Stocks Slip as Investors Brace for Fed Decision and JPMorgan Warning Weighs on Markets

The S&P 500 ended slightly lower on Tuesday as Wall Street awaited a pivotal Federal Reserve decision and reacted to a warning from JPMorgan that pressured the broader market. Investors expect the Fed to deliver a quarter-point interest rate cut this week, but many anticipate a more cautious, hawkish tone given inflation’s persistence above the central bank’s 2% target.

The Fed began its two-day policy meeting Tuesday, and while traders see an 87% chance of a 25-basis-point cut, uncertainty remains about the path ahead. Recent comments from Fed officials have been mixed, with some warning that inflation could reaccelerate while others express growing concern about labor market softening. Fresh data added to the ambiguity: U.S. job openings inched higher in October even as hiring stayed slow, and a separate NFIB survey showed more small businesses planning to add workers.

Jeff Schulze of ClearBridge said the rise in job openings could prompt the Fed to sound “modestly less dovish,” increasing expectations of a possible pause after this week’s cut.

U.S. Treasury yields also climbed, weighing on equities as the 10-year yield rose to 4.18%, marking its fourth straight day of gains. That backdrop helped stall the recent stock rally ahead of Wednesday’s Fed announcement.

The Dow fell 0.38%, the S&P 500 slipped 0.09%, and the Nasdaq edged up 0.13%. The Russell 2000 touched a record high before closing up 0.2%. Bank stocks were volatile, with the S&P 500 bank index reversing early gains to fall 2% after JPMorgan said expenses could reach $105 billion in 2026. JPMorgan shares tumbled 4.7%, their steepest drop since April.

Technology stocks also saw choppy trading after President Donald Trump said Nvidia could ship H200 AI chips to China with a 25% export fee, even as new reports suggested potential restrictions from Beijing.

Nvidia dipped 0.3%, and the semiconductor index slipped 0.04%. Investors also monitored upcoming earnings from Oracle and Broadcom, key players in AI infrastructure spending.

In corporate news, Warner Bros. gained 3.8% amid a bidding war involving Paramount, Skydance, and Netflix. Campbell Soup slid 5.2% after raising select product prices, while AutoZone sank 7.2% following weaker-than-expected quarterly results. JPMorgan, Campbell, and AutoZone were the S&P 500’s biggest decliners.

Market breadth remained slightly positive, with advancing stocks outnumbering decliners on both the NYSE and Nasdaq. Trading volume totaled 14.50 billion shares, below the recent 20-day average.