MPC Morning Call 2nd December 2025 – Stocks drift lower as Silvers Record run continues
Stocks drifted lower overnight, taking back some of last weeks Turkey Trap Rally, while silver continued on its record breaking run, reaching $58
U.S. stocks just logged a strong holidayshortened week, with all three major indices rising more than 3% as optimism about interestrate cuts boosted sentiment, even though the Nasdaq still finished November down 1.51% amid worries about stretched tech and AIrelated valuations. Market expectations for a quarterpoint Federal Reserve rate cut at the December 9–10 meeting have surged to nearly 90%, encouraged by dovish comments from Fed officials despite a recent government shutdown that has limited fresh data, while investors look ahead to new releases on manufacturing, services, consumer sentiment, payrolls, and Black Fridaydriven retail activity. At the same time, traders are watching President Donald Trump’s pending choice of the next Fed chair from a shortlist that reportedly includes Kevin Hassett, Kevin Warsh, and Christopher Waller, since a more dovish, Trumpaligned successor to Jerome Powell could entrench looser policy and further support ratesensitive sectors such as retail and growth stocks, even as Powell speaks under blackout constraints that limit any fresh guidance on rates. In crypto markets, bitcoin has dropped about 7%, pressuring related equities as Strategy Inc. (MSTR) slid more than 3% after cutting guidance and issuing stock to build a roughly $1.44 billion cash buffer against concerns it might need to liquidate part of its approximately $56 billion bitcoin holdings. Other bitcoinexposed names such as Riot Platforms, Marathon Digital, and Coinbase have also come under selling pressure alongside the coin’s decline. Onchain data show a cooling in network usage, with active addresses and transfer volumes easing, while a recent pickup in inflows to bitcoin ETFs after last month’s heavy outflows has so far failed to stem broader selling pressure in the cryptocurrency. ASX Overnight: SPI 8589 (+0.02%) The Day Ahead: Todays session is likely to be a quiet one for the ASX. Keep an eye on Japanese Bond Yields and the Nikkei, also any developments in the military build-up in Venezuela
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