Jerome Powell, Chairman of the US Federal Reserve, speaks at the Brookings Institution in Washington, DC on Wednesday, November 29, 2022.
Valerie Plesch | Bloomberg | Getty Images
Here are the most important news items investors need to start their trading day:
1. Fed calms down
Federal Reserve Chairman Jerome Powell said smaller rate hikes could begin as early as this month, signaling that the central bank will soon ease its aggressive inflation-fighting measures. Speaking at the Brookings Institution on Wednesday, Powell said the Fed would continue to pursue restrictive monetary policy for some time — after four consecutive 0.75 percentage point rate hikes — but that it has seen “promising developments” so far. “It makes sense to moderate the pace of our rate hikes as we approach the level of restraint that will be sufficient to reduce inflation,” he said.
2. Markets see inflation signals
Traders on the floor of the NYSE, November 30, 2022.
Stocks look to build on a market recovery after a sharp rally Wednesday. The Nasdaq Composite and the S&P 500 each broke a three-day losing streak after Fed Chairman Powell spoke of a rate hike delay. The Dow gained more than 700 points during the session. But Thursday will bring new data on personal income and spending, and a much-anticipated jobs report will be released on Friday.
3. Rail deal on track
Freight train cars line up at a railroad yard in Wilmington, California on November 22, 2022.
Mario Tama | Getty Images
The House on Wednesday approved a preliminary labor agreement between the railroads and their workers’ unions in an effort to prevent a widespread and costly strike. By a vote of 290 to 137, the House passed new contracts for railroad workers, including 24% pay increases over five years, payouts averaging $11,000 and an extra paid day off. In a separate vote, the House also passed a resolution to add seven days of paid sick leave to contracts. Both measures are now being voted on in the Senate on a tight timeline – without a deal, the effects of a possible strike could be felt this weekend.
4. SBF Says “I’m Sorry”
Andrew Ross Sorkin speaks with FTX founder Sam Bankman-Fried at 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
The former CEO of cryptocurrency firm FTX apologized for missteps in a conversation with Andrew Ross Sorkin at The New York Times DealBook conference on Wednesday. Sam Bankman-Fried said from the Bahamas that he “never tried to cheat anyone” and that he was “shocked by what happened this month”. FTX filed for bankruptcy in November due to liquidity issues, a wave of user withdrawals and a botched takeover by rival Binance.
5. Ukraine on the attack
Ukrainian President Volodymyr Zelenskyy visits Kherson, Ukraine on November 14, 2022.
Ukrainian Presidential Press Service | Reuters
Ukraine is preparing a “countermeasure” against Russia’s offensive operations, President Volodymyr Zelensky said Wednesday evening, though he did not elaborate on what that might look like. In recent months, Ukraine has recaptured parts of the country that had been taken by Russian forces. “We are analyzing the intentions of the occupiers and are preparing a countermeasure – an even more powerful countermeasure than it already has been,” Zelenskyy said.
– CNBC’s Jeff Cox, Samantha Subin, Rohan Goswami, Mackenzie Sigalos, Christina Wilkie and Lori Ann LaRocco contributed to this report.
— Monitor broader market action like a pro CNBC Pro.