Market Holds Steady Ahead of Pivotal FOMC Decision

The stock market delivered another subdued session as investors stayed firmly in wait-and-see mode ahead of Wednesday’s highly anticipated FOMC decision. With a 25-basis-point rate cut widely expected—and growing consensus that it will be paired with guidance limiting the likelihood of additional near-term easing—trading remained constrained and largely directionless.

Major indices were confined to tight intraday ranges, with the S&P 500 slipping 0.1%, the Nasdaq Composite adding 0.1%, and the DJIA finishing 0.4% lower. Small caps once again outperformed, with the Russell 2000 rising 0.2% and extending its relative strength in December.

Market breadth improved modestly from Monday’s action. Advancers outpaced decliners by roughly 5-to-4 on both the NYSE and Nasdaq, a reflection of the quiet but slightly constructive tone across equities. Five of the eleven S&P 500 sectors posted gains—another improvement from yesterday’s performance, when only technology finished higher—though leadership remained narrow and gains modest.

The information technology sector managed a 0.2% rise after overcoming early weakness. NVIDIA dipped 0.3% despite a headline from President Trump asserting the company would be permitted to sell its advanced H200 chips in China, albeit with the U.S. government taking 25% of profits. The news did little to shift sentiment meaningfully, leaving tech broadly range-bound.

Consumer discretionary also advanced 0.2%, helped by a rebound in Tesla, which recovered a portion of yesterday’s 3.4% slide. The mega-cap complex overall was quiet, with the Vanguard Mega Cap Growth ETF finishing essentially unchanged. AutoZone was the day’s worst S&P 500 performer, dropping more than 7% after reporting its sixth straight EPS miss.

Energy led sector performance with a 0.7% gain despite lower oil prices. Exxon Mobil rallied nearly 2% after issuing an updated 2030 outlook calling for $25 billion in earnings growth and $35 billion in incremental cash flow—guidance that was well received by investors.

On the downside, sector losses were generally modest. Health care declined 1.0% as most components moved lower, though CVS bucked the trend with a more than 2% advance after lifting its FY25 guidance. Financials slipped 0.3% and saw notable intraday volatility tied to JPMorgan Chase, which fell sharply after projecting 2026 firmwide expenses of roughly $105 billion—an 11% jump over expected 2025 spending and above current analyst estimates.

Despite isolated pockets of news and stock-specific moves, the broader market remained largely in neutral, awaiting Wednesday’s policy announcement. After several sessions defined by similarly contained trading, all three major indices remain within 1% of their month-to-date levels as investors look for direction from the Fed heading into year-end.

Our FTinvest 11 model portfolio finished the session on a strong note, extending its upward momentum and setting another record. The index advanced 0.56% for the day, closing at a new all-time high of 927.37, reaffirming the portfolio’s leadership amid a broader market that continues to drift cautiously ahead of key macro catalysts.

Trading throughout the session was steady, with FTinvest 11 maintaining a constructive tone from the open. While the broader equity market showed limited conviction and remained largely range-bound, several of the portfolio’s core components delivered consistent gains, allowing FTInvest 11 to outperform major benchmarks once again.

Today’s upswing reflects both strong underlying breadth within the portfolio and continued investor preference for quality growth and resilient business models. Even as market participants remained focused on the upcoming FOMC decision and its implications for early-2026 policy expectations, several FTInvest 11 components demonstrated durable demand and maintained its position near the top of its performance cycle.

With this latest record close, the index enters the next session with renewed momentum and a reinforced trend of higher highs, underscoring sustained confidence in the portfolio’s composition and strategic balance.