The Federal Reserve delivered another quarter-point rate cut last week but signaled a likely pause in further easing as it awaits clearer signals on inflation and labor. The Fed announced it would resume Treasury bill purchases to stabilize short-term funding markets.

Economic data releases showed signs of normalization last week, painting a mixed but resilient macro picture. U.S. indicators were generally positive—personal income, spending, ISM services, and industrial production all improved—helping to offset weakness in manufacturing and private payrolls.

U.S. markets just delivered the kind of week that reminds investors why “don’t fight the Fed” is more than a cliché. Equities, bonds, and commodities all caught a bid as expectations for a December rate cut firmed up and investors rotated back into growth and risk assets.​

Global risk assets saw heightened volatility last week, driven by tech sector turbulence and shifting expectations surrounding Federal Reserve policy. Major indices ended broadly lower: the Nasdaq Composite sank 2.7%, the S&P 500  dropped 2%, and the Russell 2000 rallied late to trim its weekly loss to 0.8%.

The headline story: the U.S. government has officially reopened after a record 43-day shutdown. While that’s welcome news, key economic data including September and October jobs numbers is only now starting to catch up. Investors will be watching closely ahead of the Fed’s December meeting.

Markets were mixed last week as investors digested a wave of earnings, central bank updates, and ongoing political developments. 

Emerging markets are not what they used to be. Once defined by commodities, energy, and manufacturing, EM is now powered by technology.

Markets are reminding investors that quality matters. Given recent headlines, including the bankruptcies of Tricolor Holdings and First Brands Group, financials remain under scrutiny this earnings season.

Markets are shifting from a macro focus to a micro one. After months dominated by headlines on inflation, policy, and interest rates, the start of earnings season will bring attention back to company fundamentals.