Fed lowers rates by 25 basis points, as expected
The Fed lowered its overnight rate by a quarter percentage point to a range of 3.5%-3.75%, as was widely expected.
However, the move carried caution flags about where policy is headed from here and featured “no” votes from three members, which hasn’t happened since September 2019.
Read more here.
— Fred Imbert, Jeff Cox
10 stocks in the S&P 500 trade at new all-time highs
A sign hangs at the entrance of a T. J. Maxx store on February 28, 2024 in Chicago, Illinois.
Scott Olson | Getty Images
On Wednesday, 10 stocks in the S&P 500 traded at new all-time highs.
Names that hit this milestone included:
- Fox Corporation Class B trading at all-time highs back to its creation as the portion not acquired by Disney in 2019
- Fox Corporation Class A trading at all-time highs back to its creation as the portion not acquired by Disney in 2019
- General Motors trading at all-time highs back to the “new” GM IPO in November 2010
- Ross Stores trading at all-time high levels since its IPO in August 1985
- The TJX Companies trading at all-time highs back to IPO in 1987
- Bank of NY Mellon trading at all-time highs back to the merger between BNY (the first company listed on the NYSE) and Mellon Financial in 2007
- Citizens Financial Group trading at all-time high levels back to its IPO in September 2014
- State Street trading at all-time high levels back through our history to 1972
- Synchrony Financial trading at all-time highs back to its IPO in July 2014
- GE Vernova trading at all-time highs back to its spin-off from GE in April 2024
On the other hand, five stocks in the benchmark traded at new 52-week lows, including:
— Christopher Hayes, Lisa Kailai Han
Piper Sandler says 10-year yield increase following Fed can hurt stocks
The 10-year U.S. Treasury yield could could rise if the Federal Reserve comes off too hawkish at Wednesday’s policy announcement, according to Piper Sandler. That could result in a hit for stocks, the firm warned.
“With the recent backup in 10-year yields … we’re again getting questions about where equity markets might start to react negatively,” Michael Kantrowitz, chief investment strategist, wrote to clients in a Monday note.
CNBC Pro subscribers can click here to see the yield levels that Kantrowitz is monitoring.
— Alex Harring
The S&P 500 could see a 0.7% move on Wednesday, according to Goldman Sachs
The S&P 500 is expected to see a meaningful move on Wednesday, John Marshall of Goldman Sachs Research said in a note.
“SPX options are pricing a +/-0.7% move for FOMC day, largely in-line with expectations ahead of the past 8 FOMC events (+/-0.8%),” the head of derivatives research wrote.
Additionally, Marshall noted that Goldman Sachs economists see a “solid case” for a quarter percentage point cut, pointing to job growth that’s significantly below labor supply growth, three straight months of a rising unemployment rate and some weakening in other measures of labor market tightness.
He also said the economists project two quarter point cuts for next year.
— Sean Conlon
The S&P 500 is at a 5-day low heading into Fed day
Traders work on the floor at the New York Stock Exchange, Dec. 10, 2025.
Brendan McDermid | Reuters
The S&P 500 is at a 5-day low heading into the Federal Reserve meeting, a market setup that historically preceded a bounce, according to the trading desk at Oppenheimer.
“A selloff into a rate decision often indicated market is preparing for the worst, and a relief rally was found more often than not,” read a note from the firm.
Here is how the market reacted in the past:
- SPX at 5-day high into rate decision = Down 51% of time
- SPX at 5-day low into rate decision = Up 67% of time
— Sarah Min
Expect the Fed to deliver a ‘hawkish cut’ on Wednesday, SWBC’s Chris Brigati says
While the Federal Reserve might issue a much-expected interest rate cut on Wednesday, it could be some time before its key overnight borrowing rate is lowered again, according to Chris Brigati, chief investment officer at SWBC.
