Global markets rose on hopes of a Federal Reserve rate cut and as investor optimism over artificial intelligence returns. U.S. markets are closed Thursday for the Thanksgiving holiday

What was once seen as a near-certain cut in interest rates next month now looks more like a coin flip as Federal Reserve officials sharply disagree over the economy’s health and whether stubborn inflation or weak hiring represent a bigger threat.

Investors have largely been focused on the likelihood of a December rate cut from the Federal Reserve, as well as the chances of further easing in 2026. But there's another move by the central bank that may be on the way in January.

The Federal Reserve’s top banking regulator on Tuesday released new guidelines for the agency’s supervision of the financial system, earning praise from industry trade groups and criticism from her predecessor.