Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
White House Seeks $87.6 Billion Emergency Funding for Iran War, Farmers, and Ebola Response 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Trump Requests $11 Billion More in Farm Aid as Rising Costs Pressure U.S. Farmers 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
The U.S. dollar weakened for a third consecutive week on Friday, pressured by growing expectations of interest rate cuts next year after the Federal Reserve pushed back against more hawkish market assumptions. This shift in sentiment lifted major rival currencies, with the euro and British pound climbing to their highest levels since October as investors reassessed the outlook for U.S. monetary policy.
In early Asian trading, the euro held steady near $1.1741 after posting solid gains in the previous session, while the pound edged higher to around $1.3395. Both currencies are on track for a third straight weekly advance, reflecting sustained dollar softness. The greenback’s decline followed the Federal Reserve’s widely expected rate cut this week, alongside comments from Fed Chair Jerome Powell that were interpreted as less hawkish than markets had anticipated.
Market participants viewed the Fed’s messaging as reinforcing expectations that U.S. interest rates could fall further in the coming years. According to Ameriprise chief market strategist Anthony Saglimbene, the central bank’s effort to avoid unsettling investors may help support markets into year-end, even as uncertainty persists around inflation trends and labor market strength.
Traders are currently pricing in two U.S. rate cuts in 2026, a more dovish outlook than that suggested by policymakers, who foresee only one cut next year and another in 2027. Analysts at the Commonwealth Bank of Australia noted that concerns about the U.S. labor market could push the Federal Open Market Committee toward additional easing, with some forecasts calling for multiple cuts that would lower the federal funds rate into the 2.75%–3.0% range.
The U.S. dollar index slipped to around 98.34, extending its weekly decline to roughly 0.7% and leaving it down more than 9% for the year, its steepest annual drop since 2017. The Japanese yen also benefited from the softer dollar, while the Australian, New Zealand, and Swiss currencies gained modestly as global investors navigated diverging interest rate paths.
