Stocks, Bonds Slide as Fed Rate Cut Pace Worries Grip Wall Street

• Stocks and bonds slid ahead of the Federal Reserve's final 2025 meeting, halting a four-day US stock rally.
• Traders are anxious about the pace of interest rate cuts in 2026, despite a quarter-point cut being widely expected this week.
• Divisions exist among Fed officials regarding inflation and future rate decisions, with money markets now expecting two more cuts by end of 2026.
• US bonds experienced their worst week in eight months, with the 10-year Treasury yield rising to 4.17%.
• Investors are largely positioning for a "risk-on" environment in 2026, driven by global growth, AI, accommodative policy, and fiscal stimulus.

Why It Matters: Fed's rate cut decisions will shape market stability and investment returns.