Wall Street Rallies on Rate-Cut Hopes

Stocks climbed as traders leaned into potential Fed cuts. UK’s tax-raising budget and U.S. drug price moves reshaped sector risk while Deere’s cautious outlook hit shares.

TL;DR:

📈 Wall Street rallies; JPMorgan eyes 8,000
🇬🇧 UK unveils tax-raising budget
💊 Medicare targets 15 drug price cuts
🚜 Deere beats; guidance hits shares

Wall Street Rallies; JPMorgan Eyes 8,000

U.S. stocks extended gains, with the Dow locking a third straight win as traders priced higher odds of Federal Reserve rate cuts. JPMorgan analysts said the S&P 500 could test 8,000 in 2026 if earnings improve and policy eases, reinforcing a risk-on tone into year-end. Source Source

UK Unveils Tax-Raising Budget

The UK’s Labour government rolled out a budget with targeted tax increases to address fiscal pressures and fund priorities. Investors weighed growth implications and sector impacts as policy details surfaced, with focus on corporate profitability and consumer demand. Source

Medicare Targets 15 Drug Price Cuts

The administration moved to lower Medicare prices on 15 drugs, including Ozempic and Wegovy, aiming to save taxpayers billions. The decision pressures pharma pricing power and could shift margins across drugmakers, PBMs, and healthcare distributors. Source

Deere Beats; Guidance Hits Shares

Deere & Co. posted Q4 EPS of $3.93, topping expectations, but issued a cautious 2026 outlook. Shares fell about 3.5% as investors repriced demand and margin risks heading into the new year. Source

U.S. Stocks Rally on Rate-Cut Speculation