S&P 500 ends slightly down as investors await Fed rate decision
By Sinéad Carew and Johann M Cherian
Tue December 9, 2025 4:52 PM
Despite all the division within the Fed, optimism is still very high for a rate cut on Wednesday but doubts have grown that there will be more cuts coming in 2026. Thus the indexes were way up in the morning, the Dow up over 200, but then everything started sliding at the noon hour with both the Dow and the S&P losing all their gains and then quite a bit besides. Even with the rate cut, sentiment says that Fed comments will be more hawkish than desired with warnings that prices may well continue upward again because of the cut.
The Nasdaq did better but even it was held back by growing concern that tech companies may start questioning the wisdom of the extravagant spending on AI. Adding to the doom and gloom was JP Morgan predicting much higher costs for the coming year, something that may well infect the entire banking sector as reflected in the banking index first rising 1%, then falling 3%. JP Morgan itself lost 4.7%, its biggest one day drop since April 4. Campbell’s also dropped 5.2% after announcing price hikes to counter higher costs. Other companies are following suit making it apparent that the impact of tariffs has reached the point the higher costs can no longer be contained. Volume at 14.5 billion is still well below the 17.3 average as everyone continues to wait on Wednesday’s Fed announcement.
DJ: 47,739.32 -215.67 NAS: 23,545.90
-32.22 S&P: 6,846.51
-23.89 12/8
DJ: 47,560.29 -179.03 NAS: 23,576.49
+30.58 S&P: 6,840.51
-6.00 12/9
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