US stock indices stabilize as eyes focus on rate decision

US stock indices stabilized on Wednesday as eyes are focused on the Federal Reserve’s interest rate decision today.

The Fed will announce its decision later today, widely expected to maintain rates unchanged, with investors now looking forward to Fed Chair Jerome Powell’s subsequent press conference. 

Blackrock analysts said that while markets now expect the Fed to cut interest rates three times this year, there could be a surprise with the Fed only hinting at two rate cuts, especially as consumer prices rose past estimates in February. 

There’s a 55% chance of a Fed 0.25% interest rate cut in June according to the Fedwatch tool.

On trading, Dow Jones rose 0.1%, or 33 points as of 15:03 GMT to 39,143, while S&P 500 stabilized at 5180, as NASDAQ settled at 16,166.