NEW YORK—Investors are eager for a touch of Christmas cheer from the U.S. Federal Reserve next week, hoping for signs the central bank may ease up on interest rate hikes next year and spark a Santa Claus rally.
U.S. stocks are having their worst December performance in 16 years with the S&P 500 notching a 5 percent drop so far this month. The Fed’s ongoing reversal of easy-money policy is a major overhang, and it is expected to raise rates more at the end of its two-day meeting on Dec. 19.
