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The US Fed's rate cut decision will be announced today.

Major US equity indexes like the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite declined on Tuesday despite positive economic data on retail spending, industrial production, and growing business inventories.

The volatility came ahead of today's upcoming interest rate decision by the US Federal Reserve. Markets are pricing in a 25 bps rate cut amid weakness in the labour market, while some traders are expecting a 50 bps rate cut.

During this volatile session, two stocks stood out: Bigbear AI (NYSE: BBAI) and Webtoon Entertainment (Nasdaq: WBTN), both of which posted double-digit gains.

BigBear AI is a provider of artificial intelligence solutions and services with a focus on defence, national security, and critical infrastructure. The company specialises in offering predictive analytics to help customers make informed decisions about complex datasets, targeting high-stakes government and infrastructure applications.

While there was no specific news that led to the Bigbear AI stock rally of 16.7% on Tuesday to $5.94 (£4.35) per share, one reason for the surge could be attributed to heavy options activity, with call volume considerably outpacing put volume.

Trading options reached 153,412 contracts by 10:30 am ET, as per Bloomberg-compiled data. Call options dominated with 144,958 contracts compared with only 8,454 put contracts. The most actively traded contract was the 3rd October, 2025, $6.50 (£4.76) call, which accounted for 15,375 contracts with an open interest of 1,108 contracts.

Other popular Bigbear options included the 19th September, 2025, $5.50 (£4) call with 12,402 contracts traded and the 19th September, 2025, $6 (£4.39) call with 7,035 contracts. The rise in options activity, focused on call options expiring this year with strike prices above the current stock price, could signal that traders are making bullish bets on the company's future performance.

Analysts polled by TipRanks had a moderate buy rating on Bigbear with a 12-month price target of $5.75 (£4.21) per share.

Meanwhile, Webtoon shares climbed 39% on Tuesday to $20.80 (£15.23) per share, a day after Walt Disney (NYSE: DIS) said it is expanding its partnership with the storytech company to roll out a digital platform that will feature over 35,000 of Disney comics from Marvel to Star Wars.

The platform will offer vertical-scroll as well as traditional comic formats, spanning classics, current series, and new original stories. Even some of the titles will be localised for Webtoon's audiences in Korea and Japan.

Under the agreement, Webtoon will create and operate the service, while Disney links it to its ecosystem. Marvel Unlimited subscribers will receive automatic access, and Disney+ subscribers will get it for free through the Disney+ Perks program. The development builds on the companies' first partnership in August, when Disney started featuring its IP on the Webtoon app. More importantly, Disney plans to acquire a 2% stake in Webtoon Entertainment. However, the deal remains pending as of now.

Analysts polled by TipRanks had a moderate buy rating on the stock with an average 12-month price target of $19.20 (£14) per share.

Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks, and past performance doesn't indicate future returns.

Originally published on IBTimes UK