US stocks hold in place in the countdown to the Federal Reserve’s
meeting on Wednesday
[December 10, 2025] By
STAN CHOE
NEW YORK (AP) — U.S. stocks largely held in place on Tuesday as Wall
Street waits to hear what the Federal Reserve will say Wednesday about
where interest rates are heading.
The S&P 500 edged down by 0.1% and remained near its all-time high set
in October. The Dow Jones Industrial Average dipped 179 points, or 0.4%,
and the Nasdaq composite added 0.1%.
JPMorgan Chase was the heaviest weight on the market after a top
executive, Marianne Lake, said the bank’s expenses could rise to $105
billion next year.
That would be up 9% from an estimated $95.9 billion in expenses this
year, though Lake also said JPMorgan Chase is “feeling pretty good about
the underlying financial health of the borrowers in our portfolio.” Its
stock fell 4.7%.
Another drop came from Toll Brothers, which lost 2.4% after the
homebuilder reported weaker results for the latest quarter than analysts
expected.
CEO Douglas Yearley Jr. said demand for new homes remains soft across
many markets, and he talked about “affordability pressures” that could
be affecting potential homebuyers.
One big factor in that affordability question is mortgage rates. They’re
cheaper than they were at the start of the year, though they perked up a
bit after October. That’s largely because of questions in the bond
market about how much more the Federal Reserve will cut its main
interest rate.
The widespread expectation is that the Fed will cut interest rates
Wednesday afternoon, which would be the third such easing of the year.
Lower interest rates can give the economy and prices for investments a
boost, though the downside is they can worsen inflation.
The U.S. stock market has run to the edge of its records in part because
of the growing assumption that the Fed will cut rates again on
Wednesday.
The big question is what the Fed will say about where interest rates
will go after that. Many on Wall Street are bracing for talk aimed at
tamping down expectations for more cuts in 2026.
Inflation has stubbornly remained above the Fed’s 2% target, and Fed
officials are notably split in their opinions about whether high
inflation or the slowing job market is the bigger threat to the economy.
Treasury yields climbed in the bond market after a report on Tuesday
showed that U.S. employers were advertising 7.7 million job openings at
the end of October. That’s up a smidgen from the month before and the
highest number since May.
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 If the job market is not worsening,
it may not need as much help from the Fed through more cuts to
rates.
After the report on job openings came out, the yield on the 10-year
Treasury erased what had been an earlier dip and rose to 4.18% from
4.17% late Monday.
The yield on the two-year Treasury, which moves more closely with
expectations for what the Fed will do, rose to 3.60% from 3.57% late
Monday.
Elsewhere on Wall Street, Exxon Mobil climbed 2% after increasing
its forecast for profit over the next five years, thanks in part to
strength for its fields in the Permian basin in the United States
and off Guyana’s shore.
Ares Management rallied 7.3% after S&P Dow Jones Indices said the
investment company will join its widely followed S&P 500 index. It
will replace Kellanova, the maker of Pringles and Pop-Tarts, which
is being bought by Mars, the company behind Snickers and M&Ms.
CVS Health rose 2.2% after unveiling new financial forecasts,
including expectations for annual compounded growth in earnings per
share at a “mid-teens” percentage over the next three years.
Home Depot fell 1.3% after flipping between gains and losses. It
gave a preliminary forecast for 2026 that said the broad home
improvement market may shrink by up to 1%. But it also gave a
separate set of forecasts saying its earnings per share could grow
in the mid- to high-single digit percentages if the housing market
recovers.
The market’s most influential stock, Nvidia, slipped 0.3% after
President Donald Trump allowed it to sell an advanced chip used in
artificial-intelligence technology to “approved customers” in China.
The H200 is not Nvidia’s top product.
All told, the S&P 500 fell 6.00 points to 6,840.51. The Dow Jones
Industrial Average dipped 179.03 to 47,650.29, and the Nasdaq
composite rose 30.58 to 23,576.49.
In stock markets abroad, indexes were mixed Europe and Asia.
Indexes fell 1.3% in Hong Kong and 0.7% in Paris for two of the
world’s bigger moves.
___
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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