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Stocks Flat as Inflation Fears Linger
2 Dec, 2025
Summary
- Major US indexes ended winning streaks on Monday.
- Persistent inflation and AI spending weigh on investors.
- Markets anticipate an 87.6% chance of a Fed rate cut.
Major U.S. stock indexes halted recent winning streaks on Monday, with futures showing little movement. Concerns over persistent inflation, high valuations, and the sustainability of artificial intelligence spending are pressuring investors and contributing to a risk-off sentiment.
The cryptocurrency market saw a sharp downturn, with Bitcoin experiencing its worst day since March, falling 6%. Major tech stocks, including Alphabet, also pulled back after strong November performances, while gold prices and bond yields climbed.
Despite these headwinds, optimism persists for a year-end rally, largely fueled by expectations that the Federal Reserve will announce an interest rate cut at its upcoming policy meeting on December 10th, with markets pricing in an 87.6% chance of such a move.
