US Stock Market Today: S&P 500 Futures Edge Higher amid Pre-Fed Rate Cut Bets

The Morning Bull - US Market Morning Update Wednesday, Dec, 10 2025

US stock futures are edging higher this morning, with contracts tied to the S&P 500 up about 0.1 percent as investors juggle rising borrowing costs and a likely interest rate cut next week. The yield on the 10 year US government bond has pushed above 4.2 percent, which matters because it helps set mortgage and credit card rates and can make safer bonds more attractive than stocks. At the same time, the Federal Reserve is expected to cut rates for a third time in December, while job openings remain near 7.7 million and people are quitting at the lowest pace of this cycle, a sign the job market is cooling without collapsing. The big dilemma now is whether the Fed can keep easing policy without reigniting inflation. This question will be crucial for rate sensitive sectors like real estate and utilities, and for economically sensitive areas such as small cap and cyclical stocks.

As rates rise and stocks wobble, we have pinpointed undervalued stocks based on cash flows before the next Fed cut.

Top Movers

• Mobilicom (MOB) surged 13.85 percent.
• Polestar Automotive Holding UK (PSNY) jumped 9.44 percent after completing a 1-for-30 stock split.
• Ares Management (ARES) gained 7.27 percent on news it will join the S&P 500 index.

Is Polestar Automotive Holding UK still a smart investment or just hype? Read our most popular narrative and get all the answers you need.

Top Losers

• Ferguson Enterprises (FERG) fell 8.05 percent after softer full year sales guidance overshadowed solid quarterly results and a dividend hike.
• AutoZone (AZO) dropped 7.17 percent as earnings declined year over year despite revenue growth and new store openings.
• Astera Labs (ALAB) declined 4.93 percent.

Look past the noise - uncover the top narrative that explains what truly matters for Astera Labs' long-term success.

On The Radar

Tech and consumer earnings will dominate the next two sessions, shaping views on spending, margins, and software demand.

• Software Earnings: Adobe (ADBE) reports Q4 on Wednesday, highlighting AI driven demand and subscription growth durability.
• Enterprise Cloud Spend: Oracle (ORCL) posts Q2 on Wednesday, clarifying cloud momentum versus hyperscale competitors.
• Chip and Infrastructure Demand: Broadcom (AVGO) Q4 on Thursday will spotlight AI networking, custom chips, and M&A driven cash returns.
• Premium Consumer Health: Costco (COST) Q1 on Thursday offers a clear view of traffic, membership renewals, and value focused spending.
• Athleisure Demand: lululemon (LULU) Q3 Thursday will test pricing power and international growth as discretionary budgets tighten.

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How To Act On Today's Market

Do not just chase yesterday's winners. Act before the next leg higher. Our latest breakdown of 27 AI penny stocks highlights fast-growing innovators at the center of the current AI spending boom.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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