Key facts
- US stocks edged higher Wednesday ahead of the Federal Reserve's interest rate decision.
- Oil prices and Treasury yields eased, providing some relief to markets.
- The S&P 500 rose 0.4% and the Nasdaq Composite was 0.8% higher as of 11 a.m. ET.
- The 10-year Treasury yield fell to 4.95% from 5.00%.
- Brent crude fell 2.5% to $106.07 per barrel.
- Fed Chair Kevin Warsh's remarks will be closely watched for clues on future rate policy.
Wall Street held steady Wednesday as investors awaited the Federal Reserve's interest rate decision, with traders expecting a hike to combat high inflation. The S&P 500 was on track for a modest gain, while the Dow Jones Industrial Average edged lower and the Nasdaq Composite climbed. Stocks found some support from easing oil prices and bond yields. Brent crude fell 2.5% to $106.07 a barrel, down from earlier highs driven by concerns over the war with Iran. The yield on the 10-year Treasury eased to 4.95% from 5.00% on Tuesday, having briefly topped 5% earlier in the week for the first time since 2023. Analysts view a rate hike as a near certainty to curb inflation, a typical central bank move that slows the economy by making borrowing more expensive. The European Central Bank also recently hiked rates. Traders are pricing in a high probability of a Fed hike, though a slight chance of a hold remains, which could signal less commitment to fighting inflation. A stronger-than-expected retail sales report could embolden the Fed, suggesting the economy can withstand higher rates. Technology stocks, including Nvidia and Advanced Micro Devices, showed some recovery after a recent slide, while J.B. Hunt Transport Services fell sharply due to higher costs and expected earnings drop. Asian and European markets also saw gains.