Stocks Wait for Fed Decision

Market participants paused Wednesday before the Federal Reserve's afternoon announcement on interest rates. The S&P 500 index gained 0.2%, moving within 1% of the all-time high set earlier this month. The Dow Jones Industrial Average added 149 points, or 0.3%, as of 12:46 p.m. Eastern time. The Nasdaq composite showed no major change.

The primary focus remains on the Fed's communication regarding future rate paths. The central bank raised its main interest rate last month for the first time in three years to combat persistent inflation. Wall Street expects the Fed to hold the federal funds rate steady at this meeting. The uncertainty lies in whether the committee will offer signals about subsequent moves. Fed Chairman Kevin Warsh has advocated for providing fewer forward indicators since assuming his role.

Corporate earnings provided a counterbalance to the rate anxiety. GE HealthCare Technologies surged 7.2% after reporting profit and revenue for the summer quarter that exceeded analyst estimates. The company also raised its full-year financial forecasts. Etsy shares climbed 5.3% as quarterly profit outperformed expectations. CEO Kruti Patel Goyal noted that active buyers grew year over year for the first time in two years. The platform's seller base also expanded at its fastest rate in two years.

Sector-specific moves reflected mixed sentiment in technology and consumer goods. Wendy's stock jumped 15.1% to $7.09 after Trian Fund Management proposed an acquisition at $7.35 per share in cash. Conversely, Boston Scientific dropped 5% despite a milder profit decline than forecast. The company issued a current-quarter profit outlook that missed analyst marks. Robinhood Markets fell 4.2% following a report of weaker profit and revenue than expected.

Investors continued to monitor energy prices and bond yields. Brent crude, the international benchmark, rose 2.7% to $112.39 per barrel. This increase reflects ongoing uncertainty in the Middle East and global energy supply. In the bond market, the 10-year Treasury yield climbed to 5.03% from 4.99% late Tuesday. This level is near the top of the range following the sharp rise from 3.97% when the conflict with Iran began. The yield previously topped 5.30% earlier this month, its highest point since 2002.

International markets reacted to strong performance in the semiconductor sector. South Korea's Kospi index jumped 6.6% after SK Hynix soared 10.9% in Seoul. The memory chip maker reported a cycle of rising AI usage and expects demand to outpace supply through 2030. Japan's Nikkei 225 rose 1.1%, while France's CAC 40 gained 0.1%.