Wall Street indexes rally after Fed cuts interest rates
By Sinéad Carew and Johann M Cherian
Wed December 10, 2025 4:48 PM
The indexes were all pretty close to flat running all the way up to the Fed announcement, then zoomed up immediately upon the news that there was indeed going to be a ¼ point cut. Though there remained significant concerns about policy direction in 2026, the fact that commentary about no more rate cuts until further notice due to inflation all took an immediate backseat when Powell commented that the labor market remains down and he doesn’t want Fed policy to stifle that.
So today anyway all the bets are on Powell and against the inflation police and taking Powell’s remarks as a very positive sign that there will indeed be more cuts in 2026. The Fed also raised its estimate for 2026 GDP growth by a whopping 28%, hiking the previous 1.8% to 2.3% and that really helped improve sentiment too. Now that the Fed good news is out there, volume is finally approaching normal today with 16.9 billion shares traded vs a 17.4 billion average.
DJ: 47,560.29 -179.03 NAS: 23,576.49
+30.58 S&P: 6,840.51
-6.00 12/9
DJ: 48,057.75 +497.46 NAS: 23,654.16
+77.67 S&P: 6,886.68
+46.17 12/10
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