Wall Street stocks were little changed early Wednesday as markets traded cautiously ahead of a US Federal Reserve decision expected to showcase the central bank’s expectations for 2026 monetary policy.

While the Fed is widely expected to cut interest rates for a third straight time, some investors are girding for a “hawkish cut” in which Fed Chair Jerome Powell suggests the central bank will pause at upcoming meetings.

A hawkish posture “would be disappointing to the markets,” said Spartan Capital’s Peter Cardillo.

About 15 minutes into trading, the Dow Jones Industrial Average was up 0.1 percent at 47,593.14.

The broad-based S&P 500 was flat at 6,842.85, while the tech-rich Nasdaq Composite Index slipped 0.1 percent to 23,557.73.

Among individual companies, GE Vernova shot up more than 15 percent after lifting its financial forecast and its share repurchase authorization.

Oracle dipped 0.4 percent ahead of its earnings report later Wednesday. The company’s prior earnings statement showed a huge increase in artificial intelligence-related work.

Indian equities opened flat on Monday, with the Sensex and Nifty showing little direction as investors stepped into a week packed with IPO activity. With last week’s Reserve Bank of India policy decision now digested, traders are keeping risk in check ahead of the U.S. Federal Reserve’s rate move later this week, where a cut is widely expected.

The S&P BSE Sensex slipped 17 points, or 0.02%, to 85,695 at the open, while the NSE Nifty 50 edged down 15 points, or 0.06%, to begin the session at 26,171.

On the 30-share Sensex, Bajaj Finance, Asian Paints, Bharat Electronics, ICICI Bank and Trent were among the early laggards, slipping between 0.3% and 1%.

Mid-cap and small-cap stocks were largely unchanged.

InterGlobe Aviation, the country’s largest airline operator, extended last week’s slide, dropping more than 4% after regulators flagged the carrier over thousands of flight cancellations.

Ola Electric jumped 3% after the company said it had begun mass deliveries of vehicles fitted with its domestically developed 4680 Bharat Cell battery pack.

Expert views
Emerging positive and negative news have the potential to keep the market volatile in the near-term and robust economic growth and indications of earnings growth revival are supportive of markets, said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, adding that the massive fiscal and monetary stimulus to the economy this year has contributed to sharp revival in GDP growth as evidenced by the 8.2% Q2 GDP growth print, and RBI’s upward revision of FY26 GDP growth to 7.3% augurs well for the market.

“Low GDP deflator, consequent to low inflation, has impacted nominal GDP growth and corporate earnings growth. But from the leading indicators it is clear that about 15% earnings growth is achievable in FY 27. This is positive for the market. However, there are strong negatives, too, which can impact the market. Sustained depreciation of the rupee has been forcing FIIs to sell in the market continuously. Another major factor is the spike in Japanese bond yields which can trigger another bout of reversal of yen carry trade. In brief, there is potential for high volatility,” said Vijayakumar.

FII/DII Tracker
On the institutional front, Foreign Institutional Investors (FIIs) sold equities worth roughly Rs 439 crore on December 5, while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 4,189 crore.

Global Markets
Asian markets wavered Monday as investors all but priced in a Federal Reserve rate cut this week, though the decision is shaping up to be one of the most contentious in years, with some officials openly pushing back against easing.

Futures now assign roughly an 85% probability to a quarter-point trim from the current 3.75%–4.0% range. A hold would be a major shock. A Reuters survey of 108 economists showed only 19 expect the Fed to stay put.

It’s a crowded week for central banks, with Canada, Switzerland and Australia also meeting and all expected to keep policy steady. The Swiss National Bank may prefer to counter the strong franc with another cut, but at a 0% policy rate it is reluctant to go negative.

Japan’s Nikkei slipped 0.3% after a modest gain last week. South Korea’s benchmark fell 0.3% as well, cooling after a 4.4% surge on confirmation of lower U.S. tariffs. MSCI’s Asia ex-Japan index was down 0.1% in subdued trading.

China’s blue chips will take direction from November trade data due later Monday, offering a read on export resilience amid ongoing tariff pressure.

In bonds, long-dated Treasurys softened on concerns the Fed could pair any cut with hawkish guidance. The 10-year yield edged up to 4.146% after rising 9 basis points last week.

Gold traded at $4,202 an ounce, just below Friday’s record spike to $4,259, while silver hovered near all-time highs.

