Chang: The language from the Fed definitely puts a December cut in question

Group 1: US-China Trade Deal - The US-China trade discussions were in line with expectations, indicating a fragile stability in relations [1][3] - China is implementing more stimulus measures, which could lead to growth upsides beyond just tariff reductions [2] - The market reaction to the trade deal was muted, with a "sell the fact" sentiment as the outcomes were anticipated [3][4] Group 2: Federal Reserve and Economic Outlook - The recent rate cut by the Federal Reserve is viewed as hawkish, with uncertainty surrounding future cuts [5][6] - The Fed's language suggests a growing divergence in opinions about future policy, indicating that further rate reductions are not guaranteed [7][9] - Economic growth revisions are expected to trend upwards, with projections of 3% real growth and inflation around 3% [9][15] Group 3: Technology Sector and Capital Expenditure - Mixed reactions were observed in big tech earnings, with Alphabet performing well while Meta and Microsoft faced pullbacks [11][12] - Increased capital expenditure (capex) spending, particularly in AI, is expected to drive GDP growth and contribute significantly to global wealth [13][14] - The defense sector is considered attractive, along with financials benefiting from deregulation [16][17]