Oil settles down about 1% as traders focus on Ukraine peace talks, Fed policy decision

Wall Street futures are exhibiting caution as the Federal Reserve approaches a pivotal meeting regarding potential interest rate cuts, with technology earnings also on the horizon. This uncertainty reflects investor sentiment as they await clearer signals from the Fed on economic conditions.

The S&P 500 index ended slightly down as investors remain cautious ahead of the Federal Reserve's upcoming rate decision, reflecting uncertainty in the markets. This decline is indicative of a broader trend where U.S. stocks have faced downward pressure as traders await clarity on monetary policy.

President Trump is set to conduct final interviews this week for the position of Federal Reserve chair, with Kevin Hassett emerging as a leading candidate among the finalists. This follows reports of Hassett's strong support within the administration and his potential nomination expected by early 2026.

Stocks experienced a decline as investors adopted a cautious stance ahead of the Federal Reserve's forthcoming interest rate announcement, reflecting uncertainty in the market. This slip in stock prices comes amid rising yields and a slight uptick in the dollar's value.

Kevin Hassett, a leading candidate for the position of Federal Reserve Chair, has indicated that there is 'plenty of room' to cut interest rates, suggesting a potential shift in U.S. monetary policy. This statement comes as President Trump prepares to conduct final interviews for the role, with Hassett emerging as a prominent contender supported by the administration.

JPMorgan Chase's stock slide contributed to a 0.4% decline in the Dow Jones Industrial Average, as investors await the Federal Reserve's upcoming rate decision. The S&P 500 also fell by 0.1%, while the Nasdaq experienced a slight increase of 0.1%. This downturn reflects ongoing market uncertainty ahead of critical monetary policy announcements.

Top economist Mark Zandi has raised alarms about the precarious financial situation of many Americans, highlighting that a significant number are already living on the financial edge within a K-shaped economy. This warning comes as the latest JOLTS report indicates hiring remains stagnant at 3.2%, with a decline in employee quits, suggesting a troubling labor market.

Oil futures have experienced a decline for the second consecutive session, driven by ongoing negotiations aimed at resolving the Russia-Ukraine conflict. The market's focus on these diplomatic efforts has raised concerns about the potential impact on oil supply-demand dynamics, which are already expected to loosen in the coming year.