Updated 2 min read
US stocks were mixed as the tech sector turned into the red on Tuesday morning and the Federal Reserve’s December policy meeting began, with investors convinced of a rate cut this week turning their focus to the chances of more easing next year.
The blue chip-heavy Dow Jones Industrial Average (^DJI) traded up by around 0.3%, while the benchmark S&P 500 (^GSPC) held just below flat. The tech-heavy Nasdaq Composite (^IXIC) shed roughly 0.2% as the market emerged from a tight drop on Monday.
The mixed behavior in stocks and downturn in tech came amid a seesawing in habitual market driver Nvidia’s (NVDA) shares, down roughly 1% in the first minutes of Tuesday’s trading session after President Trump signed off on allowing the AI bellwether to resume some shipments of H200 AI chips to China.
Tuesday’s spotlight is on the Fed’s two-day meeting and its final policy decision of the year, due Wednesday. Markets are all but convinced of getting a quarter-point rate cut to match similar moves in September and October, with 89.4% odds currently priced in.
Given that, investors have switched to watching the Fed for clues to whether 2026 will bring more easing — but the chances of that are less certain in the wake of December’s “hawkish cut.” White House economic adviser Kevin Hassett, largely seen as the favorite for next Fed chair, has struck a cautious tone, saying it would be “irresponsible” to set out plans for the next six months. Trump suggested in an interview released Tuesday that he would be looking for a new chair to immediately move to cut rates.
Benchmark 10-year Treasury yields (^TNX) rose to their highest level in over two months on Monday, but pulled back by around 0.6% on Tuesday alongside similar moves in the broader bond market.
Both Wall Street and the Fed get a last look at the labor market before Wednesday’s rate decision, with the release of delayed JOLTS readings on job openings, quit rates, and layoffs for October.
Also on deck later this week are corporate earnings from Oracle (ORCL), Broadcom (AVGO), Costco (COST), and Lululemon (LULU), which could shed light on megacap AI and retail trends.
LIVE 12 updates
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Job openings ticked up slightly in October
US job openings rose slightly in October to reach 7.67 million openings in the month, up from 7.66 million openings in September, according to data from the Bureau of Labor Statistics.
October’s figure — which exceeded economist expectations of 7.12 million openings — is the highest number of job openings in five months, according to Bloomberg. Hires remained “little-changed” at 5.1 million on the month.
Preliminary data on the hire rate showed October’s rate falling to 3.2% from 3.4%, according to the BLS data. Preliminary data on quits across nonfarm payrolls indicated 1.8 million quits on the month, down from September’s 2 million quits.
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Natural gas continues drop to fall below $4.80
After a precipitous drop on Monday, futures on natural gas (NG=F) continued to fall Tuesday morning, shedding more than 3.2% in what has become a solid downturn for the energy commodity.
Natural gas, which crossed $5 for the first time in three years last week on predictions of a cold winter and heavy heating demand, along with record US exports of liquified natural gas (LNG), has spent the back half of the year soaring upward, climbing more than 30% in the past six months.
But on Monday, as winter weather predictions turned mild — and as projected heating demand hasn’t yet emerged as expected, especially in the benchmark-setting northeastern US region — the energy product shed more than 7% in its biggest single-day drop since the end of June.
The US has also continued to produce natural gas at record monthly levels, filling domestic stores and adding to an already ample supply on the market.
Futures on international oil benchmark Brent crude (BZ=F) and US benchmark West Texas Intermediate (WTI) crude (CL=F), which both shed around 2% on Monday, held just below flat Tuesday morning, down around 0.1%.
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US stocks open mixed, tech stocks down on Tuesday
The US stock market opened with a mixed performance on Tuesday, as investors awaited the start of the Federal Reserve’s policy meeting, with some convinced of a rate cut this week turning their focus to the chances of further easing next year.
The Dow Jones Industrial Average (^DJI) gained around 0.25%, while the S&P 500 (^GSPC) held just above the flat line, and the tech-heavy Nasdaq Composite (^IXIC) traded into the red by around 0.4% before paring losses.
In the tech sector, Nvidia opened the trading day down a bit over 0.8%, coming off a small gain after President Trump signed off on allowing the AI bellwether to resume some shipments of H200 AI chips to China.
