2025.12.0921:01:52UTC+00US Stocks Steady Ahead of Fed's Decision

On Tuesday, U.S. stock markets remained relatively stable as investors assessed new labor data and corporate announcements in anticipation of the Federal Reserve's imminent policy decision. The S&P 500 closed with minimal changes, while the Nasdaq recorded a slight uptick; meanwhile, the Dow Jones Industrial Average declined by 0.3%. This drop came in part due to JPMorgan's 4.7% loss after its management estimated 2026 expenses to reach approximately $105 billion, surpassing analyst projections and thus negatively impacting banking sector stocks.

Labor data painted a mixed picture, with job openings increasing to approximately 7.67 million in October. This increase aligns with the Federal Reserve's data-sensitive approach, despite widespread market expectations for a 25 basis points interest rate cut later this week. In other news, Nvidia saw a 0.3% decline following reports that China might restrict domestic purchases of H200 chips, even as the U.S. sanctioned their export with a 25% surcharge. Additionally, Home Depot shares fell by 1.3% due to its provision of modest growth guidance for 2026 earnings.

Investors also kept a close eye on developments in the entertainment sector, particularly the actions of Paramount, which gained 0.5%, and Netflix, which dipped 0.1%, both in relation to their ongoing interest in acquiring Warner Bros., which saw a 3.8% increase.