U.S. Stocks Rise Supported by Fed Rate Cut Expectations

On December 7, 2025, U.S. stock indices rose, with the Dow Jones at 43,000 points (+0.5%) and NASDAQ at 18,500 (+0.8%), bolstered by expectations of a 25 basis point rate cut at the Fed's meeting on December 10-11.

This increase reflects optimism about continued support for the economy despite slowing employment.

The market is watching the Fed's decision as a third step towards easing in 2025, with an emphasis on purchasing short-term treasury bonds ($45 billion monthly starting in January) to maintain stability, which could further bolster stock bulls. However, there is internal disagreement among members, with 5 out of 12 opposing additional cuts due to persistent inflation at 2.8%.

Forecasts suggest further gains if the Fed confirms cuts in January and April, pushing stocks towards record levels, though experts warn of a correction if a recession leads to job declines, focusing on technology and energy sectors as key drivers.