JPMorgan issues urgent call on December rate cuts

U.S. consumer confidence has taken a sharp turn as the holiday season approaches, with expectations of increased spending on gifts during the weeks between Thanksgiving and Christmas. After a slow start to the year, the U.S. GDP has shown recovery, posting nearly 4% growth in two consecutive quarters following a contraction earlier in the year.

In 2025, a popular mall and strip mall chain quietly closed 443 locations, reflecting significant challenges in the retail sector. This decision comes amidst a broader trend of store closures across various industries, indicating a shift in consumer behavior and market dynamics.

The stock market experienced a surprising uptick during a holiday week, resulting in weekly gains across major indices, with the S&P 500 closing just 1% shy of its 52-week high. Eli Lilly maintained a market capitalization of $1 trillion, reflecting strong investor confidence.

Apple has reported its strongest fiscal year to date, achieving a record net income of $112 billion and quarterly revenue of $102.5 billion, surpassing Wall Street expectations. However, this success is overshadowed by disappointing early sales of the iPhone Air, which has not resonated with consumers as anticipated.

T-Mobile has announced a decision that will make it more difficult for customers to contact customer service, leading to significant dissatisfaction among its user base. This change has sparked anger among customers who rely on accessible support for their telecommunications needs.

Palantir Technologies is making strides in its artificial intelligence (AI) platform, aiming to demonstrate that it is a viable solution for corporations and governments, not just a showcase. Recent quarterly results indicate a surge in interest and demand for its offerings, suggesting that the company is gaining traction in the competitive AI market.

The upcoming week will focus on U.S. ISM surveys for manufacturing and services, along with the latest ADP private payrolls data, as these indicators are expected to provide insights into the Federal Reserve's potential decision to cut interest rates at its next meeting.

Valerie Noel, Head of Trading at Syz Group, warns that market volatility could return swiftly if the Federal Reserve does not implement interest rate cuts in its upcoming December meeting. This statement reflects growing investor anxiety regarding monetary policy and its impact on market stability.