Stocks Take a Pause: What's Next for the Fed?

Tuesday's Market Overview

• S&P 500: Slight dip
• Nasdaq: Small gain
• Dow Jones: Dropped by 0.4%

Investors are eagerly awaiting the Federal Reserve's decision on interest rates, expected on Wednesday.

Key Market Movers

JPMorgan Chase

• Stock fell nearly 5%
• Executive hinted at higher expenses for next year
• Bank remains confident about borrowers' financial health

Toll Brothers

• Homebuilder saw a decline
• Weaker-than-expected quarterly results
• CEO cited affordability issues for potential homebuyers

Mortgage Rates and Fed Expectations

• Decreased since the start of the year but ticked up in October
• Uncertainty about the Federal Reserve's next move
• Expected rate cut on Wednesday (third cut of the year)
• Lower rates can boost the economy but may worsen inflation

Fed's Dilemma

• Inflation remains above the Fed's 2% target
• Fed officials divided on focusing on inflation or the slowing job market
• Job openings in the U. S. reached 7.7 million at the end of October

Treasury Yields

• Rose after the job openings report
• 10-year Treasury yield: 4.18%
• 2-year yield: 3.60%

Notable Gainers

• Exxon Mobil: 2% gain after raising profit forecast
• Ares Management: 7.3% surge after being added to the S&P 500 index
• CVS Health: 2.2% rise after unveiling new financial forecasts

Notable Decliners

• Home Depot: 1.3% fall after giving a mixed forecast for 2026
• Nvidia: 0.3% slip after receiving approval to sell an advanced chip to approved customers in China

Overall Market Performance

• S&P 500: Fell by 6.00 points
• Dow Jones: Dipped by 179.03 points
• Nasdaq: Rose by 30.58 points

International Markets

• Mixed performance
• Notable declines in Hong Kong and Paris