Wall Street Sees Red Ahead of December 2025 Fed Meeting

Jakarta, Gotrade News - Wall Street ended in the red this Monday as investors brace for the Fed’s decision on Wednesday. Market jitters are ramping up ahead of this pivotal monetary policy meeting.

Major indices took a dip, with the Nasdaq sliding a slight 0.1% and the S&P 500 dropping 0.3%. The Dow Jones took the biggest hit, posting a 0.4% loss for the session.

Keytakeaways:

• Wall Street closed in the red, with the Dow taking the biggest hit ahead of the Fed meeting.
• Market volatility (VIX) spiked 10%, and 10-year US Treasury yields hit a new high.
• Markets are pricing in an 89.6% chance of a 25 bps rate cut, though it might be a split decision.

Market Volatility Spikes

Market uncertainty is real, evident from the volatility index (VIX) jumping nearly 10%. According to Seeking Alpha analyst Damir Tokic, this spike in VIX and bond yields suggests we're in for a bumpy ride.

Tech was the only sector in the green, while Communication Services suffered the deepest decline. Shares of Warner Bros. Discovery (WBD) climbed 3.3%, while Marvell Technology (MRVL) tanked 7.4%.

Rate Cut Projections

The market is now pricing in an 89.6% chance of a 25 basis point rate cut. As Deutsche Bank’s Jim Reid explained, this would mark the third and final cut of 2025.

The decision likely won't be unanimous due to potential split opinions among FOMC members. Meanwhile, the 10-year US Treasury yield has climbed to a fresh two-month high.

Referensi:

• Seeking Alpha, Wall Street finished in the red ahead of a pivotal Federal Reserve meeting. Accessed on December 9, 2025
• Featured Image: Shutterstock

Disclaimer:

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