Dow, S&P 500 and Nasdaq slip as Netflix tumbles amid deal turmoil; Nvidia edges higher

US stocks slipped on Monday as investors waited for the Federal Reserve’s final policy meeting of the year and tensions intensified in the unfolding deal drama between Netflix (NFLX) and Warner Bros. Discovery (WBD).

The Dow Jones Industrial Average (^DJI) fell 0.5%, the S&P 500 (^GSPC) dropped 0.4%, and the Nasdaq Composite (^IXIC) edged down 0.1%. The softer start to the week followed Friday’s gains across major indexes.

Markets are watching for any threats to the near-unanimous expectation that the Fed will cut interest rates at its two-day meeting beginning Tuesday. After a recent wave of optimism, traders now assign an 88% chance of a rate cut on Wednesday, up from 67% a month ago, according to CME FedWatch. A subdued September PCE inflation reading on Friday supported that confidence, boosting risk sentiment and helping the major averages notch two straight weekly advances.

The growing consensus comes despite divisions among Fed officials over whether to prioritize labor-market conditions or lingering inflation risks. Still, support from influential policymakers for a third rate cut this year has solidified expectations, even as the outlook for 2026 remains uncertain.

In corporate news, Nvidia (NVDA) shares climbed after reports that the Trump administration is preparing to approve sales of the company’s high-performance H200 chips to China.
Warner Bros. Discovery (WBD) rallied after Paramount (PSKY) unveiled a $108 billion hostile takeover bid, disrupting Netflix’s (NFLX) plans to acquire the company. Netflix shares slid more than 3%.