S&P 500 Ends Flat Before Fed Decision as JPMorgan Drags the Dow

The S&P 500 finished nearly unchanged on Tuesday as investors turned their focus to this week’s Federal Reserve interest rate decision.

The benchmark index slipped 0.09% to 6,840.51, hovering around the flatline, while the Nasdaq Composite edged up 0.13% to 23,576.49. The Dow Jones Industrial Average fell 179.03 points, or 0.38%, to 47,560.29, weighed down by a drop in JPMorgan shares after the bank projected higher-than-expected expenses for 2026.

Markets now await the Fed’s final policy announcement of the year on Wednesday. Traders broadly expect another quarter-point rate cut, mirroring the reductions delivered in September and October. Fed funds futures indicate an 87% probability of a cut, up from about 67% a month earlier, according to CME’s FedWatch tool.

Anticipation of looser policy lifted small caps, pushing the Russell 2000 to a fresh all-time intraday high. Lower rates tend to benefit smaller companies more directly, as their borrowing costs are more sensitive to market interest rates and could help broaden economic growth across more sectors.

Analysts note the Fed is navigating a mix of challenges ahead of its decision, including persistent inflation, an uncertain macro backdrop, delayed economic data from the extended U.S. government shutdown, and expectations surrounding a potential new Fed chair.

In corporate news, CVS was among the session’s standout performers, climbing nearly 5% after issuing a profit outlook for next year that topped expectations.