US Stock Market Today: NASDAQ 100 and S&P 500 Rise 0.2% as Traders Await Fed Rate Decision

Stocks, bonds and currencies traded in tight ranges as traders await the Fed’s final 2025 decision on Wednesday. US stocks hovered near flat levels in early New York trade on Tuesday, with the S&P 500 rising by 0.2%, and the NASDAQ 100 also gained 0.17%. 

The Dow Jones Industrial Average gained about 0.2%. Currency markets highlighted cautious signals and saw quiet flows. The Bloomberg Dollar Spot Index held steady while the euro traded around $1.1628. The British pound slipped 0.2% to $1.3301, and the Japanese yen weakened toward 156.79 per dollar. In crypto markets, Bitcoin rose 0.3% to $91,622.45, and Ether added 0.8% to $3,173.34.

Moreover, the 10-year Treasury yield rose to approximately 4.18% after a recent bond selloff. Meanwhile, global bond markets stayed under pressure, which limited new risk-taking in equities. Germany’s 10-year yield held near 2.86% amid moves across other major markets.

While markets are almost fully pricing a quarter-point cut on Wednesday, the focus is now on the policy path that follows. At the Wall Street Journal CEO Council, Kevin Hassett said the Fed has “plenty of room” to lower rates. His remarks came as markets see him as the frontrunner to replace Jerome Powell.

Apple Rally, AI Spending Debate and IPO Pipeline

While wider indexes paused, Apple continued its strong run and drew fresh valuation debate. The stock has climbed about 35% since late June. Apple’s market value stands close to $4.1 trillion, and its shares trade near 33 times expected earnings.

Away from mega caps, bankers reported brisk activity in US equity capital markets and a busy IPO calendar. US IPO volume, excluding SPACs and closed-end funds, should exceed $40 billion this year. Medline’s deal would rank as the largest single offering. Several tech, crypto and space firms have already filed or prepared IPO plans. Advisers see 2026 as a key year for marquee deals.

Dealmakers expect investors to demand higher IPO discounts and tighter pricing discipline after mixed debuts this year. They also warn that the Fed’s path for 2026 will guide risk appetite. Global bond stress could reinforce that effect on new issues.

Corporate highlights / major moves

• Microsoft to invest $17.5 billion in India AI and cloud, chasing long-term digital growth.

• Home Depot issues cautious outlook for 2026 as subdued US housing demand weighs on sales.

• EU opens antitrust probe into Google’s AI tools over fears they reinforce its market power.

• PepsiCo agrees with Elliott to cut US product lines and jobs in a broad cost reset.

• Trafigura posts strong year in oil and metals trading and boosts payouts despite volatility.

• European defense stocks climb as Germany advances a record €52 billion procurement package.

• China Vanke creditors hire advisers as investors brace for stress in its offshore debt.

• Trump allows NVIDIA to ship H200 AI chips to China with a 25% surcharge attached.

• Paramount Skydance launches a $30 hostile bid for WBD, intensifying competition in the US media.

• Reddit rolls out new global safety features to protect all under-18 users on its forums.

• India’s top quick-commerce chief warns a shakeout looms as rivals’ funding support dries up.

• Satya Nadella joins tech leaders in India to deepen AI partnerships and cloud plans.

• Bankers say a tighter Fed path and mixed debuts will keep 2026 IPO pricing discipline firm.

Furthermore, fresh data led the investors to weigh the Fed’s upcoming decision. October job openings climbed to 7.67 million, while economists expected 7.12 million. As global economic conditions evolve, investor sentiment will hinge on the Federal Reserve's interest-rate decision and upcoming corporate earnings, making this a pivotal moment for markets.

Also Read: US Stock Market Today: NASDAQ 100 & S&P 500 Edge Higher While Bond Yields Rise Ahead of Key Federal Reserve Decision

Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp