U.S. Inflation Slowed to 2.7% in November as Shutdown Distorts Data

Asian equities experienced gains following the release of US inflation data, which indicated a cooling trend, thereby strengthening the case for potential interest-rate cuts by the Federal Reserve. This positive sentiment also contributed to a rise in American stocks, alleviating previous concerns in the tech sector.

BNY Investments Chief Economist Vincent Reinhart commented on the recent government data indicating that underlying US inflation has decreased to a four-year low in November, suggesting a favorable position for the Federal Reserve to adjust its monetary policy.

Oil futures have seen a modest increase as market attention shifts towards ongoing efforts for a peace agreement between Russia and Ukraine, alongside heightened U.S. actions against Venezuela. This context has contributed to a positive sentiment in oil trading, reflecting investor optimism amidst geopolitical tensions.

U.S. natural gas futures experienced a decline, settling lower after initially gaining in a volatile trading session. This fluctuation reflects ongoing uncertainty in the market, influenced by changing weather forecasts and demand expectations.

American Airlines has announced the launch of 15 new summer routes connecting various U.S. cities, catering to the anticipated increase in travel as Americans plan vacations, particularly to European destinations. This move comes as airlines prepare for the upcoming travel season while current travelers focus on holiday plans.

The U.S. dollar weakened following the November inflation report, which indicated slower price increases, leading to a decline in its value. This development reflects growing concerns among investors regarding the Federal Reserve's potential interest rate cuts, as market sentiment shifts in response to economic indicators.

The S&P 500 index ended its losing streak on Thursday, buoyed by a cooler-than-expected inflation report that raised expectations for further interest rate cuts by the Federal Reserve. Additionally, a rebound in the tech sector contributed positively to market sentiment, reflecting a shift in investor confidence.

In 2025, a U.S. car manufacturer achieved a significant milestone by selling 2.8 million vehicles, marking a notable shift in consumer buying patterns amid fluctuating automotive tariffs. The U.S. managed to reduce tariff burdens to 15% for most trade partners, which played a crucial role in shaping the market dynamics this year.