free from its same-old, same-old yearly hardware drops! 1) Could this mean real changes to iPhones instead of just new colors? 🤔 MacBooks, iPads, and AirPods might get spontaneous upgrades too. Stay tuned, folks! #FinallySomethingNew
amana’s take
- JPMorgan and Wells Fargo kick off earnings season Friday, with Bank of America and Citigroup close behind. Analysts expect the rate-hike party to fizzle, as profits take a hit from tighter lending margins. With higher rates eating into the banks’ bottom lines, investors are bracing for a reality check.
- The Fed’s recent rate cuts have investors asking: Will lower borrowing costs save the day or squeeze profits even further? While banks could see interest income drop, there’s a silver lining — falling deposit costs might ease the sting, eventually.
- JPMorgan, the darling of the rate hike era, now faces a different tune. Record profits may soon be yesterday’s news as rising deposit costs catch up. Analysts warn that the bank may not ride the rate-cut wave as smoothly as its peers. Guess you can’t win ’em all.
Stock Market Update
📉↘️ US stocks slipped into the red on Thursday as September’s consumer price index pointed to stubborn inflation. The S&P 500 shed 0.21% to 5,780.05, the Dow slid 0.14% to 42,454.12, while the Nasdaq 100 eased 0.13% to 20,241.76.(2) Talk about a snooze fest on Wall Street! ⏰💤
⬆️⬇️ Meanwhile, Gulf stocks had a tug-of-war session amid simmering geopolitical drama. Abu Dhabi dipped 0.3% to 9,251, while Dubai added 0.3% to 4,438.(3) 🎢📊
🎯💼 The Fed Adjusts the Sails as More Rate Cuts Loom!
After the Fed’s recent decision to cut rates by 50 basis points, Powell and co. are still fine-tuning their course, adjusting interest rates like a ship navigating steady waters. Cooling inflation (consumer price inflation down to 2.4% from 2.5%) and a strong, yet fragile, employment outlook (4.1%) are prompting Fed policymakers to consider further interest rate cuts in the coming months.(4) But don’t get too excited — some officials are hinting that a November pause might be in the cards. ⚓️📉
📊💵 Key Moves and Market Signals:
- Rate Adjustments: Fed’s Austan Goolsbee hints at needing to “drop rates a fair amount.”
- Job Market Pressure: Weekly jobless claims surged, partially blamed on Hurricane Helene.
- Market Sentiment: Financial markets expect quarter-point rate cuts at the next meetings but remain cautious about the pace of cuts.
🌐🧭 Steering the Economy to Calm Waters
Chicago Fed President Goolsbee is looking to “freeze” the dual mandate — keeping inflation and employment in balance — while other officials signal that smaller, strategic rate cuts may be the safest way to weather future economic challenges. Will the Fed stick with its gradual course, or will more surprises emerge on the horizon? Only time — and the next data reports — will tell. 🌊💼
Closer to Home
- 💰 Qatar-based Gulf International Services is prepping to float its subsidiary, Al Koot Insurance, on the Qatar Stock Exchange. The oil and gas company promises more details soon.(5) #IPOInTheWorks! 👛
- 🏦 Dubai Islamic Bank, the UAE’s largest Islamic lender, issued a $500 million AT1 sukuk, double-listed on Euronext Dublin and Nasdaq Dubai, and catching eyes across continents.(6) Seems like DIB’s got global charm and local profits! 💸
- 🛍️ Abu Dhabi-listed Ghitha Holding is grabbing a 70% controlling stake in Fujairah’s International Food Industries for AED 41M ($11.2M). Just waiting on the green light from regulators — looks like Ghitha’s got a taste for growth!(7) 🚀
What Else Is Trending
- 🤖 Microsoft just dropped new healthcare data and AI tools, from medical imaging models to automated nurse paperwork solutions. Their mission? Cut down on admin headaches for clinicians.(8) Looks like AI’s scrubbing in to save the day! 🥼
- 🛢️ Meanwhile, oil prices spiked over 3% on Thursday as fuel demand soared ahead of Hurricane Milton’s charge through Florida. Brent rose 3.68% to $79.40 a barrel, while WTI climbed 3.56% to $75.85.(9) ⛽
- ✨ Lastly, gold prices glittered on Thursday, with spot gold climbing 0.6% to $2,623.58 an ounce, as traders bet big on a Fed rate cut after fresh US economic data.(10) 🌟
💬Quote of the Day
We’re trying to freeze the dual-mandate performance exactly where it is right now.” — Austan Goolsbee, Chicago Fed President
Sources:(1) Bloomberg, (2) (8) (9) (10) CNBC, (3) (4) Reuters, (5) (6) (7) Zawya
