Stocks, bonds and currencies traded in tight ranges as traders await the Fed’s final 2025 decision on Wednesday. US stocks hovered near flat levels in early New York trade on Tuesday, with the S&P 500 rising by 0.2%, and the NASDAQ 100 also gained 0.17%.
The Dow Jones Industrial Average gained about 0.2%. Currency markets highlighted cautious signals and saw quiet flows. The Bloomberg Dollar Spot Index held steady while the euro traded around $1.1628. The British pound slipped 0.2% to $1.3301, and the Japanese yen weakened toward 156.79 per dollar. In crypto markets, Bitcoin rose 0.3% to $91,622.45, and Ether added 0.8% to $3,173.34.
Moreover, the rose to approximately 4.18% after a recent bond selloff. Meanwhile, global bond markets stayed under pressure, which limited new risk-taking in equities. Germany’s 10-year yield held near 2.86% amid moves across other major markets.
While markets are almost fully pricing a quarter-point cut on Wednesday, the focus is now on the policy path that follows. At the Wall Street Journal CEO Council, Kevin Hassett said the Fed has “plenty of room” to lower rates. His remarks came as markets see him as the frontrunner to replace Jerome Powell.