U.S. import prices unexpectedly rose in October, suggesting that inflation is still a problem in the United States. The Labor Department said import prices rose 0.3 percent in October, after falling 0.4 percent in September. The increase in import prices was largely driven by a 1.5 percent increase in fuel prices, which had been falling for two months prior. However, food prices fell for the third consecutive month, falling 1.6 percent in October. Core import prices, excluding food and fuel, rose 0.4 percent. This suggests that efforts to bring inflation to the Federal Reserve’s 2 percent target are not making much progress.

U.S. producer prices rose in October, led by higher prices for services such as investment portfolio management and air travel. The Labor Department said the Producer Price Index (PPI) rose 0.2% in October, after a slight increase in September. The index rose 2.4% in October from a year earlier.

Given these data, economists believe that the Federal Reserve will cut interest rates less in 2025 than previously thought. Federal Reserve Chairman Jerome Powell also said that the economy is not showing signs that it needs to cut interest rates quickly and that a slower rate cut would be more prudent.

It is still unclear how long the US Federal Reserve will continue to cut interest rates, although the cuts so far indicate confidence that inflation is returning to its 2% target, Federal Reserve Bank Governor Jeffrey Schmid said.

That confidence, he said, is based on the balance established in the labor and product markets in recent months. Schmid did not comment on whether he was in favor or against the central bank cutting interest rates by another quarter of a percentage point at its meeting on December 17-18.

Wall Street experts predict that Trump's proposed tax cuts will lead to a significant increase in stock prices in the coming years. Trump wants to reduce the corporate tax rate from 21% to 15%. Goldman Sachs believes that the tax cuts could increase the profits of S&P 500 companies by more than 20% in the next two years. Goldman Sachs predicts that the profitability of one share of the S&P 500 will increase by 11% in 2025 and by 7% in 2026, reaching $ 288 per share. According to their estimates, every 1% decrease in the corporate tax rate can increase the profitability of one share by about 1%.

Goldman Sachs and Morgan Stanley predict that the S&P 500 could reach 6,500 by the end of next year, a 10% increase from its current level. This growth is expected to come from an expansion in the US economy and rising corporate profits. Goldman Sachs expects earnings growth of 11% in 2025, with a total return of 12% including dividends. They also predict continued success for stocks of leading companies such as the “Magnificent Seven”.

Morgan Stanley believes that earnings growth will continue as interest rates fall and business confidence improves after the election.

US stock markets closed mixed on November 19. The Dow Jones Industrial Average fell 0.3%, the S&P 500 rose 0.4%, and the Nasdaq Composite Index rose more than 1%, led by a nearly 5% gain in Nvidia shares amid analysts' bullish outlook for the company's upcoming earnings report. Stock market trading on November 19 showed investors largely ignoring the escalating Russia-Ukraine war.

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