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China lockdown
Wall Street indices dropped yesterday following the news about possible new lockdowns in China due to a rise in Covid-19 infections.
Low volatility on Thanksgiving week
Investors are expecting a low volatility week, due to the Thanksgiving holiday on Thursday.
US Interest rate predictions for December
Economists are expecting the FED to raise interest rates by 0.5% in the next meeting in December, after four consecutive 0.75% rate increases.
The latest hawkish warnings from the Federal Reserve confirmed that they are still planning to raise interest rates and it's too soon for a pause.
Home sales tumbled
The rise of borrowing interest rates and high home prices have generated a 30% drop in home sales, in the US.
Huge layoffs in Tech companies
Many US tech companies are planning cut jobs to reduce the workforce.
Twitter cut about 3,700 jobs, days after Elon Musk bought the company for $44 billion.
Facebook (NASDAQ:META) parent Meta is eliminating 13% of its staff, more than 11,000 employees.
Stripe, Lyft (NASDAQ:LYFT), Coinbase (NASDAQ:COIN), Shopify, Netflix (NASDAQ:NFLX), Microsoft (NASDAQ:MSFT), Snapchat, Robinhood (NASDAQ:HOOD) and Tesla are among the other tech companies reducing salaried headcount.
Summary
Overall, the drop in oil prices in the past few months, along with the fall in home sales and the possible rise in unemployment due to layoffs are a sign that the FED monetary policy is starting to impact the economy and it's reducing inflation.
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