Fed Holds; Meta Plans $95B, Tech Loses $1T — SkimNews
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- Federal Reserve kept the overnight funds rate at 3.75%-4% in a 10-2 vote; Lisa Cook and Beth Hammack sought a 25-basis-point hike, and futures still saw a strong chance of one in December.link ›
- Inflation rose 3.7% annually in September as surging oil prices pushed Brent crude to a five-month high before a slight dip.link ›
- Meta launched a $95 billion stock offering to fund AI expansion through mandatory convertible preferred shares and Class A common stock.link ›
- Nasdaq fell more than 3%, while technology stocks lost $1 trillion as concern about AI spending produced a Wall Street-wide selloff.link ›
- Microsoft shares rose 4% after a Q1 revenue beat powered by cloud growth, days after the company announced major job cuts.link ›
- Deribit has $11 billion in notional Bitcoin options expiring Friday; with Bitcoin near $81,500, only about $130 million would settle.link ›
- General Motors will begin trading on Nasdaq on November 17, becoming the first legacy automaker listed there.link ›
- Strategy drew 99.3% approval from votes cast for daily dividends, with STRC’s first record date set for November 1; amended terms still need filing.link ›
The Federal Reserve held the overnight funds rate at 3.75%-4% in a 10-2 vote, with Lisa Cook and Beth Hammack pressing for a 25-basis-point hike as September inflation rose 3.7% annually. That was the week’s defining financial development: the hold was nearly discounted, but the dissenters kept a December increase in play for homebuyers, car buyers and credit-card users. The AI trade supplied the other major stress. Meta launched a $95 billion stock offering to bankroll AI expansion; a broad tech selloff erased $1 trillion and drove the Nasdaq down more than 3%. Those two numbers capture the new tension: Meta’s AI ambitions now demand enormous fresh capital, and investor skepticism over that spending can hit the whole market. The Fed’s message was equally blunt: one meeting did not make expensive money cheap.
The stories behind this week
Fed to Hold Rates Steady in October Amid Inflation PressureConsumers face prolonged high borrowing costs on credit cards, mortgages, and auto loans while savings yields remain elevated, creating a split impact on household finances. The Fed’s pre-election pause maintains policy stability but leaves inflation pressures unresolved, with 75% of futures markets still pricing in at least one hike by year-end.
Fed Holds 3.75%-4% Rate; Two Seek HikeFor Fed policymakers, the hold was nearly discounted, with less than a 10% chance of a Wednesday hike. The two dissents for a 25-basis-point increase and futures pricing that makes a December hike a strong possibility keep additional inflation data central to the coming policy debate.
Microsoft Profits Surge on Cloud Growth After Job CutsMicrosoft’s ability to deliver robust earnings and grow its stock value immediately after job cuts signals that investors prioritize cloud and AI performance over workforce stability, making operational efficiency a new benchmark for tech giants facing scrutiny over cost management.
$11 Billion in Bitcoin Options Expire Tomorrow—Here's What It MeansThe $11 billion headline overstates the immediate cash exposure: at current prices, only about $130 million, or 1%, would settle. For Bitcoin holders on Friday, options sellers’ required hedging introduces mechanical buying or selling that can add to price swings even without news, while two Federal Reserve dissenters favored a hike.
Tech Stocks Shed $1 Trillion as Nasdaq Falls Over 3%Technology investors bore a quantified $1 trillion loss as the Nasdaq fell more than 3%, while the S&P 500 and Dow also tanked. The material change was breadth: concern about AI spending produced a cross-index Wall Street selloff rather than an isolated tech-stock drop.
GM Moves Stock Listing to NasdaqGM’s move signals a strategic repositioning as a tech-integrated automaker, not just a legacy manufacturer. With a $64.4-billion market value, the shift could influence investor perception and capital flows, especially as automakers face pressure to compete with software-heavy Chinese rivals and deliver monetizable digital features.
Strategy Gets 99.3% Approval for Daily DividendsRecord-date mechanics decide who collects: with weekend dates rolled back to Friday, November 6, a buyer of STRC that day receives none of the three bundled dividends while a seller keeps all three. That settlement detail lands on a preferred already trading below par at $99.86 — one Strategy supported with $204.9 million in buybacks.
Meta plans $95bn stock offering to bankroll AI expansion - Financial TimesMeta’s planned $95 billion financing creates a concrete funding channel for AI expansion, with mandatory convertible preferred stock and Class A common stock in the announced mix. Existing shareholders are directly exposed to the issuance, but the excerpt provides no pricing, allocation or dilution figures with which to quantify the effect.
Why it matters: The Fed’s 3.75%-4% hold leaves mortgage, auto and credit-card borrowing expensive, while Cook and Hammack’s dissents keep a 25-basis-point increase in play.
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