Federal Reserve Chairman Jerome Powell confirmed on Wednesday that a December rate cut was not a certainty, causing the S&P 500 to fluctuate. However, the index managed to reach an all-time intraday high prior to the Fed’s announcement. Meanwhile, Nvidia and Broadcom continued to rally due to increasing demand for artificial intelligence applications, with Nvidia reaching a market cap of $5 trillion. As for losers, Boeing shares fell over 4% due to a $4.9 billion non-cash charge recorded in Q3, which was $900 million more than analysts had predicted. However, operational execution is improving and the company is ramping up production of its 737 aircraft.
The Food and Drug Administration plans to expedite the development of generic versions of complex biological drugs, which could negatively impact pharmaceutical companies. Meanwhile, approximately 42 million Americans are on the brink of not receiving their monthly Supplemental Nutrition Assistance Program (SNAP) check as the government shutdown persists. This could lead consumers to lower profit margin groceries and household staples and increase shoplifting. Finally, the Federal Reserve cut borrowing costs for the second time this year, with the rate now between 3.75%-4.00%. This could bring relief to Americans who are relying on borrowing to supplement their income.
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