CNBC's "Fast Money" S&P Closes in on a New Record After the Fed Cut and Oracle Drops after Earnings 12/10/25
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Dec 10, 2025 Steve Leisman, a senior economics reporter, breaks down the Federal Reserve's recent quarter-point rate cut and its implications for markets. Tim Seymour, a seasoned trader, engages in a lively debate on whether this move is dovish or hawkish, impacting small caps and overall market sentiment. They also analyze Oracle's disappointing earnings, raising concerns about its capital spending and what's driving its revenue backlog. Together, they navigate the intersection of monetary policy decisions and stock performance in today's volatile market.
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Fed Cut Mixed With Balance Sheet Easing
- The Fed cut rates 25 basis points but signaled it may be done, creating a mixed hawkish-dovish message.
- Markets reacted positively as the Fed also announced $40B T-bill purchases to ease repo-market tightness.
T-Bill Purchases Seen As Reserve Management
- The Fed will start buying $40 billion of T-bills to address reserve tightness and provide liquidity starting Dec. 12.
- Powell insisted this is not QE, but it functions to maintain ample reserves amid repo market strains.
Repo Market Tightness Drove Fed Action
- Fed action responded to repo-market tightness suggesting reserves had fallen too far for smooth functioning.
- Officials expect the $40B injection to ease pressures, possibly peaking for a few months then tapering by April.