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Stocks higher, dollar set for second straight weekly loss as investors eye Fed cut

06 December 2025 10:20 (UTC +04:00)

Global shares gained on Friday, after key U.S. economic data solidified investor expectations of a Federal Reserve rate cut next week, a likelihood that weighed on the dollar and boosted gold, APA reports, citing Reuters.

Wall Street stocks finished higher and notched a second straight week of gains, with communication services, consumer discretionary, and technology leading the pack. Utilities, energy and healthcare stocks drove losses.

The Dow Jones Industrial Average (.DJI), rose 0.22%, the S&P 500 (.SPX), rose 0.19%, and the Nasdaq Composite (.IXIC), rose 0.31%.

European stock markets (.STOXX), finished little changed and secured a modest 0.41% gain for the week. MSCI's index of stocks across the globe (.MIWD00000PUS), edged up 0.06%, on track for the second straight session of gains.

In September, the Personal Consumption Expenditures (PCE) Price Index - which is the Fed's preferred inflation gauge - increased 0.3%, in line with analyst expectations. U.S. consumer spending increased marginally in September but eased from the prior month, suggesting a loss of momentum in the economy, according to U.S. Commerce Department data.

The report was delayed by a record 43-day government shutdown.

In more recent data, U.S. consumer sentiment improved in early December, but worries about high prices and the labor market persisted, a University of Michigan survey showed.

The Fed is widely expected to cut interest rates by 25 basis points at the end of its policy meeting next week. Investors are pricing in a near 90% chance of a rate cut, according to the CME's FedWatch tool.

"The Fed has been so accommodative to markets - especially as it's telegraphing really well its rate cuts in advance - that these equities markets look in pretty good shape going into the end of the year," said Andrew Wells, chief investment officer at SanJac Alpha in Houston.

"The Fed will cut. I think there's very little question about that and it's priced in," Wells said.

In currency markets, the euro was flat at $1.645 against the dollar. The dollar was up 0.14% at 155.30 against the Japanese yen .

The dollar was down against major currencies after snapping a 9-day losing streak in the previous session. The greenback has been weighed down by Fed rate cut expectations.

The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, eased 0.10% to 98.98. It is set for a second straight week of losses.