US Stocks Mixed Ahead of Fed Rate Decision

TradingEconomics reports that U.S. stocks showed a mixed performance on Tuesday, with the Standard & Poor's 500 index hovering near stability, while NASDAQ fell by 0.3%, and Dow Jones rose by about 0.3%. The session was marked by anticipation as traders await the Federal Reserve's interest rate decision this week.

Investors widely expect the Fed to cut rates by 25 basis points, while attention is also on the updated economic forecasts to discern the monetary policy trajectory through 2026, as uncertainty remains regarding the pace of easing. Current market pricing suggests two rate cuts next year.

Shares of NVIDIA fell by 1% following reports that Beijing may impose restrictions on local chip purchases, after U.S. President Donald Trump allowed the export of H200 chips to China on the condition that the U.S. government receives 25% of sales value.

Additionally, Home Depot's shares dropped over 1% after the company provided weaker-than-expected growth guidance for 2026, raising investor concerns about sales and margin forecasts.

Markets continue to monitor the acquisition battle between Paramount and Netflix over Warner Bros. Discovery, one of the most significant media and entertainment deals of the year, which remains a focal point for investors amidst expectations of further moves in the sector.

These movements reflect a cautious balance between easing expectations and concerns over global growth slowdown, as investors seek greater clarity from the Fed regarding interest rate trends in the coming months.