Traders were busy on the floor of the New York Stock Exchange on December 8, 2025.
Stock futures showed minimal change on Wednesday, as the market awaited the Federal Reserve’s decision regarding interest rates.
Specifically, futures linked to the Dow Jones Industrial Average saw a slight drop of 29 points, or 0.1%. Similarly, S&P 500 futures also dipped by 0.1%, while Nasdaq 100 futures decreased by 0.2%.
In recent days, stock values have oscillated, with investors closely watching for signals from the Fed ahead of its crucial meeting. There’s a strong expectation—a roughly 87% probability, according to Federal Funds Futures—that the Fed will implement a quarter-point rate cut, marking the third consecutive reduction.
However, opinions within the Federal Open Market Committee seem split. Some members advocate for lower rates to stave off further issues in the job market, while others caution that additional cuts could exacerbate inflation. Investors are keen to decipher the general sentiment through post-meeting statements and particularly Chairman Jerome Powell’s upcoming news conference.
The previous trading session was rather unremarkable, with the S&P 500 closing down 0.1%. The Dow Jones Industrial Average experienced a more significant decline, dropping nearly 0.4%, largely due to struggles with stocks like JP Morgan. On the other hand, the Nasdaq Composite, which is heavily weighted with tech companies, managed a slight increase of about 0.1%, with gains from firms like Broadcom, Tesla, and Alphabet.
Meanwhile, a notable shift is happening across sectors. On Tuesday, the Russell 2000 Index of small-cap stocks reached new highs, buoyed by the potential for future rate cuts. Smaller businesses often benefit from such cuts, as their borrowing costs are more directly tied to overall market rates, potentially enhancing profit margins.
Doug Bies, a global equity strategist at Wells Fargo Investment Institute, pointed out that, although the Russell 2000 has lagged behind the S&P 500 this year, it has made gains since November 21. He noted it has outperformed the broader market in that timeframe.
Bies commented, “Positive trends in small-cap stocks align with our perspective that the stock market is broadening. We think investors are looking past the current economic slowdown, anticipating stronger growth by 2026, driven by factors like the largest tax refunds since 2021, deregulation, potential Fed rate cuts, and sustained increases in technology investments.”
