Asia-Pacific markets rose Wednesday, tracking Wall Street gains on hopes that the U.S. Federal Reserve could cut benchmark interest rates in December. Expectations rose after Bloomberg reported that White House National Economic Council Director Kevin Hassett was being considered as the frontrunner to become the next Fed chair. Investors see Hassett as someone more likely to push the central bank toward a lower-rate environment favoured by President Donald Trump. Treasury Secretary Scott Bessent told CNBC on Tuesday that there was a “very good chance” that Trump could name a new Fed chair before Christmas. New York Fed President John Williams also said on Friday that there was room to lower rates “in the near term.” Markets are pricing in a more than 84% chance that the Fed would cut rates in December.
The Dow Jones Industrial Average closed higher on Tuesday following another winning session, with traders evaluating expectations of a Federal Reserve interest rate cut and the state of the artificial intelligence trade. The blue-chip index advanced 664.18 points, or 1.43%, to close at 47,112.45. The S&P 500 gained 0.91% to settle at 6,765.88, while the Nasdaq Composite climbed 0.67% to finish at 23,025.59. That marks a turnaround from the losses seen earlier in the day. At session lows, the S&P 500 was down about 0.7%, while the Dow and tech-heavy Nasdaq dropped more than 100 points, or 0.2%, and more than 1%, respectively. Investors continue to watch for any news that can affect the Fed’s upcoming monetary policy decision.
Gold climbed a near two-week high Wednesday, after new U.S. economic data bolstered expectations of an interest rate cut by the Federal Reserve in December and weighed on the dollar. Spot gold rose 0.8% to $4,161.10 per ounce, as of 0241 GMT, its highest since November 14. U.S. gold futures for December delivery fell 0.5% to $4,159.00 per ounce. Gold climbed a near two-week high Wednesday, after new U.S. economic data bolstered expectations of an interest rate cut by the Federal Reserve in December and weighed on the dollar. Spot gold rose 0.8% to $4,161.10 per ounce, as of 0241 GMT, its highest since November 14. U.S. gold futures for December delivery fell 0.5% to $4,159.00 per ounce.
Oil prices recovered slightly on Wednesday, after dipping to one-month lows in the previous session amid signs that Ukraine is nearing a peace deal with Russia that would likely lead to the end of international sanctions on Russian supply. Brent crude futures rose 19 cents, or 0.3%, to $62.67 a barrel as of 0114 GMT, while U.S. West Texas Intermediate crude futures gained 14 cents, or 0.24%, to $58.09 a barrel. Both contracts settled down 89 cents on Tuesday after Ukrainian President Volodymyr Zelenskiy told European leaders in a speech that he was ready to advance a U.S.-backed framework for ending the war with Russia and that only a few points of disagreement remained.
U.S. President Donald Trump on Tuesday backed away from a Thursday deadline for Ukraine to agree to a U.S.-backed peace plan and shrugged off a report that U.S. negotiator Steve Witkoff coached the Russians on how to approach him on the topic. Trump, speaking to reporters on board Air Force One as he flew to Florida for the Thanksgiving holiday, said U.S. negotiators were making progress in discussions with Russia and Ukraine, and Moscow had agreed to some concessions. He did not detail them. A U.S.-based framework for ending the war, first reported last week, prompted fresh concerns that the Trump administration might be willing to push Ukraine to sign a peace deal heavily tilted toward Moscow. Trump said his envoy Steve Witkoff would be traveling to Moscow to meet with Russian President Vladimir Putin next week and that his son-in-law Jared Kushner, who helped negotiate the Gaza deal that brought about an uneasy ceasefire in the Israel-Hamas war, was also involved.
Australia’s inflation accelerated in October, exceeding analysts’ estimates and rising at its fastest pace in seven months, data from Australian Bureau of Statistics showed Wednesday. The consumer price index rose 3.8% in October, year on year, marking its fastest pace since April, based on data released by ABS going back to April 2024. That was higher than economists’ average estimate for a 3.6% rise in a Reuters poll. This is the first time that the ABS has released the complete monthly consumer price index, as the government transitions from quarterly CPI to using the monthly gauge as the primary measure for headline inflation. On a monthly basis, the headline CPI was flat compared to September and analysts’ estimates for a 0.2% contraction.
The Bank of Japan is preparing markets for a possible interest rate hike as soon as next month, sources say, reviving previous hawkish language as worries about sharp yen declines return and political pressure for the bank to keep rates low fades. A change in BOJ messaging over the past week has shifted focus back to inflationary risks of a weak yen from earlier worries about the U.S. economy, comments aimed at reminding markets a December rate hike was still a prospect, two people familiar with the bank’s thinking told Reuters. The pivot back to a hawkish footing also follows a key meeting between Prime Minister Sanae Takaichi and BOJ Governor Kazuo Ueda last week, that appeared to remove immediate political objections to rate hikes from the new administration.
