MRKT Matrix Stocks Cool Ahead Of Expected Rate Cut
Dec 8, 2025
Wall Street firms are optimistic about 2026, driven by AI adoption and potential earnings growth. As stocks slipped ahead of the Fed's meeting, a strong rate cut sentiment emerged with significant implications for consumers. Meanwhile, Trump revealed a $12 billion aid package for farmers affected by trade tariffs. Paramount's aggressive bid for Warner Bros. Discovery is stirring the pot, while Nvidia is on the verge of exporting AI chips to China, raising national security concerns. AI mentions in earnings calls hit a record, hinting at its growing influence on stock performance.
AI Snips
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Yields And Powell Could Temper Euphoria
- Rising 10-year Treasury yields trimmed sentiment even as a Fed cut is widely expected.
- Powell will likely stress a data-dependent path that could delay cuts and pressure equities if extended into 2026.
Rally Fueled By Rate-Cut Bets And AI
- Markets rally on strong odds of Fed rate cuts and easing policy expectations.
- AI-driven gains and corporate profit strength explain much of recent S&P 500 upside.
Wall Street Backs Big 2026 Upside
- Wall Street strategists project double-digit S&P gains into 2026 tied to easing and AI.
- UBS, Oppenheimer, and others expect AI adoption to lift productivity and earnings through 2027.