And Pictet Wealth Management senior US economist Xiao Cui said: “We expect solid growth, above-target inflation, and a slowing labour market to increase internal divisions at the (policy board) and make 2026 a particularly challenging year for policymakers.
“Downside risks to the labour market should lead the Committee to cut once more in December, before shifting to a quarterly pace of cuts in March and June.”
However, she said her team “see risks that Fed cuts are delayed into the second half of 2026”.
After a pullback in all three main indexes on Wall Street, Asian markets also struggled.
Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Manila were all down, though there were gains in Tokyo, Singapore and Jakarta.
Regional chip-makers were mixed after Trump said he had reached an agreement with Chinese counterpart Xi Jinping to allow US chip giant Nvidia to export advanced artificial intelligence chips to China.
The announcement marks a significant shift in US export policy for advanced AI chips, which Trump’s predecessor Joe Biden had heavily restricted over national security concerns.
Biden’s administration required chip companies to create modified, less powerful versions specifically for the Chinese market.
Tokyo-listed Renesas rose more than 2 per cent and Advantest put on almost 1 per cent, while tech investment titan SoftBank was also in positive territory.
But in Seoul, Samsung fell more than 1 per cent and rival SK hynix was off nearly 2 per cent. TSMC was down 1 per cent in Taipei.
https://www.channelnewsasia.com/asia/stocks-markets-wall-st-losses-jitters-federal-reserve-5569416
