Stocks Flat Ahead of Fed Rate Decision as AI Movers and Med Tech Shares Swing

U.S. equity markets showed little movement on Wednesday morning as traders awaited the Federal Reserve's decision on interest rates. The S&P 500 gained 0.2 percent, closing the gap to its all-time high set earlier this month to within one percent. The Dow Jones Industrial Average was up 31 points, or 0.1 percent, as of 9:35 a.m. Eastern time. The Nasdaq composite rose 0.3 percent during the same period.

The central focus of the day is the Fed's announcement later in the afternoon. The Fed raised its main interest rate last month for the first time in three years to combat high inflation. Wall Street generally expects the central bank to hold the federal funds rate steady at this meeting. The key question for investors is whether the Fed will provide hints about future rate moves. Fed Chairman Kevin Warsh has stated that he wants the Fed to offer fewer indications about its future actions.

Interest rates remain a primary factor in stock valuations. Company profits represent the other major variable. More firms joined the list of those beating analyst expectations for summer profits on Wednesday. GE Healthcare Technologies shares jumped 8 percent after the company reported profit and revenue that surpassed expectations. The firm also raised its forecasts for full-year revenue growth and other financial measures.

Etsy stock climbed 6.6 percent after its quarterly profit exceeded forecasts. CEO Kruti Patel Goyal noted that the online marketplace saw growth in active buyers from prior-year levels for the first time in two years. She added that the active seller base grew at its fastest rate in two years.

Artificial intelligence stocks remained relatively solid. They have stabilized this week after volatile swings driven by concerns that high borrowing costs would undercut the boom in AI data centers. Those centers are largely built with borrowed money. A major boost came from South Korea's SK Hynix, which soared 10.9 percent in Seoul following its profit report. The memory chip seller stated it is in a cycle of rising AI usage and expects demand to outpace supply through 2030.

Micron Technology, another computer memory seller, jumped 5.2 percent on Wall Street. It was the strongest force lifting the S&P 500. These gains helped offset a 3.2 percent drop for Robinhood Markets. The company reported weaker profit and revenue for the latest quarter than analysts expected. Boston Scientific fell 11.1 percent despite reporting a milder profit drop than expected. The medical device seller gave a forecast for current-quarter profit that fell short of analyst expectations.

Treasury yields held steady ahead of the Fed's announcement. The yield on the 10-year Treasury remained at 4.99 percent, where it was late Tuesday. This level is near the high end of its range since it began rising from 3.97 percent before the war with Iran sent oil prices and inflation worries higher. The yield had topped 5.30 percent earlier this month, reaching its highest level since 2002.

Oil prices rose as uncertainty continues about the Middle East and the global energy industry. The price for a barrel of Brent crude, the international standard, climbed 1.8 percent to $111.33. In foreign markets, South Korea's Kospi led with a 6.6 percent jump following SK Hynix's leap. Japan's Nikkei 225 rose 1.1 percent, and France's CAC 40 added 0.2 percent.