Beyond Markets The Week in Markets: Hawkish Fed commentary diminishes December rate cut hopes
Nov 17, 2025
Hawkish comments from Federal Reserve presidents have dampened expectations for a December rate cut, shifting market focus. The tech sector shows a growing split between sustainable businesses and speculative investments. China's stock market thrives on electrification and high-tech exports, attracting foreign investors looking for value. As small-cap stocks struggle with debt sensitivities, insights into AI's energy demands raise concerns about growth sustainability. Meanwhile, consumer spending data highlights resilience amidst uncertain market conditions.
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50-Day Moving Average Signals Caution
- The S&P 500 has been flirting with its 50-day moving average, making medium-term trend signals ambiguous.
- Mark Matthews stresses that closing prices matter more than intraday noise for trend confirmation.
AI Power Needs Expose Infrastructure Gap
- AI data centers will require far more electricity than current capacity provides, raising execution risks.
- Morgan Stanley raised 2028 demand to 69 GW, widening the shortfall versus available and under-construction supply.
Google's Texas Energy Commitment
- Google announced a $40 billion cloud, AI and energy investment in Texas through 2027 and pre-contracted 6.2 GW of new capacity.
- Mark Matthews uses this example to show some firms are securing energy to support AI growth.