New York Stock Market Mixed Ahead of Fed Rate Decision... Dow Jones Falls 179 Points on JPMorgan Shock

Source: BlockMedia Original Title: [New York Stock Market Close] Mixed Ahead of Fed Rate Decision… Dow Falls 179 Points Due to JPMorgan Shock Original Link: https://www.blockmedia.co.kr/archives/1017438 The New York stock market ended mixed as investors took a wait-and-see approach ahead of the Federal Reserve’s year-end interest rate decision. While the market is almost certain of a rate cut, major indices showed divergent trends, losing clear direction. The Dow Jones fell the most, hit by JPMorgan’s expense outlook.

The S&P 500 closed at 6,840.51, down 6.00 points (0.09%) from the previous day, while the tech-heavy Nasdaq Composite rose 30.582 points (0.13%) to 23,576.49, continuing its upward trend. In contrast, the Dow Jones Industrial Average ended at 47,560.29, down 179.03 points (0.38%).

The Dow’s decline was directly impacted by a sharp drop in JPMorgan’s stock price. JPMorgan announced that annual spending would reach $105 billion in 2026, surpassing Wall Street’s estimate of $101 billion, raising concerns among investors about profitability due to increasing costs. As a result, JPMorgan shares fell over 4%, weighing on the Dow.

Market caution is rising ahead of the Fed’s key interest rate decision scheduled for the 11th. According to federal funds rate futures (FedWatch), investors now see an 87% chance of a 0.25 percentage point cut, a significant increase from a month ago. This meeting marks the Fed’s final rate decision of the year and is expected to be a key turning point for future monetary policy.

Brett Kenwell, US investment strategist at eToro, said, “The market will be driven more by Chair Powell’s remarks and economic outlook than the rate cut itself,” adding, “Whether the Fed will support the recent rebound in stocks and cryptocurrencies is the key.” He continued, “This comes amid overlapping variables such as inflation, federal government shutdown impacts, and the selection of the next Fed chair.”

Meanwhile, the small- and mid-cap focused Russell 2000 index hit an all-time intraday high on expectations of a rate cut, ending up 0.29% at 2,528.31. Since small businesses are more sensitive to market interest rates than large caps, analysts suggest a policy easing could positively impact these companies.

By stock, CVS Health rose 4% after issuing a positive earnings outlook for next year, and ExxonMobil climbed 2.7% after raising its long-term profit and cash flow forecasts. Conversely, Campbell Soup saw its stock plunge 6%—the lowest since 2009—despite beating earnings expectations, as both sales and profits declined year-on-year.

Silver prices hit a record high during the day, rising to $61.11 per ounce, with related stocks also rallying. Pan American Silver surged 10%, Santacruz Silver Mining rose 9%, and AbraSilver Resource gained over 7%.

In other news, Walmart emphasized its shift to a “tech-focused company” by switching its listing from the New York Stock Exchange (NYSE) to Nasdaq for the first time since 1972, while Colgate-Palmolive rose over 1% after an investment rating upgrade from RBC.

According to the US Department of Labor, October job openings stood at 7.67 million, little changed from the previous month, but both hiring and voluntary quits decreased, indicating a gradual slowdown in the labor market.