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

US markets opened the week with restrained moves. Investors are prepared for the Federal Reserve’s final meeting of 2025. They also searched for signals about the 2026 rate path. The S&P 500 traded near an all-time high. The NASDAQ 100 held modest gains. 

The Dow Jones Industrial Average edged lower in early New York trading. European shares and the broader MSCI World Index also stayed close to flat at the open. Oracle and Broadcom will report earnings this week. Their guidance may shape expectations for AI spending in 2026.

S&P 500 and NASDAQ 100 Steady Ahead of Federal Reserve Rate Cut

Traders expect a quarter-point Fed cut on Wednesday. Money markets show strong conviction that officials will deliver it. Investors now focus on the dot plot, fresh economic projections and remarks from Chair Jerome Powell. They want to know whether policymakers plan to pause quickly or keep easing into early 2026.

The outlook has grown less certain because a federal shutdown has reduced new economic releases. Inflation concerns still divide officials. Some investors also watch for signs of labor-market cooling. After this week’s likely cut, markets imply fewer reductions through 2026 than they did a week ago. Several strategists anticipate a split decision. That outcome could heighten sensitivity to Powell’s tone.

AI stocks, Mergers and Index Changes Shape Corporate Narratives

A busy corporate calendar helped support technology shares. International Business Machines announced plans to buy Confluent for about $9.3 billion. The deal highlights demand for data infrastructure that supports artificial intelligence tools. It also adds momentum to efforts by large firms to scale enterprise software platforms.

Media stocks also moved after Paramount Skydance launched a hostile bid for Warner Bros. Discovery. The proposal followed comments from President Donald Trump. He raised potential antitrust issues for Netflix’s planned takeover of Warner’s Hollywood studios and streaming business. The competing bids highlight the strategic value of content libraries and global distribution.

Investors also reacted to a shift in index composition. S&P Dow Jones Indices said CRH, Carvana and Comfort Systems USA will join the S&P 500 before trading opens on December 22. The announcement prompted gains in those shares. It also supported a year-end rally in selected cyclical and consumer names.

Market leadership has started to broaden. Investors have reduced exposure to the biggest AI-linked megacaps as performance gaps narrowed. Smaller companies and transportation stocks attracted new inflows. Some strategists argue that competition may pressure the margins of the so-called Magnificent Seven. Others expect AI adoption to lift earnings across the wider index.

Treasury Yields, the Dollar, Oil and Gold Reflect Policy Uncertainty

US Treasuries weakened again. The 10-year yield rose about four basis points to around 4.18%. European sovereign debt also sold off. European Central Bank board member Isabel Schnabel suggested that rates in the region may have reached a floor. In Japan, higher yields reflected mixed growth data. Investors still expect the Bank of Japan to maintain a gradual tightening approach.

Currency markets showed smaller shifts. The Bloomberg Dollar Spot Index rose about 0.1%. The euro and British pound held near recent levels. The yen weakened to around 155.8 per dollar. West Texas Intermediate crude fell to about $59 a barrel. Spot gold eased. Bitcoin and ether posted gains as investors weighed potential shifts in global liquidity into 2026.

Corporate Moves

• IBM announced a plan to acquire Confluent for about $9.3 billion, targeting enterprise AI software demand.

• Paramount Skydance made a hostile bid for Warner Bros. Discovery, escalating consolidation talk in media.

• Netflix’s planned $72 billion deal for Warner’s studios and streaming assets faced fresh antitrust scrutiny from President Trump.

• CRH is set to join the S&P 500 before trading opens on December 22.

• Carvana is scheduled to enter the S&P 500 on December 22.

• Comfort Systems USA will also join the S&P 500 on December 22.

• Robinhood signed deals to acquire two local brokerages as it prepares to enter the Indonesian market.

• Unilever’s Magnum Ice Cream Co. debuted as a standalone business at a valuation below some analyst expectations.

• Pop Mart International shares dropped amid concerns that US sales momentum may be slowing.

• Clearwater Analytics reported that insurers became net buyers of major AI names in the second half of 2025.

Overall, US markets are holding steady as investors brace for the Fed’s final rate decision of 2025 and its implications for the 2026 policy path. With yields rising and economic uncertainty lingering, traders remain focused on policy signals that could guide the next phase of the global market cycle.

Also Read: US Stock Market Today: NASDAQ 100 Rises 0.7% as Traders Position for Fed Rate Cut After Soft Inflation Reading