“The Federal Reserve is widely expected to cut rates on Wednesday, but we expect this to be a hawkish cut, with the Fed likely to signal that additional rate cuts are not likely in the near-term,” he said. “There is also uncertainty about the new Fed chair, and that may also add to the central bank’s reluctance to make any major rate moves in the months leading up to Chair Powell’s term ending.”
Looking ahead to next year, Brigati believes the Fed will telegraph only one cut, and that move, if it were to come to fruition, might not happen for several months.
“We expect the Fed to remain on hold when it comes to rates for the first half of 2026, even with the pressure from the many doves, most notably Powell’s expected successor Kevin Hassett,” the investment head said. “The Fed is likely to cut rates only once in 2026, and most likely towards the end of 2026.”
— Sean Conlon
Here’s what to expect from Wednesday’s Fed decision
U.S. Federal Reserve Chair Jerome Powell holds a press conference after the Fed cut interest rates by quarter of a percentage point, in Washington, D.C., U.S., Oct. 29, 2025.
Kevin Lamarque | Reuters
The Federal Reserve is poised to deliver its third straight interest rate cut Wednesday, while simultaneously firing a warning shot about what’s ahead.
Following a period of remarkable indecision about which way central bank policymakers would lean, markets have settled on a quarter percentage point reduction. If that’s the case, it will take the Fed’s key interest rate down to a range of 3.5%-3.75%.
However, there are complications.
The rate-setting Federal Open Market Committee is split between members who favor cuts as a way to head off further weakness in the labor market against those who think easing has gone far enough and threatens to aggravate inflation. Read more.
— Jeff Cox
Stocks kick off Wednesday’s session in negative territory
Stocks were little changed on Wednesday morning.
The S&P 500 fell 0.1% just after 9:30 a.m., while the Dow Jones Industrial Average traded just below the flatline. The Nasdaq Composite declined 0.2%.
— Sean Conlon
Employment costs up less than expected
Compensation costs posted a smaller than expected increase in the third quarter, the Bureau of Labor Statistics reported Wednesday.
The employment cost index rose 0.8% for the period, down 0.1 percentage point from the prior period and below the Dow Jones consensus estimate for 0.9%. The increase matched the smallest gain since the third quarter of 2020.
On an annual basis, the index increased 3.5%, down slightly from the second quarter.
The Federal Reserve, which will release its latest interest rate decision Wednesday, watches the ECI as an indicator of whether the labor market is contributing to inflation. Fed officials have said they do not see wage pressure currently as a significant inflation factor.
— Jeff Cox
Trump will start final Fed chair interviews with Kevin Warsh
Kevin Warsh, former governor of the US Federal Reserve, during the International Monetary Fund (IMF) and World Bank Spring meetings at the IMF headquarters in Washington, DC, US, on Friday, April 25, 2025.
Tierney L. Cross | Bloomberg | Getty Images
President Donald Trump will begin the final interviews of candidates for the Federal Reserve chair this week, putting back on track the formal selection process that began this summer.
“We’re going to be looking at a couple different people, but I have a pretty good idea of who I want,” Trump said Tuesday night aboard Air Force One to reporters.
The interviews by Trump and Treasury Secretary Scott Bessent will begin with former Fed governor Kevin Warsh on Wednesday and also include Kevin Hassett, the director of the National Economic Council, at some point, according to two sources. It restarts the process that was derailed a bit last week when interviews with candidates were abruptly canceled. Read more.
— Steve Liesman, John Melloy
Braze pops following revenue beat
Braze shares jumped more than 15% in the premarket on Wednesday on the heels of the consumer engagement platform posting better-than-expected third-quarter revenue.
Revenue for the period came in at $191 million, topping the $184 million that analysts surveyed by LSEG had estimated. The company also reported adjusted earnings of 6 cents per share, in line with the consensus estimate.
BRZE, 1-day
Most think Trump should nominate someone other than Hassett for next Fed chair, according to CNBC Fed survey
Kevin Hassett, Director of the National Economic Council of the United States, speaks with the media outside of the West Wing of the White House in Washington, DC, October 24, 2025.
