FX.co ★ US Stocks Dip on Fed Outlook Uncertainty

On Monday, U.S. stock markets saw an initial rise, which was subsequently reversed, resulting in a decline of approximately 0.2% in both the S&P 500 and the Dow Jones, while the Nasdaq remained largely unchanged. Investors were evaluating the prospect of an interest rate cut by the Federal Reserve expected on Wednesday, balanced against the ongoing uncertainties concerning the policy trajectory extending into 2026. Persistent inflation heightened the anticipation that the Federal Reserve might adopt a measured approach, keeping market participants cautious as they await the latest economic projections from the Federal Open Market Committee (FOMC). In addition, technology stock valuations are anticipated to occupy the spotlight this week, with earnings reports from Broadcom and Oracle upcoming. Investor interest also shifted to a dramatic turn in the acquisition race for Warner Bros. Discovery, following Paramount Skydance's bid of $30 per share, surpassing Netflix’s cash-and-stock offer of $27.75. This news led to a 6% increase in Paramount's shares and a 5% decline for Netflix. Among other significant market movements, Confluent surged 29% following reports of its acquisition by IBM, Tesla fell 3% after a downgrade, and Carvana rose 9.7% subsequent to its inclusion in the S&P 500 index.