Diminishing hopes for a December rate cut steered market moves over the last week, as Federal Reserve officials tempered expectations for further easing. With the central bank facing stubborn inflation and a shutdown-induced data drought, the U.S. dollar index—a measure of the greenback against a basket of other currencies—climbed above the 100 threshold on Tuesday for the first time since the beginning of August. Stocks searched for direction with investors assessing a shifting rate outlook, the state of equity valuations, and whether a hiring slowdown might curb consumer spending. Payroll processor ADP said on Wednesday the private sector added 42,000 jobs in October, rebounding from a loss of 29,000 a month before.

The dollar’s rise also came on the heels of President Donald Trump’s trip to Asia, where the U.S. and China reached a one-year trade truce that will ease tariffs and export controls. Meanwhile, the White House’s global tariffs are officially under review by the Supreme Court, which heard oral arguments on Wednesday in a case that could bring fresh uncertainty to U.S. trade agreements and the administration’s approach to implementing new levies.

A new Weekly View from the Desk addresses the implications of the U.S.-China pact, the likelihood of a longer-term strategic decoupling, and market reactions to the Fed’s relatively hawkish tone.