Fed Rate Decision Due as JPMorgan Sinks, Nvidia Enters Phone Chips

Markets held steady on 10 December 2025 as investors awaited the Federal Reserve's final policy decision of the year. The FOMC is widely expected to cut its benchmark interest rate by 25 basis points, signalling a potential shift in US monetary policy direction.

TL;DR

• Fed expected to cut rates 25 basis points on 10 December 2025

• JPMorgan shares fell 4% on 9 December after warning 2026 expenses will exceed $92 billion

• Nvidia developing smartphone location chips that work without internet connectivity

• Brent crude steady at $62/barrel amid falling US inventories

• US equities flat as traders await Fed guidance

JPMorgan Warns on Rising Costs

JPMorgan Chase & Co. shares dropped over 4% on Monday after the banking giant projected higher expenses in 2026. CFO Jeremy Barnum told investors full-year spending would likely surpass $92 billion due to technology investments and regulatory compliance initiatives.

The warning unsettled investors who had expected cost discipline following recent profit growth. JPMorgan's expense forecast reflects broader industry trends as banks increase spending on digital infrastructure and navigate evolving regulatory requirements. (Source: Yahoo Finance)

Nvidia Expands Into Smartphone Technology

Nvidia made headlines with reports it is developing chips designed to verify smartphone locations without requiring internet connectivity. The technology aims to enhance security for mobile payments and identity verification applications, according to exclusive reporting from Yahoo Finance.

Shares of Nvidia remained near recent record highs despite the announcement. The move signals Nvidia's push beyond data-centre AI chips into consumer device markets, potentially opening new revenue streams as smartphone manufacturers seek enhanced security features.

Fed Rate Decision: What Markets Expect

The Federal Reserve's policy announcement on 10 December carries significant weight for financial markets. Current expectations:

• Rate cut probability: Markets price in 89% chance of 25 basis point reduction

• Forward guidance: Traders watching for signals on 2026 rate path

• Inflation outlook: Fed's updated economic projections will shape market sentiment

A rate cut would mark a pivot from the Fed's extended tightening cycle, potentially supporting risk assets including technology stocks and growth equities.

Oil Markets Hold Steady

Brent crude traded around $62 per barrel as traders weighed competing factors. US crude inventories fell more than expected last week, providing price support, whilst demand concerns from China's economic slowdown capped gains.

Geopolitical uncertainties, including Middle East tensions and production decisions from OPEC+, continue influencing oil price direction heading into year-end.

Central Bank Policy Divergence

The Fed's expected rate cut contrasts with the European Central Bank's more cautious stance. The ECB maintains rates as eurozone inflation remains above target, creating policy divergence that shapes currency markets.

The US Dollar Index has strengthened against major currencies in recent weeks, partly reflecting expectations that Fed rate cuts may be limited compared to previous easing cycles.

Market Volatility Subsides

Volatility across global equity indices decreased in recent sessions, suggesting markets have entered wait-and-see mode ahead of the Fed decision. In Asia, the Nikkei 225 edged down 0.4%, whilst European equities posted mild gains.

Lower volatility typically indicates investor uncertainty rather than conviction, as traders avoid large positions before major policy announcements.

Conclusion

With the Fed's final 2025 rate decision imminent, equity markets showed limited movement on 10 December. Company-specific news added stock-level volatility, as JPMorgan's cost warning pressured financials whilst Nvidia's smartphone chip expansion highlighted ongoing semiconductor innovation.

The Fed announcement and Chair Jerome Powell's subsequent press conference will likely set market tone through the year-end, particularly for interest-rate-sensitive sectors including technology and financials.

*Past performance does not reflect future results. The above are only projections and should not be taken as investment advice.