Fed Cuts Rates 25 Points, Boosting Global Markets

The U.S. Federal Reserve cut interest rates by 25 basis points on December 10, 2025, lowering the target range to 3.50% to 3.75%, a move that bolstered global investor sentiment and propelled major stock indexes toward record levels.

The decision, announced late in the trading day, capped a period of anticipation among traders. U.S. markets opened slightly lower that morning, with the Dow Jones Industrial Average down 0.05%, the S&P 500 off 0.09%, the Russell 2000 declining 0.13%, and the Nasdaq Composite falling 0.30%. Investors largely held back ahead of the Fed's policy update, scheduled for 3 p.m. ET, amid a packed economic calendar that included more than 30 reports from major firms. The rate reduction aligned with expectations, signaling the central bank's continued effort to support economic growth amid cooling inflation.

By the close, U.S. equities rebounded, reflecting relief over the measured cut. The S&P 500, which has surged 17% year-to-date through early December, remained on pace for its third straight year of strong gains, following 26% in 2023 and 23% in 2024. The index's climb has been driven primarily by the artificial intelligence boom, with tech heavyweights...