It’ll take time.

“No.”, Powell didn’t flinch—he won’t step down at the request of Trump, making it clear the president-elect has no legal power to remove him. The backdrop? Years of tension between the two, with Trump routinely criticizing Powell’s rate hikes and policies as growth blockers.

Meanwhile, the Fed’s 25 basis point rate cut sent the Nasdaq and S&P 500 soaring to record highs. Lower rates generally make borrowing cheaper, which tends to boost stocks—especially in tech, where growth relies heavily on financing.

⚡ Closing Bell:

• Nasdaq ⬆️ +1.5% to 19,269.5: Tech stocks loved the rate cut—cheaper borrowing means higher growth potential.

• S&P 500 ⬆️ +0.7% to 5,973.1: Broad gains across sectors as investors embrace a dovish Fed.

• Dow Jones ⬇️ -0.1% to 43,729.3: Took a breather after its recent highs, with focus shifting to high-growth plays.

Yields took a dive in reaction to the Fed’s rate cut:

• 10-Year Yield ⬇️ -9.4 basis points to 4.33%.

• 2-Year Yield ⬇️ -6.9 basis points to 4.2%.

.25 ✂️

Relief is on the way—but it’ll take time. Inflation may be cooling, but prices aren’t falling back to pre-pandemic levels. “It takes years of wage gains for people to feel better,” Powell noted.

Rate Cut Round Two
The Fed made a second cut, dropping rates to 4.5%-4.75%, following a sharper cut in September. Powell avoided any political speculation, stating the Fed will keep its decisions strictly data-driven.

Borrowing Costs & Relief

❗The impact? Gradual.

Credit card rates have ticked down, but mortgage rates remain high ⬆️ . More cuts in 2024 could bring bigger savings.

What’s Next? Another rate cut is expected on Dec. 18. But with inflation steady, the Fed plans to take it slow, keeping economic stability front and center.

Hits & Misses:

Revenue? ❌ Missed.
Earnings? ❌ Missed.

But CEO RJ Scaringe isn’t fazed. “We made real progress,” he said, citing cost cuts and efficiency gains on the Gen 2 R1

By the Numbers

• $874 million in revenue, ⬇️ below the $1 billion mark.

• EPS at -99 cents per share, a bit worse than Wall Street expected.

• Operating Expenses came in at $777 million, down from $963 million in Q3 2023—a positive trend in cost control.

• Production & Deliveries: Rivian produced 13,157 vehicles and delivered 10,018 in Q3, moving closer to its production goals.

What’s Next for Rivian 🚗

• Positive Gross Profit expected in Q4, driven by higher revenue per unit and lower fixed costs per unit.

• The upcoming R2 midsize SUV is expected to be a “fundamental driver” of growth for Rivian.

• 2024 production goal of 47,000 to 49,000 vehicles and a delivery target of 50,500 to 52,000 vehicles.

• Volkswagen joint venture in Q4.

• Also, a new partnership with LG Energy Solutions to supply batteries for its next-gen midsize EV platform.

RIVN Stock Moves 📈
Rivian shares ⬆️ +3.2% in after-hours trading, closing at $10.38.

On Track:

Lucid Group is hitting new milestones, opening orders for its “landmark” Gravity SUV. Production is set to begin this year, with CEO Peter Rawlinson citing “momentum” for the company’s growth.

Q3 Highlights

• Capital Boost: Lucid secured $1.75 billion in fresh capital, extending its financial runway well into 2026.

• Earnings Beat: Lucid lost 41 cents per share, but adjusted losses of 28 cents beat Wall Street’s expected 31 cents.

• Revenue Growth: Revenue climbed to $200 million, topping the $196.2 million forecast.

• Production on Track: The company reaffirmed its target of 9,000 EVs this year, ending the quarter with $5.16 billion in liquidity.

LCID Stock Moves 📈
Lucid shares ⬆️ +5% in after-hours trading, though the stock is still ⬇️ -48% for the year.

AI Shift:

Trump’s back, and with it, a new AI agenda. The GOP is calling for “AI rooted in Free Speech and Human Flourishing”—a shift from Biden’s focus on oversight. But Trump’s ties to tech players like Elon Musk may carry just as much weight.

AI Policy Shake-Up

• Biden’s Order Out: Republicans aim to scrap Biden’s 2023 AI order, which leaned into regulation.

• Free Speech Focus: Trump’s team is eyeing fewer barriers and more freedom for AI developers.

Musk’s Influence
Musk’s empire—SpaceX, Tesla, and xAI—depends on AI. With Trump’s ear, Musk could gain access to resources like energy, computing power, and even government contracts. His influence might also reduce oversight on AI tech, including self-driving investigations.

Key Players:

• Meta: Once on Trump’s bad side, Meta is now easing up on content moderation. Zuckerberg recently pitched Meta’s Llama AI for U.S. defense use—perhaps hoping to align with Trump’s agenda.

• Microsoft: The FTC’s current scrutiny of Microsoft’s AI deals could end if Trump removes FTC Chair Lina Khan, clearing the way for expansion.

• Google: Biden’s DOJ wants to break up Google. Trump may see it differently, with a change in approach that could allow Google’s AI efforts to keep growing.

• Amazon: Trump’s tense relationship with Jeff Bezos may bring more hurdles, especially in cloud AI. Past actions impacting postal rates and business practices may resurface.

• Nvidia & Taiwan: Nvidia, a chip leader, could face tariffs if Trump pursues action against Taiwan. Trump has hinted at ending Biden’s CHIPS Act, potentially disrupting AI chip supply.

• OpenAI: Musk and OpenAI’s Sam Altman have a rocky history. Trump’s policies could see more scrutiny on OpenAI’s dominance, especially with Musk in Trump’s circle.

Crypto Moves:

The global cryptocurrency market cap yesterday is $2.67T, a 0.87% ⬇️ decrease from Wednesday.

🧩 Movers:

• Warner Bros. Discovery (WBD) ⬆️ +12%: Max streaming subscribers hit a new high, adding some surprise profit despite weaker box office numbers.

• Viatris (VTRS) ⬆️ +14%: A big Q3 earnings beat helped this healthcare stock soar.

• MercadoLibre (MELI) ⬇️ -16%: A tough quarter brought shares down, missing Wall Street estimates.

• Match Group (MTCH) ⬇️ -18%: Investors weren’t swiping right on a downbeat Q4 outlook and underwhelming Q3 performance.

Commodities Check: ✔️

• Crude Oil ⬆️ +0.4% to $72 per barrel

• Gold ⬆️ +1.3% to $2,712.40 per ounce

• Silver ⬆️ +2.4% to $32.08 per ounce

The Dollar :

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It’s FRIDAY! Enjoy your weekend!

#TRUTH:

❗“The stock market is a device for transferring money from the impatient to the patient.” -Warren Buffett

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