Saul Loeb | Afp | Getty Images
While markets expect Kevin Hassett to be named the next Federal Reserve chair, he is pointedly not the choice of respondents to the CNBC Fed Survey.
The December survey shows 84% believe President Donald Trump will tap Hassett, director of the National Economic Council, to head the central bank. But only 11% think that’s what the president should do. Fed Governor Christopher Waller is the favored pick of 47% of respondents, followed by Kevin Warsh at 23%. But only 5% of respondents think Trump will pick either of the two. Read more.
— Steve Liesman
Stocks making the biggest moves before the bell
Check out the companies making the biggest moves before the bell:
- AeroVironment — The drone maker slid more than 4% on the back of a fiscal second-quarter earnings miss. AeroVironment earned 44 cents per share, well below an LSEG estimate of 78 cents per share.
- GameStop — The video game retailer and meme stock fell 6% after the company posted its third-quarter results. GameStop earned an adjusted 24 cents per share on revenue of $821 million. Revenue was lighter than one analyst’s estimate expecting north of $900 million.
- Blue Owl Capital — The alternative asset manager gained 3% following a Raymond James upgrade to strong buy from market perform. “We think redemption risk is manageable as OWL appears likely to honor all requests, which would remove an overhang on the stock,” analyst Wilma Burdis wrote.
Read more here.
— Fred Imbert
AeroVironment falls after earnings miss
Wahid Nawabi, CEO of AeroVironment.
Adam Jeffery | CNBC
The drone maker slid more than 4% on the back of a fiscal second-quarter earnings miss. AeroVironment earned 44 cents per share, well below an LSEG estimate of 78 cents per share.
AVAV 5-day chart
Oracle’s AI-fueled debt load has investors on edge ahead of quarterly earnings
It’s been a rollercoaster year for Oracle investors, as they try to assess the strength of the software giant’s position in the artificial intelligence boom.
Heading into the company’s fiscal second-quarter earnings report on Wednesday, pressure is building on management — and newly installed CEOs Clay Magouyrk and Mike Sicilia — to show that Oracle can continue to finance the company’s aggressive infrastructure plans while simultaneously convincing Wall Street that the AI-fueled hypergrowth story remains intact.
“There is something inherently uncomfortable as a credit investor about the transformation of the sort we’re facing that is going to require an enormous amount of capital,” Daniel Sorid, head of U.S. investment grade credit strategy at Citi, said on a video call to investors on Friday, a replay of which was provided to reporters.
Shares of Oracle are up nearly 33% year to date even its double-digit losses in October, which was its worst month since 2001. More here.
— Seema Mody
AeroVironment, GE Vernova and Cracker Barrel are among the stocks moving Tuesday night
The Cracker Barrel logo is seen on a billboard outside of one of its restaurants.
Paul Weaver | Lightrocket | Getty Images
Check out the companies making headlines in after-hours trading:
- AeroVironment — Shares of the defense technology provider slid more than 4% after its second-quarter earnings missed analyst expectations, coming in at 44 cents per share on an adjusted basis. That’s well below the 78 cents per share that analysts surveyed by LSEG estimated. The company’s revenue of $473 million, however, beat the consensus estimate of $468 million.
- Cracker Barrel Old Country Store — Shares of the restaurant company dropped about 9% in extended trading after Cracker Barrel’s first-quarter revenue came out worse than Wall Street had expected. Cracker Barrel reported $797.2 million in revenue for the period, while analysts’ polled by FactSet expected $800.3 million. The company reported a narrower-than-expected adjusted loss, meanwhile.
- GE Vernova — The energy giant saw jumped 8% after it said 2025 revenue was trending toward the higher end of its guidance. The company also doubled its quarterly dividend to 50 cents per share from 25 cents per share.
For the full list, read here.
— Pia Singh
