Stock markets were mostly down on Monday as investors avoided risks ahead of this week’s central bank meeting

U.S. stock markets were mostly down on Monday as investors avoided risks ahead of this week’s central bank meeting.

A bid by Paramount for Warner Bros. Discovery, meanwhile, brought the tech and entertainment sectors to life, as the market braced for a bidding war with Netflix.

A monetary easing at Wednesday’s U.S. central bank meeting is fully priced into stock prices, analysts said, but investors will scour the central bank’s statement and news conference for insights into how many rate cuts might be on the cards next year, against a backdrop of stubborn inflationary pressures.

Investors have priced in that rate cut already and now are anxiously waiting for the tone of the Fed, said Art Hogan of B. Riley Wealth Management, who noted “a divide” among Fed policy makers that adds to uncertainty about 2026 monetary policy.

Analysts said stocks could drop if Powell (U.S. central bank chair) seems to close the door to further cuts next year.

Investors want Fed Chair Powell to at least imply that they are still open to an additional cut in January, said Sam Stovall of CFRA Research. They don’t want it to just be one and done.

In Europe, Frankfurt outperformed other markets after German industrial production unexpectedly climbed in October – another sign that Europe’s crisis-wracked top economy may be turning a corner.

In New York, Warner Bros. Discovery shares climbed 4.4 percent after Paramount countered last week’s Netflix bid for the company with an all-cash offer worth $108.4 billion.

Netflix declined 3.4 percent faced with the big competitive bid.