In focus on Tuesday will be the Fed’s two-day meeting and its final policy decision of the year, which markets will get on Wednesday. Traders are pricing in odds of 89.4% of another quarter-point cut.
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Nvidia steady amid China trade news
Nvidia (NVDA) shares traded roughly flat following news that the company will be allowed to export its more powerful H200 GPUs to China.
President Trump said in a post on Truth Social Monday that the US will allow Nvidia to ship the AI chips to approved customers in the country — yet another reversal from the administration’s previous approach to the US chip trade with China. The administration effectively banned sales of Nvidia’s less-powerful H20 chips in a surprise move in April, but reversed that ban in exchange for a cut of Nvidia’s revenue from the country (an arrangement that has not been finalized, per Nvidia’s latest SEC filing).
For its part, China has become more restrictive about its homegrown tech firms’ purchases of Nvidia chips, banning purchases of H20 chips this fall. The Financial Times reported Tuesday that Beijing would also limit Chinese companies’ access to Nvidia’s H200 chips.
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PNC shares drop as bank lets high-net worth clients trade bitcoin
Shares in PNC Financial Services Group (PNC), the operator of PNC Bank, fell by roughly 3% in premarket trading after the bank began allowing high-net-worth clients to directly trade bitcoin (BTC-USD).
While PNC’s offering has been in the works since the summer, its launch comes on a bad stretch for the cryptocurrency environment, which has seen bitcoin shed more than 13% in the past month. The digital currency lost roughly 1.4% Tuesday morning.
The move is part of a partnership between PNC and the cryptocurrency brokerage platform Coinbase Global (COIN), which has offered similar services to a host of financial institutions. Under the deal, eligible PNC clients can get direct exposure to cryptocurrencies, and PNC provides Coinbase with banking services that include facilitating bitcoin trades, according to Bloomberg.
PNC has previously given clients access to passive ETFs with exposure to bitcoin and ether (ETH-USD), but the new offering under its Coinbase partnership is the first direct digital currency trading regime the bank has offered.
In September, Morgan Stanley introduced direct crypto trading on its retail platform, E-Trade, through a partnership with crypto firm Zerohash.
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Campbell’s sales decline as CEO says consumers ‘remain intentional’
The Campbell’s Company (CPB) stock wavered after the food company reported declining sales and earnings compared to the previous year.
In the company’s fiscal first quarter, net sales decreased 3% year over year to $2.67 billion, while earnings per share declined to $0.65. Wall Street consensus estimates were for $2.65 billion in revenue and $0.71 in earnings per share, according to S&P Global Market Intelligence.
The Meals & Beverages segment experienced a 4% decline in sales year over year, while sales in the Snacks business decreased by 2%.
“Consumers remain intentional in their shopping behaviors with at-home-cooking trends continuing to benefit our brands within our Meals & Beverages portfolio that deliver quality, convenience and value,” CEO Mick Beekhuizen said. “While our Snacks business continues to weather category softness, our brands remain highly relevant.”
The company reaffirmed its fiscal 2026 guidance for earnings per share to decline 12% to 18% to a range of $2.40 to $2.55.
Year to date, the stock is down 28%.
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Good morning. Here’s what’s happening today.
Economic data: BLS releases Sept. & Oct JOLTS data; NFIB small business optimism (November);
Earnings: AutoZone (AZO), Ferguson Enterprises (FERG), Casey’s General Stores (CASY), SailPoint (SAIL), GameStop (GME), The Campbell’s Company (CPB), Ollie’s Bargain Outlet Holdings (OLLI), Braze (BRZE), Cracker Barrel Old Country Store (CBRL), Dave & Buster’s Entertainment (PLAY)
Here are some of the biggest stories you may have missed overnight and early this morning:
Netflix and Paramount face different paths to win Warner Bros.
PepsiCo to cut prices, drop products in deal with activist Elliott
Trump’s Nvidia shift hands Xi an opening on security curbs
Fed may need QE if markets lack faith in Powell’s successor: Man
The median home in the US costs $415K. Here’s what that buys you
Tariffs latest: Trump threatens Mexico hike, unveils $12B farmer bailout
China to limit access to Nvidia’s H200 chips despite Trump approval
Apple’s slow AI pace a strength as market grows weary of spending
Google hit by EU antitrust probe over content use by AI tools
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Premarket trending tickers: Pfizer, Ares and CVS
Pfizer (PFE) stock climbed 1% before the bell following an announcement that it has entered into an exclusive global collaboration and license agreement with YaoPharma, a subsidiary of Shanghai Fosun Pharmaceutical (600196.SS).
