Holiday credit card debt isn’t acting like last year's, Fed says

Federal Reserve officials are currently divided over the potential for interest rate cuts, with discussions reflecting concerns about maintaining credibility regarding inflation. This debate is crucial as policymakers prepare for their upcoming meetings, which could significantly influence monetary policy direction.

The S&P 500 index experienced fluctuations as investors shifted their focus away from major technology stocks, opting instead for investments in old-economy and small-cap companies. This shift reflects a broader trend in market sentiment as investors reassess their portfolios amid changing economic conditions.

Top officials from the Federal Reserve, including Jeff Schmid from Kansas City, have issued warnings against complacency regarding inflation, emphasizing the potential rise in long-term borrowing costs if the Fed loses its credibility. This caution comes amid ongoing discussions about interest rate adjustments in response to economic conditions.

The U.S. has seized a sanctioned oil tanker off the coast of Venezuela, a move that threatens to exacerbate the country's already fragile economy, which is on the brink of hyperinflation. This seizure is part of a broader strategy by the U.S. to exert pressure on the Venezuelan government amid ongoing political turmoil.

Broadcom's shares fell after the company's sales outlook for the AI market did not meet investor expectations, despite previously reporting strong earnings and a revenue forecast of $19.1 billion for the upcoming fiscal first quarter. President Trump announced the US's willingness to assist Ukraine's security as part of a peace plan.

The U.S. has seized an oil tanker near Venezuela, which was reportedly flying a false Guyana flag, raising concerns about the implications for oil supply to Cuba. This action has heightened tensions in the region amid ongoing political instability in Venezuela.

Oil prices have risen due to escalating tensions between the U.S. and Venezuela, particularly following the U.S. seizure of an oil tanker near Venezuela, which has led to a temporary increase in oil futures. However, the market is still set for a weekly decline as concerns about oversupply persist.

Global electric vehicle (EV) sales growth has slowed to its lowest rate since February 2024, primarily due to a plateau in the Chinese market and recent policy changes in the United States. This decline reflects a significant shift in consumer demand and market dynamics, particularly in China, where car sales have also seen a notable decrease.