US stock futures drifted in a tight range on Tuesday(December 9) as investors held their positions ahead of Wednesday’s highly anticipated Federal Reserve interest-rate decision. Dow futures inched down 19 points or 0.3 percent, while S&P 500 and Nasdaq 100 contracts hovered just below unchanged.
According to the CNBC website, futures linked to the Dow Jones Industrial Average slipped 10 points, or under 0.1 percent.
The market delivered a subdued performance in the previous session, with the S&P 500 edging down 0.1 percent and the Dow slipping nearly 0.4 percent as losses in JPMorgan weighed on the blue-chip index. In contrast, the Nasdaq Composite managed a modest 0.1 percent gain, supported by advances in Broadcom, Tesla, and Alphabet.
Stocks have fluctuated between modest gains and losses in recent sessions as investors look toward the Federal Reserve’s final meeting of the year. The central bank is broadly expected to deliver a third consecutive quarter-point rate cut, with futures markets pricing in roughly an 87 percent probability of another decrease, according to CME’s FedWatch tool.
Divisions persist within the Federal Open Market Committee, where some officials argue that further rate cuts are needed to support a cooling labor market, while others caution that easing too quickly could intensify inflation pressures. Markets will be focused on the post-meeting statement and Chair Jerome Powell’s Wednesday afternoon press conference for a clearer read on the committee’s outlook.
A shift toward small-cap stocks is becoming evident, with the Russell 2000 reaching a fresh all-time intraday high amid optimism over forthcoming rate cuts. Smaller companies often benefit more directly from lower borrowing costs, which can improve their margins as market rates decline.
Wells Fargo Investment Institute strategist Doug Beath said that while the Russell 2000 trails the S&P 500 for the year, it has been climbing since Nov. 21 and has outpaced the broader index over that period.“The favorable change for small-cap equities is consistent with our view that equity market breadth is widening,” Beath said. “We believe investors are looking beyond the current economic soft patch in anticipation of accelerating economic growth through 2026 because of positive secular trends already in place, tax cuts that will deliver what should be the largest refunds since 2021, deregulation, more Fed rate cuts, and continued technology capex growth.”