Jerome Powell, Chairman of the US Federal Reserve, speaks at the Brookings Institution in Washington, DC on Wednesday, November 29, 2022.
Valerie Plesh | Bloomberg | Getty Images
Here are the most important news investors need to start their trading day:
1. The Fed is calming down
Federal Reserve Chairman Jerome Powell said small interest rate hikes could begin as early as this month, meaning the central bank will soon ease its aggressive inflation-fighting measures. Powell, speaking at the Brookings Institution on Wednesday, said the Fed will continue to pursue restrictive monetary policy for some time – after four successive 0.75 percentage point rate hikes – but there have been “promising developments” so far. “It makes sense to hold back the pace of our rate hike as we get closer to a containment level sufficient to bring down inflation,” he said.
2. Markets follow inflationary signals
Traders on the NYSE floor, November 30, 2022
Source: New York Stock Exchange.
Shares are looking for build on the market’s recovery after Wednesday’s sharp rally. The Nasdaq Composite and S&P 500 broke a three-day losing streak after Fed Chairman Powell spoke of a slowdown in rate hikes. During the session, the Dow added more than 700 points. But Thursday brings new data on personal income and spending, and on Friday the long-awaited employment report will be released.
3. Railway deal in progress
Freight cars stand at a train station on November 22, 2022 in Wilmington, California.
Mario Tama | Getty Images
On Wednesday, the House of Representatives approved a preliminary labor agreement between the railroads and their unions to prevent a wide-ranging and costly strike. By a vote of 290 to 137, the House of Representatives approved new contracts for railroad workers that include a 24% pay increase over five years, as well as an average of $11,000 in payments and an additional paid day off. In a separate vote, the House of Representatives also passed a resolution to add seven days of paid sick leave to contracts. Both measures are now subject to a vote in the Senate on short notice – without an agreement, the effects of a potential strike could be felt as early as this weekend.
4. SBF says “sorry”
Andrew Ross Sorkin speaks with FTX Founder Sam Bankman-Freed during the New York Times DealBook Summit at the Appel Room at the Jazz At Lincoln Center on November 30, 2022 in New York City.
Michael M. Santiago | Getty Images
Former CEO of cryptocurrency company FTX apologized for the gaffe in a conversation with Andrew Ross Sorkin at The New York Times DealBook conference on Wednesday. Sam Bankman-Fried of the Bahamas said he “never tried to fool anyone” and that he was “shocked by what happened this month.” FTX filed for bankruptcy in November due to liquidity issues, a frenzy of user withdrawals, and a failed takeover by rival Binance.
5. Ukraine on the offensive
President of Ukraine Volodymyr Zelensky visits Kherson, Ukraine, November 14, 2022.
Press Service of the President of Ukraine | Reuters
Ukraine is preparing a “countermeasure” to Russia’s offensives, President Volodymyr Zelensky said Wednesday night, though he did not specify what that might look like. In recent months, Ukraine has regained parts of the country that had been taken over by Russian forces. “We are analyzing the intentions of the occupiers and are preparing a countermeasure, an even more powerful countermeasure than it was,” Zelensky said.
— CNBC’s Jeff Cox, Samantha Subin, Rohan Goswami, Mackenzie Cigalos, Christina Wilkie, and Laurie Ann LaRocco contributed to this report.
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