Wall Street steadies as rate cut optimism meets policy caution

US markets touched record highs after a Fed rate cut, but restrained policy guidance and rising yields tempered expectations of a strong near-term rally.

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3 days ago

Wall Street steadies as rate cut optimism meets policy caution

Wall Street steadies as rate cut optimism meets policy caution
US equity markets closed at record highs on December 11, buoyed by the Federal Reserve’s 25 basis point rate cut that eased financial conditions. The S&P 500 and Dow Jones gained despite cautious signals from policymakers indicating fewer rate cuts ahead in 2026. While easing rates lifted risk appetite, rising Treasury yields added pressure on growth stocks, particularly technology.