S&P 500 Eyes Relief Rally as Fed Decision Looms

The S&P 500 has been stuck in a trading range this month due to the ongoing US-Iran crisis, which has raised concerns about inflation and growth. However, recent developments suggest that the situation is more stable than initially thought.

According to market analysts, the latest weakness in the stock market is largely driven by hedging and deleveraging activity ahead of tomorrow's FOMC rate decision. The ceasefire between the US and Iran remains intact, with diplomatic efforts ongoing.

The Federal Reserve is expected to keep interest rates steady, but there may be one or two dissenting votes for a rate hike at this meeting. Forward guidance from the Fed will likely remain limited under Chair Powell's leadership.