US stocks experienced a pause on Monday, as Wall Street gears up for a crucial week highlighted by the Federal Reserve’s final policy meeting of 2025. The S&P 500 and the Dow Jones Industrial Average both inched down by 0.2%, while the tech-heavy Nasdaq Composite hovered just below flat territory. This stagnant start to the trading week follows strong closing gains for stocks on Friday.
Market observers are now acutely focused on the implications of almost-total confidence that the Fed will implement interest rate cuts during its two-day meeting beginning Tuesday. Following a recent rise in optimism, traders are currently pricing in an 88% likelihood of a rate cut on Wednesday, a substantial increase from just 67% a month prior, according to the CME FedWatch tool.
The confidence in a rate cut was bolstered by a calm September reading of the PCE consumer inflation index, which spurred a healthy appetite for risk and has contributed to consecutive weekly gains for major indices. Despite a divided stance among policymakers—some prioritizing labor market concerns while others remain wary of persistent inflation—support from influential officials has strengthened expectations for a third rate reduction this year. However, projections for 2026 remain murkier.
As the week progresses, a slew of economic reports is expected that will particularly spotlight the labor market, following mixed signals from previous reports. The long-delayed October JOLTS job openings report will be released on Tuesday, providing insights into hiring, layoffs, and worker quit rates.
In corporate news, Warner Bros. Discovery shares surged more than 7% amid reports of a $108 billion hostile bid from Paramount for the media company, disrupting Netflix’s plans to acquire it. On the earnings front, Oracle and Adobe will be watched closely on Wednesday, while Broadcom and Costco are set to headline discussions on Thursday.
In notable stock movements, shares of CoreWeave saw a nearly 7% decline as the Nvidia-backed AI cloud provider announced plans to issue $2 billion in senior convertible notes, raising concerns of potential dilution in its stock value. CoreWeave’s announcement indicated the funds would assist in acquiring financial products aimed at offsetting the dilution risk, as the company deals with significant debt partially tied to depreciating Nvidia AI chips.
Additionally, Structure Therapeutics experienced a remarkable 72% surge in stock value following promising results from a mid-stage study of its obesity pill, aleniglipron. The findings indicated a weight loss of 11.3% over the trial period, paving the way for further trials expected in mid-2026.
The trading day opened with US stocks remaining steady, following prior weekly gains. Premarket trading saw Carvana stocks rise 8% after news it would join the S&P 500, while Marvell Technology shares plummeted 6% after being excluded from the index. Rivian also experienced a decline of 3% due to a significant recall announcement.
In executive news, Todd Combs, an investment manager at Berkshire Hathaway and regarded as a protégé of Warren Buffett, is set to leave the firm to assume a role at JPMorgan Chase. His departure comes as Buffett prepares for his own transition, creating a ripple effect in the company’s leadership structure.
On the commodities front, crude oil prices fell as traders anticipated a favorable interest rate cut and as peace talks between Russia and Ukraine hit a standstill. West Texas Intermediate futures dropped by 1.2%, while Brent crude saw similar declines.
Overall, amidst this backdrop, fluctuations in stock values, corporate moves, and broader economic signals set the stage for an eventful week in financial markets.
