Don’t fight the Fed: Monetary Policy and Market Impact

Matichon•Economy•5d ago

Reader Briefing

US Federal Reserve interest rate hikes and inflation concerns are triggering global shifts from risky assets to government bonds.

•The FOMC unanimously voted 12 to 0 in September to raise policy interest rates to 3.75-4.00%.
•US CPI in September was 3.7%, exceeding market expectations.
•Anthropic plans to list on the Nasdaq in mid-November with a potential value of 2 trillion US dollars.
•The Thai stock market may be less affected by the AI bubble concern due to high dividend yields and a prevalence of value stocks.

•The FOMC voted 12 to 0 in September to increase the policy interest rate to 3.75-4.00%, the first increase since 2023.
•The US CPI for September was 3.7%, while crude oil prices remained high near 100 US dollars.
•High valuations in US stocks, with a CAPE ratio of 40.7, have raised concerns about an AI bubble similar to the Dot-com crisis of 2000.
•Investors are moving capital from risky assets like technology stocks in South Korea and Japan into US government bonds.
•Anthropic plans to list on the Nasdaq in mid-November, while OpenAI has delayed its IPO due to AI safety reasons.
•The Thai stock market currently has a Dividend Yield of nearly 4% and consists mostly of value stocks, except for some large electronics stocks like DELTA.
•The PDP2026 power development plan is identified as a key catalyst for Data Center investments and the Thai stock market.
•Policy clarity regarding energy and investment rules is expected to be delayed from October to late 2026 or early 2027.

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Federal Reserve(ธนาคารกลางสหรัฐ)ℹ️

The central bank of the United States that sets monetary policy influencing global financial assets.

Fed(เฟด)

Short name for the Federal Reserve.

The committee that voted unanimously to raise policy interest rates in September.

Anthropicℹ️

The developer of Claude that plans to list on the Nasdaq in mid-November.

The stock exchange where Anthropic intends to list.

The developer of ChatGPT that has delayed its IPO plans for AI safety reasons.

DELTA

A large electronics stock in the Thai market.

BOI

The agency receiving promotion requests for Data Center projects totaling approximately 750 billion baht.

South Korea(เกาหลีใต้)ℹ️

A country in North Asia whose stock market has seen technology stock sell-offs.

Japan(ญี่ปุ่น)ℹ️

A country in North Asia whose stock market has seen technology stock sell-offs.

Russia(รัสเซีย)ℹ️

A country involved in conflict with Ukraine affecting oil prices.

Ukraine(ยูเครน)ℹ️

A country involved in conflict with Russia affecting oil prices.

PDP2026

The power development plan that serves as a key for Data Center investment clarity in Thailand.