MRKT Matrix The Fed Cuts Today, But December Isn't Guaranteed
Oct 29, 2025
The market reacts nervously to a Fed rate cut amid uncertainty about future reductions. A government shutdown is already costing the U.S. economy a staggering $18 billion. AI is triggering significant white-collar job losses as automation takes over. General Motors announces over 1,700 layoffs tied to challenges in electric vehicle production. Meanwhile, BlackRock's Jeff Shen maintains a positive outlook on U.S. stocks and highlights opportunities abroad. Eli Lilly and Walmart team up to provide easier access to weight loss drug ZepBound at discounted prices.
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Fed Cut Sparks Market Rotation
- The Fed cut rates by a quarter point but signaled further cuts this year are uncertain, which rattled markets.
- Stocks swung: value and consumer names fell while tech, led by NVIDIA, surged above a $5T market cap.
Policy Shift And Split Decision
- The Fed moved rates to 3.75–4% and will stop shrinking the balance sheet starting December 1st by rolling maturing agency debt into T-bills.
- Policymakers flagged slowing jobs and sticky inflation, and voting was split on the size of the cut.
Shutdown’s Rapid Economic Drag
- The CBO says the government shutdown has already cost at least $18 billion and could shave 1–2 percentage points off Q4 GDP.
- Prolonged shutdown risk raises permanent GDP losses and could boost unemployment via furloughs.