Macroeconomic & Government Developments

• The longest US government shutdown in history has ended after a temporary funding bill was signed, funding the government through January 30.
• A critical consequence is that October's official jobs and inflation reports will likely never be released, creating significant uncertainty for the Federal Reserve ahead of its December meeting.
• Market expectations for a December rate cut have fallen to approximately 58 percent, down from over 95 percent a month ago, according to the CME FedWatch tool. Boston Fed President Susan Collins stated there should be a "high bar" for further monetary easing.
• A Nomura strategist warned that investors may be unprepared for a scenario where unexpected economic strength forces the Fed into a less dovish or "de facto TIGHTENING" stance, challenging the consensus view of a smooth easing path.
• In response to consumer costs, the Treasury Department is expected to announce changes to tariffs on items such as coffee and bananas.

Market & Investment Trends

• Shifting rate expectations are fueling a mini-rotation in markets, with the Dow Jones Industrial Average outperforming the tech-heavy Nasdaq Composite. All Magnificent Seven stocks declined Wednesday.
• Despite the recent tech dip, data shows retail investors were significant dip-buyers of Magnificent Seven stocks in early November.
• Goldman Sachs strategists project US equities will lag global markets for the next decade, forecasting annual returns of 6.5 percent for the S&P 500 compared to 10.9 percent for emerging markets.

AI Infrastructure & Corporate Investment

• The artificial intelligence boom continues to drive massive infrastructure spending across sectors.
• Cisco (CSCO) beat fiscal first-quarter expectations and raised its full-year revenue outlook to between USD 60.2 billion and USD 61 billion, citing accelerating demand for its AI networking equipment. The company reported AI infrastructure orders from hyperscalers totaled USD 1.3 billion.
• Chevron (CVX) is expanding its electricity business to power AI data centers, planning a 2.5 gigawatt off-grid natural gas plant in West Texas with partners GE Vernova and Engine No. 1, with a final investment decision expected in early 2026.
• Meta Platforms (META) announced a new USD 1 billion data center in Wisconsin and signaled that AI-related capital expenditures in 2026 would be "notably larger" than in 2025. CEO Mark Zuckerberg noted the company could offer its excess computing capacity as a service if it overbuilds.
• AI startup Anthropic announced plans to spend USD 50 billion on data centers across the US.

Sector & Company Highlights

• Gambling: FanDuel and DraftKings are launching stand-alone prediction market apps, offering event contracts on finance and sports. These apps are designed to operate in states where online sports betting is not yet legal, competing with platforms like Kalshi.
• Biotech: The appointment of Dr. Richard Pazdur, a 26-year agency veteran, to lead the FDA's Center for Drug Evaluation and Research is viewed by analysts as a stabilizing move that could act as a positive catalyst for the biotech sector.
• Automotive: Toyota confirmed it will invest as much as USD 10 billion in its US operations over the next five years.