US stocks advanced modestly on Wednesday as investors awaited the Federal Reserve’s latest policy decision and a series of major technology earnings. The S&P 500 rose 0.2% by midday in New York, while the NASDAQ 100 added 0.5% and the Dow Jones Industrial Average climbed 0.5%.
Traders widely expected the by a quarter-point, marking the second rate cut of the year. Some expect Chair Jerome Powell to adopt a cautious tone, emphasizing risk management amid slowing economic growth and ongoing inflationary pressures. The potential end of the Fed’s balance sheet reduction also encouraged a more optimistic outlook on liquidity.
In the bond market, the 10-year Treasury yield increased by two basis points to 3.99%, and the two-year yield rose by one basis point to 3.50%. The Bloomberg Dollar Spot Index was little changed. Gold climbed 1.1% to $3,995.41 an ounce, and West Texas Intermediate crude rose 1.2% to $60.88 per barrel.