US Equity Indexes Trade Mixed as Likely Divisions in Fed Policy Announcements Restrain Bulls

01:52 PM EST, 12/10/2025 (MT Newswires) -- US equity indexes traded mixed in midday trading, with healthcare and industrials topping sector charts amid expectations that a divided Federal Reserve will emerge in monetary policy announcements later on Wednesday.

The Dow Jones Industrial Average rose 0.3% to 47,721.5, with the S&P 500 little changed at 6,840.7. The Nasdaq Composite, however, fell 0.4% to 23,486.9.

The Fed's two-day monetary policy committee meeting will close with a policy statement, an updated Summary of Economic Projections, and a press briefing led by Fed Chair Jerome Powell. The probability of the third consecutive 25-basis-point cut is 90%, according to the CME FedWatch tool. Traders expect one to two more reductions of the same magnitude by March, the CME data showed.

TD Securities analysts expect the Fed to adopt a hawkish tone after cutting the policy rate, according to a report from FXStreet.

"The decision to remain on an easing path will be equally or more contentious than October's, and we look for the final rate cut of the year to result in decidedly more hawkish guidance," the analysts were cited as saying. "We expect the Board at large to fully support the decision to ease in December, while hawkish regional Fed presidents are likely to show dissent."

US Treasury yields retreated after hitting multi-week highs on Tuesday. The 10-year yield slid two basis points to 4.17%, after kicking off the day higher at around 4.21%, the highest since September.

Technology and communication services, among the pillars of stock market gains, led a declining trio in midday trading. Financials were among the top gainers, reflecting a potential shift in leadership toward value-oriented sectors.

"The risk to the labor market's still there, the risks to inflation are still there, neither of which are necessarily a cause for alarm right now," Elizabeth Renter, senior economist at NerdWallet, told Business Insider, but "the picture is cloudy."

In company news, shares of GE Vernova (GEV) surged 14%, the top gainer on the S&P 500, after the company doubled its quarterly dividend and said its full-year 2025 revenue guidance of $36 billion to $37 billion is trending towards the higher end of the range.

Shares of Warner Bros. Discovery (WBD) , the subject of an acquisition battle between Netflix (NFLX) and Paramount Skydance (PSKY) , extended with gains of 4.4%, among the leaders on the Nasdaq.

In energy markets, West Texas Intermediate crude oil futures slipped less than 0.1% to $58.22 a barrel.

Gold futures slid 0.3% to $4,225.32.

The ICE US Dollar Index, which reflects the greenback's performance against a basket of the world's major currencies, depreciated 0.3% to 98.94.

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