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

On Tuesday, U. S. stocks stayed mostly flat. Investors are waiting for the Federal Reserve's decision on interest rates, which is expected on Wednesday. The S&P 500 dipped slightly, while the Nasdaq saw a small gain. The Dow Jones took a bigger hit, dropping by 0. 4%. JPMorgan Chase was a major drag on the market. The bank's stock fell nearly 5% after an executive hinted at higher expenses for next year. Despite this, the bank remains confident about the financial health of its borrowers. Toll Brothers, a homebuilder, also saw a decline. The company reported weaker-than-expected results for the latest quarter. The CEO pointed to affordability issues as a key challenge for potential homebuyers. Mortgage rates have been a hot topic. They've decreased since the start of the year but ticked up slightly in October. This is partly due to uncertainty about the Federal Reserve's next move. The Fed is expected to cut interest rates on Wednesday. This would be the third cut of the year. Lower rates can boost the economy and investments but may also worsen inflation. The big question is what the Fed will say about future rate cuts. Many on Wall Street think the Fed might try to lower expectations for more cuts in 2026. Inflation remains above the Fed's 2% target. Fed officials are divided on whether to focus more on inflation or the slowing job market. Job openings in the U. S. reached 7. 7 million at the end of October. This is the highest number since May and indicates a strong job market. Treasury yields rose after the job openings report. The 10-year Treasury yield increased to 4. 18%, while the 2-year yield rose to 3. 60%. Exxon Mobil saw a 2% gain after raising its profit forecast. The company cited strength in its Permian Basin and Guyana fields. Ares Management surged 7. 3% after being added to the S&P 500 index. CVS Health also rose 2. 2% after unveiling new financial forecasts. Home Depot fell 1. 3% after giving a mixed forecast for 2026. Nvidia slipped 0. 3% after receiving approval to sell an advanced chip to approved customers in China. Overall, the S&P 500 fell by 6. 00 points. The Dow Jones dipped by 179. 03 points, while the Nasdaq rose by 30. 58 points. Internationally, stock markets were mixed. Hong Kong and Paris saw notable declines.