Futures-options traders work on the floor at the New York Stock Exchange’s NYSE American (AMEX) in New York City, U.S., Dec. 8, 2025.

Brendan McDermid | Reuters

Stock futures were little changed on Tuesday as Wall Street looks ahead to this week’s interest rate decision from the Federal Reserve.

Futures tied to the Dow Jones Industrial Average slid 46 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures fell 0.1% and 0.2%, respectively.

Traders are waiting for the Fed’s highly awaited interest rate decision on Wednesday, which will be the last of the year. Markets are betting that the central bank will lower its key overnight lending rate by another quarter percentage point as it did at its meetings in September and October. Fed funds futures suggest an 89% chance of a decrease, up from under 67% about a month ago, according to CME’s FedWatch tool.

“While a rate cut feels almost certain at this point, the Fed’s economic projections and Chairman Powell’s commentary will play a big role in how markets react — not only this week, but it could possibly set the tone for the remainder of the month,” Bret Kenwell, U.S. investment analyst at eToro, said. “After the recent pullback in stocks and crypto, risk-on investors are hoping the Fed will grease the rails for a year-end rally rather than pour cold water on the recent rebound.”

Kenwell noted that the Fed is balancing a confluence of factors heading into its decision: sticky inflation, a cloudy macroeconomic landscape, economic data delayed by the record U.S. government shutdown and expectations of a new chairman.

“There are a lot of moving parts for the Fed in 2026. … That brings up the key question: Will the Fed be able to strike an accommodative tone if these factors persist into 2026, or will its dual mandate keep the doves in check?” he said.

Nvidia ticked higher in premarket trading following a Truth Social post Monday evening that said the chipmaking giant could ship its H200 chips to “approved customers” in China and elsewhere under the condition that a quarter of the sales will be paid to the U.S. government. Trump wrote that Chinese President Xi Jinping “responded positively” to the deal. Nvidia Chief Executive Jensen Huang met with Trump last week, and the agreement marks a win for the tech giant after months of trade talks.

Meanwhile, CVS and Home Depot moved in opposite directions after the companies offered their 2026 guidance. Shares of the retail drugstore chain advanced more than 3% after issuing a better-than-expected profit outlook for next year, while the home improvement stock declined more than 2% after its 2026 earnings growth guidance missed analyst expectations.

In Monday’s trading session, tech stocks were the winner. Out of the 11 S&P 500 sectors, the tech sector was the only one that closed in the green, buoyed by gains in a slew of semiconductor names. Shares of Broadcom rose almost 3%, while Nvidia and Microsoft each added about 2%, on the back of a report from The Information that Microsoft is considering designing custom chips with Broadcom. 

Each of the three major U.S. stock indexes declined in the previous trading session, meanwhile, while the 10-year Treasury yield continued to climb as worries remain about the impact of persistent inflation.