By William Collins, consultant in stock markets – Eurasia Business News, December 10, 2025. Article no 1928
Stock indexes jumped while Jerome Powell was speaking on December 10, after the Federal Reserve delivered another quarter‑point rate cut. The rally accelerated as Powell signaled that further rate hikes in 2026 are very unlikely, which markets read as a dovish shift.
What Powell Said
Powell emphasized in his press conference that he does not see any Fed officials expecting to raise interest rates next year. He also indicated that an additional rate increase is “not anybody’s base case at this point,” reinforcing the idea that the tightening cycle is over and that future moves are more likely to be cuts than hikes.
The Federal Reserve cut interest rates by a quarter percentage point for the third time this year on Wednesday while projecting one more cut for 2026.
The central bank voted in a split decision to trim its benchmark interest rate to a range of 3.5% to 3.75%.
Wednesday’s cut reduced the rate to about 3.6%, the lowest it has been in nearly three years. Lower rates from the Fed can bring down borrowing costs for mortgages, auto loans, and credit cards over time, though market forces can also affect those rates.
The Fed concludes the year with a job market that has softened and inflation remaining roughly a full percentage point above the central bank’s 2% goal.
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In a press conference following the meeting, Fed Chair Jerome Powell called it “a challenging situation.”
“Everyone around the table … agrees that inflation is too high and that we want it to come down, and (everyone) agrees that the labor market has softened and that there’s further risk,” he said.
President Trump said the Fed did not cut rates enough and that the cut should have been larger. He repeated his long‑standing view that lower interest rates are needed to support faster economic growth.
Market Reaction
As Powell took questions, the S&P 500 and Dow Jones Industrial Average pushed to their session highs, reflecting a wave of buying across equities. Around the same time, the Dow was up roughly 600 points (about 1.2–1.3%), the S&P 500 was gaining around 0.8% and flirting with record territory.
The Nasdaq Composite closed around 23,540–23,580 points. That represented an increase of roughly 30–35 points on the day, or about 0.1–0.2% in percentage terms.
Why The Rally Accelerated
The combination of a third straight 25‑basis‑point cut and Powell’s comments that hikes are off the table led investors to price in a more supportive policy path for 2026. Investors and analysts judged the overall tone as less hawkish than feared, so risk assets re‑rated higher as traders moved into stocks on expectations of easier financial conditions ahead.
Gold and silver both traded near record levels today, but silver outperformed gold on the day. Gold was roughly flat to slightly lower intraday, while silver continued to push higher and extend its recent rally.
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Gold price
Spot gold was quoted around 4,230 dollars per ounce, essentially unchanged to modestly negative on the day (about a 0.2–0.3% decline depending on the timestamp). This left gold holding close to its recent record zone above 4,100 dollars, with monthly and yearly performance still strongly positive despite the small daily dip.
Silver price performance
Silver traded around 60–62 dollars per ounce, marking or flirting with fresh all‑time highs. On the day, silver’s move was modestly positive (around 0.1–2% higher depending on contract and venue), but it capped a powerful advance over the prior month and year
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© Copyright 2025 – Eurasia Business News. Article no. 1928
Eurasia Business News 