Crude impact
Oil prices held near two-week highs Monday as traders bet a Federal Reserve rate cut this week will bolster U.S. growth and, in turn, fuel demand, while keeping a close eye on geopolitical risks threatening supplies from Russia and Venezuela.

Brent crude inched up 9 cents, or 0.14%, to $63.84 a barrel as of 0321 GMT. U.S. West Texas Intermediate added 8 cents, or 0.13%, to $60.16.

Rupee vs Dollar
The Indian rupee opened modestly weaker on Monday at 90.0625 per U.S. dollar, compared with Rs 89.98 at the previous close, extending the slight depreciation bias after the currency slipped past the Rs 90 mark last week.

The dollar index eased 0.1% to 98.87, with broader foreign-exchange markets largely subdued ahead of a heavy lineup of central-bank meetings in Australia, Switzerland and Canada.

(with inputs from agencies)

Wall Street’s main indexes fluctuated between small gains and losses on Thursday as investors analyzed a fresh round of labor market data to fine-tune expectations for a much-anticipated Federal Reserve rate cut next week.

With November’s official payrolls report due after the Fed’s December meeting, traders have turned to a patchwork of secondary indicators that offer a conflicting read on the jobs market.

A weekly Labor Department report showed new jobless claims fell to their lowest level in more than three years, even as a Chicago Fed estimate suggested the unemployment rate held near 4.4% in November.

Fed funds futures point to a nearly 90% chance that the central bank will cut rates by 25 basis points this month, up from around 60% last month, according to the CME Group’s FedWatch tool.

“Today the data is a little bit better, but there’s no catalyst there to the upside,” said Thomas Hayes, chairman at Great Hill Capital LLC.

“Good data is not going to encourage the Fed to cut more. So this one is a little better than expectations, but not so much better that you get nervous about them following through with the cut next week.”Investors were also exercising caution ahead of Friday’s September Personal Consumption Expenditures report, the Fed’s preferred inflation gauge and the first PCE release since the recent U.S. government shutdown left markets and policymakers with limited visibility on the economy.At 9:49 a.m. ET, the Dow Jones Industrial Average was down 21.23 points, or 0.04%, at 47,861.43, the S&P 500 rose 0.27 points, or less than 0.1%, at 6,849.41 and the Nasdaq Composite was down 16.45 points, or 0.07%, at 23,434.05.

The consumer services sector outpaced the S&P’s 10 other sub-sectors, buoyed by a 3.6% rise in Meta after a report said the tech giant planned to cut up to 30% from its Metaverse budget.

Traders were also watching developments around U.S. President Donald Trump’s selection of the next Federal Reserve chair, in a year of heightened concern over potential political interference in monetary policy.

A report said bond investors have expressed concerns to the U.S. Treasury that Kevin Hassett, a leading contender for the role, might pursue aggressive rate cuts to align monetary policy more closely with President Donald Trump’s preferences.

Snowflake fell 11% after the cloud data analytics company’s fourth-quarter product revenue forecast came in below lofty investor expectations for stronger growth.

Hormel Foods climbed 4.7% after the Skippy peanut butter maker forecast annual profit above estimates, while Dollar General rose 7% after the discount retailer raised its annual profit forecast.

Advancing issues outnumbered decliners by a 1.06-to-1 ratio on the NYSE, while declining issues outnumbered advancers by a 1.21-to-1 ratio on the Nasdaq.

The S&P 500 posted 15 new 52-week highs and one new low, while the Nasdaq Composite recorded 26 new highs and 15 new lows.

Nestle India is expected to report muted September quarter (Q2FY26) results, with net profit rising just 1% year-on-year (YoY) and sales increasing around 4% YoY, according to the average of five brokerage estimates. Analysts said the company’s performance will be hit by trade destocking after GST rate cuts, modest volume growth, and continued pressure from rising raw material costs such as coffee, cocoa, dairy, and edible oils.

GST transition likely to drag revenue growth

Most brokerages agree that the recent GST rate cuts have had a one-time impact on Nestle’s second-quarter performance. Kotak Institutional Equities expects a 425-basis-point hit to domestic revenue growth due to trade channel destocking, as distributors reduced inventories to avoid carrying stocks purchased at higher tax rates.

Kotak estimates 3.7% revenue growth YoY, led by 3.25% growth in domestic sales and 15% growth in exports, compared with 5.5% and 16% respectively in Q1. Volume growth could slow to around 1%, while price-mix growth may be about 2.3%.

