Fed Rate Cut, Big Tech Slide Highlight Volatile Week

Economic and Market Overview - The central bank cut interest rates by 25 basis points for the third and final time this year, bringing the target range to 3.50% - 3.75% [1] - The Fed projects one rate cut in 2026, while the CME Fedwatch tool indicates a 68% chance of two rate cuts next year [1] - Major indices like the Dow Jones, S&P 500, and Russell 2000 reached record closes, but concerns over AI valuations impacted the tech sector [2] Mergers and Acquisitions - Netflix announced a $72 billion deal to acquire Warner Bros Discovery, pending regulatory approval, while Paramount Skydance made a hostile bid valued at $108.4 billion [3] - IBM is acquiring Confluent for $11 billion, and Nvidia's chip sales to China have been approved [4] Earnings Reports - Toll Brothers reported its fifth consecutive post-earnings loss amid a challenging home sales environment [5] - Broadcom's stock retreated from record highs following earnings, influenced by AI concerns and margin pressures [5] - Planet Labs reached an all-time high after a strong earnings report, while Costco Wholesale experienced a quarterly win but did not see significant stock movement [5] Industry News - Weed stocks, particularly Tilray, surged after reports that President Trump plans to reclassify marijuana and loosen restrictions, with an executive order potentially being signed soon [6] - The upcoming trading week will feature economic data and earnings reports from companies like Nike and Micron Technology, with historical trends suggesting a bullish market [7]