😘 Wall Street flirts with all-time high after the Fed cuts rates

Plus: San Francisco woman gives birth in a Waymo self-driving taxi.

Author

Matt Davis
December 11, 2025

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News You Need2Know

What’s the stock market up to, eh?

Companies mentioned in today’s newsletter

Wall Street flirts with all-time high after the Fed cuts rates

The U.S. stock market surged on Wednesday, with the S&P 500 nearing its all-time high after the Federal Reserve cut interest rates to support the job market. Investors welcomed the rate cut, as lower interest rates often boost the economy and elevate asset prices, though inflationary risks remain.

Federal Reserve chair Jerome Powell acknowledged the difficulty of balancing inflationary pressures with a slowing job market. “The job market is facing downward pressure while inflation is facing upward pressure,” Powell explained. He did not add that it’s a bit like doing the hokey-pokey.

He added, “[Interest rates are] close to where they’re pushing neither inflation nor the job market higher or lower. We are well positioned to wait and see how the economy evolves.”

This quarter-point rate cut was met with split opinions among Fed officials. While two policymakers felt no reduction was necessary, one — appointed by the President recently — advocated for an even larger cut of half a percentage point. Powell maintained, however, that no hike to rates is expected in the Fed’s “base case” in the near future.

The ripple effects were felt across markets, from a 16.8% surge in GE Vernova’s $GEV ( ▼ 3.41% ) stock to notable movements in companies like Palantir $PLTR ( ▼ 1.92% ) , Cracker Barrel $CBRL ( ▼ 0.64% ) , and GameStop $GME ( ▼ 2.97% ) .

Song of the Day: Baby Nova, ‘Death Wish’

Here’s an independent release you might rather like. It’s romantic and sad and evocative, just like this newsletter.

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San Francisco woman gives birth in a Waymo self-driving taxi

Self-driving taxis have been making headlines for years, but this week, a Waymo robotaxi made news for an entirely joyful1 reason: It became the site of a baby’s first moments. It’s good news for Waymo $GOOGL ( ▼ 0.93% ) , which has been dominating headlines by killing a well-loved San Francisco bodega cat. In fact, it’s almost like this story was strategically fed to the press by Waymo, which wanted to move the conversation along from that other story.

Google’s PR team is only 600 people, though, all based less than 20 blocks from the New York Times’ offices in Manhattan, and I’m sure they’re all far too busy to bother trying to seed puff pieces in response to hostile stories in the world’s most-read newspaper.

According to a Waymo spokesperson, the vehicle's rider support team detected “unusual activity” during the trip and called the passenger to check in. They also alerted emergency services. “We’re proud to be a trusted ride for moments big and small, serving riders from just seconds old to many years young,” the company said in a statement.

Though the mother has declined interviews, Waymo said its taxi even managed to beat emergency services to the destination, the University of California, San Francisco Medical Center, “highlighting its reliability in critical moments." Following the ride, the car was removed from service for “cleaning,” they said, and I should jolly well hope so.

Quote of the Day

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SpaceX represents one of the most exciting opportunities in the global IPO market and has been on the dream list of several investors for years.

SpaceX eyes record-shattering $1.5 trillion IPO in 2026

Elon Musk’s SpaceX is preparing for a blockbuster public debut in 2026, aiming to raise over $25 billion through an initial public offering, which could push the company’s valuation to $1.5 trillion, making it one of the largest IPOs in history. The IPO is fueled by SpaceX’s continuing innovations in its Starlink satellite internet business, as well as advancements in its Starship rocket program aimed at lunar and Mars missions.

“SpaceX represents one of the most exciting opportunities in the global IPO market and has been on the dream list of several investors for years,” said Samuel Kerr, head of equity capital markets at Mergermarket, talking to Reuters. He added that the company operates in a “genuine growth industry” tied to defense, satellite proliferation, and technological infrastructure.

While widely anticipated, the monumental move into the public markets raises questions about Musk’s ability to juggle multiple trillion-dollar companies, including Tesla $TSLA ( ▲ 1.08% ) . “SpaceX could be one of the most divisive stocks to join the market in years,” noted Dan Coatsworth, head of markets at AJ Bell.

Should you check your 401(k) today?

👍️ 

YEP.

