{"id":74641,"date":"2026-11-13T10:38:30","date_gmt":"2026-11-13T14:38:30","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/markets-edge-higher-as-fed-officials-warn-of-persistent-inflation\/74641\/"},"modified":"2026-11-13T10:38:30","modified_gmt":"2026-11-13T14:38:30","slug":"markets-edge-higher-as-fed-officials-warn-of-persistent-inflation","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/markets-edge-higher-as-fed-officials-warn-of-persistent-inflation\/74641\/","title":{"rendered":"Markets Edge Higher as Fed Officials Warn of Persistent Inflation"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. Indices Open Higher<\/strong>: The <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (<a href=\"\/stock\/%5EDJI\">^DJI<\/a>)<\/strong> rose <strong>186.86 points (0.36%)<\/strong>, the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/%5EGSPC\">^GSPC<\/a>)<\/strong> gained <strong>21.83 points (0.29%)<\/strong>, and the <strong>Nasdaq (<a href=\"\/stock\/%5EIXIC\">^IXIC<\/a>)<\/strong> added <strong>33.56 points (0.13%)<\/strong> following the market open on Friday.<\/li>\n<li><strong>Fed Policy Shift<\/strong>: <strong>Bank of America (<a href=\"\/stock\/BAC\">BAC<\/a>)<\/strong> updated its forecast to include three consecutive <strong>25-basis-point rate hikes<\/strong> in December 2026, January 2027, and March 2027, citing &quot;borderline disturbing&quot; inflation data.<\/li>\n<li><strong>Goolsbee\u2019s Inflation Warning<\/strong>: Chicago Fed President <strong>Austan Goolsbee<\/strong> stated the central bank is &quot;not on track&quot; to hit its <strong>2% target<\/strong>, noting that AI infrastructure demand is now a primary driver of broad-based price pressures.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> Leadership Transition<\/strong>: <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) shares faced early pressure following the sudden resignation of longtime CEO <strong>Jensen Huang<\/strong>; CFO <strong>Colette Kress<\/strong> has assumed the role of interim CEO ahead of next week&#39;s earnings.<\/li>\n<li><strong>xAI Restructuring<\/strong>: Elon Musk\u2019s <strong>xAI<\/strong> (now integrated with SpaceX) reportedly laid off approximately <strong>60 employees<\/strong> from its <strong>Grok Imagine<\/strong> video generation team as the company pivots toward AI coding tools and autonomous agents.<\/li>\n<\/ul>\n<h2>Market Performance and Economic Outlook<\/h2>\n<p>Wall Street opened in positive territory on Friday, November 13, 2026, as investors balanced a technical rebound against hawkish commentary from Federal Reserve officials. The <strong>Dow Jones (<a href=\"\/stock\/%5EDJI\">^DJI<\/a>)<\/strong> led the gains, trading at <strong>52,483.95<\/strong>, while the <strong>S&amp;P 500 (<a href=\"\/stock\/%5EGSPC\">^GSPC<\/a>)<\/strong> reached <strong>7,614.23<\/strong>. Despite the green open, market sentiment remains cautious following a &quot;hot&quot; Consumer Price Index (CPI) report earlier in the week that has significantly pulled forward expectations for future interest rate hikes.<\/p>\n<p>Federal Reserve officials have intensified their warnings regarding price stability. Chicago Fed President <strong>Austan Goolsbee<\/strong> noted that inflation has spread beyond energy and tariffs into services and healthcare. He specifically highlighted that the massive buildout of <strong>AI data centers<\/strong> is fueling demand-driven inflation, suggesting the Fed may need to be more aggressive to prevent the economy from overheating. Meanwhile, Boston Fed President <strong>Susan Collins<\/strong> emphasized that ensuring price stability is a long-term necessity for the housing market, though she declined to comment on the immediate path for monetary policy.<\/p>\n<h2>Corporate and Tech Developments<\/h2>\n<p><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) remains the center of market attention following the departure of <strong>Jensen Huang<\/strong>. The company is preparing to report its third-quarter earnings next Tuesday, with <strong>Colette Kress<\/strong> leading the call as interim CEO. Analysts at <strong>Bank of America (<a href=\"\/stock\/BAC\">BAC<\/a>)<\/strong> suggest investors should remain focused on the company&#39;s projected <strong>90% earnings growth<\/strong>, despite the leadership transition and allegations involving Chinese intelligence that preceded Huang&#39;s exit.<\/p>\n<p>In the AI sector, Elon Musk&#39;s <strong>xAI<\/strong> has undergone a significant shift in strategy. Reports indicate that roughly <strong>60 staffers<\/strong> from the <strong>Grok Imagine<\/strong> video team were laid off as the company prioritizes its <strong>Grok Bot<\/strong> agent and AI coding tools. This move mirrors recent retrenchments at OpenAI, which also scaled back video generation efforts due to prohibitive computing costs.<\/p>\n<h2>International Relations and Trade<\/h2>\n<p>On the geopolitical front, Chinese Premier <strong>Li Qiang<\/strong> met with Thai Prime Minister <strong>Anutin Charnvirakul<\/strong> in Bangkok to consolidate trade ties. China expressed readiness to import more quality products from <strong>Thailand<\/strong>, specifically focusing on agricultural exports like <strong>durian<\/strong> and <strong>salacca<\/strong>. The two nations signed eight cooperation documents covering automotive technology, vocational education, and security, marking a significant step in their &quot;comprehensive strategic cooperative partnership.&quot;<\/p>\n<h2>Looking Ahead to Next Week<\/h2>\n<p>Investors are bracing for a heavy &quot;retailer earnings parade&quot; starting Tuesday. Key reports are expected from:<\/p>\n<ul>\n<li><strong>Walmart (<a href=\"\/stock\/WMT\">WMT<\/a>)<\/strong><\/li>\n<li><strong>Home Depot (<a href=\"\/stock\/HD\">HD<\/a>)<\/strong><\/li>\n<li><strong>Target (<a href=\"\/stock\/TGT\">TGT<\/a>)<\/strong><\/li>\n<li><strong>Lowe\u2019s (<a href=\"\/stock\/LOW\">LOW<\/a>)<\/strong><\/li>\n<li><strong>TJX Companies (<a href=\"\/stock\/TJX\">TJX<\/a>)<\/strong><\/li>\n<\/ul>\n<p>In addition to retail data, the market will closely monitor the <strong>FOMC minutes<\/strong> and <strong>U.S. retail sales<\/strong> figures to gauge the likelihood of the <strong>Bank of America (<a href=\"\/stock\/BAC\">BAC<\/a>)<\/strong> predicted rate hike in December.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. Indices Open Higher: The Dow Jones Industrial Average (^DJI) rose 186.86 points (0.36%), the S&amp;P 500 (^GSPC) 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