US stock indices were little changed in early trading on Wednesday as market participants held off on major moves ahead of the Federal Reserve's upcoming policy announcement.
Traders are keenly awaiting the debut of new Fed Chair Kevin Wash, looking for any indication of whether he will endorse market expectations for future interest rate hikes or express a divergent view.
As of 10:00 AM New York time, the S&P 500 index was essentially flat, while the Nasdaq 100 index edged up 0.3% and the Dow Jones Industrial Average gained 0.4%.
With the Fed's decision just hours away, equities, bonds, and the US dollar exhibited choppy trading patterns. While money markets have scaled back some bets on rate increases, they still fully price in a 25-basis-point hike by the end of the first quarter of 2027.
Although policymakers are widely anticipated to leave interest rates unchanged, investors will scrutinize the strength of Chair Wash's commitment to bringing inflation back to target. Journalists may also press him on how news of a provisional peace agreement between the US and Iran could influence the economic outlook.
Krishna Guha of Evercore noted that the recent decline in oil prices affords Chair Wash some flexibility, but his path remains very narrow between an overly optimistic dovish stance and an excessively hawkish one.
Shares of SpaceX broke their winning streak, falling 2.9%. The stock had surged roughly 50% from its market debut through Tuesday's close.
The semiconductor sector moved higher following a sell-off on Tuesday. Chip stocks such as Micron Technology and Applied Materials Inc. were among the top gainers in the S&P 500. The Philadelphia Semiconductor Index advanced 2.4%.
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