Stocks

Wall Street Review: Stocks Hover Near Records Ahead of Fed Meeting

Cooling labor data, easing inflation, and firmer consumer sentiment boosted expectations for further Federal Reserve rate cuts next week.
Wall Street Review: Stocks Hover Near Records Ahead of Fed Meeting
Traders work on the floor of the New York Stock Exchange after the opening bell on Dec. 5, 2025. Angela Weiss/AFP via Getty Images
Panos Mourdoukoutas
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Equities extended last week’s rebound as cooling labor market indicators, moderating inflation, and steadier consumer sentiment bolstered expectations that the Federal Reserve could continue to cut interest rates at next week’s policy meeting. Lower interest rates would mark a significant shift in market direction and investor strategy.

Technology shares and small cap stocks—typically the most sensitive to rate changes—led the advance.

Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”