Caution dominates Wednesday's midday trading session in New York as investors anxiously await the Federal Open Market Committee decision at 2 p.m. ET.
The Fed is widely expected to keep interest rates unchanged at 4.25%-4.5%. Market participants remain highly focused on any signals from Fed Chair Jerome Powell regarding the path forward for rate cuts.
The December meeting delivered a shock to markets, with Powell adopting a more hawkish tone than anticipated, suggesting that interest rates have moved closer to a neutral zone.
This FOMC meeting is also the first since Donald Trump's administration took office, fueling speculation over whether Powell will address questions about the president's pledge to “lower interest rates immediately.”
Among sectors, financial stocks — tracked by the Financial Select Sector SPDR Fund (NYSE:XLF) — hit fresh record highs, while communication services are on pace for their eighth consecutive session of gains.
The dollar and Treasury yields remain mostly flat ahead of the Fed's announcement. Commodities are mixed, with gold and oil down 0.4% and 0.9%, respectively, while silver and copper rise 1.2% and 1.1%.
Bitcoin (CRYPTO: BTC) is up 1% to $102,300, potentially snapping a four-session losing streak.
Wednesday’s Performance In Major US Indices, ETFs
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Wednesday’s Stock Movers
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