Core wholesale prices rose less than expected in September, indicating a potential cooling in pipeline inflation pressures, the Bureau of Labor Statistics reported Tuesday. The producer price index, a measure of what producers get for final demand goods and services, increased a seasonally adjusted 0.3% on the month, in line with the Dow Jones consensus estimate. However, excluding food and energy, the index rose just 0.1%, below the 0.2% estimate. Both core and headline PPI had decreased 0.1% in August. Headline PPI was up 2.7% from a year ago, while core rose 2.6%. In an era of tariff-driven cost pressures for imports, goods prices drove the PPI increase, rising 0.9% on the month, while services prices were flat. The jump in goods prices was the biggest since February 2024, according to BLS data.
The U.S. labor market is showing further signs of weakening as the pace of layoffs has picked up over the past four weeks, payrolls processing firm ADP reported Tuesday. Private companies lost an average of 13,500 jobs a week over the past four weeks, ADP said as part of a running update it has been providing. That’s an acceleration from the 2,500 jobs a week lost in the last update a week ago. With the government shutdown still impacting data releases, alternative information like ADP’s has been filling in the blanks on the economic picture. Government agencies such as the Bureaus of Labor Statistics and Economic Analysis have released revised schedules, but critical reports such as the monthly nonfarm payrolls count won’t come out until December.
Nvidia shares fell on Tuesday after The Information reported that Meta is considering using chips designed by Google. Shares of Nvidia fell as much as 7% before recovering to trade down 4.3% later in the day. Google parent Alphabet was 4.2% higher after a more than 6% rally on Monday. On Monday, The Information reported that Meta is considering using Google’s tensor processing units, or TPUs, in its data centers in 2027. Meta may also rent TPUs from Google’s cloud unit next year, the publication reported. “Google Cloud is experiencing accelerating demand for both our custom TPUs and NVIDIA GPUs; we are committed to supporting both, as we have for years,” a Google spokesperson told CNBC.
Dell Technologies on Tuesday reported mixed Q3 results, but lifted its annual guidance, and touted stronger AI-related hardware demand ahead. Dell Technologies Inc rose 4% in after- hours trading following the report. For the third quarter, the AI server maker reported adjusted earnings per share (EPS) of $2.59 on revenue of $27 billion, compared with estimates for $2.48 per share and $27.32B, respectively. Revenue was weighed down weaker-than-expected growth in its client solutions group, which includes PCs and laptops, with revenue rising 3% to $12.49B year-on-year in Q3, missing expectations of $12.65B. The stronger guidance comes as the company raised its AI shipment guidance to roughly $25B, up over 150% year over year, and revenue guidance to $111.7 billion, up 17%.
HP Inc said on Tuesday it expects to cut between 4,000 and 6,000 jobs globally by fiscal 2028 as part of a plan to streamline operations and adopt artificial intelligence to speed up product development, improve customer satisfaction and boost productivity. Shares of the Palo Alto, California-based company fell 5.5% in extended trading. HP’s teams focused on product development, internal operations and customer support will be impacted by the job cuts, CEO Enrique Lores said during a media briefing call. "We expect this initiative will create $1 billion in gross run rate savings over three years," Lores added. The company laid off an additional 1,000 to 2,000 employees in February, as part of a previously announced restructuring plan. Demand for AI-enabled PCs has continued to ramp externally, reaching over 30% of HP’s shipments in the fourth quarter ended October 31.
Warner Bros Discovery has asked potential buyers to submit improved offers by December 1, two sources familiar with the matter said on Tuesday. The parent of HBO and CNN last month said it was exploring its options for sale. Since then, it has received preliminary buyout bids from rivals Paramount Skydance, Comcast and Netflix. After reviewing any improved offers, Warner Bros may enter a period of exclusive discussions with one of the bidders, the sources said. Warner Bros Discovery, Comcast, Netflix and Paramount Skydance did not immediately respond to Reuters’ requests for comment. Bloomberg News first reported the development earlier on Tuesday. Paramount is expected to bid for all of Warner Bros Discovery, including its cable television networks.
Kohl’s on Tuesday projected a smaller drop in sales and bigger profit for the full year ahead of the new CEO’s first holiday season at the helm, sending the U.S. department-store operator’s shares surging as much as 36%. The second annual forecast raise this year also signaled early success of a turnaround under Michael Bender, who was named permanent CEO a day earlier, as the retailer adds more coupon-eligible products and invests in proprietary brands to attract value-focused shoppers. "As our customers continue to be more choiceful and remain under pressure, we have the opportunity to meet their needs and offer more value with elevating our proprietary brands," said Bender during a post-earnings call. Kohl’s shares have more than doubled since Bender took on the interim CEO role in May. They also got a lift from the so-called meme stock euphoria in July.