The US Federal Reserve decision on December 10 is the key event for global markets this week. Drew Pettit, Director of US Equity Strategy at Citi, said a rate cut is largely priced in but the real focus is the Fed's outlook for 2026.

According to Pettit, the bigger question is whether the US economy slows or stays resilient. If growth holds, it could support a soft-landing setup and help earnings in cyclical sectors. This could broaden market performance beyond mega-cap names in the US.

The S&P 500 is up 12% year-to-date. Pettit noted that the last two weeks of the year usually see low activity, but sentiment remains firm.

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He said the index may close somewhere between 6,600 and 7,000, with little new dat

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