Traders work on the floor of the New York Stock Exchange after the opening bell on Dec. 5, 2025. Angela Weiss/AFP via Getty Images
Equities extended last week’s rebound as cooling labor market indicators, moderating inflation, and steadier consumer sentiment bolstered expectations that the Federal Reserve could continue to cut interest rates at next week’s policy meeting. Lower interest rates would mark a significant shift in market direction and investor strategy.
Technology shares and small cap stocks—typically the most sensitive to rate changes—led the advance.
