US close: Stocks rally as Fed cuts rates, S&P 500 nears record high

10th Dec 2025 21:22

(Sharecast News) - After a tentative start, US stocks rallied following the Federal Reserve's decision to lower interest rates, with the S&P 500 rising to within a whisker of its record high in October.

The S&P 500 rose 0.7% to 6,886.68, its highest close since 29 October and just a handful of points away from the current all-time closing high of 6,890.89, registered on 28 October.

Meanwhile, the Dow surged 1.1% to its highest since 12 November, with only four of its 30 constituents trading with losses. The Nasdaq rose 0.3% to its highest since 3 November.

In its final meeting of 2025, the Federal Open Market Committee voted 9-3 in favour of a rate cut, with the Federal Funds Rate being trimmed by 25 basis points to a range of 3.5% to 3.75%.

The decision was in line with analysts' expectations and similar to moves made in September and October, marking the sixth rate cut since September 2024 to bring borrowing costs to their lowest since 2022.

However, the scope of the dissent among policymakers was stark, with Austan Goolsbee and Jeff Schmid voting for no change to rates, while Trump-appointed Stephen Miran called for a 50bp reduction. This was the first time since 2019 that three FOMC members dissented.

"Markets seem guardedly positive on the decision, with indices up, the dollar down and gold higher. Given the circumstances of a higher growth forecast for 2026, this was probably the best outcome stock investors could hope for," said Chris Beauchamp, chief market analyst at IG.

In economic news on Wednesday, US mortgage applications rose by 4.8% over the week to 5 December, according to the Mortgage Bankers Association of America, rebounding from a three-month low. Applications to refinance a home loan surged 14.3% on the prior week, while applications to purchase a home declined 2.4%. Last week's reading came as the Federal Housing Administration's 30-year fixed-rate fell to 6.08%, the lowest level since September 2024, and the average rate for 30-year fixed-rate mortgages with conforming loan balances edged up from 6.32% to 6.33%.

Market movers

Amazon was up 2% after announcing plans to spend $35bn across its Indian businesses over the next five years as it ramps up investment in artificial intelligence and export growth. The company, which has already invested nearly $40bn in the country so far, is now the largest foreign investor in India and the biggest "enabler" of ecommerce exports, according to data from Keystone Strategy.

Microsoft, which only on Tuesday unveiled plans to spend $17.5bn in India before the end of the decade, finished firmly lower.

GE Vernova shares surged 16% to fresh record highs on Wednesday, after the power-equipment maker raised its multi-year financial targets, doubled its dividend and expanded share buybacks.

Meme stock GamesStop slumped 4% after the video game retailer underwhelmed with its third-quarter results, with revenues coming in well below consensus forecasts even as profits topped estimates.

Cyclical stocks such as banks performed well as the Fed decision cheered market sentiment, with heavyweights Goldman Sachs, JPMorgan Chase, Bank of America and Wells Fargo all finishing firmly higher.

Dow Jones - Risers

Dow Chemical Co. (DOW) $24.57 6.30%

Nike Inc. (NKE) $65.90 4.07%

Caterpillar Inc. (CAT) $616.07 3.65%

American Express Co. (AXP) $376.13 3.36%

JP Morgan Chase & Co. (JPM) $310.23 3.24%

Johnson & Johnson (JNJ) $206.17 3.11%

Walt Disney Co. (DIS) $109.11 1.96%

Chevron Corp. (CVX) $151.29 1.89%

Goldman Sachs Group Inc. (GS) $892.21 1.78%

Home Depot Inc. (HD) $350.90 1.63%

Dow Jones - Fallers

Microsoft Corp. (MSFT) $478.43 -2.76%

Verizon Communications Inc. (VZ) $39.91 -0.57%

Boeing Co. (BA) $199.43 -0.47%

Visa Inc. (V) $326.25 -0.08%

S&P 500 - Risers

Celanese Corp. (CE) $43.23 7.54%

Western Digital Corp. (WDC) $181.96 7.33%

LKQ Corporation (LKQ) $30.21 7.24%

Advance Auto Parts (AAP) $49.35 6.55%

American International Group Inc. (AIG) $81.09 6.11%

Carmax Inc. (KMX) $41.40 6.06%

Eastman Chemical Co. (EMN) $64.86 5.95%

Seagate Technology Plc (STX) $298.92 5.68%

Omnicom Group Inc. (OMC) $77.39 5.66%

LyondellBasell Industries (LYB) $45.19 5.63%

S&P 500 - Fallers

Nektar Therapeutics (NKTR) $57.15 -2.76%

Microsoft Corp. (MSFT) $478.46 -2.76%

Kroger Co. (KR) $61.31 -2.54%

Ventas Inc. (VTR) $78.08 -2.41%

AutoZone Inc. (AZO) $3,423.20 -2.10%

Digital Realty Trust (DLR) $159.37 -2.09%

Welltower Inc (WELL) $191.76 -2.06%

Chubb Corp. (CB) $295.80 -1.80%

Aon plc (AON) $340.06 -1.77%

Southern Co. (SO) $83.98 -1.77%

Nasdaq 100 - Risers

Western Digital Corp. (WDC) $181.96 7.33%

Seagate Technology Plc (STX) $298.92 5.68%

Regeneron Pharmaceuticals Inc. (REGN) $726.52 4.90%

DENTSPLY Sirona Inc. (XRAY) $11.65 4.86%

PACCAR Inc. (PCAR) $113.72 4.42%

J.B. Hunt Transport Services Inc. (JBHT) $198.11 4.39%

Charter Communications Inc. (CHTR) $213.29 3.98%

Dollar Tree Inc (DLTR) $124.29 3.85%

Align Technology Inc. (ALGN) $164.54 3.48%

Cognizant Technology Solutions Corp. (CTSH) $83.41 3.04%

Nasdaq 100 - Fallers

Mercadolibre Inc. (MELI) $1,968.26 -5.12%

Microsoft Corp. (MSFT) $478.46 -2.76%

Costco Wholesale Corp. (COST) $874.23 -1.60%

Take-Two Interactive Software Inc. (TTWO) $245.90 -1.14%

Meta Platforms Inc. (META) $650.13 -1.04%

Nvidia Corp. (NVDA) $183.68 -0.70%

NetEase Inc. Ads (NTES) $136.01 -0.55%

Mondelez International Inc. (MDLZ) $53.81 -0.55%

Wynn Resorts Ltd. (WYNN) $123.59 -0.51%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $600.58 -0.40%