Tonight, global markets remain on edge as the Federal Reserve prepares to announce its final interest rate decision of the year in just a few hours.

U.S. stocks opened lower but later recovered. At the time of writing, both the Dow Jones Industrial Average and the S&P 500 have turned positive.

Gold and silver prices retreated, with spot gold and silver declining by 0.47% and 0.93%, respectively.

Crude oil prices tumbled, with WTI futures dropping below $58 per barrel. Amid concerns over a supply glut, Wall Street's top five investment banks predict Brent crude prices could slide further in 2026. The International Energy Agency (IEA) forecasts a record surplus of 4 million barrels per day.

The Fed's rate decision, due at 3:00 AM on December 11, is highly anticipated by global investors. Market pricing suggests a nearly 90% probability of a 25-basis-point cut—the third consecutive reduction—as policymakers grapple with conflicting inflation and employment data. However, for 2026, the Fed is expected to adopt a cautious stance in its policy guidance and update its "dot plot."

Concerns persist about the U.S. economic outlook. While the AI investment boom has been a key driver for stocks and the economy, its disruptive impact on the labor market is growing.

Since initiating its rate-cut cycle in September last year, the Fed has slashed rates by 150 basis points through November. Yet, with the dual challenges of balancing employment and inflation targets—and fears of an AI investment bubble—the effectiveness of rate cuts as a policy tool appears to be waning.

Former President Trump has advocated for faster rate cuts to lower bond yields and borrowing costs, but the bond market remains unconvinced. The 10-year Treasury yield has risen over 20 basis points from its October low—an unusual move amid expectations of further Fed easing.