**Market Pulse**
A looming strike at US East and Gulf coast ports threatens to disrupt supply chains, drive up shipping rates, and potentially fuel inflation just in time for the holiday season. Thousands of dockworkers are preparing to walk out at midnight, marking the first East Coast port strike since 1977. The work stoppage could impact over 50% of US imports, straining West Coast ports and reducing US economic activity by $4.5-7.5 billion per week.
Retailers, automakers, and other businesses are bracing for higher freight rates and making contingency plans for inventory as West Coast port traffic mounts. While J.P. Morgan predicts the strike won’t last longer than a week, consumers may still face higher prices or empty shelves for certain products.
Meanwhile, tensions in the Middle East continue to escalate, with Israel launching airstrikes on Yemen’s port of Hodeidah and stepping up attacks on Lebanon. The oil market has reacted calmly, but the situation remains volatile.
In other news, California Governor Gavin Newsom has vetoed an artificial intelligence safety bill, citing concerns that it only applies to the largest and most expensive AI models. The UK is set to become the first G7 country to end coal power generation, marking a significant milestone in its transition to cleaner energy.
Global markets are mixed, with Asian indices showing a range of performances. In Europe, major indices are trading lower, while US futures are flat. Crude oil is down 0.5% to $67.85, and gold is off 0.3% to $2,659. Bitcoin has fallen 3% to $63,587.
Today’s economic calendar features speeches from Fed officials Bowman and Powell, as well as the release of the Chicago PMI and Dallas Fed Manufacturing Survey. Companies reporting earnings today include [list of companies].
Other notable news includes David Tepper’s skepticism about nuclear-powered AI, Microsoft-backed OpenAI’s projected $5 billion annual loss, and AT&T’s sale of its remaining stake in DirecTV to TPG.
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