Nasdaq Rises Amid Fed Rate Hike Expectations

US stocks opened higher on Wednesday as investors awaited a Federal Reserve interest-rate decision that could shape expectations for monetary policy in the coming months.

The Nasdaq Composite advanced 0.46%, and the S&P 500 gained 0.24%. The Dow Jones Industrial Average, however, fell 34 points, marking a two-day decline for the major indexes.

Markets are pricing in a high probability of a quarter-point rate increase on Wednesday, with futures markets indicating a 92.7% chance. The current target range is 3.5% to 3.75%. Additionally, there's a 41% chance of another quarter-point increase at the Fed's October meeting and a 27% probability of a further hike in December.

The Federal Reserve's decision comes as inflation remains above its target, with consumer prices rising 3.4% year over year in August. The central bank is also facing pressure from the White House to keep rates unchanged, but energy prices have climbed and inflation concerns have persisted.