11th December 2025 – Fed delivers 3rd rate cut, sets higher bar for further moves

In this morning's edition of the MPC Markets Morning Call, the discussion centers around the Federal Reserve's recent rate cut and its implications for the stock market. The conversation highlights the mixed reactions in the equity markets, the performance of major tech stocks, and the ongoing trends in commodities, particularly silver and gold. Additionally, insights into the Australian dollar's performance and a preview of the 2026 market outlook are provided, emphasizing actionable investment strategies for the upcoming year.

takeaways

• The Fed's third rate cut has set a higher bar for future moves.

• Equities rallied, particularly interest rate-sensitive stocks like the Russell and Dow.

• Market sentiment may shift quickly, with potential sell-offs expected.

• Technical indicators suggest a possible Christmas rally, but not as strong as previous years.

• The Aussie market appears cheaper compared to the US market.

• Earnings reports from major companies like Oracle and Adobe show mixed results.

• Silver continues to perform well, while other metals show varied trends.

• The Australian dollar's performance is tied to US dollar fluctuations.

• Caution is advised when interpreting economic data and forecasts.

• The 2026 market outlook presents five major investment themes.