Welcome to Markets Desk, let's get you caught up on what's moving.
Kevin Warsh is now chair of the Federal Reserve, sworn in as President Trump pushes hard for lower borrowing costs. But markets aren't buying the dovish narrative. Futures are actually pricing in rate increases by the end of two thousand twenty six, a direct rebuke of White House pressure and a sign traders trust the data over the politics.
That tension at the Fed feeds directly into a broader story reshaping global competition. Governments racing to close the artificial intelligence gap are now pouring resources into military-grade data centers, betting that computing power is the new strategic arsenal. Nations outpaced in AI development are turning to experimental technologies, effectively treating server farms the way prior generations treated missile stockpiles.
Meanwhile, Meta has settled the first major school district lawsuit over children's mental health and social media addiction, a case brought by a small rural Kentucky district that was weeks away from trial. The settlement's terms remain undisclosed, but with hundreds of similar suits queued up, this outcome will set the tone for what Zuckerberg's legal exposure actually looks like going forward.
That's the tape. Markets Desk, signing off the floor.