Nuvama also projects 3% overall revenue growth, with domestic sales up 2.5% YoY and exports up about 5–6%. The firm noted that products like Maggi noodles, instant coffee, and confectionery — which now attract a 5% GST — saw aggressive destocking in late September, but added that restocking should begin from October, helping volumes in the festive quarter.

YES Securities expects a slightly better 6% revenue growth, supported by 5% domestic volume growth, while Motilal Oswal pegs overall sales at 5.3% YoY, led by a 5% domestic and 10% export uptick.

Margins to narrow amid high input costs

Despite steady demand in some categories, most analysts expect gross margins to contract by 90–130 basis points YoY, dragged by higher input prices. According to Kotak, gross margins could decline 100 bps YoY to 55.6%, while EBITDA margins may fall 100 bps to 21.9%.

Nuvama expects similar pressure, estimating a 132-bps fall in gross margin and 68-bps drop in EBITDA margin to 22.2%. The brokerage cited continued inflation in coffee and dairy inputs and limited ability to pass on costs post-GST rate cuts.

YES Securities, however, sees some offset from lower overheads and projects EBITDA margin contraction of 40 bps YoY to 22.5%, while recurring profit could remain flat. Elara Capital also expects margins to narrow due to subdued beverage and milk categories, estimating gross margin at 55.5% and EBITDA margin at 22.5%.

Category performance mixed

Brokerages expect prepared dishes and confectionery to perform better than the beverages and dairy portfolio. Elara Capital noted that strong early monsoons likely hit beverage consumption, while demand for milk and nutrition products stayed weak.

Nuvama added that Nestle’s price hikes of around 3% in coffee and premium chocolates provided a limited cushion against raw material cost inflation.

Outlook: Weak quarter but demand revival ahead

Analysts believe the impact of GST-related destocking will be temporary, with demand expected to bounce back from Q3 as distributors replenish inventory and lower product prices boost rural and small-town consumption.

Also read: Gold’s poor cousin crowned 2025’s richest! Silver ETFs just doubled money and the rally isn’t over yet

Motilal Oswal said Nestle’s long-term fundamentals remain strong, citing the company’s continued focus on premiumization, innovation, and distribution expansion. While input cost pressures could persist through the near term, Nestlé’s leadership in key packaged food segments and its ability to drive brand-led pricing power are expected to support recovery in the coming quarters.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

Wall Street stocks retreated from records early Thursday as after Federal Reserve Chair Jerome Powell offered no fresh policy signals, leaving investors to rely on older data to shape sentiment and markets digested solid earnings from Delta and PepsiCo amid a dearth of economic data due to the government shutdown.

US stocks have risen since the government shutdown started on October 1. The closure has delayed key releases on inflation and the employment market.

“Even the most bullish markets take a break sometimes,” said Steve Sosnick of Interactive Brokers.

About 25 minutes into trading, the Dow Jones Industrial Average was down 0.3 percent at 46,481.01.

The broad-based S&P 500 dipped 0.2 percent to 6,741.66, while the tech-rich Nasdaq Composite Index dropped 0.3 percent to 22,985.65.

Both the S&P 500 and Nasdaq ended at records on Wednesday.”There’s not a lot of fresh news this morning, not any real catalysts,” Sosnick said. “We’re not getting economic reports and in some ways the rhythm of the market in that respect has been thrown off a little bit.”Among individual companies, Delta Air Lines jumped 6.2 percent after reporting higher earnings and offering a robust demand outlook. Executives said there has been no significant effect on travel from the shutdown.

PepsiCo climbed 1.3 percent after reporting better than expected results. The company pointed to “improved momentum” in North American beverages.

Wall Street’s main indexes opened flat-to-slightly-lower on Wednesday as investors evaluated strong economic data and awaited a key inflation report that could influence the U.S. Federal Reserve’s policy stance.

The Dow Jones Industrial Average fell 22.6 points, or 0.05%, at the open to 44,837.75. The S&P 500 fell 7.5 points, or 0.12%, at the open to 6,014.11, while the Nasdaq Composite dropped 42.6 points, or 0.22%, to 19,132.987 at the opening bell.

Wall Street’s main indexes were little changed on Wednesday, as investors awaited AI giant Nvidia’s quarterly results, while also eyeing rising geopolitical tensions between Russia and Ukraine.

