ES futures chiseling lower on a directionless day

December S&P 500 E-Mini futures slipped -0.12% as investors await the Federal Reserve's two-day meeting and a delayed U.S. job openings report. The Fed is expected to cut rates by 25 basis points, with attention on Chair Powell's comments regarding future rate moves and the "dot plot" projections. Powell is likely to indicate that further cuts in early 2026 are unlikely. Investors are also watching the JOLTs Job Openings and Leading Economic Index releases, while the October PPI report will be combined with November data for a January release. The S&P 500 dipped 0.35% Monday, with traders waiting for the Federal Reserve's final policy meeting of the year. The Dow fell 0.45%, and the Nasdaq eased 0.14%. A rise in the 10-year Treasury yield weighed on sentiment amid concerns about stubborn inflation. Fed funds futures now give an 89% chance of a rate cut this week, up sharply from last month, fueling recent index gains. However, some investors warn that a surprise hold could trigger a quick 2%–3% drop. Chair Jerome Powell is expected to emphasize a data-driven approach and avoid clear forward guidance. Defensive sectors led, with tech boosted by Broadcom (up nearly 3% on Microsoft chip news), Confluent (+29% on IBM’s $11B acquisition plans), and Oracle (+1% ahead of earnings). Wave Life Sciences and Structure Therapeutics both surged on positive obesity drug results. Paramount gained 7% while pursuing a Warner Bros. Discovery bid. Carvana and CRH climbed after joining the S&P 500; Berkshire Hathaway dropped over 2% after leadership changes.
 

Initial Resistance: 6873.50

Second Resistance: 6882.50

Direction: Trending lower

Potential target: 6829.

Chart (ESZ25)