U.S. stocks showed minimal movement as Wall Street traders held back from major bets less than 24 hours before the Federal Reserve's final 2025 rate decision.

The S&P 500 closed nearly unchanged, while the blue-chip Dow Jones Industrial Average slipped, and the Nasdaq 100 edged higher.

JPMorgan Chase dropped 4.7%, marking its biggest single-day decline since April, after projecting 2026 expenses of $105 billion—a forecast exceeding analyst expectations.

Ares Management Corp. gained after S&P Dow Jones Indices announced its inclusion in the S&P 500, replacing Kellanova effective December 11.

Home Depot declined as the home improvement retailer issued cautious preliminary guidance for next year.

Kevin Hassett, a leading candidate for Fed chair, stated at an event that he sees significant room for rate cuts—potentially exceeding 25 basis points—if economic data permits.

Money markets now anticipate two additional rate cuts in 2026 following tomorrow’s expected 25-basis-point reduction, dialing back from more optimistic projections in recent weeks.

"Literally, the rate cut is the least important part of this meeting," said Tom Essaye, founder of The Sevens Report. "Markets care more about whether the Fed signals further easing rather than a pause."

Tom Lee of Fundstrat warned that an overly hawkish Fed stance could prompt the White House to swiftly announce a successor to Chair Powell—a potential "market-clearing event."

Post-meeting volatility may exceed recent Fed decision reactions, with options pricing a two-way implied move of 0.7%.

"Given global bond market tensions, the Fed meeting could add fuel to the fire," said Vincent Juvyns, ING’s Brussels-based chief investment strategist. "Investors are also closely watching earnings from Oracle and Broadcom—this week is pivotal."

At close: - S&P 500: -0.09% at 6,840.51 - Dow Jones: -0.38% at 47,560.29 - Nasdaq Composite: +0.13% at 23,576.49