Dow Jones falls 200 points amidst Fed uncertainties even as Hassett hints at a rate cut

Benchmark indices on Wall Street had a quiet, rangebound session that finished in negative territory on Monday ahead of the US Federal Reserve's interest rate decision on Wednesday.

The Dow Jones fell 200 points on Monday, the S&P 500 fell 0.35%, while the Nasdaq closed just below the flat line. The US Dollar index is back above the mark of 99, while bond yields fell to 4.17% on the 10-year note.

While the street has more or less priced in a rate cut from the US Federal Reserve this week, White House National Economic Council Director and potential successor to Jerome Powell, Kevin Hassett hinted at a rate cut in an interview to CNBC on Monday.

Hassett went on to say that Chair Jerome Powell has done a good job in trying to generate a consensus towards cutting rates on Wednesday, but also said that it is "irresponsible" on the Fed's part to project what they would do with interest rates six months down the line. He emphasized on the need to react to incoming economic data and added that Powell agrees with him on this front.

Nvidia also secured a major win with the Trump administration allowing the chipmaker to export its H200 AI chip to China, in exchange for a 25% cut. US President Donald Trump said that he informed his Chinese counterpart Xi Jinping about this decision who responded favourably to it. The next generation Blackwell chips are not part of this approval. The stock gained in extended trading.

Netflix shares fell overnight after Paramount Skydance launched a hostile takeover bid for Warner Bros. Discovery, offering shareholders $30 in cash compared to Netflix's $27.75 offer. Warner Bros. said that they will consider Paramount's bid and respond in 10 business days. Netflix shares were down 3.5%, while Warner Bros. shares gained 3%.

The delayed October job openings report will be released later this evening, one of the last remaining data points before the Fed decision on Wednesday.