Markets Eye Fed and Peace Talks in Year-End Rally

Global markets are ending 2025 with cautious optimism. Two major factors are driving sentiment. First, investors are hopeful about the future head of the U.S. Federal Reserve, or Fed. The Fed sets key interest rates. Expectations that the next Fed chair will pursue favorable policy are supporting stock prices. Second, geopolitical concerns have eased. Reports of peace talks between former U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy have reduced market anxiety. Together, these developments are keeping investor optimism high in the final trading days of the year. However, analysts warn that this positive mood remains fragile and dependent on actual outcomes.