Global markets rally as Fed cut probabilities rise

Wednesday, December 03, 2025 at 17:30 UTC+01:00 (+0100), Global, N/A

News category : Macroeconomic Events

On December 3 global equity markets rallied and US Treasury yields fell as investors reacted to weaker-than-expected US economic signals, including ADP and services survey nuance, which collectively increased the probability of a Fed rate cut. Equity gains were broad but concentrated in cyclical and tech names that benefit from lower discount rates. Fixed-income markets priced in higher likelihood of easing, compressing short-term yields and reducing volatility in investment-grade credit spreads. Traders warned that positioning ahead of the Fed meeting remained vulnerable to data surprises and that shorter trading windows around holidays could accentuate moves.

Overall market impact

Mild bullish market impact - strength score : 78/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

US equities (large caps)

Emerging market equities

Interest-rate futures

Investment-grade credit

USD FX pairs

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