Wall Street Breakfast Fed seen ending the year with a cut
13 snips
Dec 7, 2025 Anticipation builds as the market expects a quarter-point rate cut from the Fed, but dissent among members raises questions. Big players in AI, Oracle and Broadcom, are set to report pivotal earnings, with eyes on their AI-related growth. Michael Burry stirs excitement by likening OpenAI to Netscape, hinting at big shifts in tech. Meanwhile, changes to the S&P 500 index are announced, alongside important ex-dividend dates that income investors should note.
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Market Expects A Year-End Cut
- Markets price an 85% chance of a 25bp Fed cut this week despite Powell's hawkish tone.
- Reuters notes five of 12 Fed voters may dissent, signaling unusual division that could widen the dot plot.
Dovish Cut Could Produce Mixed Signals
- Wells Fargo sees enough dovish support for a cut but expects multiple dissents and a higher-for-longer signal from Powell.
- B of A warns only a dovish cut that lifts long yields could derail a potential Santa Claus rally.
Watch AI Earnings For Cash Flow Proof
- Watch Oracle and Broadcom earnings for AI demand translating into clean cash flow, not just big deals.
- Expect Oracle on Wednesday and Broadcom on Thursday with AI-driven revenue growth under scrutiny.