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Microsoft will invest $17.5B in AI in India 🤖🇮🇳

The investment will take place over the next four years. Aimed at advancing AI and cloud infrastructure, skilling initiatives, and operations, this marks Microsoft's $MSFT ( ▼ 0.97% ) largest investment in Asia. During a meeting with Prime Minister Narendra Modi, Microsoft CEO Satya Nadella discussed India's AI roadmap, emphasizing a shared vision.

“As AI reshapes the digital economy, India remains committed to innovation anchored in trust and sovereignty,” said Shri Ashwini Vaishnaw, India’s Minister of Electronics & Information Technology.

Significant elements of this investment include launching Microsoft’s largest hyperscale datacenter in India, set to go live by mid-2026. Additionally, the company will integrate AI into India’s National Career Service, benefiting 310 million workers.

Microsoft also aims to equip 20 million Indians with essential AI skills by 2030. Puneet Chandok, President of Microsoft India and South Asia, said: “As the nation moves confidently into its AI-first future, we are proud to stand as a trusted partner.”

I just read a fascinating novel about the Indian diaspora, “The Loneliness of Sonia and Sonny” by Kiran Desai, in case you’re thinking India should be not AI-first but other things first. I’m most concerned about the loss of comparative status for prime kebab recipes.

We’ll keep writing about Trump’s health, thank you very much, says New York Times

The publication has vowed not to be dissuaded by what it describes as “false and inflammatory language” from the president, who on Truth Social platform calling the paper’s reports on his health “seditious, perhaps even treasonous.” He accused the media of engaging in “FAKE” reporting and once again dubbed the press “Enemies of the People.”

Recent articles from The New York Times, including a November 25 piece exploring signs of fatigue and reduced public appearances, and a December 2 story suggesting Trump appeared “to be fighting sleep” during a Cabinet meeting, triggered his backlash. Trump defended his health, asserting that he hasn’t slowed down and claiming he has repeatedly undergone extensive medical tests, including cognitive evaluations, which he says he “ACED.”

Nicole Taylor, a spokeswoman for The New York Times, defended the paper’s journalism, emphasizing its commitment to factual reporting. “Americans deserve in-depth reporting and regular updates about the health of the leaders they elect,” Taylor said. She added, “Mr. Trump welcomed our reporting on the age and fitness of his predecessors; we’re applying the same journalistic scrutiny to his vitality.”

Columnist Frank Bruni went further in a December 8 opinion piece, comparing Trump’s vigor to that of President Joe Biden before he withdrew from the 2024 race. Trump criticized these reports, asserting his workload and accomplishments prove otherwise.

For decades, presidential health has been a delicate issue, with leaders like Grover Cleveland, Franklin D. Roosevelt, and Woodrow Wilson facing particular scrutiny. As Taylor reinforced, the role of a free press is to hold leaders accountable, and The New York Times says it intends to do just that.

Poll of the day: A tough call, this…

Do you think that newspapers should report on the health of their country's leaders?

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Poll of the day: What’s wrong with sports betting?

We asked: What's wrong with sports betting?

You answered:

🟨⬜️⬜️⬜️⬜️⬜️ Nothing! (39)

⬜️⬜️⬜️⬜️⬜️⬜️ I'll pick the Suns to beat the Thunder tonight with a combined score of more than 224 points parlayed into the Lakers beating the Spurs. Sorry, what were you saying? (15)

🟩🟩🟩🟩🟩🟩 4.2 million Americans now struggle with a sports betting addiction as of 2025. In states where online betting has been legalized for three to four years, bankruptcy filings have surged by 25–30%. (154)

🟨🟨⬜️⬜️⬜️⬜️ About 14% of all sports bettors report going into debt specifically to fund their wagers, often draining savings meant for emergencies or housing. For those seeking help with gambling addiction, the average debt is $27,500. (65)

🟨⬜️⬜️⬜️⬜️⬜️ For every $1 a household spends on sports betting, they reduce their net investments and savings by $2. 21% of Division I male tennis players have reported harassment from angry bettors. (25)

🟨🟨🟨🟨🟨⬜️ 1 in 6 (roughly 17%) of those addicted to gambling will attempt suicide, a rate more than 20 times higher than the general population (0.7%).

The lifetime divorce rate for problem gamblers is 39.5%, compared to just 18.2% for the general population. (131) 🟨🟨⬜️⬜️⬜️⬜️

You're no fun anymore. (62)

491 Votes via @beehiiv polls

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1  We assume.