Stock Market Today: Dow Jones Climbs to 47,681; GEV Stock Soars 11.8%, Nasdaq (IXIC) Slips

Stock Market Today: Fed Decision Looms as Dow (DJIA) Rises, Nasdaq Weakens, and GE Vernova (GEV) Outperforms

Monetary Tension Dominates as Indices Stall Before Fed Cut

U.S. equities traded narrowly mixed on Wednesday, with markets pausing ahead of the Federal Reserve’s final policy decision of 2025. The Dow Jones Industrial Average (DJIA) gained +0.2% to 47,681.66, lifted by strength in industrial and energy names, while the S&P 500 (SPX) hovered flat at 6,838.32, just 1% below its all-time high from late October. The Nasdaq Composite (IXIC) slipped 0.2% to 23,526.13, dragged lower by large-cap tech softness ahead of key AI-related earnings.

The Fed is expected to deliver its third consecutive 25 bps rate cut, taking the target range to 3.50–3.75%, according to CME’s FedWatch Tool which prices a 90% probability. Investors are cautious that Chair Jerome Powell could signal a slower easing pace for 2026, warning of a potential “hawkish cut” scenario if inflation persistence remains a concern. Treasury yields reflected that tension, with the 10-year yield climbing to 4.21%, its highest since September, before retreating to 4.17%.

Sector Divergence: Small-Caps Surge While Tech Faces Pressure

While megacaps underperformed, small-cap stocks continued to outperform. The Russell 2000 (RUT) advanced to a record intraday high of 2,528, powered by expectations that lower borrowing costs will improve margins for domestically focused firms. Wells Fargo analysts noted a “widening equity breadth,” with investors rotating from tech into cyclical and value sectors.

The rotation comes as markets anticipate stronger growth in 2026, driven by expected tax refunds, deregulation, and increased capital expenditure in technology. Small-caps have gained over 8% since Nov. 21, outpacing the S&P 500 by more than 3 percentage points.

Corporate Highlights: GE Vernova (GEV) Leads on Dividend Hike

The biggest gainer among large industrials was GE Vernova (NYSE:GEV), soaring +11.8% to $698.95 after doubling its quarterly dividend to $0.50 per share and guiding FY2025 revenue toward the upper range of estimates. Management attributed the optimism to sustained demand for natural gas and AI-driven power generation. The company’s buyback expansion further strengthened confidence in cash flow sustainability.

Conversely, AeroVironment (NASDAQ:AVAV) plummeted 10.5% to $251.79 after posting adjusted earnings of $0.44 per share, missing consensus by 43%, despite revenue surging 150% YoY to $472.5 million. The profit miss was attributed to higher R&D and component costs linked to drone production contracts. The stock remains up 60% YTD, underscoring long-term momentum despite short-term pressure.

Earnings Movers: GameStop (GME), Chewy (CHWY), and Oracle (ORCL)

GameStop (NYSE:GME) tumbled 5.9% to $21.75 after missing Q3 revenue expectations with $821 million, down from $860.3 million a year earlier. Its $0.24 EPS beat estimates but failed to offset concerns about declining store traffic and fading retail relevance. Notably, GameStop continues holding $519.4 million in Bitcoin (BTC-USD), reflecting a corporate treasury pivot toward crypto assets.

Chewy (NYSE:CHWY) rose 3.9% to $34.82 after reporting $3.12 billion in sales versus expectations of $3.01 billion, with EPS of $0.32 exceeding forecasts. Gross margins at 29.8% dipped slightly from Q2’s 30.4%, yet analysts noted continued outperformance in digital pet retail amid sector-wide softness.

Oracle (NYSE:ORCL) and Adobe (NASDAQ:ADBE) traded marginally lower before their earnings releases. Oracle, up 33% YTD, faces scrutiny over its rising debt load amid aggressive AI infrastructure expansion. Analysts expect management to defend its long-term leverage strategy and reaffirm AI-cloud integration outlook under new co-CEOs Clay Magouyrk and Mike Sicilia.

Tech Under Pressure: Intel (INTC), AMD (AMD), and Palantir (PLTR) Decline

Chipmakers came under scrutiny after legal reports tied Intel (NASDAQ:INTC), Advanced Micro Devices (NASDAQ:AMD), and Texas Instruments (NASDAQ:TXN) to alleged component misuse in Russian military systems. Intel fell 2.1% to $39.64, while AMD slipped 0.4%. Intel’s acquisition of AI startup SambaNova Systems raised speculation about renewed AI competition against NVIDIA (NASDAQ:NVDA) and Palantir (NYSE:PLTR).

Meanwhile, Palantir fell 1.3% after an early-session rebound, despite continued optimism over government contracts. The stock remains up 94% YTD, driven by AI platform demand from U.S. and European agencies.

Commodities and Crypto: Silver (SI=F) Breaks $60, Gold (XAU/USD) Holds Above $4,200

In commodities, silver (SI=F) surged to a record $60.74/oz, its first time above the level in history, fueled by industrial demand and ETF inflows. Analysts at MUFG cited “supply tightness from India” and expectations of continued Fed easing.

Gold (XAU/USD) traded at $4,225/oz, down 0.3%, maintaining a strong floor above the $4,200 mark as investors balanced Fed policy uncertainty with sustained geopolitical tension.

In crypto markets, Bitcoin (BTC-USD) hovered at $91,970, down 1.2%, after touching $93,200 overnight. Analysts warn of a potential retracement toward $88,000 if risk sentiment fades following Powell’s remarks.

Bond Market and Dollar Movement: Volatility Returns

The U.S. Dollar Index (DXY) slipped 0.2% to 99.08, reflecting market positioning for further dovish guidance. Global bond markets signaled caution, with yields hitting 16-year highs in some regions, indicating investors expect the rate-cut cycle to slow in 2026. The VIX volatility index edged up to 17.1, suggesting defensive repositioning ahead of Powell’s press conference.

Outlook and Market Sentiment

Market breadth improved with 72% of S&P 500 constituents trading higher, led by financials, energy, and industrials, while mega-cap tech lagged. Wells Fargo projects a double-digit S&P 500 gain in 2026, citing accelerating AI adoption and fiscal support through tax refunds.

With Powell’s press conference due at 2:30 p.m. ET, traders brace for volatility. A dovish tone could extend the current risk rally into year-end, but a hawkish signal would likely push the Nasdaq (IXIC) into correction territory.

At this stage, the data imply a neutral-to-bullish short-term bias on equities. The Dow (DJIA) and S&P 500 (SPX) show stable uptrends supported by earnings and breadth expansion, while the Nasdaq (IXIC) remains vulnerable to Fed language and tech earnings.

Verdict: Short-term Buy for diversified indices (DJIA, SPX); Hold for Nasdaq; Bullish rotation into small-caps (RUT) and industrials (GEV, AVAV recovery potential). Defensive watch on overleveraged tech (ORCL, INTC).

That's TradingNEWS