Wall Street Opens Flat in Final Session as Fed Policy Divisions Weigh on Investors

U.S. stock indexes opened with marginal fluctuations as investors prepared for the year’s final trading day, following a three-session losing streak for Wall Street.

At the opening bell, the Dow Jones Industrial Average was up 0.04%, the S&P 500 gained 0.05%, and the Nasdaq Composite rose 0.10%. The tentative start comes amid thin liquidity, with many market participants away for the New Year’s holiday on Thursday.

Trading volumes have remained low, and U.S. bond markets are set to close early on Wednesday. On Tuesday, the S&P 500 fell 0.1%, while the Dow and the Nasdaq Composite each shed 0.2%.

Market sentiment has been unsettled by the release of minutes from the Federal Reserve’s December policy meeting, which revealed deep divisions among policymakers over the interest rate path for 2026. While the Fed enacted a quarter-percentage-point rate cut in that session, the meeting’s record showed some officials were increasingly wary of further easing, citing stubborn inflation and economic uncertainty.

Others argued that maintaining a restrictive policy for too long could risk slowing growth too sharply.

Hopes for a so-called Santa Claus rally—a period that historically brings gains in the final days of the year and early January—have faded as stocks have drifted lower. Analysts suggest that limited market leadership and profit-taking after a strong year for the main indexes have dampened the seasonal optimism.

With economic data releases sparse in the holiday-shortened week, markets are being guided largely by technical factors, policy expectations, and year-end portfolio adjustments.