Wall Street anxiety halted a four-day rally in US stocks while Treasuries joined a global bond slump ahead of the Federal Reserve’s final meeting of 2025.
While an interest-rate cut is all but certain, traders are growing anxious about the pace of next year’s cuts. The S&P 500 slid 0.3% Monday after the equities benchmark closed within spitting distance of an all-time high.
A busy merger Monday failed to bolster the mood after President Donald Trump raised potential antitrust concerns on Netflix Inc.’s planned takeover of the Hollywood studios and streaming business of Warner Bros. Discovery Inc. and Paramount Skydance Corp. stepped in with its own hostile bid.
Uncertainty over the pace of easing in 2026 and wariness about the sustainability of an AI-driven rally tempered sentiment. US stocks had rebounded in recent weeks after some Fed officials signaled they intend to cut rates for a third straight time on Wednesday.
“Expectations for a quarter-point rate cut have been cemented by continued signs of weakness in the employment market, although it’s certain to be one of the most contentious rate decisions in recent history,” according to BMO’s Ian Lyngen.
