Stocks Slip as Fed Cut Pace Clouds Outlook Ahead of Final 2025 Meeting – US Market Wrap

Wall Street worry halted a four-day advance in US stocks, while Treasuries joined a worldwide bond selloff ahead of the Federal Reserve’s final meeting in 2025. While an interest rate decrease is almost assured, traders are concerned about the speed of next year’s cuts.

The S&P 500 fell 0.3% Monday after closing within spitting distance of a record high. A busy merger Monday failed to lift the atmosphere after Trump expressed probable antitrust concerns about Netflix’s planned buyout of Warner Bros’ Hollywood studios and streaming operations. Paramount responded with its own hostile bid.

Uncertainty over the rate of easing in 2026, as well as concerns about the long-term viability of an AI-driven surge, muted enthusiasm. US markets had rallied in recent weeks after several Fed members indicated that they planned to drop interest rates for the third time in a row on Wednesday.

Kevin Hassett, a leading candidate for Fed chair, said it would be foolish for the Fed to lay out a forecast for where interest rates would go in the next six months. In an interview with CNBC on Monday, the White House National Economic Council Director emphasised the significance of tracking economic data.

Unease over inflation remaining too high has prompted divides among Fed policymakers, which has been exacerbated by the lack of new data during the closure. Following this week’s expected cut, money markets are forecasting two more changes by the end of 2026, down from three just a week ago.