Ares (ARES) stock rose 8% during premarket trading on Tuesday after the asset manager was included in the S&P 500, replacing Kellanova (K).
CVS (CVS) stock rose 3% before the bell on Tuesday after forecasting 2026 profit above Wall Street estimates.
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Toll Brothers stock falls as home incentives weigh on margins, earnings
Toll Brothers (TOL) stock fell over 4% in premarket after the high-end homebuilder’s quarterly results showed promotional activity weighing on margins and an earnings miss.
For the fiscal fourth quarter, Toll Brothers reported earnings per share of $4.58, compared to estimates of $4.89, according to S&P Global Market Intelligence. Revenue came in at $3.41 billion, compared to estimates of $3.31 billion.
The homebuilder saw promotional activity weigh on its home sale margins. Toll Brothers reported a gross margin of 26%, compared to estimates of 26.5%. Despite lower mortgage rates, homebuilders are facing competitive pressures as they look to entice reluctant buyers off the sidelines.
Toll Brothers CEO Douglas Yearley noted “soft demand” and a “choppy” housing market this year, though he emphasized that the luxury business remains differentiated.
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Trump moves to address Americans’ affordability concerns even as he calls those worries a ‘con job’
Yahoo Finance’s Ben Werschkul reports:
President Trump is hitting the road this week to address Americans’ affordability concerns head-on. But it’s a trip that comes as his rhetoric and actions often appear at odds with each other.
On one front, Trump and his team continue to dismiss the sense prevalent among many Americans that everyday costs are becoming harder to manage.
… On the other hand, Trump and his team have taken a series of actions in an apparent acknowledgement that affordability is more than a media creation.
Recent weeks have seen the president reverse some of his tariffs on grocery store items. He has also floated ideas like $2,000 tariff rebate checks and even 50-year mortgages to lower month-to-month costs.
… Trump’s approach clearly hasn’t helped his poll numbers, which offer a near-daily reminder that Americans have a sour opinion of his handling of the economy. The RealClearPolitics poll average of Trump’s approval rating on the economy stood at just 39.8% approval on Monday, compared to 57.6% who said they are unhappy with the direction of things.
The issue could be the president’s most glaring political vulnerability and a central threat to the GOP’s midterm election chances.
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Paramount rises price in hostile takeover bid for Netflix, backed by Trump’s son-in-law
Bloomberg reports:
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Natural gas loses more than 7% to fall back below $5, oil sheds 2%
Natural gas (NG=F) prices spent Monday in free fall, tumbling by more than 7.9% to drop back below the $5 mark.
After a cold shock last week that saw prices jump above $5, a mark not seen since December 2022, new predictions from meteorologists for a warmer-than-expected winter have pushed natural gas in the other direction in the steepest fall for the energy product since the end of June.
At the same time, monthly production in the US’ lower 48 states is at a record of 109.7 billion cubic feet per day (bcf/d) in December, according to data from LSEG, up the previous high of 109.6 bcf/d set in November, adding to natural gas supply and depressing prices.
Moderating the price fall, average flows of gas to liquified natural gas (LNG) plants in the US also hit a new monthly high in December at 18.9 bcf/d, up from a previous high of 18.2 bcf/d set in November. When gas is sent to LNG plants, it decreases the amounts available for storage and winter heating demand use, tightening the market.
Elsewhere in the energy market, futures on crude oil also spent Monday in a downturn, as prices on Brent crude, the international benchmark, and US benchmark West Texas Intermediate (WTI) crude both fell around 2% on Monday.
Predictions of a coming global oil supply glut have in recent months moved from estimate to reality, and oil markets have begun to price in the abundance. And in a meeting with Indian Prime Minster Narendra Modi in New Delhi on Friday, Russian President Vladimir Putin said Moscow is planning to continue sending “uninterrupted fuel supplies” to India even as the US has ratcheted up pressure on Indian refiners to curb their purchases of Russian barrels.
