Fed Decision Looms as Wall Street Waits for Interest Rate Hike

Wall Street is holding steady as investors await the Federal Reserve's decision on interest rates. The central bank is expected to announce a hike to help control high inflation, but traders are keeping a close eye on the latest retail sales numbers.

The S&P 500 rose 0.4% on Wednesday, marking its second gain in eight days. Meanwhile, the Dow Jones Industrial Average was down 26 points, or 0.1%, as of 12:31 p.m. Eastern time. The Nasdaq composite, however, was 0.7% higher.

With inflation running high, the Federal Reserve's decision on interest rates is closely watched by investors and economists alike. A hike in interest rates would aim to slow down borrowing and spending, potentially helping to bring down inflation. However, some critics argue that this approach may have unintended consequences, such as slowing down economic growth.