{"id":57663,"date":"2026-01-06T11:08:40","date_gmt":"2026-01-06T15:08:40","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/economic-activity-cools-fed-eyes-rates-and-ai-kalshi-hits-100b-volume\/57663\/"},"modified":"2026-01-06T11:08:40","modified_gmt":"2026-01-06T15:08:40","slug":"economic-activity-cools-fed-eyes-rates-and-ai-kalshi-hits-100b-volume","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/economic-activity-cools-fed-eyes-rates-and-ai-kalshi-hits-100b-volume\/57663\/","title":{"rendered":"Economic Activity Cools, Fed Eyes Rates and AI, Kalshi Hits $100B Volume"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. economic activity saw a notable deceleration in December 2025<\/strong>, with the S&amp;P Global Services PMI falling to <strong>52.5<\/strong> and the Composite PMI to <strong>52.7<\/strong>, both below expectations and previous readings.<\/li>\n<li><strong>Federal Reserve Bank of Richmond President Thomas Barkin<\/strong> emphasized that long-term U.S. Treasury rates are being driven by increasing supply and larger deficits, while also highlighting AI&#39;s potential to empower workers for more complex tasks.<\/li>\n<li>Prediction market platform <strong>Kalshi<\/strong> achieved a significant milestone, reaching <strong>$100 billion<\/strong> in annualized trading volume.<\/li>\n<li><strong>France<\/strong> implemented widespread flight cancellations at Paris airports for Wednesday, January 7, 2026, due to heavy snowfall.<\/li>\n<\/ul>\n<h2>U.S. Economic Growth Moderates in December<\/h2>\n<p>The U.S. private sector experienced a slowdown in growth during December 2025, according to the latest S&amp;P Global Purchasing Managers&#39; Index (PMI) data. The final <strong>S&amp;P Global Services PMI<\/strong> registered <strong>52.5<\/strong>, down from November&#39;s 54.1 and below the estimated 52.9, indicating the slowest expansion in eight months. This moderation in the service sector was accompanied by a cooling in demand conditions, with new business inflows rising only marginally and at their weakest pace in 20 months.<\/p>\n<p>Similarly, the <strong>S&amp;P Global Composite PMI<\/strong>, which combines manufacturing and services, fell to a final reading of <strong>52.7<\/strong> in December. This figure is lower than the flash estimate of 53.0 and the previous month&#39;s 53.0, suggesting a broad-based deceleration in private sector activity. The slowdown points to <em>waning sales growth<\/em> and a more challenging business environment leading into 2026.<\/p>\n<h2>Fed&#39;s Barkin on Rates, AI, and Economic Caution<\/h2>\n<p>Federal Reserve Bank of Richmond President Thomas Barkin provided insights into the drivers of long-term interest rates and the evolving impact of artificial intelligence on the labor market. Barkin stated that <strong>long-term rates are currently influenced by the supply and demand of U.S. Treasuries<\/strong>, with supply increasing due to larger fiscal deficits. This trend of widening fiscal deficits and increased bond issuance is likely to keep long-term yields elevated.<\/p>\n<p>Barkin also offered a positive perspective on artificial intelligence, noting that <strong>AI can enable individuals to qualify for more complicated tasks<\/strong>. This suggests a potential for AI to enhance human capabilities and productivity, even as the Fed continues to monitor its broader impact on employment. Barkin further commented that if the economic environment causes people to become more cautious and increase savings, it could influence overall growth. He emphasized that future interest rate decisions will require &quot;finely tuned judgments&quot; given the ongoing risks to both inflation and employment goals.<\/p>\n<h2>Kalshi Reaches $100 Billion in Annualized Trading Volume<\/h2>\n<p>Kalshi, a regulated prediction market platform, has achieved a significant financial milestone, reaching <strong>$100 billion in annualized trading volume<\/strong>. This substantial figure underscores the growing interest and activity in event contracts and prediction markets. The platform&#39;s integration with popular crypto wallets and its expansion beyond political events into areas like macro data and business events are contributing to its rapid growth.<\/p>\n<h2>France Cancels Flights Amid Heavy Snowfall<\/h2>\n<p>French authorities have announced the cancellation of flights at Paris airports for Wednesday, January 7, 2026, due to heavy snowfall. The Directorate General of Civil Aviation (DGAC) instructed airlines to reduce their flight schedules by approximately <strong>15%<\/strong> at major hubs including Charles de Gaulle and Orly. This measure is a precautionary step to manage disruptions, ensure safety, and allow for runway clearing operations amidst challenging winter weather conditions. Travelers are advised to check their flight status directly with airlines before heading to the airports.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. economic activity saw a notable deceleration in December 2025, with the S&amp;P Global Services PMI falling to 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