FX.co ★ US Stocks Mixed as Investors Brace for Fed Decision

On Monday, US stock markets presented a mixed picture as investors balanced expectations of a Federal Reserve interest rate cut, anticipated on Wednesday, with ongoing uncertainties regarding the policy trajectory for 2026. Persistent inflation has heightened expectations that policymakers may exercise caution, maintaining a sense of unease in the markets ahead of updated economic projections from the Federal Open Market Committee (FOMC). In early trading, the S&P 500 inched up by 0.1%, reaching 6,870, its highest point since late October. The Nasdaq gained approximately 0.5%, whereas the Dow Jones fell by about 60 points from a one-month peak. This week, attention will be directed toward tech valuations, as Broadcom and Oracle prepare to release their earnings reports. In terms of individual stock movements, Confluent experienced a 29% surge following news that IBM is in advanced discussions to acquire the company for approximately $11 billion. Meanwhile, Tesla experienced a 1.5% decline after Morgan Stanley downgraded the stock from "overweight" to "equal weight." Conversely, Carvana saw a rise of more than 7% following the announcement by S&P Dow Jones Indices that the online used-car retailer will be joining the S&P 500.