Nasdaq Rises as Investors Await Fed Rate Decision

The US stock market saw a mixed performance on Wednesday as investors awaited the Federal Reserve's interest-rate decision, which could shape expectations for monetary policy in the coming months. The Nasdaq Composite rose by 0.46%, while the S&P 500 gained 0.24%. However, the Dow Jones Industrial Average fell by 34 points.

The market move followed a two-day decline for the major indexes. Investors are watching Fed Chair Kevin Warsh's remarks for clues about the inflation outlook and future rate moves. Futures markets were pricing in a 92.7% probability of a quarter-point rate increase on Wednesday, according to the CME FedWatch tool.

The current target range is between 3.5% and 3.75%. Markets are also pricing in 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 rate decision comes as inflation remains above the Fed's target.

Consumer prices rose by 3.4% year over year in August, down from the recent high of 4.2% recorded in May. However, monthly CPI increased by 0.4%, exceeding expectations. The central bank is also facing pressure from the White House to keep rates unchanged.