US Stock Market LIVE: Investors Await Fed Decision and Powell’s Speech on Interest Rates
The US stock market remains largely quiet as Wall Street waits to hear from the US Federal Reserve in the afternoon. The S&P 500 slipped 0.1% early Wednesday (December 10) and remains near its all-time high. The Dow Jones Industrial Average was flat, and the Nasdaq composite fell 0.3%. Treasury yields were also steady as the countdown ticks toward the Fed’s announcement.
The widespread expectation is for the Fed to cut its main interest rate for a third time this year to bolster the job market. However, traders are bracing for Fed officials to imply fewer cuts to rates in 2026 than this year. This cautious approach is reflected in the market's current behavior, with investors closely monitoring any signals from the Fed that could impact future economic conditions.
Investors are particularly interested in the comments from Federal Reserve Chair Jerome Powell, who will provide further insights into the Fed’s monetary policy decisions. Powell’s speech is expected to offer clarity on the Fed’s stance on economic growth, inflation, and the labor market, which are key factors influencing the stock market.
The real estate sector, which is highly sensitive to interest rate changes, is also being closely watched. According to a recent interview with Bloomberg, a significant fund has about 3.3% of its assets in real estate, with a roughly even split between residential and commercial properties. This allocation reflects the ongoing interest in the sector, despite the uncertainties surrounding interest rates.
As the market awaits the Fed’s decision, analysts are divided on the potential impact of a rate cut. Some believe that a cut will provide a short-term boost to the economy and the stock market, while others caution that it could lead to inflationary pressures if not managed carefully. The Fed’s decision will be a critical factor in determining the market’s direction in the coming weeks and months.
Watch this space for all the live updates as the Fed’s decision and Powell’s speech unfold.
