Traders work on the floor of the New York Stock Exchange (NYSE) after the opening bell rings on December 5, 2025 in New York.
Angela Weiss | AFP | Getty Images
of S&P500 Prices fell on Monday as investors awaited the last Federal Reserve meeting of the year later this week.
The broad market index fell 0.5%. Nasdaq Composite It fell by 0.4%. of Dow Jones Industrial Average It decreased by 290 points (0.6%).
What put pressure on stock price sentiment was 10 year treasury Yields have continued their recent rise. The index rose this month despite the possibility that the Federal Reserve could cut interest rates this week as investors worry about the state of inflation in the new year and whether central banks will be able to continue easing.
Traders have been increasingly hopeful in recent weeks that the Fed will cut rates again after cutting rates by 0.5 percentage points at its September and October meetings. Federal funds futures are priced in about a 90% chance of a decline, up from less than 67% a month ago, according to CME’s FedWatch tool.
The increased optimism has recently been reflected in the stock price, which has been positive for the second week in a row. The S&P 500 and Nasdaq also posted their fourth straight day of wins on Friday, with the Dow posting its third positive trade in four days. Stocks rose on the day after a weaker-than-expected release of the core personal consumption expenditure price index for September, one of the last major economic announcements before the Fed’s policy meeting.
“The way the market has moved in the last week or two is really making a 25 basis point rate cut much more likely,” said Stephen Collano, chief investment officer at Integrated Partners. “If they don’t cut rates for some very unthinkable reason, forget it. I think the market is down 2-3%.”
Beyond expected rate cuts, Collano expects Fed Chairman Jerome Powell to emphasize data-reliance in the coming months, especially after last week’s November ADP data showed a further slowdown in the labor market. Not only that, but Powell’s term ends in May 2026, which could make him “somewhat agnostic” about the market’s expectations about the path of interest rates next year, he added.
“I wouldn’t be surprised if Jerome Powell says, ‘We’re done with the policy cuts. Now we really need to look at the data.’ We’re seeing a softening in the labor market, so I think he’ll stop short of becoming more hawkish.” “If rate cuts start to be pushed back further (to 2026), I think (should) start to put further negative pressure on the market in the first half of this year.”
Technology performed well in trading on Monday. broadcom The stock rose 2% to a new all-time high after The Information’s report. microsoft We are discussing custom chip designs with chip manufacturers. meanwhile, Confluence The stock price has since risen 29%. IBM announced that it plans to acquire the company in an $11 billion deal. The deal is expected to be completed by mid-2026.
