**Stock Market Roundup: Key News Items for Investors**
*November reign*
Heading into the last day of November, the stock market is poised to close out the month with notable gains. Notably, the three major stock indices are on track to break a three-month losing streak and record their best monthly performance of the year. The bond market is contributing to this positive outlook, with the yield on the 10-year Treasury note dipping below 4.3% for the first time in several months. Even after the revised gross domestic product number came in higher than expected at a 5.2% annual rate. Investors are also watching for the personal consumption expenditure report for October, which is an important inflation measurement for the Federal Reserve.
**What’s it going to take?**
The resurgent performance of equity markets and the moderation of the economy have raised the question of when the Federal Reserve will cut its benchmark rate. Market expectations are for rate cuts to start occurring next year, but a more dramatic economic slowdown, including a decline in employment, will likely be required to prompt such action. Kathy Jones, Charles Schwab’s chief fixed income strategist, stated that this cycle is marked by caution from the Fed, particularly in light of the inflation spike.
**’Go f— yourself’**
Elon Musk has sent a blunt message to companies that halted advertising on his social media platform, X. The entrepreneur, who also leads Tesla and SpaceX, has been embroiled in controversy after endorsing an antisemitic remark on his site, formerly known as Twitter. In response to the boycott by major companies like Disney and Apple, Musk has publicly expressed his defiance. Meanwhile, he has undertaken an apology tour in an attempt to address the situation.
**Five years, that’s all we’ve got**
Nvidia’s impressive performance, with its revenue tripling in the third quarter due to increased demand for its AI chips, has highlighted the company’s success in riding the artificial intelligence wave. CEO Jensen Huang predicted a surge in growth as the technology continues to advance. According to Huang, within the next five years, AI will be capable of achieving tests in a manner that is “fairly competitive” with human intelligence.
**An update from Ford**
Following its crosstown rival General Motors, Ford has reinstated its guidance for 2023 while lowering its outlook for earnings and free cash flow. After a six-week United Auto Workers strike disrupted its operations, Ford expects a total hit of $8.8 billion during the life of the new UAW deal, which concludes in spring 2028.
In conclusion, as the month of November draws to a close, these key news items are driving investor decisions and setting the stage for market actions in the upcoming weeks. Stay tuned as these developments unfold and impact the financial landscape.
