Stock Market Summary for December 8, 2025

US Stocks Fall Ahead of Fed Meeting

The U.S. stock market experienced a pullback on Monday, December 8, 2025, as investors braced for the Federal Reserve's final policy meeting of the year. The major indices reflected this cautious sentiment, with the Dow Jones Industrial Average (^DJI) declining by 0.5% and the S&P 500 (^GSPC) slipping 0.4%. The tech-heavy Nasdaq Composite (^IXIC) showed a minor setback, falling by just 0.1%.

This downward trend followed a solid week for stocks, where major indices enjoyed gains. Investor sentiment is largely focused on the Fed's upcoming decision on interest rates, with traders anticipating a 25 basis points cut. Odds of a rate cut have risen to 88%, compared to just 67% a month ago, according to CME FedWatch.

Corporate Highlights and Notable Moves

Among the notable corporate movements today, Nvidia (NVDA) saw a modest rise, gaining about 1%. This increase followed reports that the Trump administration was poised to approve the sale of more powerful H200 chips to China. In contrast, shares of Warner Bros. Discovery (WBD) surged over 7% after Paramount Skydance (PSKY) announced a substantial $108.4 billion hostile bid to acquire the media giant. Netflix (NFLX) also felt the impact, retreating by more than 3% amidst this acquisition drama.

Healthcare stock Structure Therapeutics (GPCR) experienced a remarkable 72% leap following promising results from a mid-stage study regarding its obesity medication. This positive data sets the stage for advancing to late-stage trials by mid-2026, which has boosted investor confidence in the biotech sector.

Market Dynamics and Fed Expectations

The market's decline can also be attributed to growing conversations surrounding inflation and labor market conditions. Although the PCE consumer inflation metrics remain tame, there is apprehension among Fed officials regarding inflationary pressures. The Fed's two-day meeting begins tomorrow, and investors are keenly awaiting Chairman Jerome Powell's insights on economic conditions.

According to UBS strategists, Treasury yields are expected to decline further, forecasting a fall to 3.75% on 10-year Treasuries over the coming months. The market is watching closely to see how the Fed balances interest rate decisions with inflation management and overall economic health.

Closing Thoughts

As we close the day, the mixed performance of stocks highlights the fragility of the current market environment, especially with significant developments on the horizon. Investors should remain attentive to forthcoming announcements from the Fed, which will likely dictate market directions in the near term.