World News | Stock Market Today: Wall Street Drifts Again in the Countdown to a Federal Reserve Announcement

New York, Sep 20 (AP) Stocks are ticking higher on Wednesday as Wall Street waits to see the Federal Reserve's latest forecasts for where interest rates may be heading.

The S and P 500 was 0.3 per cent higher in early trading, continuing a quiet run this week where markets have made few big moves ahead of the Fed.

Also Read | UK Dog Attack Video: Man Pulled on Road By Out-Of-Control Dog in Sheffield, Terrifying CCTV Footage Surfaces.

The Dow Jones Industrial Average was up 82 points, or 0.2 per cent, at 34,600, as of 9:40 a.m. Eastern time, and the Nasdaq composite was 0.3 per cent higher.

It's nearly a foregone conclusion among traders that the Fed will say in the afternoon that it's keeping its main interest rate steady. The question is what Fed officials say in updated projections they're releasing about where they see interest rates heading in upcoming years.

Also Read | Adriana Thyssen, Brazilian Fitness Influencer, Dies of 'Mystery Illness' At 49 After Losing 45 Kg in A Year.

Will they still pencil in one more hike this year, after they've already pulled the Fed's main rate to its highest level in more than two decades? Will they indicate as many cuts to rates in 2024, which can goose prices for stocks and other investments, as traders are expecting?

Such questions are key because it's still uncertain when the Fed will feel comfortable enough that inflation is moving back to its 2 per cent target for it to stop raising rates.

Inflation has come down considerably from its peak above 9 per cent last year, but a recent upswell in oil prices has complicated the trajectory. Last month, it accelerated to 3.7 per cent.

Treasury yields eased ahead of the Fed's announcement. They, though, are still near their highest levels in many years on expectations the Fed may keep rates higher for longer to fully vanquish inflation.

The yield on the 10-year Treasury dropped to 4.32 per cent from 4.37 per cent late Tuesday, near its highest level since 2007.

The two-year Treasury yield, which moves more on expectations for the Fed, fell to 5.06 per cent from 5.09 per cent late Tuesday.

An easing up of rates and bond yields would give a boost to all kinds of investments. Some of the biggest beneficiaries tend to be high-growth companies, and tech stocks have swung particularly sharply with expectations for rates.

On Wall Street, shares of Pinterest rose 7.5 per cent after the company gave forecasts and recaps of its decisions at its investor day that pushed analysts to upgrade how high they think its stock could go.

Beauty products company Coty climbed 6.4 per cent after it raised its forecasts for the year due to strong demand for its new Burberry Goddess fragrance and other products.

On the losing end of Wall Street, Instacart gave back some of its gains from its first day of trading as a public stock. It dropped 6 per cent.

Arm Holdings, another company recently off a highly anticipated IPO, also fell. It slipped 0.3 per cent.

In stock markets abroad, the FTSE 100 in London rose 0.8 per cent after a report showed UK inflation fell unexpectedly in August to its lowest level since Russia launched its invasion of Ukraine.

Indexes were mostly weaker in Asia after data showed Japanese exports fell from year-ago levels for the second straight month. Exports to China sank 11 per cent, as the world's second-largest economy continues to underperform expectations.

Officials in Beijing acknowledged challenges in boosting growth but told reporters they were confident that a recovery was underway and that they had the capacity to ensure stability of financial markets.

Japan's Nikkei 225 fell 0.7 per cent, Hong Kong's Hang Seng dropped 0.6 per cent and stocks in Shanghai slipped 0.5 per cent. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)