The Dow Jones Industrial Average rose 27.1 points, or 0.06%, at the open to 43,296.05.

The S&P 500 fell 2.6 points, or 0.04%, at the open to 5,914.34, while the Nasdaq Composite dropped 16.2 points, or 0.09%, to 18,971.311 at the opening bell.

Wall Street’s main indexes opened little changed on Monday, as investors looked ahead to crucial corporate results, especially from AI-chip leader Nvidia, following Wall Street’s slump the previous week.

The Dow Jones Industrial Average fell 13.1 points, or 0.03%, at the open to 43,431.89. The S&P 500 rose 3.6 points, or 0.06%, at the open to 5,874.17, while the Nasdaq Composite rose 37.8 points, or 0.20%, to 18,717.933 at the opening bell.

U.S. stocks ended Thursday around the unchanged mark as investors awaited fresh inflation data, with the Nasdaq able to eke out a slight gain after data showed a continued slowdown in economic activity, raising investors’ hope for rate cuts.

“The market is in a bit of a holding pattern here for the PCE because there hasn’t been a lot of big catalysts,” said Ross Mayfield, investment strategy analyst at Baird, about the release of the monthly personal consumption expenditures (PCE) price index – the Federal Reserve’s preferred inflation gauge – on Friday.

Data showed new orders for key U.S.-manufactured capital goods unexpectedly fell in May, while core durable goods orders fell 0.1% versus forecasts for a 0.2% rise, boosting investor beliefs that a weaker economy could prompt the Federal Reserve to cut interest rates in September.

Weekly jobless claims fell to 233,000, missing expectations of 236,000. Further, a final print showed the U.S. economic growth increased more than estimated in the first quarter.

Benchmark 10- and 2-year yields, which move inversely to prices, dropped after the data showed a continued, but moderated slowdown in economic activity, while the 7-year yields edged lower after a $44 billion auction. Megacap stocks, such as Alphabet and Meta Platforms, firmed as U.S. Treasury yields slipped, up 0.83% and 1.25%. Amazon rose 2.19% after hitting $2 trillion in market value for the first time on Wednesday. The Dow Jones Industrial Average rose 36.53 points, or 0.09%, to 39,164.33, the S&P 500 gained 5.16 points, or 0.09%, to 5,483.06 and the Nasdaq Composite gained 53.53 points, or 0.30%, to 17,858.68. Market participants have highlighted concerns over the rally’s sustainability and have called out for the need to diversify portfolios to hedge against possible sharp losses.

Meanwhile, investors have largely stuck to their view of around two rate cuts this year, as per LSEG’s FedWatch data, even though the Fed has projected only one, and a 59.5% chance of a cut in September.

In a policy essay, Atlanta Fed President Raphael Bostic said inflation “appears to be narrowing” and that should allow rates cuts later this year, while governor Michelle Bowman reiterated that she is still not ready to support a central bank rate cut with inflation pressures still elevated.

“What we’ve been looking forward for most of the week is kind of that preponderance of evidence to tip the scales on what is the direction for inflation,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.

Micron fell 7.11% after an in-line fourth-quarter revenue forecast disappointed investors hoping for more upside from the memory chipmaker’s performance in the artificial intelligence boom.

Nvidia was down 1.90%, continuing its recent turbulent ride.

Walgreens Boots Alliance slumped 22.16% after cutting its 2024 profit forecast and announcing plans to close more underperforming U.S. stores.

Denim maker Levi Strauss tumbled 15.4% after falling short of expectations for second-quarter revenue.

Advancing issues outnumbered decliners by a 1.62-to-1 ratio on the NYSE. There were 168 new highs and 78 new lows on the NYSE.

The S&P 500 posted 9 new 52-week highs and 2 new lows while the Nasdaq Composite recorded 41 new highs and 118 new lows.

Volume on U.S. exchanges was 9.49 billion shares, compared with the 11.74 billion average for the full session over the last 20 trading days.

Wall Street’s main indexes opened subdued on Friday after a rally in the previous session driven by an inflation reading that strengthened bets of interest rate cuts by June this year and a persistent artificial-intelligence mania.

The Dow Jones Industrial Average fell 6.88 points, or 0.02%, at the open to 38,989.51.

The S&P 500 opened higher by 2.24 points, or 0.04%, at 5,098.51, while the Nasdaq Composite gained 17.90 points, or 0.11%, to 16,109.83 at the opening bell.

More to come….