Fed Rate Hike Looms as Wall Street Awaits Interest Rate Decision

Wall Street is holding steady ahead of the Federal Reserve's interest rate announcement and latest retail sales numbers. The S&P 500 rose 0.4% as it waits to hear from the Fed, which traders expect will hike rates to combat high inflation. The Dow Jones Industrial Average was down 26 points, or 0.1%, while the Nasdaq composite was 0.7% higher.

The price of Brent crude oil fell 3.1% to $105.39, helping ease pressure on the bond market. The yield on the 10-year Treasury dropped to 4.96% from 5.00% late Tuesday. Despite this easing, worries about inflation remain high, with traders expecting a rate hike to slow the economy and curb price increases.

The European Central Bank hiked rates last week to combat inflation, and Fed officials will release forecasts for interest rates in upcoming years. A report on retail sales showed shoppers spent more at US retailers last month than expected, which could embolden the Fed to raise rates.