Key Takeaways
- Meta Platforms (META) CEO Mark Zuckerberg is reportedly planning up to 30% cuts to the company's metaverse efforts, signaling a significant strategic reevaluation of its immersive technology investments.
- Amazon (AMZN) is evaluating all options regarding the USPS auction process for its delivery network, while simultaneously affirming its commitment to the postal service as a longstanding and trusted partner and discussing ways to increase its spend with them.
- U.S. Initial Jobless Claims for the week ending November 29 fell to 191,000, significantly below the 220,000 estimate and the previous week's 216,000, indicating a robust labor market.
- A substantial majority of economists (89 out of 108) anticipate the Federal Reserve will cut the Fed Funds Rate by 25 basis points to the 3.50%-3.75% range on December 10, with some expecting further cuts in Q1 2026.
Meta Platforms (META) is reportedly preparing for substantial cuts to its metaverse division, with CEO Mark Zuckerberg planning reductions of up to 30% in efforts related to the virtual world. This move suggests a potential shift in the company's strategic focus, which had heavily emphasized the metaverse in recent years. Discussions among executives have included potential budget cuts for the metaverse group, which encompasses products like Meta Horizon Worlds and its Quest virtual reality unit. Such significant cuts could lead to layoffs as early as January.
Meanwhile, e-commerce giant Amazon (AMZN) is navigating a complex relationship with the U.S. Postal Service (USPS). The company stated it is "evaluating all of options" given the uncertainty introduced by the USPS auction process for its delivery network. Despite this, Amazon reiterated its commitment to the USPS as a "longstanding and trusted partner" and is actively discussing ways to extend their partnership and "increase our spend with them." Recent reports suggest Amazon is exploring ending its long-standing partnership with the USPS by late 2026, potentially shifting billions of parcels to its own expanding delivery network. Amazon is the USPS's largest customer, contributing over $6 billion in annual revenue in 2025.
In economic news, the U.S. labor market showed continued strength as Initial Jobless Claims for the week ending November 29 dropped to 191,000. This figure was notably lower than economists' estimates of 220,000 and a decrease from the revised previous week's total of 218,000, marking the lowest level in over three years. Continuing Claims for the week ending November 22 also saw a slight decrease to 1.939 million, below the estimated 1.963 million and the previous 1.960 million. These figures suggest a resilient job market despite broader economic uncertainties.
Looking ahead, a Reuters poll indicates that a significant majority of economists, 89 out of 108, foresee the Federal Reserve cutting the Fed Funds Rate by 25 basis points to a range of 3.50%-3.75% on December 10. Furthermore, 50 out of 100 economists surveyed anticipate an additional rate cut to the 3.25%-3.50% range in Q1 2026. This expectation comes as the Fed aims to underpin a weakening labor market, although some recent data, like the jobless claims, might challenge this sentiment.
In international developments, Indian Prime Minister Narendra Modi received Russian President Vladimir Putin upon his arrival in New Delhi for a two-day state visit. The visit is expected to focus on strengthening trade, economic, and defense cooperation between the two nations.
Domestically, U.S. Transportation Secretary Duffy announced plans to change rules to allow micro cars, a move that could introduce smaller, more fuel-efficient vehicles to the American market. This initiative aims to increase consumer choice and affordability in the automotive sector.
Finally, the German financial regulator announced that the reporting threshold for managers' own account trades will be raised to 50,000 euros, effective January 1, 2026. This adjustment is intended to reduce the administrative burden on executives and issuers, aligning with efforts to streamline financial regulations.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.