Key Index Moves, Commodities Action, Macro Signals & Fed-Driven Market Sentiment

Index Update:  The Dow rose 1.05%, the S&P 500 gained 0.67%, and the Nasdaq added 0.33% on Wednesday after the Fed issued its third 25-bps rate cut of the year and signaled a less-hawkish stance. Powell reinforced that additional hikes are unlikely and expressed confidence in the strength of the U.S. economy.

Market Movers:  On Wednesday, the top gainers were Beasley Broadcast Group, Inc. (+312.10%), followed by Enveric Biosciences, Inc. (+74.49%). On the contrary, Aimei Health Technology Co., Ltd (-60.77%), and Treasure Global Inc. (-40.01%) declined the most the same day.

Commodities Update:  WTI fell toward $58 and Brent slipped below $62 on Thursday, giving back prior gains after reports that President Trump’s Ukraine peace plan may restore Russian energy flows to Europe, easing recent supply concerns. Earlier fears had been driven by the U.S. interception of a sanctioned tanker near Venezuela and Ukraine’s strike on a Russian-linked shadow-fleet vessel. A broadly bearish market backdrop also pressured prices, as rising OPEC+ output is expected to exceed weak demand and potentially create a supply surplus. Traders awaited new OPEC and IEA reports for clearer guidance. U.S. data showed crude inventories declined by 1.8 million barrels, while Cushing stocks rose after four weeks of drops but remained at their lowest seasonal level since 2007. Gold slipped to around $4,210 per ounce, pausing its recent rally as markets reassessed the Fed’s outlook after the latest rate cut. Powell signaled flexibility on future easing, with no plans for hikes, while growth forecasts improved and inflation expectations were trimmed. Geopolitical tensions offered limited support but were not enough to offset the pullback. Silver, meanwhile, extended its record run above $61 per ounce, supported by a dovish read of Powell’s comments, a softer dollar, and a sharply tightening physical market. Strong ETF inflows, robust demand in Asia and India, rising lease rates, and persistent structural demand from solar and EV sectors underscored a significant supply deficit that continues to buoy prices.

Macro Updates:  The U.S. posted a $173.3 billion budget deficit in November 2025, sharply lower than the $366.8 billion shortfall a year earlier. Revenues rose 11.4% to $336 billion, boosted by timing-related increases in income taxes, social insurance receipts, and customs duties. Government outlays fell 23.8% to $509.3 billion, with Social Security, defense, and Medicare the largest categories, though several payments were reduced due to timing shifts.

Bonds Commentary:  The US 10-year Treasury yield slipped to about 4.12% for a second day after the Fed delivered its expected third 25-bps rate cut of the year and struck a less hawkish tone. Powell indicated rate hikes are unlikely, leading markets to price in more easing for 2026 despite the Fed’s dot plot signaling only one cut. The Fed also announced $40 billion in short-term Treasury bill purchases starting December 12 to bolster liquidity. Updated projections showed stronger growth expectations for 2026–27 and slightly lower, though still above-target, inflation forecasts.

Futures Update

U.S. stock futures edged lower on Thursday as investors digested the Federal Reserve’s third rate cut since September and fresh earnings from Oracle. Dow futures were down 0.4%, S&P 500 futures fell 0.9%, and Nasdaq 100 futures slipped 1.2%. This follows a positive performance in the previous session, where markets rallied after the Fed cut rates by 25 bps and Chair Jerome Powell delivered a more balanced-than-expected outlook. The S&P 500 closed up 0.67%, nearing its record high, while the Dow gained 1.05% and the Nasdaq rose 0.33%.

After experiencing a lack of clear direction for much of the session, stocks largely rallied in the latter part of Wednesday's trading day following the Federal Reserve's interest rate decisions. The S&P 500 rose by 46.19 points, or 0.68%, closing at 6,886.69. From a technical standpoint, the index maintained support at significant levels and gradually moved higher. It remains above its key moving averages, signaling a bullish trend. The 14-day Relative Strength Index (RSI) stays above the midpoint, reinforcing a positive outlook. Important support levels are around 6,730, with resistance expected near 6,977.