Fed Showdown Looms With Stocks Near Records: Key Risks to Watch This Week

Stocks kicked off December on a solid footing, with the S&P 500 edging higher and now up roughly 17% year- to-date. With only a few weeks left in 2025. Two key drivers to help steer into year-end and 2026: According to the CME FedWatch Tool, markets now assign an 89.4% probability to a quarter-point rate cut at this week's Fed meeting. The central bank last trimmed its policy rate on October 29, to 3.75%-4.00% from 4.00%-4.25%, marking a second straight 25-basis-point reduction this year. But Powell rattled ...