U.S. Markets Flutter Amid Fed Speculations and Precious Metal Surge

The U.S. stock markets experience fluctuations amid Federal Reserve interest rate cut expectations. Precious metals, benefiting from safe-haven demand, reach new highs. The markets anticipate future rate cuts and await a new Fed chair nomination. Global geopolitical tensions and currency shifts influence trading dynamics as the year ends.

The major U.S. stock indexes saw slight fluctuations on Friday as muted post-Christmas trading prevailed. Investor sentiment remained tepid due to uncertainty regarding potential Federal Reserve interest rate cuts, which has concurrently propelled precious metals to unprecedented highs. Despite public holidays closing markets in Australia, Hong Kong, and much of Europe, those still active pursued a positive year-end trajectory, with Asian stocks reaching multi-week highs during earlier trading sessions.

The S&P 500 dipped slightly by 0.03% in New York, alongside a 0.18% decline in the Dow Jones Industrial Average, while the Nasdaq Composite barely edged up by 0.07%. All three indexes appeared set for substantial yearly gains. Massive tech companies have led the charge for the S&P 500 throughout 2025, yet investors are branching into cyclical sectors such as financials and materials, indicating a broadened market upswing and forecasting a third consecutive year of growth for U.S. stock indexes.

Market optimism is buoyed by data suggesting a resilient U.S. economy and the potential succession of the Federal Reserve chair, hinting at possible rate cuts in the next year. Meanwhile, geopolitical concerns have increased the appeal of precious metals, with silver soaring to an unprecedented $77.4 per ounce due to supply shortages and gold seeing increased demand from a weakening dollar. Oil prices dropped over growing concerns of a global surplus and potential diplomatic progress in Ukraine.

(With inputs from agencies.)