The Federal Reserve voted to lower interest rates by a half percentage point, opting for a bolder start in making its first reduction since 2020. The long-anticipated pivot followed an all-out fight against inflation the central bank launched two years ago.
Stocks Hit Record High a Day After Fed’s Big Interest Rate Cut. The S&P 500 rose 1.7 percent on Thursday, rallying a day after the Federal Reserve cut interest rates by half a percentage point.
Looking to meet growing demand, BlackRock and Microsoft are planning a more than $30B artificial intelligence investment fund to build data centers and energy projects. The Global AI Infrastructure Investment Partnership would be one of the biggest investment vehicles ever raised on Wall Street through Global Infrastructure Partners. Abu Dhabi-backed investment firm MGX and Microsoft are the fund's general partners, and Nvidia is providing expertise. The fund aims to mobilize up to $100B in total investment potential when including debt financing.
Many wealthy nations, including Germany, Japan, the UK, and Canada, are experiencing economic stagnation. A report by Mario Draghi highlights three major challenges facing Europe: lack of innovation, expensive energy, and weak supply chains. Europe's productivity has fallen behind the U.S., particularly in IT-intensive sectors. Draghi suggests reforms in regulations, investment in AI, and supply chain resilience. However, the report overlooks aging populations as a key factor, which has contributed to Europe's slower growth.
Amazon told more than 300,000 of its corporate employees that they must return to the office five days a week from the start of 2025. By doing so, chief executive Andy Jassy joins leaders including Jamie Dimon of JPMorgan Chase and Elon Musk at Tesla in pushing for a full return to the office.
Tech Jobs Have Dried Up And Aren’t Coming Back Soon. Postings for software development jobs are down more than 30% since February 2020, according to Indeed.com. Industry layoffs have continued this year with tech companies shedding around 137,000 jobs since January, according to Layoffs.fyi.
