Nasdaq Index: US Stocks Brace for Fed Message That Could Drive the Next Major Move

Stocks Mixed as Fed Decision Approaches and Company-Specific Moves Accelerate

U.S. stocks were modestly higher at mid-session on Tuesday as traders positioned ahead of Wednesday’s Federal Reserve decision. The Dow rose 0.18%, the S&P 500 gained 0.20%, and the Nasdaq added 0.21%, keeping major indexes close to recent highs.

Sentiment in technology was shaped by conflicting signals on U.S. AI chip exports to China, with Nvidia slipping after reports that Beijing may restrict access to H200 processors despite the U.S. allowing shipments with a 25% fee.

Which corporate updates drove the biggest individual stock moves?

Exxon Mobil climbed 2.7% after updating its long-term corporate plan, forecasting $25 billion in earnings growth and $35 billion in cash flow expansion from 2024 to 2030.

Colgate-Palmolive rose 2% following an upgrade to outperform at RBC. CVS advanced more than 2% as its 2026 profit outlook topped expectations, reinforcing confidence in its turnaround progress. Ares Management gained 6% after being added to the S&P 500.

SLM dropped 16% after its investor presentation failed to provide traders with clearer EPS visibility, prompting a downgrade to equal weight at Morgan Stanley.

AutoZone slipped 6% after missing EPS and revenue estimates. Gogo fell 10% after announcing an investment in satellite communications firm Farcast.

Did M&A and strategic actions influence sentiment?

Staar Surgical surged more than 12% after Alcon raised its takeover bid to $30.75 per share. Teleflex gained over 9% after agreeing to sell three business units for $2.03 billion, with proceeds planned for buybacks and debt reduction.

Alexander & Baldwin soared nearly 38% on a $2.3 billion take-private agreement. AeroVironment rose more than 2% after securing an $874 million Army contract. Viking added 2% on a Goldman Sachs upgrade tied to its differentiated customer base, while Norwegian Cruise Line slipped nearly 2% after a downgrade.

How did sector performance influence broader index behavior?

Energy outperformed with a 1.46% gain, followed by strength in financials, materials, and utilities. Technology added 0.2% despite mixed sentiment in semiconductors tied to evolving U.S.–China chip policy. Small caps held relative strength this quarter, and media stocks were supported by the ongoing bidding battle involving Paramount Skydance and Netflix.

What is the short-term outlook for the Nasdaq?

Technically, the Nasdaq Composite remains in an uptrend, but the rally has stalled at 23698.93. Traders are preparing for the potential of a hawkish cut — a scenario where the Fed lowers rates but tempers expectations for additional easing.

A supportive message that aligns with investor expectations should help buyers clear the 23698.93 minor top and attempt a run toward the 24019.99 record high.

If Powell signals caution on inflation or hesitates to endorse further cuts, the index could drop toward the 23071.06 50-day moving average. Extended selling would shift attention to deeper support between 22959.14 and 22798.61.

Near term, the market maintains a cautiously bullish tone as traders await confirmation on the Fed’s policy path and assess how Wednesday’s communication aligns with expectations for easing into next year.

More Information in our Economic Calendar.