Markets higher after the Fed Cut, but Concerns Remain – North American session Market Wrap for December 10

Log in to today's North American session Market wrap for December 10

The Fed delivered a "neutral" 25 bps cut to 3.50%-3.75%, sending markets higher.

Bonds, stocks, and metals all rallied, while the US Dollar took a significant hit.

Small-cap stocks and industrials outperformed, with the Russell 2000 (+1.50%) and the Dow Jones (+1.10%) leading the way—a natural flow, as rate cuts tend to support these sectors the most.

Bitcoin, on the other hand, failed to hold its highs unlike other asset classes.

Still, Ethereum and some altcoins maintained some strength, the broader crypto market still seems confused.

Tomorrow's close will be essential for all asset classes;

Despite the current rally, major indices remain a few percentage points away from their relative highs.

Optimism will need to persist. Watch the Dollar closely, as its inverse correlation is currently guiding the rally.

It remains to be seen if this momentum can continue given the less optimistic tone regarding future cuts: The dot plot signaled only 1 to 2 additional cuts (excluding Fed’s Miran, whose dot remains a dovish outlier).

Chair Powell strongly emphasized tariff-led inflation as the Fed's primary concern—and with good reason.

Tariffs have been in place for six months, and their full impact may not yet be visible, especially with the Fed going in blind following the month-and-a-half-long BLS closure.

Keep a close eye on all inflation data (CPI, PCE, and PPI) going forward.

Read More:

• The Fed cuts rates by 25 bps to 3.75% – Market Reactions
• Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) levels for the FOMC
• Technical Analysis of Google and Microsoft Stocks – AI Leaders Outlook part 2

Except for Bitcoin which really sends concerns after its fakeout, all assets push higher after the Fed Cut.

Both the Bank of Canada and Federal Reserve rate decisions pushed their currencies lower, profiting to the CHF and the GBP.

The Greenback took a particularly huge hit, not only against the Majors but even more towards exotic currencies.

The Swedish Krona, the South African Rand and Brazilian Real were some of the best performances there.

Look at if this trend continues towards the rest of 2026 – This could have potential as Major currencies already performed quite strong in 2025.

The evening session will turn the eyes towards Australia, which faces its most critical domestic report of the month.

• AUD Employment Change (19:30 ET): This is the high-tier data of the night, with consensus expecting a drop in jobs added to 20K (from 42.2K) and a rise in the Unemployment Rate to 4.4% (from 4.3%). A soft reading would heavily influence the RBA's future rate path,

Tomorrow's session (Thursday) is less data-heavy, focusing on central bank commentary and a final look at the US labor market.

The early morning features a high-impact speech from BoE Governor Bailey (04:50 A.M. ET), which will provide context on the UK's inflation fight.

The North American Session will likely drive the final volatility of the US trading week:

• Initial Jobless Claims (08:30 A.M. ET): This weekly data provides the freshest read on the US labor market, with expectations set at 220K.

Keep a close eye on the close tomorrow as traders digest the Fed Cut and Powell's speech.

Safe Trades!

Follow Elior on Twitter/X for Additional Market News, interactions and Insights @EliorManier