📉 The Pre-Fed Jitters: Wall Street Holds Its Breath
Looks like the party quieted down on Wall Street yesterday. The US stocks decided to take a bit of a breather—a collective sigh, really—as they brace for the #FedralReserve final high-stakes poker game of 2025.
Everyone’s got their money on the table, betting on a 25-basis-point trim this week. It's practically priced in, the safe bet. But here's the twist that's dampening the mood: the crystal ball for 2026 cuts just got a little hazier. They've pulled back the reins, trimming the expected total rate reductions for next year from three down to just two. It's the market equivalent of realizing your favorite show got its final season cut short.
And speaking of tension, the 10-year Treasury yield decided to get dramatic. It marched right up to heights we haven't seen since way back in September. Think of it as the bond market's way of saying, "Hold my beer, things are getting interesting."
Essentially, the market is sitting on pins and needles, not over this week's move, but over the Fed's vision for the whole next year. We’re all just waiting for the Fed to drop the final plot twist.
